----

----

| x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year Ended December 31, 2010 |
|----------------------------------------------------------------------------------------------------------------------------------------|

| o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------------------------------------------------------------------------------------|

| Nevada                   |   | 26-2477977                              |
|--------------------------|--------|-----------------------------------------|
| (State of Incorporation) |   | (I.R.S. Employer Identification Number) |
|                     |   |                                    |

| Istanbul Trakya Serbest Bölgesi Atatürk Bulvari Ali Riza Efendi cd., A4 Blok Çatalca,Istanbul Turkey |
|---------------------------------------------------------------------------------------------------------------------|
| (Address of Principal Executive Offices, Including Zip Code)                                                        |

| None                  |   | Not Applicable                              |
|-----------------------|--------|---------------------------------------------|
| (Title of each class) |   | (Name of each exchange on which registered) |

|      Large Accelerated Filer   o | Accelerated Filer   o | Non-accelerated Filer   o(Do not check if a smaller reporting company) | Smaller reporting company  x |
|--------------------------------------------------------------------------|---------------------------------|----------------------------------------------------------------------------------|-----------------------------------|

----

----

|   | Report of Independent Registered Public Accounting Firm for TouchIT Ed           |   F-1  |
|--------|----------------------------------------------------------------------------------|-------------|
|   |                                                                             |        |
|   | TouchIT Ed Statement of Financial Position as of December 31, 2010 and 2009      |   F-2  |
|   |                                                                             |        |
|   | TouchIT Ed Statement of Income as of December 31, 2010 and 2009                  |   F-3  |
|   |                                                                             |        |
|   | TouchIT Ed Statement of Cash Flow as of December 31, 2010 and 2009               |   F-4  |
|   |                                                                             |        |
|   | TouchIT Ed Statement of Changes in Equity as of December 31, 2010 and 2009       |   F-5  |
|   |                                                                             |        |
|   | Notes to TouchIT Ed Financial Statements                                         |   F-6  |
|   |                                                                             |        |
|   | Report of Independent Registered Public Accounting Firm for TouchIT Tech KS      |   F-20 |
|   |                                                                             |        |
|   | TouchIT Tech KS Statement of Financial Position as of December 31, 2010 and 2009 |   F-21 |
|   |                                                                             |        |
|   | TouchIT Tech KS Statement of Income as of December 31, 2010 and 2009             |   F-22 |
|   |                                                                             |        |
|   | TouchIT Tech KS Statement of Cash Flow as of December 31, 2010 and 2009          |   F-23 |
|   |                                                                             |        |
|   | TouchIT Tech KS Statement of Changes in Equity as of December 31, 2010 and 2009  |   F-24 |
|   |                                                                             |        |
|   | Notes to TouchIT Tech KS Financial Statements                                    |   F-25 |

----

| Exhibit Number   |   | Description                                                                                                                 |
|----------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                        |
| 3.1              |   | Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 of Form 10-K filed March 31, 2011) |
|                       |   |                                                                                                                        |
| 3.2                        |   | Bylaws of TouchIT Technologies, Inc. (incorporated by reference to Exhibit 3.2 of Form S-1 filed May 29, 2008)              |
|                       |   |                                                                                                                        |
| 10.1                       |   | Share Exchange Agreement (incorporated by reference to Exhibit 2.1of Form 8-K filed on May 12, 2010)                        |
|                       |   |                                                                                                                        |
| 10.2                       |   | The Credit Agreement (incorporated by reference to Exhibit 10.1 of Form 8-K filed February 23, 2011)                        |
|                       |   |                                                                                                                        |
| 21                    |   | Subsidiaries of TouchIT Technologies, Inc. (incorporated by reference to Exhibit 21 of Form 10-K filed March 31, 2011)      |
|                       |   |                                                                                                                        |
| 31.1*                      |   | Certification of Principal Executive Officer                                                                                |
|                       |   |                                                                                                                        |
| 31.2*                      |   | Certification of Principal Financial Officer                                                                                |
|                       |   |                                                                                                                        |
| 32.1*                      |   | Certification of Chief Executive Officer and Chief Financial Officer                                                        |
|                       |   |                                                                                                                        |
| * Filed herewith           |

----

|   | TouchIT Technologies, Inc. f.k.a Hotel Management Systems, Inc. |
|--------|-----------------------------------------------------------------|
|   |                                                            |   |
|   | By:                                                             | /s/ Andrew Brabin |
|   |                                                            | Andrew Brabin, Chief Financial Officer |
|   |                                                            | September 20, 2011 |
|   |                                                            |   |

| Signature                |   | Title                                                                            |   | Date                    |
|--------------------------|--------|----------------------------------------------------------------------------------|--------|-------------------------|
|                     |   |                                                                             |   |                    |
| /s/ Recep Tanisman       |   | Chief Executive Officer and Director (Principal Executive Officer)               |   | September 20, 2011 |
| Recep Tanisman           |   |                                                                             |   |                    |
|                     |   |                                                                             |   |                    |
| /s/ Andrew Brabin        |   | Chief Financial Officer,  Corporate Secretary, Treasurer, and Director |   | September 20, 2011 |
| Andrew Brabin            |   | (Principal Financial and Accounting Officer)                                     |   |                    |
|                     |   |                                                                             |   |                    |
| /s/ Ronald George Murphy |   | Officer and Director                                                             |   | September 20, 2011 |

----

----

----

----

----

|                                                                     |   | Notes  |   |   |   | 31.12.2010 |      |   |   | 31.12.2009 |    |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|------------|-----------|--------|--------|------------|---------|
| ASSETS                                                                   |   |   |   |   |   |       |      |   |   |       |    |
| Cash and cash equivalents                                                |   |   | 5      |   |   |       | 3,274     |   |   |       | 2,204   |   |
| Trade receivables, net                                                   |   |   | 6      |   |   |       | 35,288    |   |   |       | 5,408   |   |
| Due from related parties                                                 |   |   | 7      |   |   |       | 863,395   |   |   |       | 130,594 |   |
| Due from shareholders                                                    |   |   | 7      |   |   |       | 9,842     |   |   |       | --      |   |
| Inventories, net                                                         |   |   | 8      |   |   |       | 191,417   |   |   |       | 93,435  |   |
| Other current assets                                                     |   |   | 9      |   |   |       | 221       |   |   |       | 382     |   |
|                                                                     |   |   |   |   |   |       |      |   |   |       |    |   |
|         Total current assets     |   |   |   |   |   |       | 1,103,437 |   |   |       | 232,023 |   |
|                                                                     |   |   |   |   |   |       |      |   |   |       |    |   |
| Rights, net                                                              |   |   | 10     |   |   |       | 13,312    |   |   |       | 14,976  |   |
|                                                                     |   |   |   |   |   |       |      |   |   |       |    |   |
|         Total non-current assets |   |   |   |   |   |       | 13,312    |   |   |       | 14,976  |   |
|                                                                     |   |   |   |   |   |       |      |   |   |       |    |   |
| Total assets                                                             |   |   |   |   |   |       | 1,116,749 |   |   |       | 246,999 |   |
|                                                                     |   |   |   |   |   |       |      |   |   |       |    |   |

| LIABILITIES AND SHAREHOLDERS' EQUITY                      |   |   |   |   |   |   |      |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|
|                                                      |   |   |   |   |   |   |      |   |   |
| Trade payables                                            |   |   | 11     |   |   |   | 54,211    |   |   |   | 1,606 |   |
| Due to related parties                                    |   |   | 7      |   |   |   | 104,887   |   |   |   | 28,816 |   |
| Due to shareholders                                       |   |   | 7      |   |   |   | 22,147    |   |   |   | 19,924 |   |
| Other current liabilities                                 |   |   | 12     |   |   |   | 48,001    |   |   |   | 49,103 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
|      Total current liabilities   |   |   |   |   |   |   | 229,246   |   |   |   | 99,449 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
| Share purchase advances                                   |   |   | 1      |   |   |   | 750,000   |   |   |   | -- |   |
| Employee termination benefits                             |   |   | 13     |   |   |   | --        |   |   |   | 1,041 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
|      Total long-term liabilities |   |   |   |   |   |   | 750,000   |   |   |   | 1,041 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
| Shareholders' Equity:                                     |   |   |   |   |   |   |      |   |   |   |   |   |
| Share capital                                             |   |   | 14     |   |   |   | 37,570    |   |   |   | 35,500 |   |
| Retained Earnings                                         |   |   |   |   |   |   | 111,009   |   |   |   | 53,743 |   |
| Net income/ (loss) for the period                         |   |   |   |   |   |   | (11,076   | )      |   |   | 57,266 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
| Total shareholders’ equity                          |   |   |   |   |   |   | 137,503   |   |   |   | 146,509 |   |
|                                                      |   |   |   |   |   |   |      |   |   |   |   |   |
| Total liabilities and shareholders’ equity          |   |   |   |   |   |   | 1,116,749 |   |   |   | 246,999 |   |

----

----

----

|                                            |   | Notes  |   |   |   | 31.12.2010 |      |   |   | 31.12.2009 |     |
|-------------------------------------------------|--------|--------|--------|--------|--------|------------|-----------|--------|--------|------------|----------|
|                                            |   |   |   |   |   |       |      |   |   |       |     |
| Sales                                           |   |   | 15     |   |   |       | 1,307,420 |   |   |       | 777,013  |   |
| Cost of sales                                   |   |   | 16     |   |   |       | (929,350  | )      |   |       | (649,708 | ) |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Gross profit                                    |   |   |   |   |   |       | 378,070   |   |   |       | 127,305  |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Marketing and selling expenses                  |   |   | 17     |   |   |       | (154,275  | )      |   |       | (24,562  | ) |
| General and administrative expenses             |   |   | 18     |   |   |       | (289,285  | )      |   |       | (55,690  | ) |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Total operating income                          |   |   |   |   |   |       | (65,490   | )      |   |       | 47,053   |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Financial income / (expense), net               |   |   | 20     |   |   |       | (3,043    | )      |   |       | (2,172   | ) |
| Other income / (expense), net                   |   |   | 19     |   |   |       | 15,652    |   |   |       | 12,077   |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Profit  before provision for taxation |   |   |   |   |   |       | (52,881   | )      |   |       | 56,958   |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Provision for taxation                          |   |   |   |   |   |       |      |   |   |       |     |   |
|    - Current                     |   |   |   |   |   |       |      |   |   |       |     |   |
|    - Deferred                    |   |   |   |   |   |       |      |   |   |       |     |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Net income for the period                       |   |   |   |   |   |       | (52,881   | )      |   |       | 56,958   |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Other comprehensive income                      |   |   |   |   |   |       |      |   |   |       |     |   |
| Currency translation differences                |   |   |   |   |   |       | 41,805    |   |   |       | 308      |   |
|                                            |   |   |   |   |   |       |      |   |   |       |     |   |
| Total comprehensive income for the period       |   |   |   |   |   |       | (11,076   | )      |   |       | 57,266   |   |

----

----

----

|                                                                              |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                              |   |   |       |   |   |   |       |   |
| Cash flow from operating activities                                               |   |   |       |   |   |   |       |   |
| Net income for the period                                                         |   |   | (11,076    | )      |   |   | 57,266     |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Adjustments to reconcile net profit to net cash provided by operating activities: |   |   |       |   |   |   |       |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Provision for employee termination benefit                                        |   |   | (1,041     | )      |   |   | 727        |   |
| Depreciation                                                                      |   |   | 1,664      |   |   |   | 8,493      |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Net income adjusted to non-cash items                                             |   |   | (10,453    | )      |   |   | 66,486     |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Changes in operating assets and liabilities:                                      |   |   |       |   |   |   |       |   |
| Change in trade receivables                                                       |   |   | (29,880    | )      |   |   | (4,124     | )      |
| Change in due from related parties                                                |   |   | (732,801   | )      |   |   | 203,282    |   |
| Change in due from shareholders                                                   |   |   | (9,842     | )      |   |   | 12,258     |   |
| Change in inventories                                                             |   |   | (97,982    | )      |   |   | (23,205    | )      |
| Change in other current assets                                                    |   |   | 161        |   |   |   | 321        |   |
| Change in trade payables                                                          |   |   | 52,605     |   |   |   | (331,716   | )      |
| Change in due to related parties                                                  |   |   | 84,963     |   |   |   | 19,924     |   |
| Change in due to shareholders                                                     |   |   | (6,669     | )      |   |   | 14,847     |   |
| Change in other current liabilities                                               |   |   | (1,102     | )      |   |   | 29,475     |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Net cash provided from operating activities                                       |   |   | (751,000   | )      |   |   | (12,452    | )      |
|                                                                              |   |   |       |   |   |   |       |   |
| Cash flows from investing activities:                                             |   |   |       |   |   |   |       |   |
| Change in share purchase advances                                                 |   |   | 750,000    |   |   |   | --         |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Net cash provided from investing activities                                       |   |   | (1,000     | )      |   |   | (12,452    | )      |
|                                                                              |   |   |       |   |   |   |       |   |
| Cash flows from financing activities:                                             |   |   |       |   |   |   |       |   |
| Increase of share capital                                                         |   |   | 2,070      |   |   |   | --         |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Cash flows provided by financing activities                                       |   |   | 2,070      |   |   |   | --         |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Net decrease in cash and cash equivalents                                         |   |   | 1,070      |   |   |   | (12,452    | )      |
|                                                                              |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the beginning of the year                            |   |   | 2,204      |   |   |   | 14,656     |   |
|                                                                              |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the end of the period                                |   |   | 3,274      |   |   |   | 2,204      |   |

----

----

----

|                          |   | Share capital |   |   | Retained Earnings |   |    | Net income for the year / period |   |   | Total Shareholders' Equity |   |
|-------------------------------|--------|---------------|--------|--------|-------------------|--------|---------|----------------------------------|--------|--------|----------------------------|--------|
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |
| Balances at 31 December 2008  |   |          | 35,500 |   |              |   | 7,749   |                             |   |   | 45,994                     |   |   |   | 89,243 |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Transfer to retained earnings |   |          | --     |   |              |   | 45,994  |                             |   |   | (45,994                    | )      |   |   | -- |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Net income for the year       |   |          | --     |   |              |   | --      |                             |   |   | 57,266                     |   |   |   | 57,266 |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Balances at 31 December 2009  |   |          | 35,500 |   |              |   | 53,743  |                             |   |   | 57,266                     |   |   |   | 146,509 |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Share capital increase        |   |          | 2,070  |   |              |   | --      |                             |   |   | --                         |   |   |   | 2,070 |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Transfer to retained earnings |   |          | --     |   |              |   | 57,266  |                             |   |   | (57,266                    | )      |   |   | -- |   |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Net income for the year       |   |          | --     |   |              |   | --      |                             |   |   | (11,076                    | )      |   |   | (11,076 | ) |
|                          |   |          |   |   |              |   |    |                             |   |   |                       |   |   |   |   |   |
| Balances at 31 December 2010  |   |          | 37,570 |   |              |   | 111,009 |                             |   |   | (11,076                    | )      |   |   | 137,503 |   |

----

----

----

| 1.   | OPERATIONS OF THE COMPANY: |
|----------------|----------------------------|

| 2.   | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS |
|----------------|------------------------------------------------|

| 3.   | BASIS OF PRESENTATION |
|----------------|-----------------------|

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES: |
|----------------|----------------------------------|

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

|        |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
|        |   |   |       |   |   |   |       |   |
| USD         |   |   | 1.5460     |   |   |   | 1.5057     |   |
| EURO        |   |   | 2.0491     |   |   |   | 2.1603     |   |
| GBP         |   |   | 2.3886     |   |   |   | 2.3892     |   |
|        |   |   |       |   |   |   |       |   |
| Average USD |   |   | 1.4991     |   |   |   | 1.5454     |   |

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

| 5.   | CASH AND CASH EQUIVALENTS |
|----------------|---------------------------|

|         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
|         |   |   |       |   |   |   |       |   |
| Cash in hand |   |   | 695        |   |   |   | --         |   |
| Banks        |   |   | 2,579      |   |   |   | 2,204      |   |
|         |   |   | 0          |   |   |   |       |   |
| Total        |   |   | 3,274      |   |   |   | 2,204      |   |

| 6.   | TRADE RECEIVABLES |
|----------------|-------------------|

|                                   |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                   |   |   |       |   |   |   |       |   |
| Trade receivables                      |   |   | 54,829     |   |   |   | 5,408      |   |
| Provision for doubtful receivables (-) |   |   | (19,541    | )      |   |   | --         |   |
|                                   |   |   |       |   |   |   |       |   |
| Total                                  |   |   | 35,288     |   |   |   | 5,408      |   |

----

----

----

| 7.   | RELATED PARTY BALANCES AND TRANSACTIONS: |
|----------------|------------------------------------------|

| Due from related parties                                                     |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                         |   |   |       |   |   |   |       |   |
| Touch IT Technologies Koll. Şir. Ronald George Murphy ve Ortakları |   |   | 587,308    |   |   |   | 25,528     |   |
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.        |   |   | 276,087    |   |   |   | 105,066    |   |
|                                                                         |   |   |       |   |   |   |       |   |
| Total                                                                        |   |   | 863,395    |   |   |   | 130,594    |   |

| Due from shareholders |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                  |   |   |       |   |   |   |       |   |
| Andrew Stuart Brabin  |   |   | 9,842      |   |   |   | --         |   |
|                  |   |   |       |   |   |   |       |   |
| Total                 |   |   | 9,842      |   |   |   | --         |   |

| Due to related parties                                                |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                  |   |   |       |   |   |   |       |   |
| Kamron Inc                                                            |   |   | 50,467     |   |   |   | --         |   |
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | --         |   |   |   | 28,816     |   |
| ASB Trading                                                           |   |   | 54,420     |   |   |   |       |   |
|                                                                  |   |   |       |   |   |   |       |   |
| Total                                                                 |   |   | 104,887    |   |   |   | 28,816     |   |

| Due to shareholders              |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                             |   |   |       |   |   |   |       |   |
| Ali Rıza Tanışman |   |   | 22,147     |   |   |   | 19,924     |   |
|                             |   |   |       |   |   |   |       |   |
| Total                            |   |   | 22,147     |   |   |   | 19,924     |   |

| Major purchases from related parties                                         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Touch It Technologies Koll. Şir. Ronald George Murphy ve Ortakları |   |   | 166,309    |   |   |   | 179,035    |   |
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.        |   |   | --         |   |   |   | 15,734     |   |
| Total                                                                        |   |   | 166,309    |   |   |   | 194,769    |   |

| Major sales to related parties                                               |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Emko Yazı Tahtaları ve Eğitim Gereçleri A.Ş.        |   |   | 660,520    |   |   |   | 280,000    |   |
| Touch IT Technologies Koll. Şir. Ronald George Murphy ve Ortakları |   |   | 255,201    |   |   |   | 156,524    |   |
| Total                                                                        |   |   | 915,721    |   |   |   | 436,524    |   |

----

----

----

| 7.   | RELATED PARTY BALANCES AND TRANSACTIONS: |
|----------------|------------------------------------------|

| Service provided     |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                 |   |   |       |   |   |   |       |   |
| Kamron Inc.          |   |   | 115,101    |   |   |   | --         |   |
| Andrew Stuart Brabin |   |   | 103,527    |   |   |   | --         |   |
|                 |   |   |       |   |   |   |       |   |
| Total                |   |   | 218,628    |   |   |   | --         |   |

| 8.   | INVENTORIES |
|----------------|-------------|

|                         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                         |   |   |       |   |   |   |       |   |
| Advances given for purchases |   |   | 82,156     |   |   |   | 45,324     |   |
| Trade goods                  |   |   | 109,261    |   |   |   | 48,111     |   |
|                         |   |   |       |   |   |   |       |   |
| Total                        |   |   | 191,417    |   |   |   | 93,435     |   |

| 9.   | OTHER CURRENT ASSETS: |
|----------------|-----------------------|

| 10.   | NON-CURRENT ASSETS |
|-----------------|--------------------|

|                   |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| License right          |   |   | 35,500     |   |   |   | 35,500     |   |
| Depreciation allowance |   |   | (22,188    | )      |   |   | (20,524    | )      |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | 13,312     |   |   |   | 14,976     |   |

----

----

----

| 11.   | TRADE PAYABLES |
|-----------------|----------------|

|           |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------|--------|--------|------------|--------|--------|--------|------------|--------|
|           |   |   |       |   |   |   |       |   |
| Trade payables |   |   | 54,211     |   |   |   | 1,606      |   |
|           |   |   |       |   |   |   |       |   |
| Total          |   |   | 54,211     |   |   |   | 1,606      |   |

| 12.   | OTHER CURRENT LIABILITIES |
|-----------------|---------------------------|

|                                 |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Taxes and funds payable              |   |   | 2,471      |   |   |   | --         |   |
| Social security withholdings payable |   |   | 1,439      |   |   |   | 929        |   |
| Accrued expenses                     |   |   | 1,250      |   |   |   | --         |   |
| Advances received                    |   |   | 40,731     |   |   |   | 48,174     |   |
| Due to personnel                     |   |   | 2,110      |   |   |   |       |   |
| Total                                |   |   | 48,001     |   |   |   | 49,103     |   |

| 13.   | RESERVE FOR EMPLOYMENT TERMINATION BENEFITS |
|-----------------|---------------------------------------------|

| 14.   | SHARE CAPITAL |
|-----------------|---------------|

|                             |   |  31.12.2010 |   |   |  31.12.2009 |   |
|----------------------------------|--------|------------------|--------|--------|------------------|--------|
|                             |   | Shareholding     |   |   |             |   |   |   | Shareholding |   |   |   |   |
|                             |   | Amount           |   |   | %                |   |   | Amount |   |   | % |   |
|                             |   |             |   |   |             |   |   |   |   |   |   |   |   |   |
| Andrew Stuart Brabin             |   |             | 7,050  |   |             |   | 2 |   |   |   | 6,625 |   |   |   | 75 |   |
| Ali Rıza Tanışman |   |             | 1,503  |   |             |   | 4 |   |   |   | 8,875 |   |   |   | 25 |   |
| Recep Tanışman         |   |             | 7,515  |   |             |   | 20 |   |   |   | -- |   |   |   | -- |   |
| Cansın Tanışman   |   |             | 751    |   |             |   | 2 |   |   |   | -- |   |   |   | -- |   |
|  Volkan Tanışman  |   |             | 751    |   |             |   | 2 |   |   |   | -- |   |   |   | -- |   |
|                             |   |             | 37,570 |   |             |   | 100 |   |   |   | 35,500 |   |   |   | 100 |   |

----

----

----

| 15.   | SALES |
|-----------------|-------|

|                         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                         |   |   |       |   |   |   |       |   |
| Electronic set               |   |   | 1,023,279  |   |   |   | 383,466    |   |
| Remote Control for classroom |   |   | 153,335    |   |   |   | 6,297      |   |
| EBEAM whiteboard and devices |   |   | --         |   |   |   | 194,890    |   |
| Touch IT board               |   |   | 62,288     |   |   |   | --         |   |
| Triumph board                |   |   | --         |   |   |   | 173,606    |   |
| Writing pad                  |   |   | 47,745     |   |   |   | 5,067      |   |
| Others                       |   |   | 20,773     |   |   |   | 14,392     |   |
|                         |   |   |       |   |   |   |       |   |
| Returns (-)                  |   |   | --         |   |   |   | (705       | )      |
|                         |   |   |       |   |   |   |       |   |
| Total                        |   |   | 1,307,420  |   |   |   | 777,013    |   |

| 16.   | COST OF SALES |
|-----------------|---------------|

|                                |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                |   |   |       |   |   |   |       |   |
| Beginning inventory of trade goods  |   |   | 48,111     |   |   |   | 70,230     |   |
| Purchases                           |   |   | 990,500    |   |   |   | 627,589    |   |
| Ending inventory of trade goods (-) |   |   | (109,261   | )      |   |   | (48,111    | )      |
|                                |   |   |       |   |   |   |       |   |
| Total                               |   |   | 929,350    |   |   |   | 649,708    |   |

----

----

----

| 17.   | MARKETING AND SELLING EXPENSES |
|-----------------|--------------------------------|

|                                 |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                 |   |   |       |   |   |   |       |   |
| Shareholders  expenses (*) |   |   | 105,773    |   |   |   | 10,834     |   |
| Export expenses                      |   |   | 32,858     |   |   |   | 12,657     |   |
| Web site design expenses             |   |   | 8,587      |   |   |   | --         |   |
| Other expenses                       |   |   | 7,057      |   |   |   | 1,071      |   |
|                                 |   |   |       |   |   |   |       |   |
| Total                                |   |   | 154,275    |   |   |   | 24,562     |   |

| 18.   | GENERAL AND ADMINISTRATIVE EXPENSES |
|-----------------|-------------------------------------|

|                     |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Consultancy expenses (*) |   |   | 209,806    |   |   |   | 2,291      |   |
| Salaries                 |   |   | 59,176     |   |   |   | 29,378     |   |
| Rental expenses          |   |   | 12,283     |   |   |   | 12,930     |   |
| Depreciation expenses    |   |   | 1,664      |   |   |   | 8,493      |   |
| Other expenses           |   |   | 6,356      |   |   |   | 2,598      |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 289,285    |   |   |   | 55,690     |   |

----

----

----

|                               |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                               |   |   |       |   |   |   |       |   |
| Other income                       |   |   | 2,508      |   |   |   | 1,023      |   |
| Insurance compensation income      |   |   | 8,301      |   |   |   | --         |   |
| Provision for doubtful receivables |   |   | (20,152    | )      |   |   | --         |   |
| Consultancy income                 |   |   | 25,000     |   |   |   | 16,735     |   |
| Other expense                      |   |   | (5         | )      |   |   | (5,681     | )      |
|                               |   |   |       |   |   |   |       |   |
| Total                              |   |   | 15,652     |   |   |   | 12,077     |   |

|         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
|         |   |   |       |   |   |   |       |   |
| Bank charges |   |   | (3,043     | )      |   |   | (2,172     | )      |
|         |   |   |       |   |   |   |       |   |
| Total        |   |   | (3,043     | )      |   |   | (2,172     | )      |

----

----

----

| 21.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
|-----------------|---------------------------------------------------|

| 31 December2010                               |   | Financial assets at amortized cost |   |   | Loans and receivables |   |    | Financial liabilities at amortized cost |   |   | Carrying value |   |   | Fair value |    |   | Note   |   |
|-----------------------------------------------|--------|------------------------------------|--------|--------|-----------------------|--------|---------|-----------------------------------------|--------|--------|----------------|--------|--------|------------|---------|--------|--------|--------|
|                                          |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |
| Financial assets                              |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |
| Cash and cash equivalents                     |   |                               | --     |   |                  |   | 3,274   |                                    |   |   | --             |   |   |       | 3,274   |   |   |   | 3,274 |   |   |   | 5 |   |
| Trade receivables (including related parties) |   |                               | --     |   |                  |   | 898,683 |                                    |   |   | --             |   |   |       | 898,683 |   |   |   | 898,683 |   |   |   | 6-7 |   |
|                                          |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Financial liabilities                         |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Trade payables (including related parties)    |   |                               | --     |   |                  |   | 159,098 |                                    |   |   | --             |   |   |       | 159,098 |   |   |   | 159,098 |   |   |   | 7-11 |   |

| 31 December 2009                              |   | Financial assets at amortized cost |   |   | Loans and receivables |   |    | Financial liabilities at amortized cost |   |   | Carrying value |   |   | Fair value |    |   | Note   |   |
|-----------------------------------------------|--------|------------------------------------|--------|--------|-----------------------|--------|---------|-----------------------------------------|--------|--------|----------------|--------|--------|------------|---------|--------|--------|--------|
|                                          |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |
| Financial assets                              |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |
| Cash and cash equivalents                     |   |                               | --     |   |                  |   | 2,204   |                                    |   |   | --             |   |   |       | 2,204   |   |   |   | 2,204 |   |   |   | 5 |   |
| Trade receivables (including related parties) |   |                               | --     |   |                  |   | 136,002 |                                    |   |   | --             |   |   |       | 136,002 |   |   |   | 136,002 |   |   |   | 6-7 |   |
|                                          |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Financial liabilities                         |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Trade payables (including related parties)    |   |                               | --     |   |                  |   | 30,442  |                                    |   |   | --             |   |   |       | 30,442  |   |   |   | 30,442 |   |   |   | 7-11 |   |

----

----

----

| 22.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                           |   |   |   |   |   |     | 31.12.2010 |   |   |  31.12.2009 |     |
|--------------------------------|--------|--------|--------|--------|--------|----------|------------|--------|--------|------------------|----------|
|                           |   | F/C    |   |   |   | Foreign  |       |   |   |             |     |   | Foreign |   |   |   |   |
|                           |   | Type   |   |   |   | Currency |       |   |   | TRY              |     |   | Currency |   |   | TRY |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |
| Banks                          |   | USD    |   |   |   | 2,138    |       |   |   | 3,306            |     |   |   | 2,157 |   |   |   | 3,248 |   |
|                           |   | EUR    |   |   |   | 19       |       |   |   | 38               |     |   |   |   |   |   |   |   |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due from related parties       |   | USD    |   |   |   | 587,308  |       |   |   | 907,979          |     |   |   | 123,953 |   |   |   | 186,636 |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Trade receivables              |   | USD    |   |   |   | 34,731   |       |   |   | 53,694           |     |   |   | 3,843 |   |   |   | 5,786 |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Advances given                 |   | USD    |   |   |   | 72,544   |       |   |   | 112,153          |     |   |   | 45,324 |   |   |   | 68,244 |   |
| (Inventories)                  |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Trade payables                 |   | USD    |   |   |   | (43,480  | )          |   |   | (67,220          | )        |   |   | -- |   |   |   | -- |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Advances received              |   | USD    |   |   |   | (40,731  | )          |   |   | (62,970          | )        |   |   | (48,173 | ) |   |   | (72,534 | ) |
| (Other current liabilities)    |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Due to related parties         |   | USD    |   |   |   | (104,887 | )          |   |   | (162,155         | )        |   |   | -- |   |   |   | -- |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Share purchase advances        |   | USD    |   |   |   | (750,000 | )          |   |   | (1,159,500       | )        |   |   | -- |   |   |   | -- |   |
|                           |   |   |   |   |   |     |       |   |   |             |     |   |   |   |   |   |   |   |   |   |
| Net F/C Assets and Liabilities |   |   |   |   |   |     |       |   |   |             | (374,675 | ) |   |   |   |   |   |   | 191,380 |   |

----

----

----

| 23.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                                       |   | Current |    |   | Noncurrent |   |   | Total  |   |
|--------------------------------------------|--------|---------|---------|--------|------------|--------|--------|--------|--------|
| 31 December 2010                           |   |    |    |   |       |   |   |   |   |
|                                       |   |    |    |   |       |   |   |   |   |
| Trade payables (including related parties) |   |    | 159,098 |   |       |   | --     |   |   |   | 159,098 |   |
|                                       |   |    |    |   |       |   |   |   |   |   |   |   |
| 31 December 2009                           |   |    |    |   |       |   |   |   |   |   |   |   |
|                                       |   |    |    |   |       |   |   |   |   |   |   |   |
| Trade payables (including related parties) |   |    | 21,530  |   |       |   | --     |   |   |   | 21,530 |   |

| 24.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

----

----

----

----

----

|                        |   | Notes  |   |   |   | 31.12.2010 |      |   |   | 31.12.2009 |    |
|-----------------------------|--------|--------|--------|--------|--------|------------|-----------|--------|--------|------------|---------|
| ASSETS                      |   |   |   |   |   |       |      |   |   |       |    |
| Cash and cash equivalents   |   |   | 5      |   |   |       | 47,282    |   |   |       | 52,641  |   |
| Trade receivables, net      |   |   | 6      |   |   |       | 669,937   |   |   |       | 269,394 |   |
| Due from shareholders       |   |   | 7      |   |   |       | 40,743    |   |   |       | --      |   |
| Inventories, net            |   |   | 8      |   |   |       | 174,226   |   |   |       | 166,448 |   |
| Other current assets        |   |   | 9      |   |   |       | 885       |   |   |       | 400     |   |
|                        |   |   |   |   |   |       |      |   |   |       |    |   |
| Total current assets        |   |   |   |   |   |       | 933,073   |   |   |       | 488,883 |   |
|                        |   |   |   |   |   |       |      |   |   |       |    |   |
| Property and equipment, net |   |   | 10     |   |   |       | 64,495    |   |   |       | 29,872  |   |
| Intangible assets, net      |   |   | 11     |   |   |       | 11,833    |   |   |       | --      |   |
| Other non-current assets    |   |   | 12     |   |   |       | 3,555     |   |   |       | 3,725   |   |
|                        |   |   |   |   |   |       |      |   |   |       |    |   |
| Total non-current assets    |   |   |   |   |   |       | 79,883    |   |   |       | 33,597  |   |
|                        |   |   |   |   |   |       |      |   |   |       |    |   |
| Total assets                |   |   |   |   |   |       | 1,012,956 |   |   |       | 522,480 |   |

| LIABILITIES AND SHAREHOLDERS' EQUITY             |   |   |   |   |   |   |      |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|
| Short-term bank loans                            |   |   | 13     |   |   |   | 2,351     |   |   |   | 11,282 |   |
| Trade payables                                   |   |   | 14     |   |   |   | 58,150    |   |   |   | 69,013 |   |
| Due to shareholders                              |   |   | 7      |   |   |   | 37,494    |   |   |   | 55,660 |   |
| Due to related parties                           |   |   | 7      |   |   |   | 1,041,105 |   |   |   | 642,160 |   |
| Other current liabilities                        |   |   | 15     |   |   |   | 25,232    |   |   |   | 71,516 |   |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Total current liabilities                        |   |   |   |   |   |   | 1,164,332 |   |   |   | 849,631 |   |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Long-term bank loans                             |   |   | 13     |   |   |   | --        |   |   |   | 2,321 |   |
| Employee termination benefits                    |   |   | 16     |   |   |   | 1,842     |   |   |   | -- |   |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Total long-term liabilities                      |   |   |   |   |   |   | 1,842     |   |   |   | 2,321 |   |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Shareholders' Equity:                            |   |   |   |   |   |   |      |   |   |   |   |   |
| Share capital                                    |   |   | 17     |   |   |   | 90,000    |   |   |   | 90,000 |   |
| Accumulated deficit                              |   |   |   |   |   |   | (419,472  | )      |   |   | (100,028 | ) |
| Net profit/(loss) for the period                 |   |   |   |   |   |   | 176,254   |   |   |   | (319,444 | ) |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Total shareholders’ equity                 |   |   |   |   |   |   | (153,218  | )      |   |   | (329,472 | ) |
|                                             |   |   |   |   |   |   |      |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   |   |   |   |   |   | 1,012,956 |   |   |   | 522,480 |   |

----

----

----

|                                      |   | Notes  |   |   |   | 31.12.2010 |       |   |   | 31.12.2009 |       |
|-------------------------------------------|--------|--------|--------|--------|--------|------------|------------|--------|--------|------------|------------|
| Sales                                     |   |   | 18     |   |   |       | 2,270,461  |   |   |       | 1,252,061  |   |
| Cost of sales                             |   |   | 19     |   |   |       | (1,572,687 | )      |   |       | (1,092,339 | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Gross profit                              |   |   |   |   |   |       | 697,774    |   |   |       | 159,722    |   |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Marketing and selling expenses            |   |   | 20     |   |   |       | (350,054   | )      |   |       | (384,824   | ) |
| General and administrative expenses       |   |   | 21     |   |   |       | (189,779   | )      |   |       | (84,431    | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Total operating profit                    |   |   |   |   |   |       | 157,941    |   |   |       | (309,533   | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Financial income / (expense), net         |   |   | 23     |   |   |       | (5,252     | )      |   |       | (6,569     | ) |
| Other income / (expense), net             |   |   | 22     |   |   |       | (39,745    | )      |   |       | (5,456     | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Profit before provision for taxation      |   |   |   |   |   |       | 112,944    |   |   |       | (321,558   | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Provision for taxation                    |   |   |   |   |   |       |       |   |   |       |       |   |
| - Current                                 |   |   |   |   |   |       | --         |   |   |       | --         |   |
| - Deferred                                |   |   |   |   |   |       | --         |   |   |       | --         |   |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Net profit for the period                 |   |   |   |   |   |       | 112,944    |   |   |       | (321,558   | ) |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Other comprehensive income                |   |   |   |   |   |       |       |   |   |       |       |   |
| Currency translation differences          |   |   |   |   |   |       | 63,310     |   |   |       | 2,114      |   |
|                                      |   |   |   |   |   |       |       |   |   |       |       |   |
| Total comprehensive income for the period |   |   |   |   |   |       | 176,254    |   |   |       | (319,444   | ) |

----

----

----

|                                                                             |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Cash flow from operating activities                                              |   |   |       |   |   |   |       |   |
| Net profit for the period                                                        |   |   | 176,254    |   |   |   | (319,444   | )      |
|                                                                             |   |   |       |   |   |   |       |   |
| Adjustments to reconcile net profit to netcash provided by operating activities: |   |   |       |   |   |   |       |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Depreciation                                                                     |   |   | 15,852     |   |   |   | 8,640      |   |
| Provision for employee termination benefit                                       |   |   | 1,842      |   |   |   |       |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Net profit adjusted to non-cash items                                            |   |   | 193,948    |   |   |   | (310,804   | )      |
|                                                                             |   |   |       |   |   |   |       |   |
| Changes in operating assets and liabilities:                                     |   |   |       |   |   |   |       |   |
| Change in trade receivables                                                      |   |   | (400,548   | )      |   |   | (185,692   | )      |
| Change in due from shareholders                                                  |   |   | (40,743    | )      |   |   | --         |   |
| Change in inventories                                                            |   |   | (7,778     | )      |   |   | 46,198     |   |
| Change in other current assets                                                   |   |   | (485       | )      |   |   | 3,575      |   |
| Change in other non current assets                                               |   |   | 170        |   |   |   | (3,725     | )      |
| Change in trade payables                                                         |   |   | (10,863    | )      |   |   | 58,791     |   |
| Change in due to shareholders                                                    |   |   | (18,166    | )      |   |   | 15,583     |   |
| Change in due to related parties                                                 |   |   | 398,945    |   |   |   | 366,805    |   |
| Change in other current liabilities                                              |   |   | (46,284    | )      |   |   | 65,857     |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Net cash used for operating activities                                           |   |   | 68,196     |   |   |   | 56,588     |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Cash flows from investing activities:                                            |   |   |       |   |   |   |       |   |
| Purchased of property and equipment and intangibles                              |   |   | (62,304    | )      |   |   | (17,324    | )      |
|                                                                             |   |   |       |   |   |   |       |   |
| Net cash outflows from investing activities                                      |   |   | 5,892      |   |   |   | 39,264     |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Cash flows from financing activities:                                            |   |   |       |   |   |   |       |   |
| Increase in short-term borrowings                                                |   |   | (8,930     | )      |   |   | 6,815      |   |
| Decrease in long-term  borrowings                                      |   |   | (2,321     | )      |   |   | (2,797     | )      |
|                                                                             |   |   |       |   |   |   |       |   |
| Cash outflows generated by financing activities                                  |   |   | (11,251    | )      |   |   | 4,018      |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Net decrease in cash and cash equivalents                                        |   |   | (5,359     | )      |   |   | 43,282     |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the beginning of the year                           |   |   | 52,641     |   |   |   | 9,359      |   |
|                                                                             |   |   |       |   |   |   |       |   |
| Cash and cash equivalents at the end of the period                               |   |   | 47,282     |   |   |   | 52,641     |   |

----

----

----

|                                 |   | Sharecapital |   |   | Accumulateddeficit |   |     | Net (loss) /profit for the year/ period |   |   | Total Shareholders' Equity |    |
|--------------------------------------|--------|--------------|--------|--------|--------------------|--------|----------|----------------------------------------------|--------|--------|----------------------------|---------|
| Opening balance as of 1 January 2009 |   |         | 90,000 |   |               |   | --       |                                         |   |   | (100,028                   | )       |   |   | (10,028 | ) |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Transfer to accumulated deficit      |   |         |   |   |               |   | (100,028 | )                                            |   |   | 100,028                    | )       |   |   | -- |   |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Lloss for the year 2009              |   |         | --     |   |               |   | --       |                                         |   |   | (319,444                   | )  |   |   | (319,444 | )  |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Balances at 31 December 2009         |   |         | 90,000 |   |               |   | (100,028 | )                                            |   |   | (319,444                   | )  |   |   | (329,472 | ) |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Transfer to accumulated deficit      |   |         | --     |   |               |   | (319,444 | )                                            |   |   | 319,444                    |    |   |   | -- |   |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Net profit for the year 2010         |   |         | --     |   |               |   | --       |                                         |   |   | 176,254                    |    |   |   | 176,254 |   |
|                                 |   |         |   |   |               |   |     |                                         |   |   |                       |    |   |   |   |   |
| Balances at 31 December 2010         |   |         | 90,000 |   |               |   | (419,472 | )                                            |   |   | 176,254                    |    |   |   | (153,218 | ) |

----

----

----

| 1.   | OPERATIONS OF THE COMPANY: |
|----------------|----------------------------|

| 2. | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS |
|----|------------------------------------------------|

| 3. | BASIS OF PRESENTATION |
|----|-----------------------|

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES |
|----------------|---------------------------------|

| Machinery and equipments                  | 2-6 years |
|-------------------------------------------|-----------|
| Motor vehicles                            | 4 years   |
| Furniture, fixtures and office equipments | 4-5 years |

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

|        |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-------------|--------|--------|------------|--------|--------|--------|------------|--------|
| USD         |   |   | 1.5460     |   |   |   | 1.5057     |   |
| EURO        |   |   | 2.0491     |   |   |   | 2.1603     |   |
| GBP         |   |   | 2.3886     |   |   |   | 2.3892     |   |
|        |   |   |       |   |   |   |       |   |
| Average USD |   |   | 1.4991     |   |   |   | 1.5454     |   |

----

----

----

| 4.   | SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
|----------------|---------------------------------------------|

| 5.   | CASH AND CASH EQUIVALENTS |
|----------------|---------------------------|

|         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Cash in hand |   |   | 1,196      |   |   |   | 9,621      |   |
| Banks        |   |   | 46,086     |   |   |   | 43,020     |   |
|         |   |   |       |   |   |   |       |   |
| Total        |   |   | 47,282     |   |   |   | 52,641     |   |

----

----

----

| 6.   | TRADE RECEIVABLES |
|----------------|-------------------|

|                           |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| PROFORMANCE PRODUCTS           |   |   | 526,077    |   |   |   | --         |   |
| TRIUMPH BOARD S.R.O            |   |   | --         |   |   |   | 204,913    |   |
| Others ( less than USD 60,000) |   |   | 143,860    |   |   |   | 64,481     |   |
|                           |   |   |       |   |   |   |       |   |
| Total                          |   |   | 669,937    |   |   |   | 269,394    |   |

| 7.   | RELATED PARTY BALANCES AND TRANSACTIONS |
|----------------|-----------------------------------------|

| Due from shareholders    |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Recep Tanışman |   |   | 40,743     |   |   |   | --         |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 40,743     |   |   |   | --         |   |

| Due to related parties                                                         |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 417,709    |   |   |   | 570,532    |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 587,308    |   |   |   | 25,529     |   |
| Kamron Inc                                                                     |   |   | 36,088     |   |   |   | 46,099     |   |
|                                                                           |   |   |       |   |   |   |       |   |
| Total                                                                          |   |   | 1,041,105  |   |   |   | 642,160    |   |

| Due to shareholders              |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Ali Rıza Tanışman |   |   | 22,549     |   |   |   | 22,657     |   |
| Andrew Stuart Brabin             |   |   | 14,566     |   |   |   | --         |   |
| Recep Tanışman         |   |   | 379        |   |   |   | --         |   |
|                             |   |   |       |   |   |   |       |   |
| Total                            |   |   | 37,494     |   |   |   | 55,660     |   |

----

----

----

| 7.   | RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) |
|----------------|-----------------------------------------------------|

| Major purchases from related parties                                           |   |   |       |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                           |   |   |       |   |   |   |
| Trade goods                                                                    |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 568,439    |   |   |   | 447,898 |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 181,256    |   |   |   | 156,524 |   |
| Total                                                                          |   |   | 749,695    |   |   |   | 604,422 |   |

| Major sales from related parties                                               |   |   |       |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                           |   |   |       |   |   |   |
| Trade goods                                                                    |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | 3,507      |   |   |   | -- |   |
| Touch IT Educations Technologies Dış. Tic. Koll. Şirketi        |   |   | 167,270    |   |   |   | 179,035 |   |
| Total                                                                          |   |   | 170,777    |   |   |   | 179,035 |   |

| Services provided                                                              |   |   |       |   |   |   |
|--------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                           |   |   |       |   |   |   |
|                                                                           |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
| Kamron Inc.                                                                    |   |   | 55,364     |   |   |   | 88,181 |   |
| Emko Emaye ve Yazı Tahtaları ve Eğitim Gereçleri A.Ş. |   |   | --         |   |   |   | 21,267 |   |
| Total                                                                          |   |   | 55,364     |   |   |   | 109,448 |   |

| 8.   | INVENTORIES: |
|----------------|--------------|

|                                            |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Raw material and supplies                       |   |   | 196,971    |   |   |   | 120,691    |   |
| Finished goods                                  |   |   | 1,534      |   |   |   | 16,045     |   |
| Advances given for purchases                    |   |   | 11,232     |   |   |   | 22,632     |   |
| Other inventories                               |   |   | 2,738      |   |   |   | 7,080      |   |
| Provision for damaged and slow moving stock (-) |   |   | (38,249    | )      |   |   | --         |   |
| Total                                           |   |   | 174,226    |   |   |   | 166,448    |   |

----

----

----

| 9.   | OTHER CURRENT ASSETS: |
|----------------|-----------------------|

|                          |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Deposits and Guarantees given |   |   | 400        |   |   |   | 400        |   |
| Other                         |   |   | 485        |   |   |   | --         |   |
|                          |   |   |       |   |   |   |       |   |
| Total                         |   |   | 885        |   |   |   | 400        |   |

| 10. | PROPERTY, PLANT AND EQUIPMENT, NET |
|-----|------------------------------------|

|                    |   | 1 January 2009 |   |   | Additions |   |   | 31 December 2009 |   |   | Additions |   |   | 31 December 2010 |    |
|-------------------------|--------|----------------|--------|--------|-----------|--------|--------|------------------|--------|--------|-----------|--------|--------|------------------|---------|
| Cost                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |
| Machinery and equipment |   |           | 3,655  |   |      |   | --     |             |   |   | 3,655     |   |   |             | 1,483   |   |   |   | 5,139 |   |
| Vehicles                |   |           | 12,522 |   |      |   | 16,933 |             |   |   | 29,455    |   |   |             | --      |   |   |   | 29,455 |   |
| Furniture and fixtures  |   |           | 5,911  |   |      |   | 391    |             |   |   | 6,302     |   |   |             | 46,165  |   |   |   | 52,467 |   |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
| Total                   |   |           | 22,088 |   |      |   | 17,324 |             |   |   | 39,412    |   |   |             | 47,648  |   |   |   | 87,061 |   |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
| Depreciation            |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
| Machinery and equipment |   |           | (171   | )      |      |   | (1,023 | )                |   |   | (1,194    | )      |   |             | (1,113  | ) |   |   | (2,308 | ) |
| Vehicles                |   |           | (522   | )      |      |   | (6,306 | )                |   |   | (6,828    | )      |   |             | (5,883  | ) |   |   | (12,711 | ) |
| Furniture and fixtures  |   |           | (207   | )      |      |   | (1,311 | )                |   |   | (1,518    | )      |   |             | (6,029  | ) |   |   | (7,547 | ) |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
| Total                   |   |           | (900   | )      |      |   | (8,640 | )                |   |   | (9,540    | )      |   |             | (13,025 | ) |   |   | (22,566 | ) |
|                    |   |           |   |   |      |   |   |             |   |   |      |   |   |             |    |   |   |   |   |   |
| Net book value          |   |           | 21,188 |   |      |   |   |             |   |   | 29,872    |   |   |             |    |   |   |   | 64,495 |   |

----

----

----

| 11.   | INTANGIBLE ASSETS, NET |
|-----------------|------------------------|

|                  |   | 31 December 2009 |   |   | Additions |   |   | 31 December 2010 |   |
|-----------------------|--------|------------------|--------|--------|-----------|--------|--------|------------------|--------|
| Cost                  |   |             |   |   |      |   |   |             |   |
| Rights                |   |             | --     |   |      |   | 10,774 |             |   |   | 10,774 |   |
| Other tangible assets |   |             | --     |   |      |   | 3,885  |             |   |   | 3,885 |   |
|                  |   |             |   |   |      |   |   |             |   |   |   |   |
| Total                 |   |             | --     |   |      |   | 14,659 |             |   |   | 14,659 |   |
|                  |   |             |   |   |      |   |   |             |   |   |   |   |
| Depreciation          |   |             |   |   |      |   |   |             |   |   |   |   |
| Rights                |   |             | --     |   |      |   | 2,394  |             |   |   | 2,394 |   |
| Other tangible assets |   |             | --     |   |      |   | 432    |             |   |   | 432 |   |
|                  |   |             |   |   |      |   |   |             |   |   |   |   |
| Total                 |   |             | --     |   |      |   | 2,826  |             |   |   | 2,826 |   |
|                  |   |             |   |   |      |   |   |             |   |   |   |   |
| Net book value        |   |             | --     |   |      |   |   |             |   |   | 11,833 |   |

| 12.   | OTHER NON CURRENT ASSETS: |
|-----------------|---------------------------|

----

----

----

| 13. | BANK LOANS |
|-----|------------|

|                  |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|-----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                  |   |   |       |   |   |   |       |   |
| Short term borrowings |   |   |       |   |   |   |       |   |
| TRY bank loans        |   |   | 2,351      |   |   |   | 11,282     |   |
|                  |   |   |       |   |   |   |       |   |
| Sub total             |   |   | 2,351      |   |   |   | 11,282     |   |
|                  |   |   |       |   |   |   |       |   |
| Long term borrowings  |   |   |       |   |   |   |       |   |
| TRY bank loans        |   |   | --         |   |   |   | 2,321      |   |
|                  |   |   |       |   |   |   |       |   |
| Sub total             |   |   | --         |   |   |   | 2,321      |   |
|                  |   |   |       |   |   |   |       |   |
| Total                 |   |   | 2,351      |   |   |   | 13,603     |   |

|                     |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Within one year          |   |   | 2,351      |   |   |   | 11,282     |   |
| Between one to two years |   |   | --         |   |   |   | 2,321      |   |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 2,351      |   |   |   | 13,603     |   |

| 14.   | TRADE PAYABLES |
|-----------------|----------------|

|                 |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|----------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                 |   |   |       |   |   |   |       |   |
| Suppliers            |   |   | 58,150     |   |   |   | 65,831     |   |
| Other trade payables |   |   | --         |   |   |   | 3,182      |   |
|                 |   |   |       |   |   |   |       |   |
| Total                |   |   | 58,150     |   |   |   | 69,013     |   |

----

----

----

| 15.   | OTHER CURRENT LIABILITIES |
|-----------------|---------------------------|

|                                 |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                 |   |   |       |   |   |   |       |   |
| Social security withholdings payable |   |   | 6,010      |   |   |   | 685        |   |
| Due to personnel                     |   |   | 7,056      |   |   |   | --         |   |
| Accrued expenses                     |   |   | 1,350      |   |   |   | --         |   |
| Advances received                    |   |   | 10,776     |   |   |   | 68,597     |   |
| Other liabilities                    |   |   | 40         |   |   |   | 2,234      |   |
|                                 |   |   |       |   |   |   |       |   |
| Total                                |   |   | 25,232     |   |   |   | 71,516     |   |

| 16.   | RESERVE FOR EMPLOYEE TERMINATION BENEFITS |
|-----------------|-------------------------------------------|

|                                       |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Discount rate                              |   |   | 10.00      | %      |   |   | 11.00      | %      |
| Expected rates of salary / limit increases |   |   | 5.1        | %      |   |   | 4.80       | %      |

| 17. | SHARE CAPITAL |
|-----|---------------|

|                             | 31.12.2010   |    | 31.12.2009 |
|----------------------------------|--------------|---------|------------|
|                             | Shareholding |    |       | Shareholding |   |
|                             | Amount       | %       |       | Amount | % |
| Ali Rıza Tanışman | 2,676        | 2.97%   |       | 29,700 | 33.00% |
| Andrew Stuart Brabin             | 30,324       | 33.70%  |       | 30,600 | 34.00% |
| Recep Tanışman         | 26,757       | 29.73%  |       | -- | -- |
| Ronald George Murphy             | 29,432       | 32.70%  |       | 29,700 | 33.00% |
| Cansın Tanışman   | 811          | 0.90%   |       | -- | -- |
|                             | 90,000       | 100.00% |       | 90,000 | 100.00% |

| 18.   | SALES |
|-----------------|-------|

|                     |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                     |   |   |       |   |   |   |       |   |
| Clever board             |   |   | 887,639    |   |   |   | 42,034     |   |
| Touch it board 78 inch   |   |   | 628,105    |   |   |   | 254,816    |   |
| Touch it board 80 inch   |   |   | 179,794    |   |   |   | 17,533     |   |
| Triumph board 78 inch    |   |   | 136,867    |   |   |   | 423,203    |   |
| Electronic circuit       |   |   | 222,100    |   |   |   | --         |   |
| Touch it board 90 inch   |   |   | 121,048    |   |   |   | 9,462      |   |
| Triumph board 80 inch    |   |   | 53,182     |   |   |   | 330,937    |   |
| Touch it board 50 inch   |   |   | 34,589     |   |   |   | 17,578     |   |
| Triumph board 50 inch    |   |   | 1,244      |   |   |   | 5,880      |   |
| RM easyboard 78 inch     |   |   | --         |   |   |   | 120,423    |   |
| Triumph board 90 inch    |   |   | --         |   |   |   | 34,114     |   |
| RM easyboard 50 inch     |   |   |       |   |   |   | 9,299      |   |
| Others                   |   |   | 23,807     |   |   |   | 64,566     |   |
|                     |   |   |       |   |   |   |       |   |
| Returns and discounts(-) |   |   | (17,914    | )      |   |   | (77,784    | )      |
|                     |   |   |       |   |   |   |       |   |
| Total                    |   |   | 2,270,461  |   |   |   | 1,252,061  |   |

----

----

----

| 19.   | COST OF SALES |
|-----------------|---------------|

|                           |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|--------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                           |   |   |       |   |   |   |       |   |
| Direct material cost           |   |   | 1,334,558  |   |   |   | 1,028,469  |   |
| Direct labor cost              |   |   | 125,833    |   |   |   | 23,697     |   |
| General production overheads   |   |   | 108,283    |   |   |   | 51,715     |   |
| Ending inventory (trade goods) |   |   | (1,534     | )      |   |   | (16,045    | )      |
| Depreciation                   |   |   | 5,547      |   |   |   | 4,503      |   |
|                           |   |   |       |   |   |   |       |   |
| Total                          |   |   | 1,572,687  |   |   |   | 1,092,339  |   |

| 20.   | MARKETING AND SELLING EXPENSES |
|-----------------|--------------------------------|

|                                           |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                           |   |   |       |   |   |   |       |   |
| Export expenses                                |   |   | 156,185    |   |   |   | 169,528    |   |
| Sales & marketing expenses of shareholders |   |   | 45,748     |   |   |   | 109,381    |   |
| Software expenses                              |   |   | 44,506     |   |   |   | --         |   |
| Fair expense                                   |   |   | --         |   |   |   | 36,849     |   |
| Salaries                                       |   |   | --         |   |   |   | 8,782      |   |
| Consultancy expenses                           |   |   | 24,333     |   |   |   | --         |   |
| Cargo expenses                                 |   |   | 5,626      |   |   |   | 6,208      |   |
| Depreciation                                   |   |   | 748        |   |   |   | 2,780      |   |
| Others                                         |   |   | 72,908     |   |   |   | 51,296     |   |
|                                           |   |   |       |   |   |   |       |   |
| Total                                          |   |   | 350,054    |   |   |   | 384,824    |   |

| 21.   | GENERAL AND ADMINISTRATIVE EXPENSES |
|-----------------|-------------------------------------|

|                          |   |   | 31.12.2010 |   |   |   | 31.12.2010 |   |
|-------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Shareholders expenses         |   |   | 102,632    |   |   |   | 46,200     |
| Consulting expenses           |   |   | 57,877     |   |   |   | 20,315     |
| Food expenses                 |   |   | 5,057      |   |   |   | 3,132      |
| Depreciation                  |   |   | 9,556      |   |   |   | 1,357      |
| Tax and duties                |   |   | 931        |   |   |   | 918        |
| Employee termination benefits |   |   | 1,842      |   |   |   | --         |
| Other                         |   |   | 11,533     |   |   |   | 12,509     |
| Total                         |   |   | 189,428    |   |   |   | 84,431     |

----

----

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| 22. | OTHER INCOME AND (EXPENSES),NET |
|-----|---------------------------------|

|                                  |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|---------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                  |   |   |       |   |   |   |       |   |
| Provision for impairment of inventory |   |   | (38,249    | )      |   |   | --         |   |
| Non tax deductable expenses           |   |   | (4,990     | )      |   |   | (10,516    | )      |
| Other income                          |   |   | 3,494      |   |   |   | 5,060      |   |
|                                  |   |   |       |   |   |   |       |   |
| Total                                 |   |   | (39,745    | )      |   |   | (5,456     | )      |

| 23.   | FINANCIAL EXPENSES |
|-----------------|--------------------|

|                   |   |   | 31.12.2010 |   |   |   | 31.12.2009 |   |
|------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                   |   |   |       |   |   |   |       |   |
| Interest expenses      |   |   | 1,224      |   |   |   | 4,284      |   |
| Other banking expenses |   |   | 4,028      |   |   |   | 2,285      |   |
|                   |   |   |       |   |   |   |       |   |
| Total                  |   |   | 5,252      |   |   |   | 6,569      |   |

| 24.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
|-----------------|---------------------------------------------------|

| 31 December 2010                           |   | Financial assets at amortized cost |   |   | Loans and receivables |   |      | Financial liabilities at amortized cost |   |   | Carrying value |   |   | Fair value |      |   | Note   |   |
|--------------------------------------------|--------|------------------------------------|--------|--------|-----------------------|--------|-----------|-----------------------------------------|--------|--------|----------------|--------|--------|------------|-----------|--------|--------|--------|
| Financial assets                           |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |
| Cash and cash equivalents                  |   |                               | --     |   |                  |   | 47,282    |                                    |   |   | --             |   |   |       | 47,282    |   |   |   | 47,282 |   |   |   | 5 |   |
| Trade receivables                          |   |                               | --     |   |                  |   | 669,937   |                                    |   |   | --             |   |   |       | 669,937   |   |   |   | 669,937 |   |   |   | 6 |   |
|                                       |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |   |   |   |   |   |   |
| Financial liabilities                      |   |                               |   |   |                  |   |      |                                    |   |   |           |   |   |       |      |   |   |   |   |   |   |   |   |   |
| Borrowings                                 |   |                               | --     |   |                  |   | --        |                                    |   |   | 2,351          |   |   |       | 2,351     |   |   |   | 2,351 |   |   |   | 13 |   |
| Trade payables (including related parties) |   |                               | --     |   |                  |   | 1,111,639 |                                    |   |   | --             |   |   |       | 1,111,639 |   |   |   | 1,111,639 |   |   |   | 7-14 |   |

----

----

----

| 24.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

| 31 December 2009                          |   | Financial assets at amortized cost |   |   | Loans and receivables |   |    | Financial liabilities at amortized cost |   |   | Carrying value |   |   | Fair value |    |   | Note   |   |
|-------------------------------------------|--------|------------------------------------|--------|--------|-----------------------|--------|---------|-----------------------------------------|--------|--------|----------------|--------|--------|------------|---------|--------|--------|--------|
| Financial assets                          |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |
| Cash and cash equivalents                 |   |                               | --     |   |                  |   | 52,641  |                                    |   |   | --             |   |   |       | 52,641  |   |   |   | 52,641 |   |   |   | 5 |   |
| Trade receivables                         |   |                               | --     |   |                  |   | 269,394 |                                    |   |   | --             |   |   |       | 269,394 |   |   |   | 269,394 |   |   |   | 6 |   |
|                                      |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Financial liabilities                     |   |                               |   |   |                  |   |    |                                    |   |   |           |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Borrowings                                |   |                               | --     |   |                  |   | --      |                                    |   |   | 13,603         |   |   |       | 13,603  |   |   |   | 13,603 |   |   |   | 13 |   |
| Trade payables(including related parties) |   |                               | --     |   |                  |   | 711,173 |                                    |   |   | --             |   |   |       | 711,173 |   |   |   | 711,173 |   |   |   | 7-14 |   |

|                           |    | 31.12.2010      | 31.12.2009  |
|--------------------------------|---------|-----------------|-------------|
|                           | F/CType | ForeignCurrency | TRY         | ForeignCurrency | TRY |
| Cash                           | USD     | -               | -           | -- | -- |
| Banks                          | USD     | 45,538          | 70,401      | 41,901 | 63,090 |
|                           | EUR     | 78              | 160         |   |   |
| Trade receivables              | USD     | 669,937         | 1,035,723   | 269,394 | 405,628 |
| Advances Given (inventories)   | USD     | -               | -           | 10,774 | 16,222 |
|                           |    | 31,302          | 48,393      | - | - |
|                           |    |            |        |   |   |
| Trade payables                 | USD     | (23,829)        | (36,839)    | (553,238) | (833,010) |
| Due to related parties         | USD     | (1,039,944)     | (1,607,753) | - | - |
|                           | EUR     |            |        | (904) | (1,953) |
| Due to shareholders            | USD     | (9,170)         | (14,177)    | (33,003) | (49,693) |
| Other current liabilities      | USD     | (10,776)        | (16,660)    | (68,598) | (103,288) |
|                           |    |            |        |   |   |
| Net F/C Assets and Liabilities |    |            | (520,752)   |   | (503,004) |

----

----

----

| 24.   | FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) |
|-----------------|---------------------------------------------------------------|

|                   |   | Current |      |   | Noncurrent |   |   | Total  |   |
|------------------------|--------|---------|-----------|--------|------------|--------|--------|--------|--------|
| 31 December 2010       |   |    |      |   |       |   |   |   |   |
|                   |   |    |      |   |       |   |   |   |   |
| Borrowings             |   |    | 2,351     |   |       |   | --     |   |   |   | 2,351 |   |
| Trade payables         |   |    | 70,534    |   |       |   | --     |   |   |   | 70,534 |   |
| Due to related parties |   |    | 1,041,105 |   |       |   | --     |   |   |   | 1,041,105 |   |
|                   |   |    |      |   |       |   |   |   |   |   |   |   |
| 31 December 2009       |   |    |      |   |       |   |   |   |   |   |   |   |
|                   |   |    |      |   |       |   |   |   |   |   |   |   |
| Borrowings             |   |    | 11,282    |   |       |   | 2,321  |   |   |   | 13,603 |   |
| Trade payables         |   |    | 69,013    |   |       |   | --     |   |   |   | 69,013 |   |
| Due to related parties |   |    | 642,160   |   |       |   | --     |   |   |   | 642,160 |   |

| 25.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

----