GROUP_ 7 by chenmeixiu

VIEWS: 8 PAGES: 35

									  TEAM# 7

BUSINESS PLAN



   EKİN GEÇİKLİGÜN
       ELİF KOÇ
   EMRE YILMAZER
    ENGİN ERTOPÇU
   MERAL BALKAYA
  OKAN KAMBEROĞLU



                     1
                                             Table of Contents


1. Executive Summary....................................................................……….....3
   1.1. Overview of the Company....................................................………....3
   1.2. Objectives of the Company......................................................………3
   1.3. Brief Summary of the Market.................................................………..3
   1.4. Mission of the Company........................................................…….......3

2. Company Summary......................................................................………....4
   2.1. Vision of the Company.......................................................………......4
   2.2. Company Ownership...........................................................………......4
   2.3. Start-up Summary................................................................……….....4
   2.4. Company Locations and Facilities........................................………....6

3. Products............................................................................................……...7
   3.1. Product Description...................................................................……...7
   3.2. Product and Services......................................................………...…...7

4. Market Analysis ..........................................................……………….…..8
   4.1. Market.......................................................................………………...8
   4.2. Marketing Strategies....................................................……..........…..11
   4.3. Key features of the Company………………………………………..11

5. Competitive Analysis.....................................................................….......12

6. Management Summary....................................................................……..14
   6.1. Organization..................................................................................….14
   6.2. Organization Chart......................................................................…...14

7. Financial Plan....................................................................................……16
   7.1. Financial Assumptions.......................................................................16

     Appendix A………………………………………………………………..26

     Appendix B………………………………………………………………..29

     Appendix C……………………………………………………………….32




                                                                                                                2
1. EXECUTIVE SUMMARY
     1.1. Overview of the Company

MedicalX, Inc. is a medical device development company, which has been founded by
Bilkent University students in 2006, that intends to design, patent, and market medical
devices related to multifunctional nursing and pill reminder. A new and innovative design has
already been created to answer the needs of patients (especially older patients) and the
hospital crew. It is called “Electronic Pharmacy Box” (EPB). EPB is considered to create its
own market; therefore, most probably, when presented to the customers in Turkey it is going
to have the whole market and be very profitable for MedicalX.

     1.2. Objectives of the Company

The principal objectives of MedicalX, Inc. are as follows:

   1. To dominate the market and become a well known product by 2008.
   2. To achieve $10 million in revenue by the year 2008.
   3. To license its technology for the obliteration/suction/irrigation market for $5 million
       dollars in 2008.
   4. Advancing the software and come up with new technologies to make the revenue
       doubled.

     1.3. Brief Summary of the Market

There are a number of markets involved in our product. One of these markets is the Pill
Dispenser market. And, it is projected to exceed $20 million in three years. Another market is
the Reminder market, which has widely usage of area that the MedicalX, Inc. will not enter
due to its product’s (EPB) specialties. EPB is not only a reminder but an organizer with a
reminder installed. MedicalX, Inc.’s product has the potential to create its own market. And,
hospitals and older people play key role for this purpose.

     1.4. Mission of the Company

The mission of MedicalX, Inc. is to design, develop, and market new patented technologies in
the medical device field. Each technology will fill a current need in medical procedure by
improving upon an existing technology, or by designing a device to serve a need that is



                                                                                            3
clearly defined and acknowledged by medical professionals. Each product shall be priced to
appeal to a managed-care market that stresses lowest cost of total treatment parameters.




2. COMPANY SUMMARY

MedicalX, Inc. will develop and market medical devices through multiple distribution
channels both foreign and domestic. The company is currently designing and developing
global technologies to mass production of the product named Electronic Pharmacy Box. It is
also seeking to establish its corporate identity in the medical products field


     2.1. Vision of the Company

The vision of MedicalX, Inc. is to attain the capabilities to design, manufacture and provide
services for all kinds of innovative products, and thus become a globally recognized brand.

     2.2. Company Ownership

       Its founding shareholders are:
       Emre YILMAZER ( % 17,5)
       Engin ERTOPÇU ( % 17,5)
       Elif KOÇ ( %17,5 )
       Meral BALKAYA ( %17,5 )
       Ekin GEÇİKLİGÜN ( %17,5 )
       Okan KAMBEROĞLU ( %17,5 )


   2.3. Start-up Summary

 Assets - Most Expected Case

 Current Assets:                    2007                2008                 2009
                                 3,664,962.08                              5,818,069.66
 Cash                                     YTL      4,553,722.50 YTL                 YTL
 Inventory                      43,184.00 YTL         51,820.80 YTL       62,184.96 YTL
 Other Current Assets                0.00 YTL              0.00 YTL            0.00 YTL
                                 3,708,146.08                              5,880,254.62
 Total Current Assets                     YTL      4,605,543.30 YTL                 YTL

 Long-Term Assets
 Long-Term Assets:             108,000.00 YTL        108,000.00 YTL      108,000.00 YTL


                                                                                              4
Accumulated Depreciation            0.00 YTL         10,800.00 YTL       22,680.00 YTL
Total Long-Term Assets        108,000.00 YTL         97,200.00 YTL       85,320.00 YTL
                                7,632,292.16                              5,903,389.66
Total Assets                             YTL      4,702,743.30 YTL                 YTL

Liabilities and Capital

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Curent Liabilities
Long-Term Liabilities         255,255.00 YTL        204,204.00 YTL      153,153.00 YTL
Total Liabilities             255,255.00 YTL        204,204.00 YTL      153,153.00 YTL

                                 5,262,410.41                             2,386,807.52
Retained Earnings                         YTL      1,897,431.51 YTL                YTL
Paid-in Capital                 40,000.00 YTL         40,000.00 YTL      40,000.00 YTL
                                 2,074,626.75                             3,323,429.14
Earnings                                  YTL      2,561,107.79 YTL                YTL
                                 7,377,037.16                             5,750,236.66
Total Capital                             YTL     4,498,539.30 YTL                 YTL
Total Liabilities and            7,632,292.16                             5,903,389.66
Capital                                   YTL     4,702,743.30 YTL                 YTL
                                 7,632,292.16                             5,903,389.66
Net Worth                                 YTL     4,702,743.30 YTL                 YTL



Pro Forma Profit and Loss - Most Expexted Case

Total Sales                                         2007             2008                2009
                                                 11,987,480.00    15,985,500.00       20,685,320.00
Gross Sales                                                YTL              YTL                 YTL
                                                 11,970,000.00    15,960,000.00       20,654,000.00
Sales                                                      YTL              YTL                 YTL
Service Sales                                    17,480.00 YTL    25,500.00 YTL       31,320.00 YTL
Less:Sales Returns and Allowances                59,850.00 YTL    79,800.00 YTL      101,025.00 YTL
                                                 11,927,630.00    15,905,700.00       20,584,295.00
Net Sales                                                  YTL              YTL                 YTL

COGS
                                                  7,455,300.00    10,626,000.00       13,969,800.00
Direct Cost of Sales                                       YTL              YTL                 YTL
Direct Labor                                    330,400.00 YTL   343,312.00 YTL      353,924.48 YTL
Manufacturing Overhead                           15,844.00 YTL    19,012.80 YTL       22,815.36 YTL
Other Production Expenses (Domain)                  200.00 YTL       200.00 YTL          200.00 YTL
                                                  7,801,744.00    10,985,524.80       14,346,739.84
Total Cost of Goods Sold                                   YTL              YTL                 YTL

                                                  4,125,886.00        4,920,175.20       6,237,555.16
Gross Margin                                              YTL                 YTL                YTL

Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll                     180,000.00 YTL   185,400.00 YTL      192,816.00 YTL
Advertising / Promotion                         107,887.32 YTL    63,942.00 YTL       51,713.30 YTL



                                                                                               5
 Travel                                               0.00 YTL            0.00 YTL           0.00 YTL
 Miscelleneous                                        0.00 YTL            0.00 YTL           0.00 YTL

 Total Sales and Marketing Expenses             287,887.32 YTL     249,342.00 YTL     244,529.30 YTL

 General and Administrative Expenses:
 General and Administrative Payroll              84,000.00 YTL      86,520.00 YTL      89,980.80 YTL
 Payroll Expense                                      0.00 YTL           0.00 YTL
 Depreciation                                     4,996.60 YTL       5,625.70 YTL       6,538.90 YTL
 Computer Hardware and Software                  13,100.00 YTL       5,895.00 YTL       3,537.00 YTL
 Office Furniture and Equipment                   9,240.00 YTL       3,150.00 YTL       4,240.00 YTL
 Insurance                                       13,000.00 YTL      12,350.00 YTL      11,732.50 YTL
 Rent                                            48,700.00 YTL      53,570.00 YTL      58,927.00 YTL
 Total General and Administrative
 Expenses                                       173,036.60 YTL     167,110.70 YTL     174,956.20 YTL

 Total Operating Expenses                       460,923.92 YTL     416,452.70 YTL     419,485.50 YTL

                                                  3,664,962.08       4,503,722.50       5,818,069.66
 Profit Before Interest and Taxes                          YTL                YTL                YTL
 Interest Expense                                51,051.26 YTL      51,051.26 YTL      51,051.26 YTL
                                                  1,539,284.07       1,891,563.45       2,443,589.26
 Taxes Incured                                             YTL                YTL                YTL
 Extraordinary Items                                  0.00 YTL           0.00 YTL           0.00 YTL


                                                  2,074,626.75        2,561,107.79       3,323,429.14
 Net Profit                                               YTL                 YTL                YTL




   2.4. Company Locations and Facilities

MedicalX, Inc. business offices are at Ulus and at Kızılay in Ankara, at Kadıköy and at Şişli
in İstanbul and at Alsancak and at Konak in İzmir. Phone is .... Fax is .... These offices are
leased month-to-month on a temporary basis. This business plan calls for the establishment of
corporate offices, R&D facilities, and prototype and small-run manufacturing facilities. These
facilities are to be located in Ankara. Whole land thought to be about 700 meter squares in
which production-planning unit, assembly and integration units, quality control unit, head
offices, and technical service take place. Our first main base of operation land is in Ulus
where enables a fine transportation and convenience for technical service. For the first two
years, purchases from hospitals, old age asylums, and child care houses will be at maximum
and in order to deliver the product to the market easily and give the most convenient technical
service in Ankara, our production facility will also consist technical service unit and will be in
the municipal area- Ulus.




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3. PRODUCTS

   3.1. Product Description

EPB is a multifunctional nursing and pill reminder device, which can be used for observing
the patient’s medication and stability of health both in the hospital and at home. EPB consists
of two parts, first of which resembles an electronic automat that dispenses the pills the patient
is required to take at the exact time and which sends GSM messages and/or e-mails to the
hospital attendant or a close relative of the patient if he/she forgets to take the medication.
Reminding the appointment dates with the doctor via SMS or e-mail is considered to be
another capability of EPB. The second part of the EPB is integrated to the first part and has a
capability of measuring heart rate, tension, body temperature, the percentage of insulin in the
blood, and more as advancements. Data taken from these measurements can be logged in the
device and sent to the doctor responsible from the patient and the attendant in case of
emergencies. EPB has a sterilization unit, which controls the pills’ stability and condition
from the threat of noxious microorganisms and humidity.

   3.2. Product and Services

Electronic Pharmacy Box is a medical organizer, which provides a full operational system to
manage the medical treatment operations all throughout the hospitals. There are several types
of medical organizers. The most common example of these devices is pill organizer system
that is the pill box. This system holds the patient’s daily medication. It does not contain the
reminder so the patient can forget to take pills. And this causes some problems in the
treatment. In EPB this kind of problems do not appear. In addition to this, EPB is useful for
not only the patient but also the doctor or nurse.

Each division of the company offers various services, among which are the following:
      Product setup
      Integration to information systems
      Technical documentation and tutoring services
      Research, optimization and upgrading of the system

       First service that is provided from our company is the design of the flexible,
convenient and efficient systems for all the customers. After the best design is founded the



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technical team is responsible for the setup of the system inside the customers place. These
kinds of services are crucial for hospitals and wide areas but not that much for home type
usage. This unit also tests the system after the setup to control the connectivity, signal
strengths and accuracy in place, so that the customers can easily start with usage of the
system. Second service of our E&S unit is integration, which aims to integrate the parts of the
product and builds the whole system.
       Technical documentation and tutoring services are available if the customers have
trouble by using the system and the specialties of it. We also provide installation of a new
software and add-ons for the system due to the flexibility of the product. For instance it is
possible to add new GSM or WEB modules to our standard wireless area products or the way
to connect medical devices to the box is quite easy with the aid of our service.
       Research, optimization and upgrades of the system is obligatory since the product is
flexible and open to the new wireless technologies, software and hardware add-ons. Since
human health and medical care is prior to all needs, our company provides excellent warranty
services for this system. In case of malfunctions of the system, our company guarantees that
with the aid of flexible architecture of the system each part is easily removable and
changeable with the new parts.       To not interrupt the works done in the hospitals our
technicians change the old module or other add-ons with the new ones. Repair of them will
be postponed within a small time period but by this way we guarantee a continous usage of
the system. The software problems are not going to be often however if they happen, again
new hardware parts will be changed with the old ones so that no interruptions going to be
occurred during treatments. The old chips are going to be formatted by our technical service,
installed with new software and than goes to the test unit to check its functions if they are
proper or not.




4. MARKET ANALYSIS


   4.1. Market


   Healthcare Sector in Turkey: The social securities and healthcare sector covers around
%25 of the governmental budget in Turkey, which makes the government the main customer
for the companies selling medical products. The total expenditure consumed by the healthcare
sector totals around 20 billion dollars, where it is mostly owed by the government. Although,


                                                                                             8
this bloodthirsty gap severely harms the governmental budget, it is a breathtaking opportunity
for the entrepreneurs. The key point that guides the marketing strategies is that the allocation
of the governmental funds blocks the price sensitivity shown by customers. It is certain that
Turkish market is a price sensitive market due to the low-income, but in the healthcare sector
the main focus is to provide the needed requirements to take place in the prescription list.
(The government pays products in the prescription list)
    Target market: Our target markets for EPB ranges from hospitals, veterinarian clinics to
old people who has difficulties following their medication schedules. The critical question
arouse if are we capable of ensuring to place our product in the prescription list. An assertive
answer to this question will enhance our target market, making us capable of taking a broader
view. In Turkey the number of public hospitals is 929 providing 158,845 beds where as the
private sector has 261 hospitals with only 12,775 beds. (http://www.tuik.gov.tr) The statistics
clearly state the capacity differences between the public and private hospitals, underlining the
importance of the government factor in our market. Our tendency to design a home version of
the EPB for old people enforces us to take a closer relationship with consumers. The
prescription list emerges as a vital condition for us to target a remarkable share in this market.
EPB can be considered as a luxury product compared to the income of an average Turkish
pensioner, although it might be vital for some certain conditions thus it should be included in
the prescription list.

Number of inpatient medical instituitons in Turkey.

                               Other                              Social
Year     Total    Ministries ministries            Universities securities           Private
   1 996    1 034          682                  12             35                115      184
   1 997    1 078          698                  12             37                115      210
   1 998    1 138          727                  12             40                115      237
   1 999    1 171          734                  12             42                115      260
   2 000    1 184          744                  10             42                118      261
   2 001    1 198          751                  10             43                118      267
   2 002    1,114          654                  10             50                120      270
   2 003    1,126          664                  10             50                121      272




                                                                                                9
Number of beds in public and private in-patient institutions

                                                             Social
Year      Total     Ministries other ministries Universities securities Private
1996        139 919    78 347              2 897     22 056      25 359 10 042
1997        144 984    80 297              2 897     23 383      25 934 11 255
1998        148 987    82 032              2 897     23 828      26 279 12 678
1999        153 465    84 022              2 897     24 094      27 062 14 077
2000        156 549    86 117              2 287     24 647      27 900 14 257
2001        159 290    87 709              2 287     24 754      28 517 14 682
2002        162 235    88 827              2 287     26 024      28 979 14 729
2003        164 897    91 202              2 287     26 162      29 157 14 700
2004        171 888    94 710              1 587     27 299      32 438 14 558


Number of the healthcare providers

                                              Health
Year            Physicians      Nurses        officiers
1996                     70 947        64 526       39 075
1997                     73 659        67 265       39 658
1998                     77 344        69 246       41 461
1999                     81 988        70 270       43 032
2000                     85 117        71 600       46 528
2001                     90 757        75 879       45 560
2002                     95 190        79 059       49 324
2003                     97,763        82,246       50,432

Number of patients per healthcare provider

                                                 Health
Year            Pysicians         Nurses         officiers
         1996               886            974               1609
         1997               869            952               1614
         1998               842            941               1572
        1 999               809            943               1541
        2 000               792            942               1449
        2 001               755            903               1504
        2 002               731            881               1412
        2 003               725            862               1405




                                                                                  10
Bed distribution in 3 big cities

                        Public                          Private
 Provinces Number of hospital Number of bed Number of hospital Number of bed
Ankara                    51         15,268                15            845
İstanbul                  66         27,688               130          7,465
İzmir                     35         10,124                15            907




   4.2. Marketing Strategies
At the very core of our marketing strategies lies the affordability of our products, i.e. lower
pricing than our competitors. We have several advantages that we can benefit from to achieve
affordability. First of all, we will produce our products in Turkey, and we save the
transportation and taxing expenses. Then, cheaper human resources can be acquired at lower
costs than many other countries; thus, expenses at every level of organization will again be
less than our rivalry. Others might consider, or even be practicing production outsourcing, but
certainly the production department constitutes only but a portion of the whole company staff
and will fall short to reduce costs alone. Coupled with lower human resources and
transportation expenses, the fact that ours is a small company will further ensure that our unit
prices will be lower.
       The company will also profit from maintenance and services. Customers will be
charged for web-based services, which allow alerting the caregivers. Also a small amount of
profit can be made by charging for each message sent. The company is to provide superior
maintenance services, such as allowing the switching of a malfunctioning device with a new
one without the need to reprogram. This change will allow a customer to continue using the
EPB while his own one is at the service probably being repaired. Good maintenance services
in Turkey, while not unheard of, are quite rare; thus can be one of the distinguishing features
of our company.


   4.3. Key features of the Company


Novelty: While one way to differ from other products of the same kind is offering better
affordability, another one is to increase the products' appeal by implementing novel ideas. So,


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other than offering lower prices, the company will adorn its products with the ability to
connect to and send and recieve information to other computers in a network. This ability also
allows the EPB to be programmed by using software which comes with the product. The
software is easy and safer to use.
Using Web Technology: We will make extensive use of web technologies, so that the devices
can communicate with our servers and signal an alert to the caregives of the patient. The
servers, being computers that can run any suitable software, are platforms which allow
implementing various options for alerting caregivers. The most commonly used will be
automated emailing, and GSM short messaging. Moreover, that the device can be connected
to a network and communicate with other computers means that it can also be part of an
intranet, which means easier adaptability to information systems and yet more flexibility to
imlement extensions.
Collaborating With Information Technologies: One of the most important markets that we
look to penetrate is the hospitals. The hospitals in Turkey are desperately competing with each
other, as the healthcare sector continues to grow rapidly. Private hospitals try and turn novel
ideas into services to gain an upper hand. Our products might benefit from this wild
competition, as it offers not only convenience to our customers, but it also adds to both the
technological level and presentation power of the hospital. However, in order to be able to sell
our products to the hospitals, our products should be able to fully integrate themselves into
information systems used there, so that they can appeal to the hospital managers.
       The integration allows the EPB to recieve setup information from the hospital
information system via an interpreter program, which will serve as an interface both for the
system and the EPB. The program itself will refer to interfaces for each different kind of
system, so collaboration with the supplier company is required. The information flow will be
in both directions, as the EPB is also able to send vital information to preset destinations.




5. COMPETITIVE ANALYSIS


       The automatic medication organizers are not new, though their share in the medicine
market is very low. In Turkey, many people do not even know that they exist and there is only
one hospital known to use a more complex system on the enterprise level. People tend to rely
on themselves to organize their medication, and most of them would view such equipment as
luxurious just because of their prices had they ever heard of it. Thus, there is no strong


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substitute for a medical organizer in Turkey. However; this does not necessarily mean that the
market for such devices is nonexistent. It is only that no such device has yet entered the
Turkish market with a reasonable price.
       Medical organizers most widely used in Turkey are not automated. They are in the
form of several boxes, with boxes corresponding to day of the week and/or time of the day.
Thus, other than the little convenience they provide, they are of no real help for those patients
who tend to forget to take their medications. More complicated organizers also have
reminders on them, which allow them to warn the patients to take their medicine. However,
most of the patients already own some kind of device, like a cell phone, a watch, or a personal
organizer which can be set to alarm him at the right time. So, medication organizers with
reminders cannot go much further than offering some convenience to the patient. On the other
hand, the most complicated medical organizers have many features including warning the
caregivers, who are miles away, via the internet or GSM when the medicine is not taken on
time, or some other thing goes wrong.
       The medical organizers perform various tasks, the fundamental being warning the
patient when she should take her medicine. Others include dispensing the medicine at the time
it should be taken, keeping records of what medicine is taken when, and which dose is missed
and communicating with caregivers when necessary. Most products perform some of these
tasks, but there are a few products which offer all the aforementioned features in one.
       One of the largest companies in medication equipment is e-pill Medication Reminders.
Their highlight product is the Monitored Automatic Dispenser (MAD). It gives a warning
when the medication time comes and dispenses pills to be taken. It also calls the caregiver in
case the medicine is not taken. The product costs $749.95, which means that it possibly
cannot penetrate the Turkish market. Still, its capabilities are rather limited. It is cheaper than
nursing home, but only those who do not require caregivers for any reason other than
organizing their medication can rather choose to own a MAD over nursing home. The EPB
can perform all the tasks performed by the MAD, yet with the possible extensions like
sphygmomanometer, which also signals a warning to the caregiver in case of abnormal blood
pressure values, EPB offers more capabilities at a lower price.
       A better rival is Automated MedReady PLUS by BIndependent, which has a modem
and can connect to the internet and send emails as well as give call signals to caregivers when
required. Priced at $227.00, the MedReady is a good competition. Its modem ensures
extendibility to perform various tasks in future, and its low cost is a good advantage for the
product. However; MedReady, like MAD has less functionality than the EPB. MedReady can


                                                                                                13
only be programmed for one patient, whereas the EPB can be configured to serve multiple
patients at once, which makes it possible to be used at the enterprise level, such as in
hospitals. Moreover, the ability to connect to a computer makes it possible to integrate EPB to
a hospital or a clinic information system, further increasing the extendibility of our product.




6. MANAGEMENT SUMMARY


   6.1. Organization


The company is governed by the Board consisting of a chairman, a vice chairman, and board
members. The executive director, also benamed president reports to the board as the highest-
ranking officer and is in charge of all executive matters. Two vice presidents counsel him, and
act as deputies.
       The company is lead by a chairman, and is divided into two organizational bodies, i.e.
technical and non-technical divisions. These bodies are further divided into departments,
which are Production and Maintenance, Research and Development, Marketing, Finance and
Human Resources, first two of which are technical departments, and the others nontechnical.
A department can be further divided into subdepartments when necessary. Each department is
administered by a manager, and each division by a vice president, who is chosen among
managers from the corresponding division.


   6.2. Organization Chart


The current organization of the company consist of the founding partners. They both form the
board, with Elif Koç as chairman and Meral Balkaya as her deputy, and they serve as
executive officers Elif Koç is also the chief executive officer. Meral Balkaya and Ekin
Geçikligün are vice presidents for the nontechnical and technical divisions respectively.
Departments are administrated by managers as seen on the chart below:




                                                                                                  14
15
7. FINANCIAL PLAN


   7.1. Financial Assumptions


   Whole land thought to be about 700 meter squares in which production-planning unit,

assembly and integration units, quality control unit, head offices, and technical service take

place. Our first main base of operation land is in Ulus where enables a fine transportation and

convenience for technical service. For the first two years, purchases from hospitals, old age

asylums, and child care houses will be at maximum and in order to deliver the product to the

market easily and give the most convenient technical service in Ankara, our production

facility will also consist technical service unit and will be in the municipal area- Ulus. Largest

and most important hospitals in Ankara are marked in the map below, which indicates the

importance of having the production and technical units together in the municipal area.



       A selling unit in Kizilay will be available for Ankara so that it will be easier for the

consumers to gather information about EPB and to purchase the product directly. Technicians

from our technical support will be able to use this selling unit as a center for primary

problems or complaints of the consumers about the product.



       In Istanbul and in Izmir there will be one office for technical service and two selling

units for each city. In each one selling unit and technical unit will locate together. The

positions of the technical offices and selling units in other cities than Ankara new offices may

be opened in case of need and demand.




                                                                                               16
Distribution of the inpatient hospitals in Ankara




                                                    17
Estimated land cost for main base of operations in Ankara-Ulus: 700 m² * 60 YTL = 42000
YTL
Estimated land rent cost for selling unit in Ankara-Kizilay: 1000YTL/ month 30m²
Estimated land rent cost for technical office and selling units in Istanbul-Kadikoy:
1100YTL/month 120m²
Estimated land rent cost for selling unit in Istanbul-Sisli: 1000 YTL/month 45m²
Estimated land rent cost for technical office and selling units in Izmir-Konak:
1000YTL/month 110m²
Estimated land rent cost for selling unit in Izmir-Alsancak: 800YTL/month 40m²




   (i)      OFFICES

         Offices mainly belong to the managers of the company and the customer

representatives who will be mostly selected from the engineers that know the production

process and the capabilities & the specifications of the products the best. There are two types

of offices: ones those are in the main building and those are in the selling units and technical

support units instead of the main base of operations in Ulus.



Equipments for a cubic office of four in Ulus:
    - 4 Computers 900YL * 4 = 3600YTL (Power supply and printer included)
                                      (Dell Dimension 2400 Desktop)
   - Desk, Chairs, Other Small Supplies 250YTL * 4 = 1000YTL
                                       (IKEA)
         Equipments for the manager office in Ulus:
   - 1 Computer 1000 YTL*1 = 1000YTL
                                       (Dell Inspiron 1300 Notebook)
   - Desk, Chairs, Other Small Supplies 400YTL * 1 = 400YTL


         Equipments for the selling offices in Ankara, Istanbul and Izmir:



                                                                                             18
   -      1 Computer for each office 900YTL * 3 = 2700YTL (Power supply and printer
          included)
   -      Desk, Chair, Furniture, Other Small Supplies 1000YTL * 3 = 3000YTL
   (Price of these offices’ equipments is higher due to their direct contact with the customers.




   (ii)      PRODUCTION PLANNING

          In this department employees are working on forecasts, which plan for the future
expectations of row materials, inventory, capacity and the work force level. What’s more,
department can takes orders from the customers and according to these orders they set up the
production lines. Decides the quantities of row materials, which are going to be used in the
production, and according to their decision they purchase the row materials from the market.




Equipments:
   -      3 Computers 900 YTL * 3 = 2700 YTL (Power supply and printer included)
   -       Desk, Chairs, Other small supplies 500 YTL
   -      Software installed on computers 4000 YTL




   (iii)     ASSEMBLY AREA (INTEGRATION UNIT)



          Assembly area is the area in which the sub materials are assembled to form the main
product.




          Equipments:
   -      Assembly tools 1100 YTL
   -      Small supplies such as toolkits, soldering equipments, etc 1500YTL
   -      10 very large tables 150 YTL * 10 = 1500 YTL
   -      1 Generator maximum power (kW (Hp) /rpm: 3.7 (5.1) /3000, 4.0 (5.5)/3600) 550YTL
          * 1 = 550YTL



                                                                                             19
   (iv)      TEST UNIT and QUALITY CONTROL UNIT

          In test unit, technicians perform the proper tests for the parts that will be used during
the production process. Quality control unit will test the quality final product before
delivering it to the customer.


          Equipments:
   -      2 Computers dedicated to tests and simulations 900YTL * 2 = 1800 YTL (Power
          supply and printer included)
   -      2 Test jigs for cards 80YTL * 2 = 160 YTL
   -      Testing tools (such as multi-meter) 1000YTL
   -      1 Oscilloscope 6000YTL * 1 = 6000YTL




   (v)       TECHNICAL ASSISTANCE

          Technical assistance is for the customers whose products do not run properly.

Technicians can both repair the mechanism of the product and troubleshoot the errors caused

from the software.



          Equipments for the main technical office in Ulus:
   -      10 Toolkits 20YTL * 10 = 200YTL
   -      10 Multi-meters 200 YTL * 10 = 2000YTL
   -      10 Soldering equipment 18 YTL * 10 = 180YTL
   -      Desks, Chairs, Other Small Supplies = 700YTL
   Equipments for other technical services:
   -      5 Toolkits for each office 20YTL * 5 * 3 = 300YTL
   -      3 Multi-meters for each office 200YTL * 3 * 3 = 1800YTL
   -      3 Soldering equipment for each office 18 YTL * 3 = 54YTL
   -      Desks, Chairs, Other Small Supplies for each office 420 YTL * 3 = 1340 YTL




                                                                                                20
   (vi)      SOCIALIZED AREA

          This are is reserved for fulfilling the basic needs of the personnel. It can consist of
WCs, kitchen, TV room etc. General equipment cost will be 1000 YTL




   (vii)     TRANSPORTATION UNIT
          MedicalX considers purchasing three second hand 1.3 diesel motored Fiat Doblos, one
          for each city so that transportation costs will be minimum and technical service will be
          able to work better.


          Three mini vans 22000YTL * 3 = 66000 YTL
Wages are gross wages including taxes, service and social security discounts.Social Security
Premium is at total 36%, for the employer 21% and for the employee 15%.


Manager/Industrial Engineer: As the manager of the production units and responsible for
the works done an industrial engineer is thought to be employed.
Wage per year: 60000YTL * 1 = 60000YTL


Electrical/Electronics Engineers: It is thought to employ two electrical engineers for the
production processes in the main base of operations, Ulus.
Wage per year: 40000YTL * 2 = 80000YTL


Electrical Technicians: For technical assistance three, for assembly unit three technicians,
and for testing unit two electrical technicians will be employed in the main base of operations.
For the technical support offices in Ankara, Izmir, and Istanbul three technicians will be hired
for each.
Wage per year: 16000YTL * 17 = 272000YTL


Computer Engineer: For the software of the product and advancements one computer
engineer will be employed in our facility in Ulus.
Wage per year: 40000YTL * 1 = 40000YTL




                                                                                               21
Computer Technician: In order to tote up the software, which is designed by the computer
and electronics engineers and also for the integration of any new software to the existing
program; one computer technician is required to be employed.
Wage per year: 16000YTL * 1 =16000YTL


Quality Controllers: Quality control unit will be in need of three quality controllers to be
employed.
Wage per year: 8400YTL * 3 = 25200 YTL


Workers on Integration process: There will be four of non-qualified workers in this
process.
Wage per year: 8000YTL * 4 = 32000YTL


Qualified workers: Two for assembly unit and two for technical assistance, in total two
qualified workers will be employed in the main building. For the technical service offices two
will be employed for each.
Wage per year: 11000YTL * 10 = 110000YTL


Assistants: For the coordination of the offices and incoming calls one secretary will be
employed in the main building and for each selling unit one assistant will be hired.
Wage per year: 18000YTL * 4 = 72000YTL


Sales Representatives: Selling offices will be in need of 1 sales representative for each.
Wage per year: 18000YTL * 6 = 108000YTL


Office Boys: Two office boys will be hired in the main facility.
Wage per year: 12000YTL * 2 = 24000YTL

TECHNOLOGY:


       Technological improvements make technological costs be considered under the fixed
costs. All the 6 offices and the main building will have Internet connection in order to follow
the technological improvements, have a better and easier connection with customers, and



                                                                                             22
maximize sales and advertisements of EPB on the Internet. MedicalX will have an Internet
site, which will enable online sales of EPB and online technical support. This site will have
priority in Google and in some of the popular search engines so that Internet commercials and
market share will be enlarged without extra costs. ADSL Internet connection requires
52,35YTL as a starting fee for the service and ADSL connection fee per month is 149,94YTL
for 1024/256 kbps in the main building and is 43,47YTL for other offices. The cost of the
Internet site of EPB will be 200YTL per year.


          For insurance, MedicalX Company will pay 13000 YTL per year. This insurance will
cover all the damages due to natural disasters, fire, robbery, terrorist attacks, and personal
faults.


          Security system with one cam per 50 m² will cost 3000YTL for the main building and
750 YTL for each of the six offices (750YTL * 6 = 4500YTL). Building heating units will
cost approximately 4000YTL and heating cost per month will be variable due to the season.
In Ankara the price of the natural gas is 0,58YTL/m³, in Istanbul it is 0,60YTL/m³, and in
Izmir it is 0,53YTL/m³ with VAT. The price of the electricity in Ankara for industry is 0,11
YTL/kWh and for office usages in Istanbul and in Izmir 0,13 YTL/kWh.
          Computer 10h * 11 Computers * 100 W/h = 11000Wh = 11kWh
          Air conditioning (Central) 10h * 2000W/h = 20000Wh = 20kWh
          Lights 40 watt incan 150 Fluorescents * 11 W * 10h = 16500 Wh = 16.5 kWh
          Other equipments 3000W * 10h = 30000Wh = 30 kWh
          Daily usage in total is 77.5 kWh, which makes the electricity bill 77.5 kWh * 22
working days * 0,11 YTL/kWh = 187,55 YTL per month.
Materials Used:
1- Microprocessor: RCM3720 RabbitCore 60 YTL per unit


2- XBee™ ZigBee OEM RF Module 25 YTL per unit

3- Cooler fan (Enermax Ultra-Cool 8cm Ball-bearing Cooling Fan w/ Thermal Control
for Computer Cases, Retail Box) 8 YTL per unit
4- P3 Power supply 17 YTL


5- OEM Power cable (3 m) 1.5 YTL


                                                                                           23
6- OEM Data cable 3 per unit = 3* 1.3 YTL = 3.9YTL


7- Interface unit using 74HC595 shift register (Fully assembled) 38 YTL


8- 7 Segment Display 1.50YTL * ~ 15 (app per unit) = 22.5YTL


9- Push to make switches 0.25 YTL * 10 = 2.5YTL


10- Dual ON-OFF switch 0.4YTL


11- DV5520 Rugged Low-Power LCD 132 x 64-pixel monochrome graphics display module
(DV5520) 12YTL


12- Num-pad OEM (XA-021) 10 YTL




Tax:
           (i)     Witholding Tax: In Turkey Witholding Tax is about 22%. It is a tax that is
                   like a prepayment procedure for companies. It does not depend on the
                   income of the entrepreneur or the profit of the firm.
           (ii)    Value Added Tax: Value added tax (VAT) is a type of sales tax. In some
                   countries, including Australia, Canada, New Zealand, and Singapore, this
                   tax is known as "goods and services tax" or GST; and in Japan it is known
                   as "consumption tax". VAT is an indirect tax, in that the tax is collected
                   from someone other than the person who actually bears the cost of the tax
                   (namely the seller rather than the consumer). As VAT is intended as a tax
                   on consumption, exports (which are, by definition, consumed abroad) are
                   usually not subject to VAT or VAT is refunded. In Turkey Value Added
                   Tax (VAT) is 18% for our business.
           (iii)   Banking and Insurance Transaction Taxes: These taxes are about 0.5% in
                   Turkey.




                                                                                                24
           (iv)    Individual and Corporation Income Taxes: Individual Income Tax in
                   Turkey varies due to income level from 15% to 35%. Corporation Income
                   Tax is fixed to be 20%.




       EPB is considered to create its own market; therefore, most probably, when presented
to the customers in Turkey it is going to have the whole market and be very profitable for
MedicalX. For the first year sales will be the maximum for hospitals about 30000 products.
Second and third year will be the years of profit because house sales are expected to peak
those times with the help of commercials and 40000 products per each year are expected to be
purchased. After the third year MedicalX plans to sell the optional parts and advance the
software and sell specific products for specific patients so that profit will be doubled from one
product sold.
       Worst can happen about EPB is that it may be found unnecessary cost for some
hospitals and the sales may be at it minimum of 5000 per year. Instead of this, with a little
possibility EPB may reach the foreign markets and in its first year the sales may maximize at
75000 products.
       Land and employees are going to be rented and hired according to the most expected
case. For the worst situation MedicalX is going to earn nothing but it will not face any
bankruptcy problems due to EPB investment. For the best situation, the land will be enlarged
in a short time and production facilities will be improved. Calculations made above are all
assumed to be under the most expected case.




                                                                                              25
 APPENDIX A



-Most Expected Case-


  -Expenses, sales, net profit

  -Pro forma profit and loss

  -Projected Balance Sheet




                                 26
          BALANCE SHEET




Assets - Most Expected Case

Current Assets:                    2007               2008               2009
Cash                            3,664,962.08 YTL   4,553,722.50 YTL   5,818,069.66 YTL
Inventory                          43,184.00 YTL      51,820.80 YTL      62,184.96 YTL
Other Current Assets                    0.00 YTL           0.00 YTL           0.00 YTL
Total Current Assets            3,708,146.08 YTL   4,605,543.30 YTL   5,880,254.62 YTL

Long-Term Assets
Long-Term Assets:                 108,000.00 YTL     108,000.00 YTL     108,000.00 YTL
Accumulated Depreciation                0.00 YTL      10,800.00 YTL      22,680.00 YTL
Total Long-Term Assets            108,000.00 YTL      97,200.00 YTL      85,320.00 YTL
Total Assets                    7,632,292.16 YTL   4,702,743.30 YTL   5,903,389.66 YTL


Liabilities and Capital

Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Curent Liabilities
Long-Term Liabilities            255,255.00 YTL     204,204.00 YTL     153,153.00 YTL
Total Liabilities                255,255.00 YTL     204,204.00 YTL     153,153.00 YTL

Retained Earnings               5,262,410.41 YTL   1,897,431.51 YTL   2,386,807.52 YTL
Paid-in Capital                    40,000.00 YTL      40,000.00 YTL      40,000.00 YTL
Earnings                        2,074,626.75 YTL   2,561,107.79 YTL   3,323,429.14 YTL
Total Capital                   7,377,037.16 YTL   4,498,539.30 YTL   5,750,236.66 YTL
Total Liabilities and Capital   7,632,292.16 YTL   4,702,743.30 YTL   5,903,389.66 YTL
Net Worth                       7,632,292.16 YTL   4,702,743.30 YTL   5,903,389.66 YTL




                                                                           27
             PRO FORMA PROFIT LOSS


Pro Forma Profit and Loss - Most Expexted Case

                                                 2007               2008                2009
Gross Sales                                 11,987,480.00 YTL   15,985,500.00 YTL   20,685,320.00 YTL
Sales                                       11,970,000.00 YTL   15,960,000.00 YTL   20,654,000.00 YTL
Service Sales                                   17,480.00 YTL       25,500.00 YTL       31,320.00 YTL
Less:Sales Returns and Allowances               59,850.00 YTL       79,800.00 YTL      101,025.00 YTL
Net Sales                                   11,927,630.00 YTL   15,905,700.00 YTL   20,584,295.00 YTL

COGS
Direct Cost of Sales                         7,455,300.00 YTL   10,626,000.00 YTL   13,969,800.00 YTL
Direct Labor                                   330,400.00 YTL      343,312.00 YTL      353,924.48 YTL
Manufacturing Overhead                          15,844.00 YTL       19,012.80 YTL       22,815.36 YTL
Other Production Expenses (Domain)                 200.00 YTL          200.00 YTL          200.00 YTL
Total Cost of Goods Sold                     7,801,744.00 YTL   10,985,524.80 YTL   14,346,739.84 YTL

Gross Margin                                 4,125,886.00 YTL    4,920,175.20 YTL    6,237,555.16 YTL

Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll                   180,000.00 YTL      185,400.00 YTL      192,816.00 YTL
Advertising / Promotion                       107,887.32 YTL       63,942.00 YTL       51,713.30 YTL
Travel                                              0.00 YTL            0.00 YTL            0.00 YTL
Miscelleneous                                       0.00 YTL            0.00 YTL            0.00 YTL

Total Sales and Marketing Expenses            287,887.32 YTL      249,342.00 YTL      244,529.30 YTL

General and Administrative Expenses:
General and Administrative Payroll             84,000.00 YTL       86,520.00 YTL       89,980.80 YTL
Payroll Expense                                     0.00 YTL            0.00 YTL
Depreciation                                    4,996.60 YTL        5,625.70 YTL        6,538.90 YTL
Computer Hardware and Software                 13,100.00 YTL        5,895.00 YTL        3,537.00 YTL
Office Furniture and Equipment                  9,240.00 YTL        3,150.00 YTL        4,240.00 YTL
Insurance                                      13,000.00 YTL       12,350.00 YTL       11,732.50 YTL
Rent                                           48,700.00 YTL       53,570.00 YTL       58,927.00 YTL
Total General and Administrative Expenses     173,036.60 YTL      167,110.70 YTL      174,956.20 YTL

Total Operating Expenses                      460,923.92 YTL      416,452.70 YTL      419,485.50 YTL

Profit Before Interest and Taxes             3,664,962.08 YTL    4,503,722.50 YTL    5,818,069.66 YTL
Interest Expense                                51,051.26 YTL       51,051.26 YTL       51,051.26 YTL
Taxes Incured                                1,539,284.07 YTL    1,891,563.45 YTL    2,443,589.26 YTL
Extraordinary Items                                  0.00 YTL            0.00 YTL            0.00 YTL



Net Profit                                   2,074,626.75 YTL    2,561,107.79 YTL    3,323,429.14 YTL


                                                                                          28
APPENDIX B



    -Best Case-


-Expenses, sales, net profit

-Pro forma profit and loss

-Projected Balance Sheet




                               29
          BALANCE SHEET



Assets - Best Case

Current Assets:                     2007               2008                2009
Cash                             7,329,924.16 YTL   9,107,445.00 YTL   11,636,139.32 YTL
Inventory                           43,184.00 YTL      51,820.80 YTL       62,184.96 YTL
Other Current Assets                     0.00 YTL           0.00 YTL            0.00 YTL
Total Current Assets             7,373,108.16 YTL   9,159,265.80 YTL   11,698,324.28 YTL

Long-Term Assets
Long-Term Assets:                  108,000.00 YTL     108,000.00 YTL      108,000.00 YTL
Accumulated Depreciation                 0.00 YTL      10,800.00 YTL       22,680.00 YTL
Total Long-Term Assets             108,000.00 YTL      97,200.00 YTL       85,320.00 YTL
Total Assets                    14,962,216.32 YTL   9,256,465.80 YTL   11,721,459.32 YTL


Liabilities and Capital

Accounts Payable                        0.00 YTL           0.00 YTL            0.00 YTL
Current Borrowing                       0.00 YTL           0.00 YTL            0.00 YTL
Other Current Liabilities               0.00 YTL           0.00 YTL            0.00 YTL
Subtotal Curent Liabilities             0.00 YTL           0.00 YTL            0.00 YTL
Long-Term Liabilities             255,255.00 YTL     204,204.00 YTL      153,153.00 YTL
Total Liabilities                 255,255.00 YTL     204,204.00 YTL      153,153.00 YTL

Paid-in Capital                     40,000.00 YTL      40,000.00 YTL       40,000.00 YTL
Earnings                         4,606,003.50 YTL   5,584,507.43 YTL    7,129,842.53 YTL
Total Capital                    4,646,003.50 YTL   5,624,507.43 YTL    7,169,842.53 YTL
Total Liabilities and Capital    4,901,258.50 YTL   5,828,711.43 YTL    7,322,995.53 YTL




                                                                             30
         PRO FORMA PROFIT LOSS


Pro Forma Profit and Loss - Best Case

Total Sales                                      2007               2008                2009
Gross Sales                                 23,974,960.00 YTL   31,971,000.00 YTL   41,370,640.00 YTL
Sales                                       23,940,000.00 YTL   31,920,000.00 YTL   41,308,000.00 YTL
Service Sales                                   34,960.00 YTL       51,000.00 YTL       62,640.00 YTL
Less:Sales Returns and Allowances              119,700.00 YTL      159,600.00 YTL      202,050.00 YTL
Net Sales                                   23,855,260.00 YTL   31,811,400.00 YTL   41,168,590.00 YTL

COGS
Direct Cost of Sales                        14,910,600.00 YTL   21,252,000.00 YTL   27,939,600.00 YTL
Direct Labor                                   330,400.00 YTL      343,312.00 YTL      353,924.48 YTL
Manufacturing Overhead                          15,844.00 YTL       19,012.80 YTL       22,815.36 YTL
Other Production Expenses (Domain)                 200.00 YTL          200.00 YTL          200.00 YTL
Total Cost of Goods Sold                    15,257,044.00 YTL   21,614,524.80 YTL   28,316,539.84 YTL

Gross Margin                                 8,598,216.00 YTL   10,196,875.20 YTL   12,852,050.16 YTL

Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll                   180,000.00 YTL      185,400.00 YTL      192,816.00 YTL
Advertising / Promotion                       215,774.64 YTL      127,884.00 YTL      103,426.60 YTL
Travel                                              0.00 YTL            0.00 YTL            0.00 YTL
Miscelleneous                                       0.00 YTL            0.00 YTL            0.00 YTL

Total Sales and Marketing Expenses            395,774.64 YTL      313,284.00 YTL      296,242.60 YTL

General and Administrative Expenses:
General and Administrative Payroll             84,000.00 YTL       86,520.00 YTL       89,980.80 YTL
Payroll Expense                                     0.00 YTL            0.00 YTL
Depreciation                                    4,996.60 YTL        5,625.70 YTL        6,538.90 YTL
Computer Hardware and Software                 13,100.00 YTL        5,895.00 YTL        3,537.00 YTL
Office Furniture and Equipment                  9,240.00 YTL        3,150.00 YTL        4,240.00 YTL
Insurance                                      13,000.00 YTL       12,350.00 YTL       11,732.50 YTL
Rent                                           48,700.00 YTL       53,570.00 YTL       58,927.00 YTL
Total General and Administrative Expenses     173,036.60 YTL      167,110.70 YTL      174,956.20 YTL

Total Operating Expenses                      568,811.24 YTL      480,394.70 YTL      471,198.80 YTL

Profit Before Interest and Taxes             8,029,404.76 YTL    9,716,480.50 YTL   12,380,851.36 YTL
Interest Expense                                51,051.26 YTL       51,051.26 YTL       51,051.26 YTL
Taxes Incured                                3,372,350.00 YTL    4,080,921.81 YTL    5,199,957.57 YTL
Extraordinary Items                                  0.00 YTL            0.00 YTL            0.00 YTL



Net Profit                                   4,606,003.50 YTL    5,584,507.43 YTL    7,129,842.53 YTL



                                                                                          31
APPENDIX C



   -Worst Case-


-Expenses, sales, net profit

-Pro forma profit and loss

-Projected Balance Sheet




                               32
BALANCE SHEET


Assets - Worst Case

Current Assets:                   2007              2008                2009
Cash                             610,827.01 YTL    758,953.75 YTL     969,678.28 YTL
Inventory                         43,184.00 YTL     51,820.80 YTL      62,184.96 YTL
Other Current Assets                   0.00 YTL          0.00 YTL           0.00 YTL
Total Current Assets             654,011.01 YTL    810,774.55 YTL   1,031,863.24 YTL

Long-Term Assets
Long-Term Assets:                 108,000.00 YTL   108,000.00 YTL     108,000.00 YTL
Accumulated Depreciation                0.00 YTL    10,800.00 YTL      22,680.00 YTL
Total Long-Term Assets            108,000.00 YTL    97,200.00 YTL      85,320.00 YTL
Total Assets                    1,524,022.03 YTL   907,974.55 YTL   1,054,998.28 YTL


Liabilities and Capital

Accounts Payable                       0.00 YTL          0.00 YTL          0.00 YTL
Current Borrowing                      0.00 YTL          0.00 YTL          0.00 YTL
Other Current Liabilities              0.00 YTL          0.00 YTL          0.00 YTL
Subtotal Curent Liabilities            0.00 YTL          0.00 YTL          0.00 YTL
Long-Term Liabilities            255,255.00 YTL    204,204.00 YTL    153,153.00 YTL
Total Liabilities                255,255.00 YTL    204,204.00 YTL    153,153.00 YTL

Retained Earnings               1,263,620.91 YTL   625,352.46 YTL     710,427.30 YTL
Paid-in Capital                    40,000.00 YTL    40,000.00 YTL      40,000.00 YTL
Earnings                          -34,853.88 YTL    38,418.09 YTL     151,417.98 YTL
Total Capital                   1,268,767.03 YTL   703,770.55 YTL     901,845.28 YTL
Total Liabilities and Capital   1,524,022.03 YTL   907,974.55 YTL   1,054,998.28 YTL




                                                                             33
         PRO FORMA PROFIT LOSS


Pro Forma Profit and Loss - Worst Case

Total Sales                                      2007             2008               2009
Gross Sales                                 1,997,913.33 YTL   2,664,250.00 YTL   3,447,553.33 YTL
Sales                                       1,995,000.00 YTL   2,660,000.00 YTL   3,442,333.33 YTL
Service Sales                                   2,913.33 YTL       4,250.00 YTL       5,220.00 YTL
Less:Sales Returns and Allowances               9,975.00 YTL      13,300.00 YTL      16,837.50 YTL
Net Sales                                   1,987,938.33 YTL   2,650,950.00 YTL   3,430,715.83 YTL

COGS
Direct Cost of Sales                        1,242,550.00 YTL   1,771,000.00 YTL   2,328,300.00 YTL
Direct Labor                                  330,400.00 YTL     343,312.00 YTL     353,924.48 YTL
Manufacturing Overhead                         15,844.00 YTL      19,012.80 YTL      22,815.36 YTL
Other Production Expenses (Domain)                200.00 YTL         200.00 YTL         200.00 YTL
Total Cost of Goods Sold                    1,588,994.00 YTL   2,133,524.80 YTL   2,705,239.84 YTL

Gross Margin                                 398,944.33 YTL     517,425.20 YTL     725,475.99 YTL

Operating Expenses:
Sales and Marketing Expenses:
Sales and Marketing Payroll                  180,000.00 YTL     185,400.00 YTL     192,816.00 YTL
Advertising / Promotion                       17,981.22 YTL      10,657.00 YTL       8,618.88 YTL
Travel                                             0.00 YTL           0.00 YTL           0.00 YTL
Miscelleneous                                      0.00 YTL           0.00 YTL           0.00 YTL

Total Sales and Marketing Expenses           197,981.22 YTL     196,057.00 YTL     201,434.88 YTL

General and Administrative Expenses:
General and Administrative Payroll            84,000.00 YTL      86,520.00 YTL      89,980.80 YTL
Payroll Expense                                    0.00 YTL           0.00 YTL
Depreciation                                   4,996.60 YTL       5,625.70 YTL       6,538.90 YTL
Computer Hardware and Software                13,100.00 YTL       5,895.00 YTL       3,537.00 YTL
Office Furniture and Equipment                 9,240.00 YTL       3,150.00 YTL       4,240.00 YTL
Insurance                                     13,000.00 YTL      12,350.00 YTL      11,732.50 YTL
Rent                                          48,700.00 YTL      53,570.00 YTL      58,927.00 YTL
Total General and Administrative Expenses    173,036.60 YTL     167,110.70 YTL     174,956.20 YTL

Total Operating Expenses                     371,017.82 YTL     363,167.70 YTL     376,391.08 YTL

Profit Before Interest and Taxes              27,926.51 YTL     154,257.50 YTL     349,084.91 YTL
Interest Expense                              51,051.26 YTL      51,051.26 YTL      51,051.26 YTL
Taxes Incured                                 11,729.14 YTL      64,788.15 YTL     146,615.66 YTL
Extraordinary Items                                0.00 YTL           0.00 YTL           0.00 YTL



Net Profit                                    -34,853.88 YTL     38,418.09 YTL     151,417.99 YTL




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