1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. World Military Avionics Market - Military Air Transport and Special Mission Aircraft Markets COTS Components Usage Speeds Military Avionics Development Aerospace & Defense Group “The military’s acceptance of civilian standards, coupled with the progress made in avionics systems and product adaptability, can meet long-term operational requirements of the military – despite additional costs for software upgrades.”

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends Upgrade programs sometimes delayed or cancelled due to financial uncertainties and new aircraft purchases Problems and costs associated with avionics upgrades in older airframes limit opportunities outside the United States and NATO Political considerations delay product acquisition Benefits of GATM slowly emerging Reduced opportunities for U.S. avionics companies not to be excluded entirely

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications in the avionics market Market sizing and competitive analysis Market forecasts and opportunity analysis End-user analysis

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: Global Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

5. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants  Find out how you compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities New Entrants  Analyze challenges associated with the industry  Calculate time scales for strategy implementation  Position yourself to capitalize on the market’s unmet needs Investment Community  Analyze long-term strategies of avionics companies  Determine which participants will outperform the competition  Assess attractiveness of investing in the avionics market

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included Communications and Data Equipment Markets Surveillance and Instrumentation Markets Navigation and Flight Control Markets

7. © Copyright 2004 Frost & Sullivan. All Rights Reserved.  BAE Systems  Honeywell  Honeywell International  Northrop Grumman Corp.  Rockwell Collins, Inc.  Smiths Industries Aerospace  Thales Avionics Key Market Participants

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