MILITARY ENTERPRISE

Stavatti Military Aerospace is the sector enterprise that manages the design, development, production, sale and CLS of tactical and strategic aerospace vehicles for military service with the DoD as well as NATO/Allied Air Forces. The first of all Stavatti aerospace enterprises, the military aerospace group actually pre-dates Stavatti Corporation by five years when work began on concepts which evolved into the SM-36 STALMA: the principal program of Stavatti from 1994 through 2005. The most prolific design center of Stavatti Aerospace, the Military Aerospace Enterprise is unique to the industry, conducting the majority of new military aerospace development programs as privately sponsored, commercial ventures to satisfy anticipated defense needs. A practitioner of “Selling What We Make,” Stavatti Military Aerospace develops products for Direct Commercial Sale (DCS) to allied customers of the United States as approved by the State Department-Directorate of Defense Trade Controls. A wholly owned enterprise of Stavatti Aerospace, Military Aerospace is composed of two principal sectors: Tactical Military Aerospace and Strategic Military Aerospace.

TACTICAL MILITARY AEROSPACE

Stavatti Tactical Military Aerospace is responsible for the design and anticipated production of military aircraft and air weapon systems to satisfy tactical mission requirements. Tactical combat missions have an immediate connection to a battlefield activity. Often conducted against a direct enemy threat, tactical combat missions are traditionally flown by fighters and attack aircraft. The primary mission of the fighter is to achieve air superiority over the battlefield. The primary mission of the attack aircraft is to engage enemy surface forces and provide battlefield support, typically through the delivery of air-to-ground ordnance.

Responsible for ensuring instantaneous air defense to preserve national sovereignty and the frontline projection of air power, tactical air missions include: Interception, Interdiction, Combat Air Patrol (CAP), Close Air Support (CAS), COunter-INsurgency (COIN), Precision Strike, Anti-Radiation (‘Wild Weasel’) Attack, Anti-Shipping (Maritime) Strike, Battlefield Reconnaissance, Anti-Satellite Interception, Stand-off Precision Attack and Tactical Nuclear Strike. The realm of dog-fighting and tank-busting, tactical air warfare does, however, involves more than just the missions of fighter and attack aircraft. The basic building block of the modern air force, tactical air warfare systems include all aircraft types, such as dedicated close air support, trainer, counter-insurgency, liaison and tactical reconnaissance, which address the individual element needs of the warfighter.

As of 2009, the primary Tactical Military Aerospace Program of Stavatti Military Aerospace is the SM-27 Machete COIN/CAS/Advanced Trainer and the SM-47 Super Machete Light Strike Fighter. The SM-27/47 will be the first production series in an anticipated long line of tactical mission aircraft to satisfy a variety of future market needs including the following aircraft types:

Multi-Role Fighter (MRF)
• Light Weight Fighter (LWF)
• Air Superiority Fighter (ASF)

• Close Air Support (CAS)
• COunter INsurgency (COIN)
• Forward Air Control (FAC))
• Advanced Trainer (AT)
• Supersonic Trainer (ST)
• Lead-In Fighter (LIF))
• Tactical Airlifter (TA)
• Tactical Reconnaissance (TR)

• Anti-Submarine Warfare (ASW)
• Space Superiority Fighter (SSF)

Virtually every tactical air warfare system requirement will be satisfied by a Stavatti product. Addressing the needs of specific customers including the USAF, ANG, USN, USMC as well as the air forces and naval air arms of U.S. Allied and NATO member nations worldwide, Stavatti will serve as a major producer of tactical aircraft by 2030.

Stavatti Tactical Air Warfare Systems is a Sector of the Military Aerospace Enterprise of the Aerospace Division of Stavatti Heavy Industries, Ltd. Stavatti Tactical Air Warfare Systems is currently engaged in the production and/or development of Stavatti's First Generation of tactical aircraft.

First Generation tactical aircraft include the SM-27 Machete and SM-47 Super Machete air weapon systems.

Representative of the first military aircraft product line Stavatti will introduce for Direct Commercial Sales to NATO allies, First Generation Stavatti tactical aircraft are characterized by relatively conventional, three-surface configurations consisting of a wing, canard and empennage. Incorporating Military-Off-The-Shelf (MOTS) powerplant, avionic, EW, armament, hydraulic and electrical systems, First Generation tactical aircraft showcase Stavatti's novel approach to total systems integration. Intended to establish Stavatti's military aerospace foothold, First Generation tactical aircraft are Conventional/Short Takeoff and Landing aircraft that employ proven air-breathing powerplants. Designed for total interoperability with US and NATO defense forces, First Generation tactical aircraft will be cost competitive.

First Generation Stavatti tactical aircraft are not presently in production. All Stavatti First Generation Stavatti tactical aircraft are currently undergoing development. First Generation aircraft are scheduled to enter LRIP between 2010 and 2014 corresponding to FRP/IOC between 2012 and 2017.

Second Generation tactical aircraft include models that will enter LRIP within ten years of SM-27/SM-47 FRP. Second Generation military aircraft are characterized by unconventional aerodynamic configurations coupled with advanced integrated systems including variable cycle powerplants, directed energy weapons and proprietary avionics/EW systems that benefit from photonic processors. Second Generation tactical aircraft are intended for FRP between 2015 and 2025, depending upon specific model and type.

Stavatti Military Aerospace is presently engaged in the conceptual, advanced and detail design of Second Generation tactical aircraft as successor to F/A-35, F/A-22 and Eurofighter Typhoon types. Information relating to Second Generation tactical aircraft is considered Stavatti Proprietary and is accessible only to qualified individuals

STRATEGIC MILITARY AEROSPACE

Stavatti Strategic Military Aerospace is responsible for the design and anticipated production of military aircraft and air weapon systems to satisfy strategic mission requirements. Strategic air warfare includes missions conducted against distant targets located deep within enemy territory. Focused upon the destruction of facilities including factories, airfields, launch complexes, shipyards, railways and material bound for the battlefield, strategic missions strike at the enemy’s infrastructure and industrial capacity. In so doing, the purpose of strategic missions is to quench the enemy’s will to fight, thereby eliminating the battlefield and the need for tactical warfare.

Strategic air warfare has traditionally consisted of bomber aircraft performing bombing missions. During the Cold War it became apparent that the concept of strategic air warfare as developed during World War II was obsolete, with the term "strategic bombing" becoming synonymous with nuclear bombing. Since the end of the Cold War, strategic air warfare has once again shifted focus to concentrate upon conventional, rather than nuclear, bombing. Hence modern strategic air warfare now focuses upon the use of mass bombers to deliver precision guided munitions over long range.

Spanning the entire military aviation market, Stavatti will produce manned Heavy and Medium Bombers for strategic purposes. The Stavatti definition of strategic air warfare systems, however, includes more than bombers, focusing also upon aircraft which perform the logistical support, global intelligence, information warfare and command and control missions associated with maintaining a nation‘s warfighting ability. Aircraft including manned, fixed wing:

• Heavy Bombers
• Medium Bombers
• Anti-Submarine Warfare (ASW)
• Heavy Airlift and Transport
• Medium Airlift and Transport
• MEDEVAC
• Inflight-Refueling Tankers
• EW Platforms
• C3 Platforms
• AWACs Platforms
• Strategic Reconnaissance (SR)

• Prompt Global Strike (PGS)

will be manufactured by Stavatti to satisfy a myriad of strategic needs.

Like Tactical Military Aerospace, Stavatti Strategic Military Aerospace will satisfy the needs of the USAF, USN, the Executive Branch of the U.S. Government as well as well as the air forces, naval air arms and governments of US Allied and NATO member nations worldwide. Stavatti intends to serve as a major domestic producer of strategic aircraft by 2040.

First Generation strategic aircraft include Global Ultra Heavy-Lift platforms and Prompt Global Strike (PGS) aircraft currently in the conceptual, advanced and detail design phases. The First Generation strategic aircraft are intended for LRIP between 2015 and 2030 depending upon specific model and type.

Information relating to First and subsequent generations of Stavatti Strategic Aircraft is considered Stavatti Proprietary and is accessible only to qualified individuals.

FIRST GENERATION CORE PROGRAMS

Core First Generation Programs of Stavatti Military Aerospace include the SM-27S/T Turboprop Machete COIN/CAS/FAC/AT, the SM-27J/L Turbofan Machete COIN/CAS/FAC/Lead-In Trainer and the SM-47S/T Super Machete Light Weight Strike Fighter. All thre aerospace vehicles are fixed wing, manned aircraft presently under development for production by Stavatti Tactical Military Aerospace. Of these aircraft, the SM-27S/T will be the first to enter production, followed by the SM-27J/L and one year thereafter, the SM-47S/T. Although Stavatti has been developing these aircraft per this schedule, the actual development schedule may be adjusted to accommodate immediate customer requirements.

SM-27 MACHETE/SM-47 SUPER MACHETE

The SM-27 Machete is a single engine attack aircraft now under development to satisfy COIN, CAS, SAR, FAC, advanced instructional and theater reconnaissance operations in the forward environment. Designed in both single seat and two place tandem configurations, the Machete program embodies a series of aircraft including the turboprop powered SM-27S/T, the turbofan powered SM-27J/L and the turbofan powered, Forward Swept Wing SM-47S/T Super Machete. Serving as Stavatti’s answer to counter terrorism, counter insurgency, anti-armor and battlefield fire suppression, the SM-27 was originally conceived to eliminate guerrilla forces, including the Mojaheddin, GIA, UNITA , etc. The SM-27/47 has evolved into a weapon system engineered to be a highly effective combatant in fighting the global war on terror. Designed to operate as either a man-inhabited or an unmanned/autonomous aircraft, the SM-27 will offer significant anti-insurgent and anti-armor capabilities.

A highly maneuverable, subsonic, light attack platform, the SM-27 will be ideal for combat over rugged, mountainous environments. Armed with a GD GAU-13 30mm cannon and heavily armored to survive small arms fire and Man-Portable SAMs alike, the Machete features a bullet resistant, single piece polycarbonate clamshell bubble canopy with the additional safety of Martin Baker USMK.16L zero-zero ejection seats.

Capable of operating from austere forward locations with minimum ground support, the Machete will deliver a 6,500 lb warload over a 500 nm tactical radius. With a maximum speed of over 400 kts, the Machete will provide immediate theater fire support. Destined for both FAA FAR PART 25 Type/Production Certification and MIL SPEC Qualification, current program plans call for initial introduction of the SM-27S/T turboprop variant, followed by the SM-27J/L and later the SM-47S/T. Specifically designed for export, the SM-27 Machete will serve as an ideal solution not only for Operation Enduring Freedom, but the anti-terror/anti-narco needs of Latin American, South East Asia, Middle East and African allied air forces worldwide.

SERIES: SM-27S/T/J/L MACHETE™ & SM-47S/T SUPER MACHETE™
TYPE: Single Engine, Single or Two Seat Tandem COIN/CAS/FAC/Advanced Trainer
GENERATION: Stavatti First Generation
DIVISION: Stavatti Military Aerospace-Tactical Military Aerospace
DEVELOPMENT SITE LOCATION: Boise, ID and S. St. Paul, MN
PRODUCTION SITE LOCATION: TBD
DEVELOPMENT PROGRAM DURATION: 2001-2009
DEVELOPMENT PROGRAM COST: Company Proprietary Information
ANTICIPATED LRIP: Between 2012 and 2014
ANTICIPATED FRP/IOC: Between 2013 and 2015
PROJECTED UNIT FLYAWAY COST: Between $10 million and $25 million
PROJECTED ANNUAL PRODUCTION RATE: Between 50 and 150 aircraft
PROJECTED TOTAL PRODUCTION: Between 1,000 and 3,000 aircraft
DIRECT EMPLOYMENT DURING PRODUCTION: Between 1,000 and 5,000
PROGRAM STATUS: Prototype Engineering Development as of 3rd Quarter 2009


SM-27S/T TURBOPROP MACHETE

MODEL SPECIFIED: SM-27S/T MACHETE™
MISSION: COIN/CAS/FAC/SAR with SM-27T serving also as an Advanced Trainer
ACCOMMODATION: Single (S) or Two Place Tandem (T) on Martin Baker MKUS.16L
POWERPLANT: One (1) Pratt & Whitney Canada PW127G Turboprop; 2,920 SHP
MAXIMUM LEVEL SPEED: 400 kts (MACH 0.70) at Altitude
UNIT FLYAWAY COST: $10 million to $18 million dependent upon avionics & systems


08 April 09; 1.0 MB SM-27S Turboprop Machete Product Linecard
08 April 09; 1.0 MB SM-27T Turboprop Machete Product Linecard
08 April 09; 0.3 MB SM-27S/T Turboprop Machete Warload
09 April 09; 1.4 MB SM-27S/T Turboprop Machete Arrangement
09 April 09; 9 MB SM-27S/T Turboprop Machete Cockpit Panels
SM-27J/L TURBOFAN MACHETE

MODEL SPECIFIED: SM-27J/L MACHETE™
MISSION: CAS/FAC/SAR with SM-27L serving also as a Lead-In Fighter
ACCOMMODATION: Single (S) or Two Place Tandem (T) on Martin Baker MK.16E
POWERPLANT: One (1) Non-Afterburning GEAE F414 Turbofan; 14,756 lbs st
MAXIMUM LEVEL SPEED: 590 kts (MACH 0.90) at Sea Level
UNIT FLYAWAY COST: $16 million to $20 million dependent upon avionics & systems


08 April 09; 1.0 MB SM-27J Turbofan Machete Product Linecard
08 April 09; 1.0 MB SM-27L Turbofan Machete Product Linecard
08 April 09; 0.3 MB SM-27J/L Turbofan Machete Warload
09 April 09; 1.2 MB SM-27J/L Turbofan Machete Arrangement
09 April 09; 9 MB SM-27J/L Turbofan Machete Cockpit Panels
SM-47S/T SUPER MACHETE

MODEL SPECIFIED: SM-47S/T SUPER MACHETE™
MISSION: Strike Fighter (SM-47S) and Supersonic Trainer/Lead-In Fighter (SM-47T)
ACCOMMODATION: Single (S) or Two Place Tandem (T) on Martin Baker MK.16E
POWERPLANT: One (1) GEAE F414-GE-400 Afterburning Turbofan; 22,000 lbs st
MAXIMUM LEVEL SPEED: Mach 1.8 at Altitude
UNIT FLYAWAY COST: $20 million to $30 million dependent upon avionics & systems


08 April 09; 1.0 MB SM-47S Super Machete Product Linecard
08 April 09; 1.0 MB SM-47T Super Trainer Product Linecard
08 April 09; 0.2 MB SM-47S/T Super Machete Warload
08 April 09; 1.0 MB SM-47S/T Super Machete Arrangement
08 April 09; 9.0 MB SM-47S/T Super Machete Cockpit Panels
SM-27UA CYBERPROP™

MODEL SPECIFIED: SM-27UA CYBERPROP™
MISSION: Unmanned/Autonomous Hunter-Killer for COIN/CAS/SEAD/FAC/RECON
ACCOMMODATION: Unmanned-Autonomous or Ground Station Controlled
POWERPLANT: One (1) Pratt & Whitney Canada PW127G Turboprop; 2,920 SHP
MAXIMUM LEVEL SPEED: 400 kts (MACH 0.70) at Altitude
UNIT FLYAWAY COST: $13 million to $16 million dependent upon avionics & systems


08 April 09; 1.0 MB SM-27UA Cyberprop Product Linecard
08 April 09; 1.0 MB SM-27UA Cyberprop Warload
08 April 09; 0.2 MB SM-27UA Cyberprop Cost Per Flight Hour