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 2007, 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-27 Machete COIN/CAS/FAC/AT, the SM-47 Super Machete Light Weight Strike Fighter, the SM-72 Tactical Airlifter and the SM-73 Rigel MMA/ASW. All four aerospace vehicles are fixed wing, manned aircraft presently under development for production by Stavatti Tactical Military Aerospace. Of these four tactical aircraft, the SM-27 will be the first to enter production, followed by the SM-47. Approximately two years after initiation of SM-47 production, the SM-72 is anticipated to enter production, followed by the SM-73 one to two years thereafter. Although Stavatti has been developing these four 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-47 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.

SM-72 TACTICAL TRANSPORT/SM-73 ASW/MMA

The SM-72 and SM-73 are members of the SM-70 family of twin engine turboprop, Channel Wing STOL aircraft conceived to serve as a next generation solution to a broad spectrum of global airlift, transport and multi-mission combat requirements. Benefitting from a common wing, empennage, and powerplant arrangement, the SM-70 series features two distinct fuselage configurations: the high-volume, bulk-cargo SM-72 transport fuselage incorporating an aft drop-down cargo ramp and an elliptical cross-section passenger/ personnel oriented commercial airliner fuselage for the SM-73 and SM-74.The SM-70 series is the Stavatti successor to End of Life (EOL) transport systems including the C-130 Hercules, C-160 Transall, P-3C Orion and ATR-72. A direct alternative to the Airbus A400M and Antonov An-70, the SM-70s represent the only all-new, US domestic multi-mission aircraft capable of satisfying transport, combat rescue tanker and multi-mission maritime aircraft needs with a common airframe.

The SM-72 Tactical Transport is a military airlifter featuring a rectangular cross section fuselage to maximize mission effectiveness while offering significant load flexibility. Conceived for a true 52,000lb payload with full standard internal fuel, the SM-72 main cabin/cargo bay measures 58 ft long and 11ft wide at the floor, providing approximately 638 sq ft of cargo bay floor, not including additional area provided by the cargo ramp which totals 168 sq ft. Overall main cabin/cargo bay dimensions include a maximum usable internal width of 15 ft 6 inches and a maximum usable internal height of 11 ft 6 inches. Useful main cabin/cargo bay volume is approximately 9,450 cu ft. Typical SM-72 payloads include four HMMWVs or eight 88” x 108” 463L standard pallets. As a troop transport, the SM-72 will carry up to 136 troops or 96 fully equipped paratroops or up to 110 litter patients plus six attendants.As a C-130 successor, the SM-72 will be produced in numerous variants incorporating a diverse array of mission-specific avionics, sensors, electronic countermeasures, and, in the case of gunship and psy-ops variants, armament and broadcast systems. Key variants beyond the basic SM-72 airlifter and SM-72 CRT include the SM-72 EC, designed to carry the USC-48 Airborne Battlefield Command and Control Center Capsules (ABCCC III) and the SM-72 AC gunship that will be equipped with four M61A2 20mm Vulcan cannon with 6,000 rounds, one L60 40mm Bofors cannon with 300 rounds, and one M102 105mm howitzer with 100 rounds for satisfaction of Close Air Support, Air Interdiction and Armed Reconnaissance.

The SM-73 Rigel is an all new Multi-mission Maritime Aircraft (MMA) designed specifically for the Anti-Submarine Warfare/Anti-Surface Warfare (ASW2) mission while providing a flexible platform suitable for SAR, EW, Carrier Battle Group AWACs, and ELINT. Also directly suitable for civilian firebomber/forestry protection roles, the SM-73 is a capable successor to the Lockheed P-3C Orion and the appropriate next-generation USN MMA alternative to the P-8A. The typical SM-73 Rigel MMA/ASW has a crew of ten including two pilots, two co-pilots, one NAV/COM operator, One Tactical Coordinator/Offensive Systems Operator, three sensor operators and one in-flight technician. For the ASW mission, the SM-73 carries a maximum internal fuel load of 70,000 lbs and a warload of up to 25,000 lbs. The warload is carried within a Rotary Launch Assembly (RLA) equipped Internal Weapons Bay measuring 20 ft long x 10 ft in diameter. Primary SM-73 ASW sensors include the Raytheon AN/ASQ-208 digital Magnetic Anomaly Detector (MAD) mounted in an aft fuselage probe, Cubic AN/ARS-5 with integrated SRS sonobuoy system with Hazeltine AN/ARR-78(V) communications link and Raytheon AN/APS-137(V) Inverse Synthetic Aperture Radar (ISAR).

The SM-72 and SM-73 will be manufactured at a single production facility and are scheduled to enter Low Rate Initial Production (LRIP) between 2014 and 2017 or within three years of SM-27 series FRP. The SM-72 and SM-73 programs will be managed by Stavatti Military Aerospace.