Frost & Sullivan Recognizes CADES for its Robust Growth in the Aviation Design Suppliers Market Based on Strong Domain Knowledge and an Outstanding Business Model

LONDON, December 10 - Based on its recent research on the Indian aviation design suppliers
market, Frost & Sullivan presents its 2009 Frost & Sullivan Award for
Emerging Company of the Year to CADES Digitech Pvt Ltd (CADES) for its
outstanding business model, which leverages on the expertise of its highly
qualified and experienced professionals. This leading engineering services
firm offers projects, consulting, and research and development (R&D) services
to the aerospace, defence, and automotive industries in the areas of design,
analysis, simulation, virtual testing, digital manufacturing, product data
management, and technical publication.

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Headquartered in Bangalore with multiple delivery points, CADES has an
experienced team working from concept to manufacturing with value addition
through technological innovation. The management team of CADES has the right
combination of relevant experience and the ability to make optimal decisions
that leverage on their highly successful track record, ability to execute, as
well as a rich industry experience.

CADES has grown at a compound annual growth rate (CAGR) of approximately
60 to 70 percent in the past three years. The revenue of CADES grew at
approximately 65 to 70 percent during the period 2008-09. The company's
export accounts for nearly 80 percent of the sales. Further it has a highly
scalable business model. Besides two state-of-art engineering facilities in
Bangalore, it has delivery centres across India, Asia Pacific, Europe and
North America. In the design suppliers segment, the gestation period for the
firm is significantly long. Designs of CADES have started gaining acceptance
among the customers and hence, the revenue of CADES is expected to grow at a
higher rate in the future.

"The Best Practices of CADES include skilled force with good domain
knowledge, a wide array of services, high level of customer satisfaction and
designs approved by Center for Military Airworthiness and Certification
(CEMILAC) and Directorate General of Civil Aviation (DGCA) and Certified for
ISO 9001:2000, ISO/IEC 27001 and AS 9100B," says Frost & Sullivan Research
Analyst Madusudanan Ramani. "As one satisfied customer put it — CADES is not
an IT company trying to do engineering services, but clearly a focused
engineering company — and therein lies its strength."

When CADES was established, it was catering only to Indian clients such
as Hindustan Aeronautics Limited (HAL), Indian Space Research Organisation
(ISRO), Defence Research and Development Organisation (DRDO), and the
Ministry of Defence. It then expanded its operations to Europe and later to
North America. Its clients include EADS, Airbus, Boeing, Fokker,
Finmeccanica, Eurocopter and Embraer among others. In June 2008, CADES was
selected as the preferred supplier for engineering services by EADS. Positive
feedback from clients reflects the good quality of service offered by CADES,
and the likelihood of repeat business opportunities.

Along with the delivery of projects and consulting assignments to
customers, CADES also partners with aerospace industry participants to create
new intellectual property rights for them. Some of the product design and
development services provided by CADES are Engineering Design, Engineering
Analysis, Multi-Body Dynamics, Virtual Prototyping and Testing, Digital
Manufacturing, Product Data Management, and Technical Publication. In
addition, CADES has domain expertise in Aeroelasticity, Structural Integrity,
Life Extension and Design and Analysis of Advanced Composites, NVH,
Durability, Crash, and Engine Thermal Management.

"CADES allocates a significant amount of its resources toward inventing
new commercially viable designs that aid the customers in developing new
products. The total R&D expense, including the expense on competency
development, represents around 10 percent of the total cost," notes Ramani.
"The R&D intends to maximize the existing technologies and investigating the
future engineering requirements for the customer."

CADES is expected to register revenues of US$100 million by the end of
2013 with revenues from the long-term customers expected to grow
substantially due to the Master Service Agreements (MSA) to be signed with
the customers for a period of three to five years. CADES has been optimizing
its cost structure, which is expected to improve the profitability marginally
as well.

For all achievements, CADES is the deserving recipient of the 2009 Indian
Aviation Design Suppliers Emerging Company of the Year Award. Each year,
Frost & Sullivan presents this award to a private company that has
demonstrated excellence in managing its growth, attracting venture capital
funding, maintaining a strong management team, and establishing a sustainable
competitive advantage in an attractive market. The Award recipient must be
well positioned in a growing market and have demonstrated the potential to
obtain market leadership in the near-term. Finally, clear exit paths must
exist, along with the potential for exceptional investment returns at an
acceptable risk level for potential investors.

Frost & Sullivan Best Practices Awards recognize companies in a variety
of regional and global markets for demonstrating outstanding achievement and
superior performance in areas such as leadership, technological innovation,
customer service, and strategic product development. Industry analysts
compare market participants and measure performance through in-depth
interviews, analysis, and extensive secondary research in order to identify
best practices in the industry.

About CADES Digitech Private Limited

CADES is a leading, domain focused product design and engineering
services company with a strong emphasis on innovation. CADES provides
Projects, Consulting and R&D services to aerospace, defense and automotive
industries. CADES is ISO 9001:2000, ISO/IEC 27001 & AS 9100B certified and
also approved by CEMILAC and DGCA. CADES is approved by Airbus for providing
Design Engineering Services.

Headquartered in Bangalore, CADES has multiple delivery centers in the
city and has 15 offices in 10 countries across India, North America, Europe
and Asia Pacific. CADES has core competencies in the areas of Design,
Analysis, Simulation, Virtual testing, Digital manufacturing, Product Data
Management & Technical Publication.

CADES is known for its team of professionals with rich domain expertise,
industry processes, practices and applications. The team also has proven
capabilities in working from concept to manufacturing with value addition of
technology innovations. CADES has formed strategic partnerships with R&D,
Manufacturing, Testing, Systems development organizations and Educational
Institutions.

About Frost & Sullivan

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accelerate growth and achieve best in class positions in growth, innovation
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    Contact:
    Catherine Brassell
    Best Practices
    Email: catherine.brassell@frost.com
    Tel: +44-(0)207-915-7867

Catherine Brassell, Best Practices of Frost & Sullivan, +44-(0)207-915-7867, catherine.brassell at frost.com