Ivor Ichikowitz of Paramount Group Calls for Developing World to Lead Defence Innovation

LONDON, May 12, 2010 - Ivor Ichikowitz, founder of leading African defence and
aerospace business Paramount Group, has issued an urgent call to the
developing world to lead a new defence industrial approach for the 21st
Century.

Mr Ichikowitz places developing countries at the centre of his
vision as being those best positioned to capitalise on a global era of
modernisation and change in defence and security requirements.

The South African industrialist, who founded Paramount Group
in 1994, believes that the unprecedented demands of the 21st Century in terms
of the changing face of conflict, peacekeeping, domestic unrest and
insurgency require a step change in delivery and acquisition of equipment,
training, logistics and support for effective defence and peacekeeping.

He has set out his future vision to coincide with SOFEX 2010,
the biennial international industry event in Jordan

Mr Ichikowitz said: "The new approach to defence industrial
development which Paramount Group is pioneering has at its heart the
provision of extended economic benefits, with defence industrial policy
supporting broader development through the creation of jobs, industrial
innovation and export potential.

"If developing countries are to build forces fit for this
century, capability providers need to deliver solutions tailored to their
unique national requirements.

"That will mean developing nations taking the reins of
innovation and leadership to develop a bold new approach. We need to see a
new kind of relationship between governments and industry, one that goes
beyond the traditional defence industry response of providing 'one size fits
all' off-the-shelf platforms."

Paramount Group has been active in pursuing a new model of
defence industry investment that is rooted in developing countries and
responds to their requirements.

In India and Azerbaijan, Paramount is partnering and
stimulating new growth directly with domestic suppliers to deliver high
quality specialist equipment shaped by the specific needs of those countries.

Mr Ichikowitz continued: "It seems clear that the European
defence industry will continue to contract as spending is squeezed while in
the US, industry is geared towards the high end requirements of the
Department of Defense.

"Traditionally the solutions offered in a 'conventional'
approach to answering force modernisation needs are expensive, include
capabilities beyond what is really required, are difficult to integrate into
existing force structures and often come with caveats about how they can be
operated, maintained and upgraded.

"But that has to change. The developing world faces particular
challenges presented by the greater potential for domestic unrest and
insurgency. This means that providers with an in-depth understanding of the
need for bespoke solutions are best placed to offer the kind of protection
forces require."

Mr Ichikowitz believes that the aerospace and defence industry
offers significant development opportunities for developing countries.

He said: "The importance of the aerospace and defence business
as a key economic driver should not be underestimated. For developing
countries the creation of domestic aerospace and defence industries offers
huge potential and opportunities, especially to drive innovation and act as a
springboard for other high tech sectors.

"It is clear that innovation is increasingly coming from
developing countries. What is required now is the creation of a new way of
thinking for the defence industry over its relationship with the developing
world.

"National governments and suppliers should come together to
ensure that industrial capabilities are nourished and supported and that
access to quality equipment and services is guaranteed. Only by adopting a
new perspective can we take full advantage of the opportunities presented by
this period of modernisation and change."

Read Ivor Ichikowitz's vision for a new defence industry
approach to the developing world in full at
www.paramountgroup.biz/sofex

Contact details: Khaled Khawaja, Bell Pottinger, Tel: +44-207-861-2435, kkhawaja at Bell-Pottinger.co.uk; Nico de Klerk, Bell Pottinger, Tel: +44-207-861-2509, email: ndeklerk at bell-pottinger.co.uk; Stuart Disbrey, Bell Pottinger, Tel: +44-207-861-2495, sdisbrey at bell-pottinger.co.uk