Newsletter
February 2008


Editorial



A Critical glance

The release of our financial results for 2007 demonstrates that we are growing at an extremely fast pace. These figures show Critical's strength and are a direct consequence of the relations' building up we have reached with the most demanding customers. Since we are always so conscious of the customer's real requirements we end up fully understanding the domains in which we operate, providing adequate bespoken solutions, on-time, on-budget and on-quality.

Critical has been working with one of the world's leading helicopter manufacturers on a number of long term support contracts to improve efficiency and reliable service provision in the context of support to customer's operations. With a group of Critical's solution architects and software engineers working on site, we are very proud of the relationship and trust that has been established between Critical and AgustaWestland. This arose from many years of investment in the aerospace domain and our dedicated drive to create positive business relationships with key players in the field. Hence, we are taking advantage of applying technologies that we master in the space market to other markets.

This edition of our newsletter also brings the usual glimpses of some of the other showcase projects on which we were and are engaged. Let me highlight SISone4ALL. This upgrade of the Schengen Information System allowed the enlargement of Schengen Space to take place as scheduled, during the Portuguese presidency of the EU. Developed in close collaboration with the technical staff of the Portuguese Ministry of Internal Affairs, it is a clear recognition of our capacity to excel on delivering innovative and reliable solutions for the Homeland Security market.

To emphasize just a couple more interesting projects we are working on, I'd like to stress Critical's involvement in developing a solution for the leading mobile communications provider in Mozambique Critical is also taking active part on the development and implementation of a prototype to be used in Africa to help better predict, monitor, mitigate, and respond to fires.

See you soon

Rui Biscaia, Critical Software's Marcom Manager


News articles:

Critical develops HUMS Ground Station Software for AgustaWestland

Critical Software is currently developing a revolutionary Health & Usage Monitoring System (HUMS) Ground Station software application for AgustaWestland, one of the world's leading helicopter manufacturers. Scheduled for release in the first half of 2008 this innovative system, built from the ground up, will deliver an autonomous web based HUMS download, processing and analysis system capable of interacting with virtually any maintenance management system in use by operators today.

The system will allow the operators, for example, to detect abnormal airframe and component vibration, manoeuvres and stress; monitor flying hours and airframe and component cycles and failures; generate feedback; support a flight operations and quality assurance program; and monitor fleet-wide trends. It will also provide instant access to powerful HUMS functions, including: Engine Health & Usage, Transmission Health & Usage, Structural Health & Usage and Failure Analysis.

Critical Software and AgustaWestland share a common goal of fostering innovation. By providing users with an enhanced level of scalability, the new system will accelerate the pace at which HUMS processing outputs are made available and give a far better user experience, whilst also delivering improved HUMS processing capabilities. This will result in better data quality, faster operational turnaround times, more accurate data trending and reporting and enhanced flight safety.

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... and supports the development of the new Fleet Planning Tool

Critical Software's team has been closely involved in the development of an all-new Fleet Planning Tool for AgustaWestland. Initially destined for use with the UK's Royal Navy and Royal Air Force Merlin helicopters, the new Fleet Planning application can be used by any operator for any type of aircraft or vehicle, and is set to become the industry standard for global fleet aircraft planning.

According to Mike May, Head of AgustaWestland's Logistic Support Systems, "Critical Software's dedicated team has been a key resource in the design, development and testing phases of the project, resulting in a product that has met or exceeded all of AgustaWestland's expectations".

The Fleet Planning Tool uses a combination of data sources to produce an up-to-the-minute picture of fleet availability and disposition. The application features a predictive capability, based on interactive planning and historical information and it also provides a "what-if" simulation facility, allowing users to run different scenarios driven by selectable operational and maintenance parameters.

By accessing the comprehensive built-in reporting suite, supplemented by self-generated customised reports to meet special needs, operators will have instant access to their overall fleet availability picture. They can then use this information to greatly reduce operating costs by making the optimum use of each aircraft by exploiting the full capacity of maintenance facilities, thereby minimising aircraft out-of-service time.

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Critical takes part in a 2.4 billion Euro program for R&D in Embedded Systems

Critical Software and ISA are amongst the big industrial players in Europe, which together with the European Commission, created the 1st R&D public-private partnership that will manage a 2.4 billion Euro program for Research and Development in Embedded Systems. Critical Software and ISA are the Portuguese representatives of ARTEMISIA, the European Industry Association, which led to the ARTEMIS Technology Initiative for research in Embedded Systems.

"Critical's participation in this initiative occurs naturally from our positioning in the Aeronautics, Space and Transportation markets, where Embedded Systems are critical to the safety and availability of aircraft, satellites, trains or cars. Thus, we will continue to invest in high integrity systems modelling, simulation, and verification and validation" says Diamantino Costa, Critical VP for Business Development and SMEs representative in ARTEMISIA's Steering Board.

With the ever-growing electronics and software technologies development it is expected that more and more devices will have Embedded Systems incorporated. It is estimated that a car has more than 60 Embedded Systems, from ABS to the air conditioning control, while a mobile phone has between 5 and 10. Embedded Systems make the devices more "intelligent", easy to use and at the same time help to save energy and reduce costs. This sector will experience an enormous growth in Europe, acting as a key enabler for innovation in major industries and creating knowledge-based high value-added products and more jobs.


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Critical's financial figures show a 60% increase in 2007's turnover


Critical's financial reports for 2007 show a growth in turnover that exceeded 60%, when compared to the previous period. With the about 14 million € in sales, 70% of which were foreign market based, we went beyond our business goals established for 2007. The Operating Cash Flow (EBITDA) reached 2.4 million € in the same period, while results before taxes increased by 65%, getting to 1.8 M €.

"Our strategy is to strengthen our position in the most demanding markets, which typically best value good engineering solutions. We don't want to compete with the low cost software industry that is installed in emerging markets. Instead, we want to be a reference in the high added-value software engineering industry. This year, we took one more important step in the right direction and for that we are very pleased," commented Gonçalo Quadros, Critical's CEO.

Critical Software has been developing its solutions with the purpose of addressing two main business areas: the Safety Critical Systems intended to suit the markets which gave birth to the company (Aeronautics, Space, Defence and Homeland Security) and the Critical Enterprise Solutions aimed at markets such as Finance, Energy, Manufacturing and Telecommunications.

For 2008 Critical Software is optimistic in maintaining a good growth capacity. The company expects to reach a 19M € turnover, with similar levels of profitability, while keeping the foreign market as the main source of business.

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Portal voucher solution for the leading mobile communications provider in Mozambique


Critical Software is developing a web-based platform for mCel, the leading mobile communications provider in Mozambique, to enhance and automate the voucher sales process and also to collect information which will be used for report generation.

These vouchers are sold by authorized mCel dealers with an amount of credit that is used by mCel customers to top up their mobile phones. The new portal voucher solution developed by Critical will deliver a high performance scalable web system, based on Java technologies, which will provide the necessary functionalities to automate the voucher sales process. In addition the solution will also allow higher monitoring, reduce process order time, decrease fraud risk, make the use of electronic vouchers possible and a build a report system.

With about 2 Million customers, mCel is mainly owned by TDM, the state owned fixed operator in Mozambique

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Critical Software supports Fire Prevention in Senegal

Fires are a major cause of loss of life and impact important environmental resources, thus there is a need to better manage this hazard through a more efficient use of geo-spatial observations. Bearing this in mind, the ESA Centre for Earth Observation (known as ESRIN) has been working on the development and implementation of a prototype to be used in Africa to help better predict, monitor, mitigate, and respond to fires.

Critical Software is participating in the pilot project - Multisource Data Integration service for Fire Risk Management. The model relies on Envisat and Meteosat data and both ESA and EUMETSAT data dissemination systems to deliver the data directly to user premises. Critical's support has been crucial to the project which will be deployed in the Centre de Suivi Ecologique (CSE) in Senegal.

This project demonstrates the awareness that environmental issues like Fire prevention and mitigation have around the globe. Mistakes due to failures in coordination and lack of in field information are common and need to be dealt accordingly. Products like Critical's "Premfire" poses as a first-rate solution to this problem. Premfire is a unique multi-function command & control and decision support system specially designed for prevention and combat of forest fires.

For more information please visit:
http://www.premfire.net


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Critical Software's decisive role for Schengen Space enlargement
It was Critical's solution, SISone4ALL, developed together with SEF (Serviço de Estrangeiros e Fronteiras), that made it possible for millions of Western European citizens to cross borders and spend Christmas abroad without any restriction for the first time in history. The ceremony of the abolition of internal border controls in the enlarged Schengen Space took place last December 21st and 22nd. Gonçalo Quadros, Critical's CEO, was there to give a warm welcome to the newly arrived countries to the Schengen Space.

SISone4ALL works on top of the existent system, using more advanced technologies and making it possible to integrate the new member states (Lithuania, Latvia, the Czech Republic, Estonia, Poland, Malta, Slovakia, Hungary, and Slovenia). Joining the Schengen Information System (SIS) guarantees access to the databases of all Schengen members. This system enables Schengen members to operatively exchange information about persona non grata or wanted people, stolen cars, weapons and illegal imigrants.

All in all, SISone4ALL was the result of the vision of the entire Portuguese Ministry of Internal Affairs staff that, in close partnership with Critical, made it possible to keep the promise made to the new member states, thus solving a political problem within the EU.

SISone4ALL has received appraisal from several governments and politicians enhancing Critical Software's image abroad and in particular in the western European countries. This will in turn leverage business opportunities in the so called new European emerging markets, in which Critical is already investing, namely with establishment of a new office in Bucharest, Romania.

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Amongst the presidential entourage at the XVII Iberian American Summit
Last November, in the scope of the XVII Iberian American Summit, the President of the Portuguese Republic, Aníbal Cavaco Silva, and an entourage of 30 entrepreneurs active in various types of business visited Chile on invitation of Chilean counterpart, Michelle Bachelet. Ana Guimarães, Critical Software's Chief Operations Officer, was part of the entourage that aimed to establish a good commercial network in South America, and Chile in particular.

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Critical sponsors CiberMouse competition at the RTSS2007
The CiberMouse@RTSS2007 competition was the third in a sequence of similar events, following CiberMouse@RTSS2006 in Rio de Janeiro and The MARS Task in Miami in 2005. These events were organised as satellite events of the IEEE Real-Time Systems Symposium (RTSS) with the purpose of giving (under)graduate students the chance to apply their research/graduation work on a problem that has many similarities with a true real-time embedded system and comparing their approaches by means of a competition.

In 2007, the event took place in Tucson, Arizona, USA, and counted with 6 teams coming from different universities. Luís Almeida, from the University of Aveiro, explains the competition model: "The challenge proposed to the students was to program a rescue robotic agent in the scope of the Lisbon-Dakar Rally. The agent had to reach an RF beacon, signalling a team lost after a sand storm, fetch the team and return. In the way there were obstacles, both static and dynamic, and both taller and shorter than the beacon. The agent sensors had specific associated delays, such as real sensors, and thus adequate robot motion control required proper reactive real-time programming".

The event was sponsored by Critical Software and supported by the University of Aveiro, IEETA and ARTIST2 European Network of Excellence on Embedded Systems Design.

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Joining the leading Mobile industry forum
Critical is one of the newest members of OMA (Open Mobile Alliance) which aims to facilitate global user adoption of mobile data services by specifying market driven mobile service enablers. OMA was formed in June 2002 by nearly 200 companies including the world's leading mobile operators, device and network suppliers, information technology companies and content and service providers. Rather than having different entities working independently, OMA intends to consolidate into one organisation all specification activities in the service enabler space.

"Being a member of OMA is one of Critical's first steps towards the (re)building of a sustainable presence in the of mobile telecommunications' industry" says Paulo Freitas, Critical's Business Development Manager, who adds, "As a part of a broader strategy for the Telecom & Media Market, our presence in OMA will give access to all the existing know-how and innovations. In the near future we hope to be developing, using and testing cutting-edge technologies such as Presence&Location, Security and Mobile Payments and PIM (Personal Instant Messaging) as well as building up our ISVV/Software Testing expertise for this market."

We invite you to visit:
www.openmobilealliance.org


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Critical Software's spin-off company establishes new office in the US
Critical Links has relocated its global headquarters to the US and expanded its executive team with the additions of Abdul Kasim, vice president of global marketing and business development and Robert Muhaw, vice president of global sales and operations. The new office is located in Fairfield, New Jersey.

Critical Links, founded in 2006 in Portugal as a spin-off from Critical Software, is the developer of edgeBOX, an office-in-a-box appliance that provides a complete voice, data and IT solution in a single device for SMBs (Small to Medium Businesses) and enterprise branch offices.

Critical Links
695 Route 46 West, Fairfield, NJ 07004
Tel.: 201 491 8325 Support, Hotline: 888 433 4326
www.critical-links.com


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Business opportunities in the Fusion Research Project
Together with the Portuguese institute IPFN (Instituto de Plasmas e Fusão Nuclear) and other Portuguese companies, Critical participated in the ITER Business Forum in Nice. This Forum intended to establish a network between companies, disseminate information through conferences and workshops, pinpoint technological challenges and encourage exchange of knowledge.

ITER is a joint international research and development project that aims to demonstrate the scientific and technical feasibility of fusion power, the energy source of the sun and the stars. Ultimately this research will demonstrate that this energy source can be used to produce electricity in a safe and environmentally benign way, with abundant fuel resources, to meet the needs of a growing world population.

"IBF was a extremely valuable opportunity to take the pulse of ITER perspectives for business, foresee and plan ahead activities and establish promising partnerships." says Critical's Business Development Manager, Nuno Cunha.

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The flags that came from Space
As part of the celebrations of its first anniversary, various activities took place recently at the University of Coimbra Science Museum. The highlight of these activities was the presentation of the project "Find your sky" in which two flags (one American and one Portuguese) that had been on board of the Atlantis Space Shuttle were delivered to the museum. The award of the two flags expresses the commitment of NASA to strengthen its ties with Portugal, which is investing heavily on educational programmes to try to stir up young people's interest in science.

Critical Software is proudly sponsoring this joint initiative encompassed in the International Year of Astronomy 2009, between the University of Coimbra and the University of Lisbon Science Museums. The "Find your sky" project is aimed at primary schools and intends to motivate students to examine the sky and find new constellations. The drawings made by students in the scope of this project will be used by Critical as its Christmas Cards for 2008.

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Critical Software performs security audits on Information Systems
Critical's workers have been given Information Security Management System Auditor/Lead Auditor certification by the BSI (British Standards Institute). This is only the first step for Critical Software to achieve a certification by the Portuguese institutional organisation GNS (Gabinete Nacional de Segurança) to start performing security audits on Information Systems.

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About Critical Software SA
Critical Software is an international company that provides solutions, services and technologies for mission and business critical information systems. The company was founded in 1998, is headquartered in Coimbra and has offices in Lisbon and Oporto (Portugal), San Jose (US) and subsidiaries in Southampton (UK) and Bucharest (Romania). Critical Software supports customers across several markets including Aerospace, Defence, Manufacturing, Telecom & Media, Government & Finance and Energy. Customers include Siemens, NASA, Soporcel, ESA, Vodafone, Eumetsat, EADS, Astrium, ChevronTexaco, Deutsch Telekom, AgustaWestland, among many others renowned in Europe and the US. The company operates a quality system certified to CMMI® Level3, ISO 9001:2000 Tick-IT, ISO 15504, AQAP 2120 and EN9100.

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