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"Of course, some of our products compete directly with Bell and Eurocopter products. But it is my belief that our small size works to our advantage, because it allows us to offer very customized, personalized service to our customers."

1. How do you see the position of your company in the market? What is the overriding, long-term aim of your company?
MDHI is not striving to be the No. 1 or No. 2 commercial helicopter manufacturer. We don't want to become a very large company, we just want to be among the best -- if not the best -- in important areas such as support and overall product quality. We are strong in market segments like law enforcement and AMS and we want to be the best OEM in these business areas.

2. How would you qualify the business situation of your company in 1999, especially regarding orders/turnover, competitive situation, etc.?
Keeping in mind that 1999 marked our first year in business and was actually only just over ten months long, I think that what we accomplished is astounding. Our sales and deliveries are up significantly, all while we were hiring 275 employees and building the business in some areas from scratch. We managed to regain the confidence of a skeptical public by demonstrating our commitment to our customers and their products. Competitively speaking, we are right where we want to be.

3. Which companies do you see as your main competitors?
Of course, some of our products compete directly with Bell and Eurocopter products. But in many ways, we don't have any direct competition. I mean, we are just a so much different company that it's difficult to compare. It is my belief that our small size works to our advantage, because it allows us to offer very customized, personalized service to our customers.

4. How would you assess the general situation in the civil market right now?
We see great potential in a number of regions around the world. From our standpoint, the civil market is excellent.

5. How do you see the mid-term outlook to 2005 (expansion, new equipment, trends, etc.)
MDHI will definitely be expanding production capability, we have to in order to keep up with the demand. We will be expanding our facilities here in Mesa.

6. How would you assess the general situation in the military market?
We are not involved in the high-end military market. On the paramilitary side, we see a slow European market, steady demand in the U.S., and very active markets in both Latin America and the Pacific Rim.

7. .... and ow do you see the mid-term military outlook to 2010?
Overall the demand should remain steady for the next 5 years.

8. Which region(s) of the world will see the fastest growth inhelicopter sales in the next five years?
For our products we expect to see the most growth in Europe if the JAA enforces its JAR OPS 3, class 1 regulations. The MD Explorer is the only helicopter in compliance at this time.

9. Which region(s) will be the most difficult?
Due to economics, Eastern Europe is likely going to be the most difficult region for us to penetrate.

10. Which class of helicopters will grow fastest in the next five years?
For us, it will be the light-twin segment.

11. What are the main regulatory problems for helicopters today?
Certainly, we feel noise is a key factor and it will continue to be important. And the infrastructure issue is critical to us all. More heliports are absolutely necessary.

12. What are the determining factors in customer buying decisions today?
Price and customer support, in that order.

13 Does your company intend to introduce new models in the next five years? In which sector? MDHI has no current plans to introduce new models. Our primary focus will be to finetune and improve our existing product line.

14. Is there over capacity in the helicopter industry?
Not from where I'm standing.

15 Will there be more mergers/sales/consolidations in the helicopter industry in the near future?
It's likely that this trend will continue.

16 What are the main technological trends inhelicopter design in the next decade?
We would expect to see technological advances that focus on adding value to operators.

17. Will there be a breakthrough for new concepts like tilt rotors? How much market share can they win?
I think tilt rotors already have broken through, at least as a concept, but the market share issue will be dependent on how affordably they can be built and sold.

18. What is your vision for the helicopter industry in 2025? Will there be totally new uses, new vertical flight concepts, the helicopter for everyone, city center, tilt rotor shuttle services, etc.?
I'm not sure our industry is evolving that quickly, although I wish it were. I suppose the answer really lies in the hands of our industry's leadership. We will shape the future, so it will be what we make it.