Danny Biran, CEO and President, predicts that during the year 2005 Arkal’s sales revenue will double as compared to the year 2002, including sales from PEP, our newly acquired subsidiary in the United States. Mr. Biran continues in qualifying this statement, This prediction stands only if the world does not experience a major recession as in the past.
We expect growth in the agricultural and non-agricultural sectors; in the agricultural sector we will experience growth in the US market, South and Central America, Spanish and Asia Pacific markets, and in the non-agricultural sectors growth will occur primarily in the Far East and the United States, Danny concludes.

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Year 2005: Computerization
Much is happening on the Arkal computer scene this year. In fact, since computerization and computer use is such a central and important theme, we have designated our training year as the year of computerization.
For openers, all those employees with computers just completed a 2-hour training course on electronic mail and using the calendar. In addition to covering the basic concepts, emphasis was given to the new Outlook 2003 interface and features.
Coming up is training in Getting to Know your Computer including Office, email, Internet and the more popular programs: Word, Excel, PowerPoint. Complementary hardware will also be covered, taking the guesswork out of designating a printer, using a scanner and much more.
So what other milestones can we expect? Sometime in Quarter 3, Cognos will be implemented with training for those creating and using marketing reports. During the same quarter the CRM Customer Relations Management (CRM) module will be installed, facilitating the generation of price quotations and greatly improving our follow-up capabilities; a comprehensive training plan is on the agenda. This will provide effective work procedures with Operations.
And, in the last quarter, plans are to have the Arkal portal (Intranet) up and running. This represents the culmination of information management and distribution within the organization and will encompass the various software capabilities afforded by all installed programs.
Work effectiveness will inevitably improve by leaps and bounds once the users are knowledgeable and become experienced in the new computerization offerings. The concept is to provide one-source, approved data and documentation under an umbrella software solution. The topic of information management and distribution using the new tools will also be emphasized.
Who is one of the principle players in Arkal’s great leap in computer capabilities?
meet:
Esti Feigenbaum
"I see computerization as a key to success in business today", exclaims Esti. "I consider myself a service provider, my customers being the users. I do my job with this in mind, emphasizing the implementation of company policy".
Esti continues energetically to describe her work. She states that many times she experiences frustration since it is impossible to please everyone. Also, the constant updates and new versions of computer software and hardware present additional difficulties. There is a great plus at Arkal says Esti, "the management totally supports computerization and this message is clear to the users".
Just back from a trip exploring her family’s roots in Zimbabwe and Cape Town, I have the pleasure of viewing photos showing local residents, colorful marketplaces and extraordinary landscapes. Esti, obviously touched by the natural beauty of the inhabitants and the countryside, points out that although there is no work, no food and no gasoline, the people are happy. I could not help but imagine such areas going through computerization in the distant future, lead by individuals like Esti herself.
"What is important to our success is investment in human resources, time and money". Esti smiles and adds, "Contrary to popular belief, I do not receive incentives from MFG!".

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The planning and anticipation paid off! February was an amazing month Arkal held the Annual Sales Meeting for Industry at the Sheraton Hotel in Tiberias. Representatives from the UK, Germany, Turkey, US (PEP Filters), China (Arkal), Thailand and Spain successfully met the meeting goal: provision of tools required to double Arkal industrial/commercial sales by the year 2007. Among the presentation topics were strategies for growth, target applications and marketing and sales tools. Mike Miller, Senior Vice President summarized, In my work and all of ours together, Arkal needs to be the facilitator, plus we need your collaboration. We want to give people the opportunity to shine, put people in a position so they can do their best; it’s for all of our benefit! That’s what it is really all about.

Immediately after the Sales Meeting, representatives from China (Arkal), Mexico, Taiwan, Korea, Singapore and Japan participated in the Industrial/Commercial Technical Seminar; the goal being an introduction to Arkal disc filtration technology and filtration systems. After a warm welcome and introduction, the following topics were covered: disc filtration technology, applications (tour), filtration systems (including hands-on training in the Arkal Demonstration and Training Center), and strategies and tools. The participants even found time to tour Jerusalem over the weekend and experience Israeli culture and Arkal’s hospitality.

What else...
At the end of May, Arkal hosted an English-speaking group of 24 participating in the International Pressure Irrigation course through the Center for International Agricultural Development Cooperation (CINADCO). The Ministry of Agriculture and Rural Development sponsors this initiative yearly. The group toured the factory and then was presented with a lecture on filters and filtration systems.

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Agricultural Market Case Study

Overview
Costa De Noroeste, a water supply organization, operates south of Seville in southwest Andalucia, Spain. An efficient and reliable filtration system was required to provide solutions for water-quality challenges and ensure clean water supply to end-user irrigation systems.

Background
Costa De Noroeste handles a full range of water supply needs, the backbone of the client base being small, localized farming communities spread throughout the countryside. The Guadal Quivir River is the local water source and is heavily loaded with silt and organic matter.
The existing 12-year-old system comprised large sand media filters as the principal stage, followed by automatic screen filters as the security backup stage (illustration 1). The system suffered corrosion, malfunction in filtration and deficiencies in the backwash process operation.

Bench Test
Costa De Noroeste’s board of directors invited four filtration system manufacturers-two screen filter manufacturers and two automatic grooved disc filter manufacturers-to participate in a bench test to select the most suitable and cost-effective system to handle difficult water conditions.
The major parameters tested in the case included:

1. Filtration efficiency: using a test screen filter installed downstream to retain the suspended solids that pass through the principal Spin Klin filter, measure the volume and particle sizes and compare with results of the other three filters tested
2. Backwash water: to define volume consumed during the test period

Solution
Arkal, through its Spanish representative, Regaber S.A., implemented a Spin Klin system for Costa De Noroeste’s inspection on-site.
Based on the test results, the Costa De Noroeste engineers designated Regaber as the supplier of the Arkal Spin Klin filtration system, which will serve as the next-generation filtration unit, providing protection for existing and newly installed irrigation systems.
The engineer’s final decision was based on the following key factors:

• Arkal’s system required 1% of the total water volume consumed for backwash as compared to 3%, 5% and 5% measured on the other three tested filters.
• Visual checks of the control filters implemented after the tested filters showed that the Arkal Spin Klin retained a greater amount of suspended solids. The particle quantity observed on the filter screen was significantly smaller as compared to the other three test filters.
• Simplicity of operation and maintenance, mainly in comparison to automatic screen filters.
• Very low maintenance costs for required labor and spare parts.
• Use of construction materials–in this case stainless steel filter housing and polypropylene manifolds-that withstand corrosive environmental conditions (Costa De Noroeste is located in proximity to the ocean).
• Cost-effective investment price.

The filtration system implemented by Regaber S.A. has been operating since the third quarter of 2004. The system is designed for a flow rate of 7,200 m3/h and consists of 120 stainless steel Galaxy Spin Klin filters, which are built on 40 banks of 3 filters mounted on durable pn10 polypropylene manifolds.

Summary
The design quality and superior construction materials provide long life for the system and ensure that the surrounding farming communities will receive a supply of clean water for many years.

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