What Opportunities Can the Bulgarian Market Offer to the Investors Bulgaria in 2008: ● 45th place in the World’s Bank Conditions-for-Doing-Business rank amongst 178 countries; ● 2nd place (after Denmark) in terms of business climate conditions in EU-27, according to EuroChambers study; ● 9th place in terms of business attractiveness in the world (1st place amongst the CEE countries), according to the A.T.Kearney report; ● 7th place as attractive destination for investments in the world, according to the UNCTAD rank. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Bulgaria occupies the first place amongst 178 countries in the World’s Bank rank for successful taxation reforms in 2006 – 2007: ● 10 % corporate tax rate; ● 0 % profit tax rate for 138 municipalities with unemployment over the average national level; ● 0 % tax rate on the capital profit; ● 5 % tax rate on the dividends from 01. 01. 2008; ● Social securities burden reduction by 6 percentage points for 2006 and new reduction by 3 percentage points from 01. 10. 2007; ● 10 % “flat tax rate” on the personal income. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Bulgaria from 1st January 2009: ● Workers’ pension installments reduction to 8 %; ● Employers’ pension installments reduction to 10 %; ● The state will provide pension installment of 12 % for each employer. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Sustainable Economic Growth Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Long-Term Trend for Sustainable Economic Growth Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Unemployment Level on Monthly Basis in Bulgaria, January 2006 – July 2008, % Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Well structured capital market: ● Legislation fully synchronized with the European - maximum protection for domestic and foreign investors; ● National Corporate Governance Code, elaborated on consensus basis by the entire investment community, in which the good practices of the EuropeanIssuers member states are fully incorporated. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Distribution of the Companies, Who Have adopted the National Corporate Governance Code, on the Free Float Basis According to the Association of the Bulgarian Investors’ Relations Directors Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Capital market infrastructure: ● Financial Supervisions Commission – regulator, member of the International Organization of Securities Commissions (IOSCO); ● Bulgarian Stock Exchange- Sofia – organized market, member of the Federation of European Securities Exchanges (FESE); ● Central Depository АD – registration and clearing agent, member of the European Central Securities Depositories Association (ECSDA); ● Bulgarian Industrial Capital Association – union of the issuers, member of EuropeanIssuers; ● Association of Bulgarian Investors’ Relations Directors; ● Organizations of investment intermediaries, commercial banks, pension funds, managing funds. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors BSE Capitalization,2004–2007, billions BGN According to BSE data. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors SOFIX Exchange Index, 18 Mar – 08 Sep 2008 According to BSE data. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors DJIA Exchange Index, 19 Mar – 08 Sep 2008 FTSE 100 Exchange Index, 17 Mar – 08 Sep 2008 According to BSE data. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Main Exchange Indexes Comparison State Index Р/Е China Shаnghai Composite 33.26 Rumania BET-C 22.50 Bulgaria SOFIX 18.72 USA S&P 500 15.86 DJ Industrial 15.31 Japan NIKKEI 225 13.71 Poland WIG20 11.85 Germany DAX 10.13 UK FTSE 100 10.01 According to Investor BG data, 26. 03. 2008. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Main European Exchange Indexes Changes, 2007 State Index Value on Dec 31st 2007 Change from the beginning of the year Central and Eastern Europe Bulgaria BG40 518,06 -0,5116 Russia RTS 2290,51 -14,14% BGTR30 1097,48 -39,36% Serbia BELEX 3830,84 -29,78% SOFIX 1767,88 -42,62% Romania BET 9825,38 -39,46% BGREIT 103,24 -14,38% Greece ASE 5178,83 -34,45% Western Europe Czech Republic PSE 1815,1 -18,91% Dutch AEX 515,77 -22,46% Slovenia Total Market 11369,58 -31,19% GB FTSE 100 6456,9 -16,18% Croatia CROBEX 5239,03 -30,57% Italy MIB Index 38554 -26,52% Poland WIG 55648,53 -23,80% Spain IBEX 35 15182,3 -21,74% Slovakia SSI 445,65 4,45% France CAC 40 5614,08 -21,76% Hungary BSE 26235,63 -15,35% Germany DAX 8067,32 -19,68% Turkey ISE 100 55538,12 -24,01% Sweden OMX 30 1081,44 -19,79% According to Investor BG data. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Average Costs for Rising Capital through Public Offerings Market (State) IPO SPO Eurolist (France) 7,0 % 3,5 % Prime/General Standard (Germany) 7,5 % 3,0 % Main Market – LSE (GB) 8,9 % 2,1 % BSE (Bulgaria) 1,5 % According to study of Prof. Cr.Kaserer and Prof. D. Schiereck for the period 1999 – 2007. As far as the admission fees and listing fees, the BSE offers significantly lower rates compared to the other regulated markets; Short terms for public offerings realization. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

What Opportunities Can the Bulgarian Market Offer to the Investors Why to invest on the Bulgarian Capital Market : ● Outlined macroeconomic advantages – sustainable high level of economic growth; ● Attractive tax environment; ● Fully developed capital market– clear legislation, structured participants; ● Excellent conditions for the issuers – going public and being public; ● Significant growth potential of the capital market. Vasil Velev, Conference The Prospects for Capital Markets in Southeast Europe 16th September 2008, Sofia, Bulgaria

Thanks for Your Attention! Bulgarian Industrial Capital Association 1113 Sofia, Bulgaria 20, Frederic Joliot-Currie St., fl. 8 Tel./fax: +359.2.9633752, +359.2.9633756 e-mail: bica@bica-bg.org web: www.bica-bg.org