STATE OF ARIZONA Land of Opportunity Montreal – May 20, 2009

Employment Ranking in ICT

116,842 High-Tech Jobs in 2006 AZ showed a 5% increase adding 5,200 new High-Tech jobs

$74,206 Avg. High-Tech Salary $34,680 More Than Avg. Private Sector Salary $

Arizona’s Asset: Phoenix Top Large Metro for Recruitment and Attraction Top 10 Best States for Business #3 State for Cost of Labor - Business Facilities ranked Arizona 3rd in terms of cost of labor based on unionization rates, unemployment insurance tax rates, worker’s compensation premium rates, average hourly pay in manufacturing, average annual pay in the private sector, and the annual cost of health coverage. Top 10 Megapolitans Greater Phoenix is part of the Sun Corridor Megapolitan, one of 10 megapolitans named by CNN Moneyexpected to see the bulk of an estimated $25 trillion investment in the US by 2030.

Strong Electronics and Aerospace Industries In aerospace: Honeywell Aerospace, General Dynamics,Boeing Helicopters Five large semi-conductor plants in the region: Intel, On Semiconductor, ST Microelectronics, Microchip, Freescale Large printed circuit and electronics manufacturers: Sunstrand- Hamilton, White Electronics, Avnet Stable climate for data storage & processing

IT Industry Highlights – Greater Phoenix Area 1,400 IT Companies in Metro Area in Software Publishers, with 3,415 employees 1,355 Computer systems design and related service companies, with 14,380 employee 295 Internet Service Providers & Data Processors, with 7,560 employees – Low risk environment for data storage centers 468 Telecommunications companies, including cellular and satellite, with 17,016 employees – Example is Hypercom Corp in Phoenix which makes wireless payment terminals

Local Occupational Trends Between 2008 and 2018, employment in Greater Phoenix is projected to grow for occupations such as network systems and data communications analysts (59.3%), computer software engineers, applications (44.8%), and network and computer systems administrators (44.7%). The average wage in the IT services sector in Greater Phoenix was $50,570 in 2006.

Arizona’s Asset: Tucson IT Industry Highlights - Tucson and Southern Arizona 1,200 local companies, 50,000 employees, $4 billion in revenues Major Employers Citi (2,000), IBM Storage Technology Division (1,500), Afni(1,500), Intuit (1,272), Teletech (1,050), Texas Instruments (643), Convergys Corp. (600), Misys Healthcare Systems (600), Breault Research Organization, Inc. (45). Other Facts For the second year in a row, Tucson ranked 3rd on a list of the most technological-advanced cities with a population above 250,000 in the 2007 Digital Cities Survey.

Arizona optics at a glance 68 percent of firms are in Pima County and 28 percent are in Maricopa County. 46 percent of optics firms have been in operation for more than 10 years. 56 percent of firms export to other countries. 25,535 people are employed in Arizona's optics industry. Local optics companies employ an average of 25 people each. The Arizona optics industry has annual revenue of more than $2 billion. Arizona companies have been involved in major international projects, including Composite Mirror Applications — recently honored by the European Organization for Nuclear Research for its work on the Large Hadron Collider. Tucson: The Optics Valley

Key Optics Valley Technologies Fiber Optics Lasers and Semiconductors Metrology Instrumentation Precision Fabrication High-Volume Plastic Optics Modeling Software Optics Research Positioning Equipment Microscopes and Telescopes Opto-Electronic & Image Processing Thin Film Coatings. Tucson: The Optics Valley

A competitive fiscal environment 1.Corporate Income Tax Structure Favourable to International Firms –No “Throw-back” Provision 2.Competitive Wages with Low Payroll Taxes –Arizona Labor Wage Rates 14% Below National Average –Worker’s Compensation and Unemployment Insurance Rates Lowest in Western/ Southwestern Regions of the US, Lower than 92% of US 3.Pro-Business Environment –No Corporate Franchise Tax –No Business Inventory Tax –No Income Tax on dividends from Out of State subsidiaries –No Worldwide Unitary Tax –Progressive Tax Environment –Access to Capital

Incentives: Arizona Innovation Accelerator Program Angel Investment Tax Credit Program The tax credit is 30-35% of the investment amount depending on the type of company invested in. The investor can begin claiming the tax credits on the tax return for the year following the investment year. Eligibility: Arizona small business that has 2 full-time equivalent employees & has less than $2 million in total assets, exclusive of IP. (embryonic stem cell research are not eligible). An Investor who makes a minimum investment of $25,000 in a business certified by Commerce & does not own more than 30% of the voting power.

Incentives: Arizona Innovation Accelerator Program AZFAST Grants: Market & Technology Assessment Grants Arizona Innovation Connection ~ 4,000 subscribers Business Development Coaching ~ 150 clients Partnerships & Networking Opportunities Eligibility: Arizona Presence Less than 100 employees OR less than $4M annual revenue Seeking to submit Small Business Innovation Research (SBIR) or Small Business Technolgy Transfer (STTR) Federal funding Proposals Technology in Targeted Industries

Incentives: Arizona Innovation Accelerator Program Technology & Market Assessment Grants Go/No Go© Assessment - Foresight Science & Technology –Identifies ‘showstoppers’ to commercialization before resources are spent –$2,000 Value -$300 Match Required Assessment – RTI (Research Triangle Institute) –Examines Commercial Potential, Identifies Viable Disposition Strategies for Technology Allowing Informed Decisions to be Made –$ 3,500 Value -$500 Match Required

Incentives: Arizona Innovation Accelerator Program Technology & Market Assessment Grants Market Assessments: Quicklook© -Foresight –Commercialization Feasibility Study; $4,500 Value -$700 Match Required Assessment -RTI –Characterizes the Market Forces that Effect Potential Commercialization; $ 7,500 Value -$1,000 Match Required Who’s Eligible?Technology & Market Assessment Grants A physical presence in Arizona Less than 100 employees OR Less than $4 Million Annual Revenue Primary Business Must Be in a Target Technology Industry

University of Arizona Science & Technology Center Arizona’s First University: 37,000 students, 346 degrees; 7,782 degrees awarded Ranked 13 by National Science Foundation 2007 gifts and grants totalled more than $463 million Top 10 NASA grant recipient; #1 in space science research 1,345 acres; 345 acres developed in “Project” 2 million square feet of office, laboratory and production space Extensive infrastructure and tenant services Located in the fastest growing region of the Tucson metropolitan area 15 minutes to Tucson International Airport Arizona’s Incubators

University of Arizona Science & Technology Center Emphasis on companies in these industry clusters: Information Systems, Optics/Photonics, Aerospace, Border Technology $2.4 billion economic impact in 2007 Contributes 13,247 jobs in regional economy Fostering technology development from the laboratory to the marketplace: – Strengthen and enhance the educational, research and outreach missions of the UA – Contribute to the discovery and development of new technologies – Assist in the development and growth of high technology companies – Contribute to the economic development of the community and state 32 companies, employees 5 Fortune 500 anchor companies: Canon, Citigroup, General Dynamics, IBM, Raytheon Established technology companies: Dilas, Cognis. Arizona’s Incubators

Arizona State University ASU helps your company take advantage of the possibilities SkySong creates, a number of business services and programs are offered or facilitated by Arizona State University. Access to New Clients and Technologies: A dedicated global business development director who works with businesses engaged with and located at SkySong to generate business leads in the U.S. market. SkySong Corporate Liaison: ASU SkySong offers a dedicated corporate liaison to help companies located at SkySong find and connect with the proper resources of the University, which may include partnership opportunities with ASU researchers, educational opportunities, computing/IT resources, libraries and intellectual capital and amenities such as Karsten Golf Course. Arizona’s Incubators

Arizona State University Business Education: ASU Technopolis offers training, mentoring and networking services for innovation-based early-stage U.S. companies and global companies seeking to enter the U.S. market. Capital Networks: ASU Technopolis organizes Invest Southwest, the largest capital conference in the U.S. Southwest. It also has an extensive venture capital and angel network. Product Development: InnovationSpace, an ASU program, provides sponsored project development services in its on-site space. Research, Intellectual Property & Licensing: ASU has a research enterprise of over $238 million in diverse areas applicable to commercial exploitation. Workforce: ASU has over 67,000 students and produces 14,000 graduates annually. Arizona’s Incubators

Venture Capital Opportunities Invest Southwest is the premier capital conference in Arizona and the Southwest. This event connects the region’s most promising ventures with knowledgeable investors. Presenting companies have received more than a quarter billion in investment dollars since inception of the conference in On December 9-11, 2009, investors and venture capitalists from across the country will gather at the Four Seasons Resort Scottsdale at Troon North in Scottsdale to see the “Best of the Southwest” present their business plans and investment opportunities. The event also includes an investor seminar, a nationally-known keynote speaker, and a presenting company forum.

Partnerships among Public-Private Organizations Regional Partners: Phoenix: GPEC – Greater Phoenix Economic Council | Tucson: TREO – Tucson Regional Economic Opportunities | National Science Foundation / Semiconductor Research Corporation Engineering Research Center at UA develops the science, technology and educational methods needed to lead the semiconductor industry on environmental issues. The Center for Solid State Electronics Research provides a wide range of laboratory facilities for materials synthesis, processing and analysis. It is a national leader in the crucial area of solid state electronics.

Come Visit Arizona 1.Golf courses you say, well you have 400 plus course to choose from days of sunshine. 3.Major Professional Sports Teams

Arizona Department of Commerce – Office in Canada Jason Rose Authorized investment representative State of Arizona - Arizona Department of Commerce Tel.: (514) Cell.: (514) Fax: (514) , Sainte-Catherine West Montreal, QC H3Z 3J8 CANADA |