Doug Woods Chairman of AMT President, Parlec International & Malcolm Mason Business Development Director AMT Market Update Breakfast Central/Eastern Europe September 9, 2006

Erin Butler-Mueller Commercial Attaché U.S. Embassy Prague U.S. Commercial Services – A Resource to Help AMT Member Companies Market Update Breakfast Central/Eastern Europe September 9, 2006

Czech Republic Your Gateway to Europe U.S. Commercial Service Erin Butler-Mueller Commercial Attache

Czech Republic Statistics 2005 Population mil Labor Force5.27 mil Unemployment 9.1 % Inflation Rate 1.9 % Purchase Price Parity$18,100 GDP growth6 % Average Monthly Manufacturing Wage$550 1 USD = CZK

Economy Exports $ billion in 2005 transport equipment 15.8 % machinery 12.5 % metallurgy-related products 13.3 % communication equipment 6.3 % Imports $ billion in 2005 machinery and transport equipment 21.1 % raw materials and fuels 10.1 % chemicals 10.4 % metallurgy products 7.7 % Czech foreign trade - CZK 1.78 billion surplus in 2005 The first-ever trade surplus since 1993 was achieved mainly due to the influence of foreign investors in the automobile industry

An Industrial Economy FDI to the Czech Republic more than doubled from $5.6 billion in 2004 to $11.4 billion in GDP By Sector: Agriculture 3.4 % Industry 39.3 % Services 57.3 %

A Wired Society Households with PC and Internet Access in Central Europe by % of Population

Language Skills Multilingual Czech Speakers by % of Population % Population Age Groups

FDI Confidence Index China 2. U.S.A. 3. India 4. U.K. 5. Germany 6. France 7. Australia 8. Hong Kong 9. Italy 10. Japan 11. Russia 12. Poland 13. Spain 14. Czech Republic 15. Malaysia 16. Canada 17. Brazil 18. Singapore 19. Hungary 20. Thailand 21. South Korea 22. Mexico 23. Indonesia 24. Netherlands 25. Taiwan Source: AT Kearney

Major U.S. Investors The U.S. is the 5 th largest investor in the Czech Republic with $3 billion invested.

Best prospects for U.S. companies 1. Automotive Parts & Equipment lighting equipment, filters, bumpers, shock absorbers, electronic equipment parts, in-car entertainment, security equipment, car care products 2. Electronics Sector Electronic components, heavy current technology, computer technologies 3. Medical Equipment Sterilizing equipment, dental equipment, bone implants, infusion and transfusion sets, catheters, cobalt irradiators, computer processed visual systems, medicine infusion pumps, X-ray and mammography systems

Best prospects for U.S. companies 4. Electrical Power Systems · Equipment for the retrofit of coal plants, including boilers and pumps; control systems and software services for distribution networks; equipment/services for nuclear reactors; renewable energy equipment; control systems, pipeline reconstruction, underground storage for natural gas 5. Telecommunications Equipment Electronic components, network equipment, wireless equipment, data service equipment, voice service equipment, video conferencing equipment 6. Pollution Control Equipment Biodegradable waste treatment, packaging & packaging waste recycling, waste water treatment technologies, brownfield remediation

U.S. Commercial Service Our mission: To promote the export of goods & services from the United States, particularly by small- and medium-sized businesses To represent U.S. business interests internationally To help U.S. businesses find qualified international partners The U.S. Commercial Service in Prague is part of the U.S. Department of Commerce, an agency of the United States government.

Commercial Service Prague Staff Greg O’Connor – Commercial Counselor Erin Butler-Mueller – Commercial Attaché Hana Obrusnikova - engineering services, construction, aerospace, defense Zdenek Svoboda - industrial parts and services, auto parts, microelectronics Luda Taylor- telecommunications equipment/services, e-commerce/e-government Ivo Hofman - sport equipment, security equipment/services, IT Veronika Novakova - environmental technologies, medical equipment Irena Michlickova - consumer goods, film production, food processing

Contact us for more info: Commercial Counselor: Mr. Greg O’Connor Commercial Attaché: Ms. Erin Butler-Mueller Czech Republic