GORAN RADMAN Chairman ECEE Microsoft Corporation ICT Market in South East Europe and Investment Opportunities

SEE TRANSFORMATION INVESTMENT PRODUCTION INNOVATION GROWTH RESOURCES IS IT SUSTAINABLE? ADDED VALUE COMPETITIVENESS

SEE ICT MARKET VALUE Source: EIU 23.3 billion EUR in 2006

SEE ICT MARKET VALUE SEGMENTS IT: 8.6 billion EUR Telecom: 14.7 billion EUR Source: EIU

SEE ICT MARKET GDP EQUIVALENT Source: WB

IT Spending Employment $46.4 billion million IT jobs Software Vendors Channel Firms Services Firms IT Professionals 40% Hardware Vendors Channel Firms Services Firms IT Professionals 60% Software 13% Hardware & Services 87% Source: IDC Economic Impact Study CEE, 2007 While software represents only 13% of total IT spending, it drives 40% of IT employment CEE ICT SPENDING AND EMPLOYMENT

IT CEE IMPACT An aggregate of $18.1 billion in new tax An aggregate of $18.1 billion in new tax revenues over four years revenues over four years Contribution of new revenues of $67.3 Contribution of new revenues of $67.3 billion to GDP over four years billion to GDP over four years More than 676,000 new jobs generated More than 676,000 new jobs generated in next three years in next three years Source: IDC Economic Impact Study CEE, 2007

ENCOURAGING IT GROWTH Source: The Global Information Technology Report 2004 – WEF

SEE ICT ADVANTAGES AND SHORTCOMINGS

Source: neoIT Offshore Insights, 2006 SEE ICT OFFSHORING SEE will need time to catch up, but still is the fastest growing region for ICT market

MICROSOFT SEE STRATEGY Tech Access Content Community Human Potential Knowledge CapitalSocial Contribution LSE Localization Accessibility Capital flow Jobs Creation Tools Education Innovation Business Opportunity Business Model Innovation Local Software Economy Public/Private Partnerships

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