READY… STEADY… INVEST IN KRAGUJEVAC December 5, 2008.

WHY INVEST IN SERBIA? Favorable strategic position Legislative framework Tax and other incentives Available infrastructure Existing and potential markets Human capital Present FDI’s…

KRAGUJEVAC – TOP INVESTMENT DESTINATION Affordable, educated and trained HR Macro regional center Long industrial tradition Local incentives for the investors Institution for business support University Zones and infrastructure Business innovative center Business friendly local government certified 300 mil EUR of FDI in the last 4 years

CITY OF KRAGUJEVAC

KRAGUJEVAC BASIC DATA Macroregional center of Serbia Fourth largest city in Serbia Third largest municipality budget in Serbia 80 million EUR in Total population inhabitants Total area 835 km2 University center - 11 faculties, average number of students per year

KRAGUJEVAC IN FIGURES AND GRAPHS

BUSINESS INNOVATIVE CENTER 1200 square meters 21 business units The first innovative incubator in Serbia

SUMADIJA FAIR 1500 square meters First regional fair Network of business support organizations: RCC, REDA, LED, Sloga, Sumadija, BIC

INVESTMENT LOCATIONS MAP

. GREENFIELD LOCATIONS 1. DENINO BRDO Size: 10,5 ha Purpose: business zone for small and medium enterprises 33 ground plots (20-36 a) with possibility to merge maximum 2-3 plots

2. METINO BRDO Size: 40 ha Purpose: residential, business, sport, recreation zone 2 sports halls “Southern detour” GREENFIELD LOCATIONS

3. “STARA RADNIČKA KOLONIJA“ Size: 2,4 ha Purpose: residential Floors: ground floor plus 6

GREENFIELD LOCATIONS 4. SUMARICE LAKE Size: 18,63 a Purpose: business – hotels and restaurants Ground floor plus one DPR

GREENFIELD LOCATIONS 5. BUBANJ LAKE I and II Size: 41 a Purpose: business, commercial, hotels and restaurants Ground floor plus one DPR

GREENFIELD LOCATIONS 6. TANKOSIĆEVA Size: 1,5 ha Purpose: business Ground floor plus two Level of coverage: 60%

LOCATIONS TO BE DEVELOPED Military complex Divostin over 150 ha Military complex Grosnica 19 ha Business zone Korman polje 75 ha Servis 3 with 40 ha Radomir Putnik 9 ha Šukina street 45 ha. GREENFIELD LOCATIONS

LOCAL INCENTIVES SET Incentives for leasing the land per number of employees – production From employees – EUR per employee From employees –5.000 EUR per employee More than 200 employees – EUR per employee New!!! Incentives for IT and software engineering products

PROTECTED PRICE FOR LEASING THE LAND 1 m 2 = 1 EUR

TAX FOR CONSTUCTION LAND INCENTIVES 1.Paying in installments - 20% immediately, the rest with 24 months grace period in the next 3 years 2.Paying in cash decreases the price for 30% 6 zones – extra zone and five zones Primary investments from 5 to 10 EUR per square meter 2 types of residential buildings – single family and multifamily and business premises From 0 to 60 EUR per square meter secondary investments

COSTS AND SERVICES Costs of connections to supplies: -gas supply network (100 m 3 /h gas EUR) -electric supply network (1 MW approximately EUR) -Telecommunications EUR Costs of communal services: -water and sewerage 0,82 EUR/m 3 -gas 0,28 EUR/m 3 -electricity 0,05 EUR/kWh

SUCCES STORIES Signing Memorandum of understanding between Fiat and City of Kragujevac, May 06, 2008.

Signing contract between Fiat and Government of Serbia

Mayor of Kragujevac gives the keys of the city to Fiat

ACCOMPLISHED INVESTMENTS

NONAME OF THE COMPANYCOUNTRYSECTOR 1.“UNIOR ALATI”SloveniaSpecial tools 2.“PREDUZEĆE ZA PUTEVE ”SerbiaRoad construction 3.“INERTRUST LLC”BulgariaForging 4.“NTU”SloveniaEquipment for car interior 5.“HIDRAULIKA KURELJA”CroatiaSpecial vehicles and exhaust systems 6.“RAP MARINE ZASTAVA”NorwayMachines production 7.“PLAZA”IsraelTrade 8.“SUPERNOVA”GermanyTrade 9.“DELTA M”SerbiaTrade 10.“FORMA IDEALE”SerbiaFurniture production OTHER IMPORTANT INVESTORS

City of Kragujevac - LED office 3, Trg slobode, Kragujevac Serbia Tel Fax Web site: READY… STEADY… INVEST IN… KRAGUJEVAC