1. TAMPA, FL JANUARY 17-20, 2013

2. Gregory Temkin ROSSTANDARD CEO of Russian Standard, Ltd., (www.rosstandard.com) a New York-based consulting company specializing in assisting U.S. exporters to Russia.

3. Russian RV-lution

4. Facts about Russia Russia is the largest country in the world. Its territory is 6,592,800 square miles; or 17,075,400 square kilometers 624,000 square kilometers of Russia’s territory is accessible by motor vehicle There are 157,895 cities, towns and villages in Russia Its population is 150,000,000 people Russia’s GNP is $2,288,446 trillion dollars (#9)

5. Motor Vehicles in Russia Russia is the largest automobile market in Europe and continues to grow. In August 2012, Russians bought 241,500 cars. They bought roughly 3,000,000 cars in 2012. Over the past 3 years, the motor park in Russia increased by 5,000,000 vehicles. Currently, there are 33.51 million cars in Russia. This number is forecasted to reach 50 million within the next 5 years.

6. Buying Capacity Mass affluent population ($100,000 - $500,000): 0.9% of the population, or 1.2 million people Pre-high net wealth individuals ($500,000 - $1,000,000): 0.2% of the population, or about 250,000 people High net wealth individuals (over $1,000,000): 0.1% of the population, or about 120,000 people About 18% of the population is considered “middle class” ($30,000 - $100,000)

7. RV Industry in Russia There are no RV manufacturers in Russia There are only a few RV dealerships, started 2-3 years ago RV sales double every year Most popular RVs are German “Hymer” and FIAT-based “Adria”

8. Proactive Strategy The Russian Government intends to triple foreign tourism and is currently investing in infrastructure. Hymer AG made an extensive presentation to the Russian Ministry of Development in which it emphasized the benefits of caravanning and demonstrated how it can very quickly, with little investment, turn into a highly profitable industry. Hymer AG (including Niesmann-Biesсhoff, Buerstner, Laika, LMC, Movera) was the first to start a dealership in Russia and now has 40% of all RV sales.

9. Infrastructure Infrastructure for caravanning is currently in a very preliminary state in Russia. Yet with the demand definitely growing, private investors are starting to build camping infrastructure along the key routes of automobile tourist sites. These are located in the European part of the Russian Federation, for the most part.

10. There are about 700 Places in Russia that Designate Themselves as “Camp Grounds”

11. Adrias at a Camp Near the Historic Town of Suzdal

12. Standards Since Russia does not produce RVs or trailers, there are no industrial RV standards or regulations. Virtually all of the RVs that are currently imported to Russia originate in Europe. New vehicles are subject to GOST-R certification which establishes their conformity to the current Russian vehicular standards.

13. Customs Dues Import duties depend on the type of engine and vehicle’s manufacture date. The universal import tax for vehicles under 3 years is 25%. Yet for gasoline-fueled vehicles, it cannot be less than 1 Euro / cubic cm, and rises to 2.35 Euros / cubic cm for vehicles with engines above 3 liters. For diesel engines, it ranges from 1.2 to 1.8 Euros per cubic cm

14. Costs Due to high Customs duties on new or very old imported vehicles, most RVs sold in Russia are up to 3 years old. Retail prices for a 3-year old Class C Recreation Vehicle start at $80,000. Financing is available for most cars. Arrangements with Russia banks can be secured. Dealerships offer their own financing at better rates. The 2012 sales volume was about 300 RVs.

15. Rentals There is currently only one RV rental company in Russia, “Yachts On Wheels” – a dealership with an RV park of about 30 units. Average daily rate for a C-class is $300.

16. Makeshift RVs With very limited availability, many Russians convert other vehicles, such as this one.

17. Standards Most Russian vehicular standards are either already in compliance with EU standards or are in the process of being adapted to those standards. Lobbying is an effective way to modify or influence the standards. Since motorhomes are a new concept for Russia and its automobile industry, there is a certain gray area in classifying RVs, as they have properties that fall under the categories of cars, buses and trucks.

18. Standard Parameters Height: 4 m Width: 255 cm (it was 250 cm but now it is being changed to comply with recent European standards) Length: 18 m RVs are typically registered as Category B, which is 3.5 tons. Trailer ball size: 50mm hitch ball. Russian electrical standards are the same as in EU, which is 220V, 60Hz.

19. Standard Parameters Gas system: Propane and butane, 30 bar. Residential gas bottles containing propane and butane mixed. Gas bottles have to be re-certified after 5 years. Standards for gas bottles are enforced by Russian Federal Agency on Gas (ROSGAZ).

20. Driver’s Licenses and RV Driving In Russia, drivers licenses have a nation-wide application. The most common license type is category B, which covers vehicles up to 3.5 tons and 8 persons. Heavier RVs would fall under category C, which includes most trucks and buses. Russia is the only country in Europe where used US trucks can legally operate.

21. Enforcement Valid GOST-R certificates are required by Russian Customs. At regular intervals the vehicles are checked at State Inspection Stations. Traffic police may also ask for valid certificates.

22. Certification Certification procedures vary depending upon the category. Certification is performed via authorized agents of the Russian Certification Authorities. Each model line requires a separate GOST-R certification. RVs that are 3 or more years old do not require mandatory certification. Vehicles 3 years old and higher are exempt from certification.

23. Partners and Projects Partners: Russian Standard, Ltd (www.rosstandard.com)www.rosstandard.com Fantasy RV Tours (www.fantasyRVtours.com)www.fantasyRVtours.com Russian Caravaners’ League (www.caravanliga.ru)www.caravanliga.ru Russian Caravaners Club (http://caravaners-club.ru )http://caravaners-club.ru RV dealers Projects: Russia By RV Rally May 9-27, 2013 (organized by Russian Standard and Fantasy RV Tours)

24. Events to Consider “Russia By RV” tours and rallies Annual RV Show “Caravenex” - Moscow Winter Olympic Games, 2014 World Soccer Cup, 2018 (Thousands of trailers will be needed for the two latter events.)

25. Summary Russia is an emerging RV market with huge potential. The Russian standard of living is rising, hence the growing consumer base. The Russian Government is interested in boosting automobile tourism and will be receptive to lobbying. Russian grassroots organizations and the public are fascinated with the RV lifestyle.

26. What needs to Change to Accommodate Industry Growth? Closer ties with related Russian Governmental agencies and active lobbying Promotion of RV brands through more rental agencies Promotion of RV lifestyle in Russia More interaction with Russian car dealers Participation in major RV-related events in Russia Interaction with Russian caravanning clubs Support for agencies organizing first RV tours in Russia A trans-Russia rally from Siberia to Europe An RVIA website in Russian

27. Conclusion Early birds will see their RVs by the Kremlin!!

28. Get in on the ground floor!!

29. Contact Information Gregory Temkin Gregory Temkin, President Russian Standard, Ltd, New York (regulatory consulting and certification in Russia) Web: www.rosstandard.com E-mail: info@rosstandard.com Tel: 914-478-7557