1. Business ConsultingBaltic IS Cluster LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Development of ICT Clusters: Baltic IS Cluster October, 2004

2. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 The Latvian Information Systems cluster Established in autumn 2001 - initiative by Latvian Ministry of Economy A collaborative network of companies and institutions (currently 17 members) Aim to –increase the competitiveness and ensure IT export growth –become a leading exporter of software development services in Eastern Europe – provide reliable application services –develop know-how and products competitive on the global market.

3. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Figures and Facts In 2003 9 leading IS Cluster companies achieved: –Turnover EUR ~80 m (~10% growth) –Export EUR 37 m (>50% growth) Main export markets: –the Baltic's –Europe (Germany, UK, Scandinavia etc.) –USA –CIS countries.

4. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Wide range of IT services and products Software development Hosting Network products Implementation services Software packages Content providing.

5. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Cluster participants Universities and Education –University of Latvia –Riga Technical University –Baltijas Datoru Akadēmija Software Development –C.T.Co –DATI –MicroLink –Exigen Latvia –IT Alise –TietoEnator Financial Solutions –Data Pro –Tilde –Verdi (Lattelekom) Application services providing –DEAC –Telia Latvija –IBM Latvia –Lattelekom Testing and Quality –RITI Marketing –Data Media Group –RIX Technologies

6. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Mode of operations “Marketing mall” Independent business organizations seeking to co-operate on larger projects and cross-sell the products and services Code of Ethics Targeted activities through workgroups: –Human Resources –Marketing –Quality –Business Environment –Product Development Decisions based on consensus principles.

7. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Why Baltic IS Cluster ? Latvia, Lithuania, Estonia, Belarus – countries of the Baltic Region Baltic market - more interesting than separate countries Better co-ordination of resources and activities Near-shore and offshore development is becoming a necessity for large European companies Good basis for synergies

8. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Development of Baltic IS Cluster May 2003. Meeting between LITTA (Latvia), Infobalt (Lithuania), LDA, Lithuanian Embassy. November 2003. Meeting between ITL (Estonia) and LITTA. December 2003. Action plan for establishing the Baltic IS Cluster is elaborated by ITL, LITTA, Infobalt. April 2004. Pan-Baltic competencies assessment report (supported by UNDP).

9. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Planned Baltic IS Cluster Activities Joint marketing and PR Joint proposal development and participation in ICT programmes and projects Virtual stock-exchange of subcontracts and jobs in software development projects and product development Formation of Baltic IS Cluster internal/inter countries programmes and development of joint projects in Baltic countries

10. LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Baltic IS Cluster – current status Agreement of co-operation signed by LITTA, Infobalt (Lithuania Association) and “National Infopark” of Belarus The Baltic IS cluster represents: 296 companies with 29,500 employees 2.24 billion EUR turnover in 2003 The seminar on activities of Baltic IS Cluster – September, 2004 Memorandum of understanding among governmental counterparts and industry associations in process

11. Business ConsultingBaltic IS Cluster LITTA, Latvian Infomation Technology and Telecommunications Association,June 2001 Thank you for attention! www.itbaltic.com