1. RUSSOFT Association www.russoft.org

2. RUSSOFT RUSSOFT is the major Association of 80+ leading software development companies from Russia, Byelorussia and Ukraine with more than 17000 software engineers, $500 M of turnover Part of the Russian Information and Computer Industry Association (APKIT) Leadership in implementing CMMI/ISO standards in the Industry Organizer of marketing and PR activities in Russia and abroad together with Fort Ross Ltd (its marketing Agency) Active lobbyist of IT interests in the Russian Government (IT-parks, Export Promotion Agency, Law on better taxation, less Administrative barriers, etc.) RUSSOFT supports its IT-parks projects in St Petersburg, Nizhniy Novgorod, Novosibirsk, Moscow area

3. History 9.9.99 – symbolic lucky date of inauguration in a symbolic place - Smolny 10 companies in St Petersburg supported by the Administration of the City - created Consortium for enhancing joint marketing activity took name of the ever first Russian fortress in the US - “Fort Ross” in California

4. Principles Self-financing, independence from the State Equal rights of all participants regardless turnover nor brands Democratic structure and procedures Independent president with no commercial competing interests Concentration on practical steps rather than on political demagogy

5. Non-commercial partnership Has more freedom in commercial activity compared to Association which is quite necessary for getting budget Association needs to be approved in the ministry of antimonopoly activity while the Partnership does not (there are new changes for the worse now)

6. Directions of activity International marketing Implementation of modern education, training, PM and QA standards in the Industry Lobbying Government for better legislation and for less administrative barriers Consolidation of the IT community for protecting industry against arbitrary politics of the State Cooperation with Associations, partnerships and Clubs of other branches as well as of customers

7. Examples RUSSOFT as a part of APKIT was nominated by the Government to organize accreditation of companies wishing to get tax incentives for exporters RUSSOFT is the major partner to the Ministry in providing data from the market (annual market study), in organizing international marketing events (CEBIT) RUSSOFT members participate in numerous intergovernmental commissions on economic development of Russia with foreign countries

8. Major events supported by RUSSOFT and Fort Ross ROSS (Russian Outsourcing&Software Summit) - 2001-2006 (www.soft-outsourcing.com)www.soft-outsourcing.com Stand at CEBIT – 2001-2006, Stand at Comdex Scandinavia – 2002-2003 Russian CIO Summit (2003-2006) www.cio-summit.ruwww.cio-summit.ru Russian IT Seasons (2002-2006) www.it-seasons.ru )www.it-seasons.ru President Gorbachev speaking at the Massachusetts Software Council Annual meeting (April 2005) Open Source Forum Russia 2005 (www.opensource- forum.ru)www.opensource- forum.ru Software Engineering Congress 2005-2006 (www.secr.ru)www.secr.ru ExecutEve 2005 (exclusive B2B meeting with CIOs and VP of Fortune 500 companies) 3 rd US-Russia Technology Symposium 2006 (Stanford) Interop Moscow 2006 (www.interop.ru)www.interop.ru

9. Analytical Activities Data-base of Russian speaking software companies (www.russoft.org)www.russoft.org Annual report on the Russian software export market (www.russoft.org)www.russoft.org On-demand studies of Russian speaking markets (vertical segments, labor availability, prices, new technologies, trends, etc.) “White Paper on Russian Outsourcing” (www.russoft.org)www.russoft.org

10. International Cooperation Agreements with: BITKOM (Germany) – Russia is acknowledged as the Partner Country for 2007 by BITKOM and by Deutsche Messe (CeBIT) Massachusetts Software Council (US) Connecticut Technology Council (US) Software Association of New Hampshire (US) Vermont Chamber of Commerce (US) US-Russia Chamber of Commerce of New England (US) Israel Association of Electronics and Information Industries – IAEII Kansai Information Systems Association (Japan)

11. Conception of the Russian IT market development prepared by APKIT and RUSSOFT Associations approved by the Government on November 18, 2004

12. Main features (1) Deregulation of the IT export market (diminishing of bureaucratic barriers in tax’ and customs’ regulation, in export control) Support to the international marketing of Russian IT companies and to their QA systems certification Internal market growth initiatives and support measures (“computer for everybody”, stimulation of IT consumption, etc.)

13. Main features (2) Support to creation of IT-parks network (application of “special economic zone” regime, assistance to obtaining rights on land on the regional level, allocation of State investment in infrastructure, cut of taxes in IT-parks) Creation of State-Private Investment Fund for IT business development Enhancement of IPR Protection system in IT

14. First results of realization of Conception (1) Adjustment to the Tax Code has been approved, which provides legal basis for exemption of VAT for exporters of software outsourcing services Low on Special Economic Zones has been approved and a set of projects have been initiated in 4 regions Customs’ regulation of software export has been simplified

15. First results of realization of Conception (2) Program of a network of IT-Parks has been adopted. RUR 1,4 B allocated for IT-parks in 2007 (appr.$50 M) Mixed State/Private IT-Investment Foundation and a “Fund of Funds” projects have been launched Law providing less taxation to software exporting companies (12% less taxes) was adopted. APKIT (RUSSOFT) is nominated to make accreditation of companies to the Law Project of an IT-Export Promotion Agency was launched by the Government