1. ICT Basics for Central and Eastern Europe Günther Krumpak ITBeurope For Michigan State University/Intl Study Programs, Prague

2. Geography

3. Economy Growth in % GDP New EU members+4.2 (´04) +4.4 (´05) EU-15+2.0 +2.4 Leading: Baltic "Tigers" Lithuania (6.9/6.6), Latvia (6.2/6.2) Estonia (5.4/5.9) Slovakia (4.5/5.0), Poland (4.5/4.5), Hungary (3.5/3.9), Slovenia (3.4/3.5) und die Czech Republic (3.0/3.5).

4. ICT Market shares (´02) North America 31% Europe 29% ~ 590 bn CEE ~ 50 bn Leading: Poland ~ 15 bn (pop. 40 mill.) (Austria ~ 20 bn; pop. 8 mill.) Example: Siemens Austria 3.7 bn (+1.4 % in ´03, but + 23 % to 750 Mio. in CEE (Slovakia, Slovenia, Croatia, Bosnia-Hercegovina, Serbia-Montenegro and Romania.

5. One of the few remaining playgrounds for global players This information is reproduced with the kind permission of the European Commission, from http://www.ispo.cec.be/esis according to the copyright note stated there http://www.ispo.cec.be/esis

6. Poland and Czech Republic leading

7. Compare Slovenia to Poland

8. +73% mobile lines

9. Conventional vs. Mobile 3:2

10. PCs: Business to come

11. PCs: +38% in 2 years

12. PC penetration: Slovenia 27%

13. PC penetration: Average 10%

14. Internet: Estonia leading

15. Internet growth: Czech Republic +400%

16. ICT Industry Widespread presence of multinationals (IBM, MS, HP, Oracle etc.) Growing no. of local business Example: Slovakia Overall IT market volume 2.3 bn (3.4% of Slovakias GDP) IT 42.1% Telecom 47.9% Annual growth 20%

17. Example: Slovakia > 50% of overall volume from Slovak IT companies Multis outsource considerable part of production Increasing transfer of production into the country IT Spending by Technology 2001 in % Multi user systems 15,7% Single User systems 29,0% Data communications equipment 6,9% Packaged Software19,5% IT Services28,9%

18. Example: Slovakia cont`d.

19. Austria Viennas Part in CEE IT Business Most major multis handle CEE IT markets from Vienna (HP, IBM, EMC, Canon, Sony DADC, Siemens, Philips, Hitachi DS, SAP, CSC, Cognos etc., ~ > 50) HP handling > 90 countries from Vienna Overall volume ~ 10 bn = 20% of CEE IT market No. 1 location in CEE market know how (market research, services, law, tax, headhunting, offices, PR etc.)

20. More information Vienna Business Agency WWFF www.wwff.gv.at www.wwff.gv.at Austrian Business Agency ABA www.aba.gv.at www.aba.gv.at ITBeurope www.itbeurope.orgwww.itbeurope.org