1. SIGITAS BRAZINSKAS Lithuanian Development Agency sigitas@lda.lt http://WWW.LDA.LT Lithuania: export oriented economy

2. THE BALTIC SEA REGION A 100 MILLION PEOPLE MARKET POTENTIAL PLUS ADJOINING MARKETS EAST & WEST

3. THE LITHUANIAN ECONOMY 1998 1999 2000 2001 2002* GDP Growth:5.1% (4.1%) 3.3% 5.9% 5.2% 3rd Q 2002 – 6.6% Inflation:2.4% 0.3% 1.4% 2.1% 1.0% Unemployment:6.4% 8.4% 11.4% 10.7% 10.5% Exports (€ bn):4.3 3.5 4.4 5.3 6.0 Imports (€ bn):6.7 5.6 6.3 7.3 8.2 FDI (cum. € bn):2.3 2.8 3.1 3.4 3.8 Source: Lithuanian Department of Statistics *-forecast

4. GDP – stable growth Growth by 6.6 % (IIIrd Q 2002) in:  Building industry  Transport  Warehouses  Wholesale, retail Source: department of Statistics

5. LITHUANIA RAPIDLY BECOMING AN EXPORT ECONOMY Exports increase in year 2001 by 20% EXPORTS AS % OF GDP: 1999 – 28% 2000 – 34% 2001 – 38% 21

6. The Lithuania’s export performance, Y2001, bill. LTL, % of GDP Source: Department of Statistics %

7. Growth in export, Y2001-2002, 8 months, thous. LTL Source: Department of Statistics

8. Lithuanian export structure, % Y2001 Source: National Development Institute

9. WHAT DO THESE FAMOUS COMPANIES HAVE IN COMMON? IBM MOTOROLA TOSHIBA SIEMENS RENAULT ADIDAS IKEA VOLVO, SAAB, VW SAMSUNG PHILIPS BENTLEY SYSTEMS THEY ARE CUSTOMERS OF LITHUANIA 22

10. Diversified industry, export oriented PORT

11. Opportunities in Lithuania  furniture in Siauliai, Kaunas, Klaipeda  electronics in Panevezys (20 % European market), Vilnius, Kaunas  auto components in Klaipeda, Kaunas  fertilizers in Jonava and Kedainiai (7 % of world market)  textile in Kaunas, Vilnius, Ukmerge  food processing in Telsiai, Rokiskis, Panevezys

12. Investments, EUR Mill, 1 st half 2002 Source: Bank of Finland, 11.10.2002

13. CUMULATIVE FDI BY COUNTRY OF ORIGIN (€ m, as of July 1, 2002) Source: Lithuanian Department of Statistics

14. Selection of production sites or buildings Selection, introduction of Joint Venture partners Contacts with suppliers, building contractors, government institutions Information about operating costs, human resources, incentives Information about Free Economic Zones, Industrial Parks Liaison with relevant state and local authorities LDA SERVICES Source: Lithuanian Development Agency

15. TRAKAI CASTLE

16. THANK YOU AND WELCOME TO LITHUANIA!