1. The Current State of the Office Market in the CEE Region October 5, 2006 Presented by: Adam Sherriff-Scott +420.221.451.518

2. WHO WE ARE “We accelerate your success by making our Knowledge your Property

3. Colliers International A Global Partnership Established in 1898, Colliers is one of the leading commercial real estate organizations in the world. Our partners bring strong, stable local ownership and entrepreneurial and creative solutions together throughout the world. Over 9,000 employees worldwide in 241 offices in 54 countries on 6 continents (130 in the Americas, 65 in Europe, Middle East and Africa (EMEA) and 46 in Greater Asia) Colliers completed 31,394 leasing transactions in 2005 with a value of $18 billion. Colliers completed 8,685 sales transactions in 2005 with a value of $37 billion. Colliers has 595,725,580 square feet under management. Annual revenues exceeding $1.4 billion

4.  Established in 1991 – Budapest  Established in 1994 - Czech Republic  Leading real estate services provider in the region  Services We Provide: - Investment Sales - Office Leasing - Industrial Leasing - Valuation & Consulting  250 employees  14 regional offices COLLIERS INTERNATIONAL CENTRAL AND EASTERN EUROPE (CEE)

5. COLLIERS INTERNATIONAL CORPORATE SERVICES Integrated Real Estate Solutions

6. COLLIERS INTERNATIONAL- CEE REGION SELECTED CLIENT LIST Providing service to satisfied clients in the Czech Republic for over ten years

7. ECONOMIC OVERVEW

8. 7.3% 5.8% 19.7% 10.2% 17.8% 12.2% Czech Republic Hungary Poland Romania Slovakia AVERAGE …growing economies = declining unemployment Source: Experian 2002 Country: 20032004 8.1% 5.9% 19.9% 7.6% 15.2% 11.3% 8.2% 6.0% 19.6% 6.8% 14.3% 10.9% 2005 2006 UNEMPLOYMENT FIGURES FOR CEE REGION 7.8% 7.1% 18.2% 6.5% 11.6% 10.2% 7.9% 7.6% 17.6% 6.8% 11% 10.0%

9. …GDP growth in the Czech Republic & the CEE Region Czech Republic: Poland Hungary Romania Bulgaria 2006* 2004 20052007* 2008* *Figures are forecasted Source: Experian 4.0% 5.3% 4.0% 8.3% 5.7% 6.0% 3.2% 4.1% 5.5% 5.0% 4.5% 4.3% 5.0% 5.1% 4.3% 4.8% 3.8% 4.8% 5.1% 4.5% 4.6% 3.9% 5.0% 4.3% GDP GROWTH IN THE CEE REGION

10. ….positive economic fundamentals= A STRONG INVESTMENT CLIMATE *Source: Czech National Bank, December 2005 Country Standard & Poor’s Moody’sFitch-IBCA Czech Republic A-A1A HungaryA-A1BBB+ PolandBBB+A2BBB+ RomaniaBBB-Ba1BBB- SlovakiaAA2A Investment Risk Ratings in the CEE Region are Strong Across the Board

11. CZECH REPUBLIC MARKET SUMMARY

12. CZECH REPUBLIC – LOCATION MAP BERLIN 340 km MUNICH 385 km VIENNA 250 km BUDAPEST 450 km WARSAW 750 km PRAHA Czech Republic: Located in the heart of Central Europe!!

13. PRAGUE - GENERAL LOCATION OVERVIEW Snapshot of the ten districts that make up Prague NOTABLE STATISTICS  Prague= 10% of CZ population and 20% of GDP  3.5% unemployment compared to 7.9% overall in Czech Republic  Average monthly wages of 18,297- 20,036 CZK compared to 14 500 CZK nationwide LARGEST CITIES POPULATION Prague: 1 200 000 Brno: 400 000 Ostrava: 320 000 Plzen: 164 000 Olomouc: 106 000 Hradec Kralove: 100 000 Ceske Budejovice: 98 000

14. OFFICE MARKET OVERVEW

15. Submarket Office Stock (m²) Vacancy 1Q 2006 Take-Up (m²) 2Q 2006 Take-Up (m²) Mid-Year Subtotal Take-Up (m²) City Center 406,9389.3%31,7128,99840,710 Inner City 942,27813.3%18,67264,50283,174 Outer City 547,1398.4%18,46116,50234,963 TOTAL1,896,35511.0%68,84590,002158,847 2Q 2006 Office Market Snapshot Prague *Source: Prague Research Forum Key 2Q 2006 Stats – Prague Office Market

16. 2Q 2006 Office Market Snapshot Czech Republic  The Office market has stabilized in Czech Republic, especially in Prague.  Declining vacancy rates solidify strong demand from both new foreign demand and organic growth of existing companies, even with many new developments.  Strong office construction activity in Prague could lead to a temporary flattening in vacancy rates for the immediate future due to increased demand. Location Class A Class B Prague City Center Inner City Outer City 18.0-19.014.5-15.513.0-14.514.0-15.011.0-12.010.0-11.5 Brno12.0-14.010.5-11.5 Plzen9.0-12.06.0-8.0 Ostrava9.0-11.05.0-9.0 Office Market - Average Rent (€/m²/month) Sources: CBRE, Prague Research Forum

17. Major Office Deals in Prague - 2006 Larger leases are being signed: overall average leased space in Prague for 2Q 2006 increased to 1,168 m², from 734 m² in 2005. PROJECTLOCATION SIZE (m²) TENANTCLIENTAGENCY CTPark Slapanice Brno16,600CSAD CTP Invest N/A CEZ Building Prague 1 23,100 Prague City Hall N/AN/A Katerinksa Business Centre Prague 2 7,800PWC Merrion Property N/A The Park Prague 4 1,487Inbev AIG Lincoln DTZ Palac Krizik Prague 5 2,600Seznam.cz Smichov Terrasse s.r.o. Colliers International Office Park Nove Butovice Prague 5 2,118 Lease Plan N/AN/A Nile House Prague 8 1,230FordEuropolis Cushman & Wakefield Palac Karlin Prague 8 1,500Panasonic CEE Property Invest Knight Frank Zirkon Office Center Prague 8 2,804ABBBACAN/A Vysocanksa Point Prague 9 9,335 Ministry of Labour N/AN/A Podebradska 55 Prague 9 4,377AutocontN/AN/A CTPark Plzen Plzen2,000Bodycote CTP Invest Colliers International TOTAL74,951 Source: CiJ – September 2006

18. Office development…on the rise Project Name District Office Space (m ² ) StatusDeveloper Diamond Point Prague 8 18,231CompletedKarimpol Luxembourg Plaza Prague 3 23,949Completed Orco Property Group Carrefour Eden Prague 10 6,488CompletedCarrefour Korunni Dvur Prague 10 4,153Completed Africa Israel Investment Novodvorska Plaza Prague 4 5,000Completed Plaza Centers The Park Building 8 Prague 4 8,000Completed AIG Lincoln Andel City Phase II Prague 5 9,400CompletedUBM The Smichov Gate Prague 5 10,000Completed (opening 3Q 2006) Immoconsult Palac Krizik Prague 5 14,000CompletedCecopra E Point Prague 6 7,150 Under Construction Viterra Rokytka Prague 8 4,000 Under Construction Skanska “ Nestle ” Centrum Prague 4 15,000 Under Construction SEKYRA Group, a.s. BB Centrum Gama Prague 4 26,650 Under Construction Passerinvest South Point Prague 4 6,447Planned AMA Development s.r.o. Office Park Nove Butovice/C Prague 5 6,873 Planned (2008) PDP TOTAL m ² 165,341 Major Projects in Prague - 2006

19. Key Market Trends 1. Regional secondary office market growth due to higher demand, lower rental rates, ample labor supply and lower wages 2. Institutional investors and developers looking to negotiate longer-term lease contracts, while National and International companies are looking for more flexible opportunities 3. Larger-sized leases being signed in 2006 4. Development of brownfields in Prague is gradually changing the face of the city

20. 12-Month Forecast Increased office supply across the Prague region could potentially create a slight increase in vacancy rates. Increased office supply across the Prague region could potentially create a slight increase in vacancy rates. Foreign investment money will continue pouring into the CEE Region for the foreseeable future Foreign investment money will continue pouring into the CEE Region for the foreseeable future Strong absorption, continued economic growth and job creation will add to demand for new construction in growing secondary markets like Brno and Plzen. Strong absorption, continued economic growth and job creation will add to demand for new construction in growing secondary markets like Brno and Plzen. Adoption of the Euro will likely be delayed until 2012 or 2013, which could benefit the Czech economy and lead to further strengthening of the Czech crown. Adoption of the Euro will likely be delayed until 2012 or 2013, which could benefit the Czech economy and lead to further strengthening of the Czech crown.

21. Adam Sherriff-Scott Director, Office Leasing & Tenant Representation adam.sherriff-scott@colliers.cz Tomas Fencl Senior Consultant, Office Leasing & Tenant Representation tomas.fencl@colliers.cz Mark Forward Senior Consultant,Tenant Representation mark.forward@colliers.cz Meagan Caldwell Marketingmeagan.caldwell@colliers.cz Filip Rerko Researchfilip.rerko@colliers.cz For Additional Information, contact: