1. READY… STEADY… INVEST IN KRAGUJEVAC December 5, 2008.

2. WHY INVEST IN SERBIA? Favorable strategic position Legislative framework Tax and other incentives Available infrastructure Existing and potential markets Human capital Present FDI’s…

3. KRAGUJEVAC – TOP INVESTMENT DESTINATION Affordable, educated and trained HR Macro regional center Long industrial tradition Local incentives for the investors Institution for business support University Zones and infrastructure Business innovative center Business friendly local government certified 300 mil EUR of FDI in the last 4 years

4. CITY OF KRAGUJEVAC

5. KRAGUJEVAC BASIC DATA Macroregional center of Serbia Fourth largest city in Serbia Third largest municipality budget in Serbia 80 million EUR in 2008. Total population 180.252 inhabitants Total area 835 km2 University center - 11 faculties, average number of students per year 15.000.

6. KRAGUJEVAC IN FIGURES AND GRAPHS

8. BUSINESS INNOVATIVE CENTER 1200 square meters 21 business units The first innovative incubator in Serbia

9. SUMADIJA FAIR 1500 square meters First regional fair Network of business support organizations: RCC, REDA, LED, Sloga, Sumadija, BIC

10. INVESTMENT LOCATIONS MAP

11. . GREENFIELD LOCATIONS 1. DENINO BRDO Size: 10,5 ha Purpose: business zone for small and medium enterprises 33 ground plots (20-36 a) with possibility to merge maximum 2-3 plots

13. 2. METINO BRDO Size: 40 ha Purpose: residential, business, sport, recreation zone 2 sports halls “Southern detour” GREENFIELD LOCATIONS

14. 3. “STARA RADNIČKA KOLONIJA“ Size: 2,4 ha Purpose: residential Floors: ground floor plus 6

15. GREENFIELD LOCATIONS 4. SUMARICE LAKE Size: 18,63 a Purpose: business – hotels and restaurants Ground floor plus one DPR

16. GREENFIELD LOCATIONS 5. BUBANJ LAKE I and II Size: 41 a Purpose: business, commercial, hotels and restaurants Ground floor plus one DPR

17. GREENFIELD LOCATIONS 6. TANKOSIĆEVA Size: 1,5 ha Purpose: business Ground floor plus two Level of coverage: 60%

18. LOCATIONS TO BE DEVELOPED Military complex Divostin over 150 ha Military complex Grosnica 19 ha Business zone Korman polje 75 ha Servis 3 with 40 ha Radomir Putnik 9 ha Šukina street 45 ha. GREENFIELD LOCATIONS

19. LOCAL INCENTIVES SET Incentives for leasing the land per number of employees – production From 20-50 employees – 2.500 EUR per employee From 51-200 employees –5.000 EUR per employee More than 200 employees – 7.000 EUR per employee New!!! Incentives for IT and software engineering products

20. PROTECTED PRICE FOR LEASING THE LAND 1 m 2 = 1 EUR

21. TAX FOR CONSTUCTION LAND INCENTIVES 1.Paying in installments - 20% immediately, the rest with 24 months grace period in the next 3 years 2.Paying in cash decreases the price for 30% 6 zones – extra zone and five zones Primary investments from 5 to 10 EUR per square meter 2 types of residential buildings – single family and multifamily and business premises From 0 to 60 EUR per square meter secondary investments

22. COSTS AND SERVICES Costs of connections to supplies: -gas supply network (100 m 3 /h gas 20.000 EUR) -electric supply network (1 MW approximately 44.000 EUR) -Telecommunications 15-20.000 EUR Costs of communal services: -water and sewerage 0,82 EUR/m 3 -gas 0,28 EUR/m 3 -electricity 0,05 EUR/kWh

23. SUCCES STORIES Signing Memorandum of understanding between Fiat and City of Kragujevac, May 06, 2008.

24. Signing contract between Fiat and Government of Serbia 29.09.2008.

25. Mayor of Kragujevac gives the keys of the city to Fiat 29.09.2008.

26. ACCOMPLISHED INVESTMENTS

28. NONAME OF THE COMPANYCOUNTRYSECTOR 1.“UNIOR ALATI”SloveniaSpecial tools 2.“PREDUZEĆE ZA PUTEVE ”SerbiaRoad construction 3.“INERTRUST LLC”BulgariaForging 4.“NTU”SloveniaEquipment for car interior 5.“HIDRAULIKA KURELJA”CroatiaSpecial vehicles and exhaust systems 6.“RAP MARINE ZASTAVA”NorwayMachines production 7.“PLAZA”IsraelTrade 8.“SUPERNOVA”GermanyTrade 9.“DELTA M”SerbiaTrade 10.“FORMA IDEALE”SerbiaFurniture production OTHER IMPORTANT INVESTORS

29. City of Kragujevac - LED office 3, Trg slobode, 34 000 Kragujevac Serbia Tel. + 381 34 306 189 Fax. + 381 34 306 187 E-mail: ledoffice@kg.org.yu, n.pesic@kg.org.yuledoffice@kg.org.yu n.pesic@kg.org.yu Web site: www.kragujevac.rs READY… STEADY… INVEST IN… KRAGUJEVAC