1. Polish Information and Foreign Investment Agency PL 00-585 Warsaw, 12 Bagatela Street, phone: (+48 22) 334 98 00, fax: (+48 22) 334 99 99; e-mail: post@paiz.gov.pl; www.paiz.gov.pl IT Sector in Poland Warsaw, July 2006

2. Polish Information and Foreign Investment Agency Presentation plan II. Hardware III. Software I. General Information – Market Overview IV. Existing SSC and R&D (case study)

3. Polish Information and Foreign Investment Agency I. General Information – Market Overview IT Market Structure in Poland 2003-2005 (in mln USD) 2003 20042005 Services 918 11501470 Programming 680 750880 Equipment 1860 22503000 TOTAL 3458 41505350 Source IDG Poland Source: IDG Poland

4. Polish Information and Foreign Investment Agency Presentation plan II. Hardware III. Software IV. Existing SSC and R&D (case study) I. General Information on the IT Industry

5. Polish Information and Foreign Investment Agency Hardware Currently NO production of Hardware in Poland Focus on Assets Problem: Solution: Labor Infrastructure Abundant Relatively inexpensive Excellent flight connections Relatively good roads and rails Excellent land areas for SEZ

6. Polish Information and Foreign Investment Agency Labor - Abundant Technical universities in 2003/2004:  342.4 thous. students  57.1 thous. graduates 100,000+ population cities: 2Slovakia 5Czech Republic 9Hungary 42Poland Gdańsk Warszawa Kraków Poznań Wrocław Katowice Łódź Szczecin Rzeszów Technical universities - students communities: > 5,000 students > 10,000 students > 20,000 students Bydgoszcz Białystok Lublin Częstochowa Gliwice Kielce Olsztyn Koszalin Source: Central Statistical Office

7. Polish Information and Foreign Investment Agency Labor – Relatively Inexpensive Source: EIU 2005 Labour cost per hour in 2004 (USD) Labour costs in Poland equal about one fifth of the Western Europe average. Since 2003 labour costs in Czech Republic and Hungary are higher than in Poland.

8. Polish Information and Foreign Investment Agency Infrastructure Overseas flights European flights Domestic connections SZCZECIN GDAŃSK BYDGOSZCZ POZNAŃ WROCŁAW KATOWICE KRAKÓW WARSAW RZESZÓW Direct flights to major European and world cities ŁÓDŹ Total road length: 372 thous. km Road density: 80 km/100 sq. km Road density: 80 urban areas km/100 sq. km Motorways: 405 km Over 20,000 km of railway! Connecting the major cities of Poland with small towns where R&D centers, BPO centers, and plants exist!

9. Polish Information and Foreign Investment Agency Presentation plan II. Hardware III. Software IV. Existing SSC and R&D (case study) I. General Information on the IT Industry

10. Polish Information and Foreign Investment Agency Software Creation of software and its services = Most Profitable IT sector in PL Focus on Assets Labor Infrastructure Abundant Relatively inexpensive Excellent technical know-how Excellent flight connections Relatively good roads and rails Excellent R&D Centers

11. Polish Information and Foreign Investment Agency Labor – Excellent Technical Know-How Process Available new graduates per year per business process (thousands) Poland Hungary UkraineRussia RomaniaBulgaria Czech Rep. Slovakia Software development 5225 2 5210 22 F&A services 147233322 513 135211 Voice-based inquiry call center Data center operations 545147 10528 43 Graduates in Science, mathematics & computing Graduates in social sciences, business and law Language students with German as major at university Graduates in engineering, manufacturing and construction Assumption 1.02.61.00.70.2 n/a1.4 2.5

12. Polish Information and Foreign Investment Agency Labor – Excellent Technical Know-How Warsaw University Team a World Champion in International Collegiate Programming Contest in 2003 In the 2004 ACM Central Europe Programming Contest first three places were occupied by Polish students In the 2005 ACM World Finals - University of Wroclaw gained the silver medal In the 2006 World Finals University of Krakow was on the second position in the rank „ACM is it is the oldest, largest, and most prestigious programming contest in the world” 1582 universities from 71 countries Source: Baylor University website

13. Polish Information and Foreign Investment Agency Kraków Warszawa Bydgoszcz Gdańsk R & D Centres in Poland Source: PAIiIZ Wrocław Zielona Góra Poznań Bielawa Bielsko- Biała Częstochowa Garwolin

14. Polish Information and Foreign Investment Agency Kraków Warszawa Bydgoszcz Gdańsk R & D Centres - area of activity of chosen centers Source: PAIiIZ Wrocław Zielona Góra Software Development Centre – development of GSM, GPRS and UMTS networks; further expansion (from present 270 to 400 engineers). Development and integration of customized IT solutions (special competence on German IT market); 140 IT- specialists are to be employed by 2006. developing software system solutions for digital TV, designing highly advanced set-top boxes; 200 engineers. software and hardware research centre dedicated to communications technology (system architecture, software & hardware development, network quality labs); 150 engineers. Development of software for telecommunication and IT (functional and quality tests). software for digital satellite, cable and terrestrial TV (in the future - software development in DVD devices and digital cameras); 100 engineers. engineering systems and automation, emerging software technologies, manufacturing technology and mechanical engineering, advanced service and IT diagnostic systems. software development in automotive industry – mobile multimedia and body electronics ( testing and validation); 480 engineers. software research centre (telecommunication, internet and programming- tools applications); 380 software engineers. Enginering Design Centre (design of jet engine, including disks, turbine blades, airfoils, combustors; 150 engineers.

15. Polish Information and Foreign Investment Agency Presentation plan II. Hardware III. Software I. General Information – Market Overview IV. Existing SSC and R&D (case study)

16. Polish Information and Foreign Investment Agency Shared Service Centers in Poland - case study WROCLAW Country: USA Value: 40 mn EUR Location: Wrocław New jobs: 1000 Financial and accounting center for the European units of Hewlett-Packard; second shared service center in Europe (the first is located in Spain) but the first HP’s center in Central and Eastern Europe; the center will also serve the external clients. Wrocław was selected mainly because: Access to well-educated labour force (21 local univeristies and higher education institutions) Lower labour costs Access to modern office space Access to airport with direct international flights Good location near A 4 motorway Enthusiastic attitude of the regional authorities and assistance offered by them for the investor