1. COLOMBIA A golden opportunity for investors

2. Colombia's investment climate has been changing in a very positive way

3. Colombia's economic growth record surpasses, on average, that of the Latin American Region. GDP growth in 2006 was 6.8%, the highest since 1978 GDP Growth Source: Economic Commission for Latin America and the Caribbean (ECLAC), DANE, Forecasts ECLAC and National Planning Department GDP Growth: Colombia vs. Latin America (1980-2006f) %

4. Source: Fedesarrollo (DANE ) GDP growth by sector 2004-2006

5. Source : Fedesarrollo (DANE) Components of demand growth 2004-2006

6. Inflation Rate (1997 – 2006) % Source: Central Bank Inflation rate Colombia’s inflation rate was 4.5% in 2006, the lowest level in 42 years. 2006

7. Perception on Safety * (2002 – 2006) Confidence and security Safety levels have increased significantly since 2002, which is reflected by business confidence * Percentage of businessmen who believe security levels have improved. Source: Opinion survey by National Association of Industrials (ANDI), Proexport´s Forecast

8. Reduction in the spread on sovereign debt Market confidence Emerging Markets Bond Index (EMBI) (2002-2006) Basic Points Source: JP Morgan - National Planning Department forecast 2006

9. June 2007 Standard & Poor´s upgraded Colombia´s sovereign debt rating from BB+ to BBB- Market confidence

10. Exports (1995 – 2007f) US$ MM Colombia's total exports doubled in the last four years Exports F: Proexport´s Forecast Source: DANE, Proexport

11. Number of foreign travelers (2001 – 2007f) The number of foreign visitors to Colombia doubled in the last four years Foreign visitors F: Proexport´s Forecast Source: Security Administration Department - DAS

12. Colombia received in 2005 and 2006 the highest inflows of FDI recorded to date Foreign Direct Investment FDI Flows (1994-2006) US$ MM * Proexport forecast Source: Balance of Payments, Central Bank Sab Miller´s investment US$ 4,715 MM 10,255

13. Colombia was the third largest recipient of FDI in the region in the 2005-2006 period, following Mexico and Brazil Source: ECLAC, 2007 FDI flows into Latin America

14. DISTRIBUCIÓN Y DESEMPEÑO POR SECTORES TOTAL: US$ 6,295 MILLION FDI breakdown by sector (2006) Source: Bank of the Republic (Central Bank)

15. Almost 700 multinational companies have operations in Colombia Foreign investors present in Colombia

16. 16% 14% 12% 8% 10% 6% 5% 3% 4% TOTAL*: US $32,444 MM 16% * Excluding the petroleum sector and reinvestment of profits Source: Bank of the Republic (Central Bank) Main investors by country of origin Accumulated FDI by country* (1994 – 2005) % of Total

17. Mexichem (Mexico) (2007): Signed an agreement to buy Petco and Amanco Group. Investment: N.A. Nestle (Swiss) (2006): Increases exports capacity at its soluble coffee plant. Investment: US$ 45 M Coalcorp (Canada) (2006): Concession to build a new harbor terminal in Cartagena. Investment: N.A. Telmex (Mexico) (2006): Acquires 100% of TV Cable Investment: US$ 30 M Prisma Energy (UK) (2006) Acquires 10% of Promigas Investment: US$ 153.7 M Recent cases of FDI in Colombia

18. Glencore International AG (Switzerland) (2006): Acquired 51% of Cartagena´s oil refinery Investment: US$ 656.4 M Millicom International (Luxembourg) (2006): Acquired Colombia Móvil (Ola) Investment: US$ 479.9 M Groupe Casino (France) (2006): Acquired Carulla Vivero Investment: US$ 110 M Sinergy (Brazil) (2006): Increased fleet of Avianca´s aircraft. Investment: US$ 355 M Sab Miller (South Africa) (2006): Invests in a juice plant in Valle del Cauca Investment: US$ 175 M Sinopec Corp (China) and ONGC (India) (2006): Acquired 50% of Omimex Colombia Investment: US$ 55 M Recent cases of FDI in Colombia

19. Chevron Texaco (United States) (2006): Increases investments in Colombia Investment: US$ 110 M Abengoa (Spain) (2006): Builds hydroelectric plant at Guapi Investment: US$ 47M Kimberly (USA) (2006): Increases investments in Colombia Investment: US$ 40 M Sab Miller (South Africa) (2005): Acquired Bavaria, the country’s most important brewery Investment: US$ 4,715 M Phillip Morris (USA) (2005) : Acquired Coltabaco, the country’s largest tobacco firm Investment: US$ 300 M BBVA (Spain) (2005): Acquired the Granahorrar Investment: US$ 424 M Falabella (Chile) (2005): Established department stores in Colombia Investment: US$ 100 M Recent cases of FDI in Colombia

20. The world has been noticing the changes in Colombia's investment climate

21. “Colombia's strong fundamentals stand out. Its $130 billion economy, a world leader in the production of coffee, petroleum, textiles, and flowers, is growing at 6.8% a year, two full points faster than the Latin American average. In the past 10 years, Colombia has slashed its inflation rate from 18% to 5%, and since Uribe was elected, unemployment has dipped from 16% to 13%. The nation has never defaulted on its debt or experienced hyperinflation. And entrepreneurial thinking is spreading” Business Week, May 28th, 2007

22. “Colombia has proved that it is a safe and worthwhile investment destination and has now put itself firmly back onto the investment map. Courtney Fingar reports from Bogotá and Medellin” The Financial Times

23. London The Banker, Octubre – Noviembre 2006.

24. London

25. American Insider - London American Insider, October – November 2006, promoted Colombia as an investment destination.

26. Lonely Planet chose Colombia as one of the 10 “hot spots” in the world to visit in 2006. “It is modern, vibrant, and one of the best value places in South America.”

27. “Bogotá is not for the braves anymore” - Feb 12, 2006 SETH KUGEL

28. Época magazine – Brasil February 2007, “Epoca” magazine highlights Colombia's achievements in improving security levels in large cities and sets it as an example for Brasil

29. ¿Why Colombia?

30. Source: Aviatur, U.S. Dept. of Agriculture Colombia and the United States´s East Coast are in the same time zone Strategic location Hours of flight

31. GDP in Latin America (2005) Current Prices, US$ MM Fifth largest economy and third largest population in Latin America Source: International Monetary Fund and World Bank, * Data for Colombia in 2005 from the Central Bank and DANE Population in Latin America (2005) MM of persons Market size

32. Source: The World Competitiveness Yearbook 2006-IMD Qualified human capital Availability of trained workforce (0= not available; 10= available) Ranking (61 countries) 26 39 44 40 57 12 Competent managers (0= not available; 10= available) 3 6 29 37 40 55

33. Flexible labour legislation 1= impeded by regulations 7=Flexibly determined by employers CountryDay ShiftNight Shift Colombia6 a.m - 10 p.m10 p.m - 6 a.m Chile6 a.m - 9 p.m9 p.m - 6 a.m México6 a.m - 8 p.m8 p.m - 6 a.m Costa Rica5 a.m - 7 p.m7 p.m - 5 a.m Ecuador6 a.m - 7 p.m7 p.m - 6 a.m Argentina6 a.m - 7 p.m7 p.m - 6 a.m Source: Based on Araujo Ibarra & Asociados S.A study. Source: Global Competitiveness Report, 2006-2007 Flexibility of Hiring and Firing Practices Working shifts (2 day-shifts in Colombia)

34. Competitive cost of human resources Gross income of an Industrial Worker annual US$ (2006) Sources: UBS Prices & Earnings 2006 Edition Gross income of an engineer annual US$ (2006) Bogota

35. Improvements in infrastructure Investment in telecommunications (% of GDP) 36 55 53 47 33 58 22 23 12 27 2 31 32 Ranking (61 countries) Source: The World Competitiveness Yearbook 2006-IMD Energy infrastructure (0= is not efficient; 10=It is efficient) Colombia

36. World Economic Forum, April 2007

37. Fuente: ECLAC, Calculations Proexport ATPDEA USA GDP US$ : 11,735,000 MM Population 296 MM SGP ANDEAN European Union GDP US$ : 11,000,000MM Population 455 MM MERCOSUR (Argentina, Brazil, Paraguay, Uruguay): GDP US$: 1,372,522MM Population255 MM CAN (Peru, Venezuela Ecuador, Bolivia): GDP US$ : 216,138 MM Population 76 M FTA with the USA signed October 2006 Grupo de los 3: (Mexico, Venezuela) GDP US$ : 836,446MM Population132 MM FTA with Chile GDP US$ : 92,263 MM Población 16 MM Preferential access to global markets Complementation agreements Tariff preferences Free trade agreements Preferential access to over 1,200 million consumers worldwide

38. Sectors with tax incentives Hotel construction and remodeling (30 years) Eco-tourism services (20 years) New software (10 years) Publishing companies (20 years) Wind or bio-mass electric generation (15 years) River transport (15 years) Forestry plantations (permanent) New medical products Seismic services (Until 2008) Income tax exemptions were granted in some sectors for a limited time period starting on January 1st, 2003 (Law 788, 2002)

39. Colombia offers legal stability contracts as a guarantee for investors Amount of the investment: 7,500 current minimum legal wages. (Around U$ 1,500,000) Payment of a premium to the government equivalent to 1% of the investment made. Objective The promotion of new investments and the expansion of existing ones by securing stability on the rules that are applicable to an investment. * Excludes laws on mandatory taxes or investments issued during state of emergency, social security, indirect taxes, financial sector regulations and public utility services rate regime. Conditions Between 3 and 20 years Duration Request Technical assessment EvaluationApproval

40. Santa Marta Barranquilla Candelaria Cartagena Rionegro Pacífico Palmaseca Bogota Quindío Cúcuta Some incentives for foreign trade 10 Free Trade Zones (FTZ) - Flat 15% income tax rate for industrial users and no tax on remittances abroad. - Tax exemption on duties and VAT on imports of capital equipment and production inputs. -Non restricted foreign exchange management. -Expedite and simplified procedures. Large exporter regime (Altex) - No payment of VAT on industrial machinery not produced in the region. -Favorable customs procedures Vallejo Plan - Imports of inputs and raw materials are exempt from duties and VAT, if they are used in the production of goods that will be exported.

41. New Free Trade Zone Regime Flat rate on taxable income: 15% Goods interned into these areas are considered to be outside the national territory for import and export taxes (VAT, DUTIES) VAT exemption on raw materials, supplies and finished goods sold from the national customs area to industrial users in the FTZ Exports from the FTZ to third countries benefit from international trade agreements. Imported machinery directly related to the business operation is not subject to customs´ taxes. Decree 383 of 2007 establishes the following benefits:

42. Three types of Free Trade Zones PERMANENT FREE TRADE ZONE SPECIAL OR SINGLE-COMPANY FTZ TEMPORARY FREE TRADE ZONE An FTZ operator manages the area where companies established in the FTZ carry out their industrial or trade activities Authorized for a single company to perform its industrial or trade activities within a determined area. Authorized for fairs, trade shows, congresses and international seminaries that are important to the country’s economy and international trade.

43. Requirements to establish a Special or Single-Company FTZ Within the following three years from being granted FTZ status: -Make investments worth approximately U$ 32,000,000 or create 600 direct jobs. - For agro-industrial projects: U$ 16,400,000 or the hiring of 500 employees High economic and social impact (as per assessment issued by the Trade and Industry Ministry, the National Planning Department and the National Tax Authority) Important contribution to: 1. Industrial rationalization, and/or 2. technological and/or service transfer Company Requirements Project Requirements

44. Why using Colombian Free Trade Zones? 1.Colombia offers a competitive preferential rate of 15% for a 30-year time period, extendable for another 30 years. This rate does NOT depend on exports or sales to the domestic market, it is compatible with WTO rules, and does not have a maximum time limit or procedures pending with the WTO. 2.The law allows establishes a special regime for “single-company” Free Trade Zones, which can locate in any region of the country. 3.No sectors are excluded from using FTZs. 4.It offers both tax exemptions on imports and tax exemptions on income taxes and other regional taxes. 5.Tax exemptions on imports are not conditioned to the availability of national production.

45. Why using Colombian Free Trade Zones? 6.Goods produced in the FTZ may be sold to the domestic market (subject to payment of the corresponding duties). 7.The country’s trade agenda ensures stability and a privileged position as an exporting platform. 8.Colombia offers an important domestic market with good growth potential. 9.The country offers important human capital advantages at the professional level, in terms of quality, availability and cost.

46. PROEXPORT COLOMBIA YOUR LOCAL PARTNER IN COLOMBIA

47. Proexport offers investors the following services: Provides updated economic and legal information Assists potential investors in getting established in the country Supports investors that are already established Helps to assess and improve the business climate Support from Proexport International recognition: Special award for merit and innovation from International Foreign Trade Center - 2004 Awarded Leading Agency in Providing Investor Information by WAIPA and MIGA - 2006

48. Beijing, China Caracas, Venezuela Ciudad de México, México Hamburgo, Alemania Lima, Perú Londres, Inglaterra Madrid, España Miami, E.U. Nueva York, E.U Quito, Ecuador San Jose, Costa Rica Santiago de Chile, Chile Toronto, Canadá Bruselas, Bélgica Caribe Roma, Italia Washington Sao Pablo, Brasil Comercial offices Commercial representations Proexport international network

49. www.colombiaespasion.com