1. Mr. Džiugas Juknys, General Manager „Infobalt“ AssociationMr. Vytautas Vitkauskas, President „Infobalt“ Association www.infobalt.lt

2. Contents  Lithuanian ITT market, 2000 – 2001  Main trends of Lithuania's ITT market in 2001.  Intentions of Lithuanian companies  Potential areas of ICT industry and knowledge technologies in Lithuania for the next 5 years  Potential of Lithuania's knowledge economy  Science and Technology White Paper  About association Infobalt  How technologies can help to solve POLITICAL PROBLEMS

3. Lithuanian ITT market, 2000 - 2001 In 2001, the Lithuanian ITT market grew by 28 % www.infobalt.lt

4. E-Lithuanian ITT market growth, %, 2000 www.infobalt.lt

5. Main trends of Lithuania's ITT market in 2001. As forecast at the beginning of the year, in 2001, the IT market grew to 325 million USD. Structural changes of the IT market in 2001:  the share of software and IT services reached 15-17 percent and currently accounts for about 45 - 47 percent of the overall IT market;  the market of mobile technologies and portable computers has expanded notably;  export of software and other IT services as well as investments into the IT sector has doubled.

6.  Growing demand for IT services bolsters sales of leading local companies;  Lithuanian software developers look for M&A opportunities to increase their share in the high margin services sector;  Turnover of hardware wholesellers went up by 25% in 9 months of 2001 as compared to 9 months of 2000;  End of monopoly in fixed telephony starting with 2003 advanced the development of cellular operators and internet service providers; Main trends of Lithuania's ITT market in 2001. www.infobalt.lt

7.  Cellular penetration doubled from 13% in 2000 to 26% in 2001 driven by:  growing economy;  large capital investments by telecommunications companies;  tariff reduction;  increasing tariffs of Lithuanian Telecom;  Cellular penetration is forecast to surge to 40% by the end of 2002;  Local cable TV companies entered the ISP market becoming competitors to Lithuanian Telecom;  The World IT forum to be held in Vilnius in August 2003; www.infobalt.lt Main trends of Lithuania's ITT market in 2001.

8. Growth of the number of mobile service users www.infobalt.lt Total number of mobile service users - 980,700. Penetration of mobile telecommunications - 27 %

9. As early as in the 1st quarter ot this year, mobile communication penetration will reach that of fixed telephone services. At the end of 2002, the penetration of the Lithuanian mobile communications will make up approx. 40% In 2002, the main developments in the Lithuanian telecommunications market should be the following: www.infobalt.lt The number of WAP services will experience a dramatic growth, investment into GPRS technologies and the number of e-business solutions for corporate customers will increase.

10. Lithuanian software market The year 2001 is the time for the leading Lithuanian IT service providers to come close to or even exceed the total results of the last year. Moreover, the share of services in the total revenue structure increased significantly in most companies, representing 40 - 50% on average in the 2001. www.infobalt.lt The high margin services market became the main source of growth for the largest Lithuanian IT companies.

11. Intentions of Lithuanian companies to invest in software and databases www.infobalt.lt

12. Intentions of Lithuanian companies to invest in computers and peripherals www.infobalt.lt

13. Intentions of Lithuanian companies to invest in internet business 8,7 13,8 8,6 14,0 2,4 9,4 18,0 25,7 18,6 19,6 13,2 25,7 To establish / to expand local network To start / to develop the internet connection To start / to develop communication via internet To create / to develop company's homepage To start / to develop e- business To start / to improve the web- advertisement Surely will be invested within 6 monthsProbably will be invested within 6 months www.infobalt.lt

14. 1.2 2.9 3.2 3.7 4.5 5.9 6.0 7.6 8.4 10.6 11.0 11.4 13.4 13.7 14.5 15.2 15.5 11.5 7.2 10.3 9.2 6.8 11.4 12.7 22.2 11.3 13.9 15.3 25.6 23.4 30.6 18.6 20.6 17.8 17.4 0.010.020.030.040.0 50.0 Acquire a laptop computer Acquire a server Acquire a scanner Acquire a photocopier Acquire a fax machine Acquire a mobile phone Create new software Start/develop communication via internet Start/develop internet business (e-business) Create / develop local network Acquire a printer Create / upgrade database Install / upgrade internet connection Manage/ upgrade software Create/develop internet advertizing Acquire software Acquire a personal computer Create/develop a web site Will be implementedWill be implemented if there is a financial possibility

15.  multimedia product development (content applications, encyclopedias,multilingual applications, Web pages, CD-ROMs, DVDs and others)  traditional Software Product implementation services (programming)  e-signature applications (PKI and others) for e-Business, e-government and e-Education  Systems on Chip development (Smart House, Social Security, Hospitals, Transport etc.) Potential areas of ICT industry and knowledge technologies in Lithuania for the next 5 years www.infobalt.lt

16.  e-payments and m-payments secured by digital signature and/or Biometrics Technologies - voice, fingerprint  e-business applications development for ERP, SCM and CRM  Open Source developments for Commercial Applications  Electronic Nose with sensors developed in Lithuania for Food, Security and other industrial applications  Laser technologies interconnecting to ITT applications  Computer science applications in Biotechnology - Database and SW development tools for Biotechnics Potential areas of ICT industry and knowledge technologies in Lithuania for the next 5 years www.infobalt.lt

17. acociacija "Infobalt" : Regional economy is developed with regard to regional resources and priority trends Lithuania has high economic and cultural potential for tourism Economy is fully integrated into the EU economic and knowledge area, where globalization processes are increasingly important; the development is based on adjusting to these processes and using them. Telecommunications and information sector occupies a dominant place in the economy structure Potential of Lithuania's knowledge economy www.infobalt.lt

18.  to promote competition;  to support scientific research and technological development;  to create an innovative development system and a respective culture;  to ensure favourable conditions for foreign trade;  to organize social partnership to achieve progress;  to seek harmonious integration into the EU. www.infobalt.lt Potential of Lithuania's knowledge economy

19. www.infobalt.lt Potential of Lithuania's knowledge economy 1998 - 2001: student enrolment to study programmes of computer science and information technologies

20.  To achieve that the society gets greatest possible benefit from scientific research and innovation activity  To accelerate the development of economic factors which ensure social development and employment  To arrange economic factors for ensuring environment protection  By 2015, to ensure stable annual economic growth rates: 7 per cent - optimistic level 6 per cent - average level 5 per cent - pesimistic level Strategic goals www.infobalt.lt

21.  To integrate Lithuanian economy into the global market through the EU single economic area  To accelerate the development of foreign trade and enhance export potential  To achieve that the system of financial institutions becomes an advanced and effective part of the economic infrastructure  To achieve that information technologies become a part of a functioning physical and economic infrastructure  To seek achievements in other sectors of economy Strategic goals www.infobalt.lt

22. Why does Lithuania need Science and Technology White Paper? Science and Technology White Paper www.infobalt.lt

23. Lithuania manufactures high technology products and services Potential for applied research is in place Lithuanian industry uses fundamental technologies:  information technologies  Biotechnologies  laser industry  Nano technologies Sufficient industry and science concentration Integration into the EU technological area accelerates and cheapens investments Prerequisites for R&D progress in Lithuania www.infobalt.lt

24. 150 members of association I nfobalt include:  Lithuanian information technologies, telecommunications and office equipment companies;  higher education institutions and other education institutions;  public organizations and concultancy firms. About association Infobalt www.infobalt.lt 150 Growth of membership

25. 1. Representation of business interests of INFOBALT members in Lithuania and abroad; 2.Development of Lithuanian ITT market; 3.Services and assistance to INFOBALT members; 4. Development of Lithuanian information society (IS):  Events  IS projects  International activity Activities of association Infobalt: www.infobalt.lt

26. Infobalt committee and workgroup initiatives regarding:  Drafting of a new Law on Telecommunications;  Numbering plan;  Consolidation of the national DT networks;  Copyright protection;  Legalization of software in state institutions of the Republic of Lithuania, consolidation and opensource;  Law on e-Commerce;  Computerization of customs offices  Doubling of ITT specialist education in Lithuanian higher education institutions  Long-term school computerization plan www.infobalt.lt

27. Association Infobalt takes part in or organizes the following EU and Lithuanian projects:  EU Phare BSP I and BSP II – Upgrading of activities of the European ITT association  TELEBALT – promotion of distance work and learning skills in the Baltic States (2002-2003); development of virtual communities with the aim to help small and medium enterprises and organizations participate in EU IST projects www.infobalt.lt

28.  EU Phare-funded project on Copyright Strengthening in Lithuania (2001)  The plan for establishing Information Service Centre (ISC) backed Lithuanian government and Phare in the town of Visaginas (from 2002)  International conference Information Society 2002 and Investors’ League (21-22 October)  The largest IST exhibition in the Baltic region, INFOBALT 2001 (23-26 October) Association Infobalt takes part in or organizes the following EU and Lithuanian projects: www.infobalt.lt

29.  SETI’2001, in Paris, 2001  A joint Infobalt – Lithuanian stand in the exhibition CeBit 2002  A joint Infobalt stand in the exhibition Systems’2001 in Munich, October, 2002  A joint Infobalt stand in the exhibition Comdex 2002 in Geoteborg  European Union IST conference and the national Lithuanian stand in Duseldorf  Riga IVT conference and exhibition  WITSA and EISA events Infobalt has participated in the following international exhibitions: www.infobalt.lt

30.  TRANSFORM programme  Investment into Ignalina ITT projects  ITT technology parks, internet houses, clusters  International conference INFORMATION SOCIETY  International exhibition INFOBALT  Thematic seminars for INFOBALT members Events in Lithuania: www.infobalt.lt

31. International Infobalt INFORMATION SOCIETY WEAK 21-26 October, 2002, Vilnius International conference Information Society 2002 and League of Investors 21-22 October, 2002, Vilnius International information society technology exhibition Infobalt’ 2002 23-26 October, 2002, Vilnius www.infobalt.lt

32. How technologies can help to solve POLITICAL PROBLEMS www.infobalt.lt

33.  Good, friendly relations between Lithuania and Kaliningrad Region of Russia, cross-border movement of people in this area and related visa issues has become an "entrance" ticket for Lithuania to join the European Union.  The residents of Kaliningrad Region today have visa free entry to Lithuania, and vice versa Before EU accession, Lithuania is planning to introduce visa regime in July 2003. Russia would prefer to keep current visa free movement of people from Kaliningrad to "great" Russia and in opposite direction LITHUANIA AND KALININGRAD REGION www.infobalt.lt

35. Electronic Travelling Visas on smart-cards for the residents of Kaliningrad Region can improve the border crossing possibilities for the residents of Kaliningrad Region Political Project Idea Technologies can help to solve a political problem - www.infobalt.lt

36. Use of mechanisms of PKI - Public Key Infrastructure - with electronic signature on smart-card as a toolkit for Electronic Visas or e-Visas Technological Project Idea www.infobalt.lt

37.  … has the same purpose as a handwritten signature... as handwritten visa  … could be role-based... The same...  … has the same legal effect as a handwritten signature... The same... Digital signature – analogy - e-visa www.infobalt.lt

38. KALININGRAD LITHUANIA BORDERBORDER Resident of Kaliningrad Lithuania’s Border control police officer Computer Center of Lithuania's Consulate Network must work as e-visa Certification Authority. Lithuania's Consulate in Kaliningrad Region issues e-Visas for the residents of Kaliningrad www.infobalt.lt

39.  With the help of mobile computers, border control staff can quickly and easily (in 3-7 seconds) check the identity of a person, validate electronic visas and track the history of crossborder transitions (if necessary) in each particular case  Every year, some 1.5 million border-crossing transitions are made between Kaliningrad Region and Lithuania. Time spent on border-crossing procedures can be saved dramatically  System can work both in ONLINE and OFFLINE modes  System can be used by customs offices for tracing of transit procedures via Lithuania Advantages of e-visas www.infobalt.lt

40.  Mexico  Australia  Canada  Israel Experience in the World www.infobalt.lt

41.  Can improve the border crossing possibilities for the residents of Kaliningrad Region  With the help of PKI mechanisms for Electronic Visas, the project can integrate the business of Kaliningrad Region into the world of e-economy and enable all residents of Kaliningrad Region to be full participants of e-trade worldwide by using of e- signatures.  In the future, can be used for the movement within the EU Advantages of e-visas www.infobalt.lt

42. Association Infobalt Vokiečių 28/17 – 16, 2001 Vilnius LITHUANIA Tel. +370 2 62 26 23, fax +370 2 62 26 29 E mail: office@infobalt.ltoffice@infobalt.lt www.infobalt.lt Contacts