1. Lithuania's ICT Potential

2. 2 GENERAL INFORMATION ABOUT LITHUANIA  Population: 3.5 mln.  Area: 65,300 sq. km  Language: Lithuanian  Neighbours:  Latvia  Poland  Belarus  Russia

3. 3 WHY SHOULD YOU CHOOSE LITHUANIA AS A TRUSTED PARTNER?  One of the fastest growing economy in Europe  One of the lowest corporate tax rates in Europe  European Union oriented export  High level of education  Excellent infrastructures  Stable legislative system  Modern project management  European business culture

4. 4 LITHUANIAN ICT SECTOR  ICT sector compounds 8% of the Lithuanian GDP (2004)  About 500 of ICT and electronics companies  15 000 high qualification specialists employed in the sphere of the information technologies alone.  International recognition – in 2004 more than 40 Lithuanian ICT companies exported their products and solutions to the EU, USA, Asian and CIS countries.

5. 5 LITHUANIA’S ICT MARKET TRENDS 2004 year Lithuanian ICT market size Total – appr. 1 237 million Eur. Note: Data on communication equipment and complex IT solutions market are tentative and approximate.

6. 6 LITHUANIA’S ICT MARKET SIZE (2004) In 2004, the ICT sector compounded 8 % of the Lithuanian GDP

7. 7 LITHUANIA’S ICT STRENGTHS  The strongest ICT association Infobalt in the region  Baltic IS Cluster initiative  Bridge between East and West  Knowledge Economy Forum, the cooperation between science and High-tech industry  Copyright agencies to protect IPR

8. 8 TAXES IN LITHUANIA  Profit tax15%  Dividends 15%  VAT 18%  Loss Carry-Forward up to 5 years

9. 9 CORPORATE TAX COMPARISON (%, 2004)

10. 10 LITHUANIA IS BECOMING AN EXPORT ECONOMY (2004)  Exports to the EU & other countries – 81%  Exports to Russia & CIS – 19%  Exports increased by 10.7%  Exports as % of GDP – 40%  Lithuanian TOP 10 IT companies exports increased from 40 to 80 percent in 2004  Export of IT services in 2003 – about 45 million Euros  The main Lithuanian ITT export markets: Germany, Russia, Belarus, Finland, Denmark, USA, and Latvia Genera l ICT

11. 11 GOVERNMENT SUPPORT  National agreement: all political parties have reached consensus on knowledge economy as priority for country development  Long term strategy for economy development: knowledge economy priority(government declared knowledge economy as priority for country development) LITHUANIA R&D  About 500 ICT specialists are employed in Lithuanian or foreign ICT companies every year  Lithuania’s ICT businesses and the Government have initiated a program of investment into R&D seeking to achieve that by 2008 up to 2.5-3 percent of State budget funds are allocated for R&D projects and enlargement of the related scope of work

12. 12 LITHUANIA ICT INFRASTRUCTURE  Location between the EU, Nordics, Belarus & Russia  Modern telecom infrastructure with a digitalisation ratio of 100%  In 2004, the penetration of mobile telecommunications reached 95% of Lithuanian population  National broadband program 2004 - 2007  Internet penetration growth >100% in 2002 - 2003  The biggest ICT Exhibition in Baltic states (>215 exhibitors from >20 countries, >65000 visitors)

13. 13 LEGAL INFORMATION  Law on Electronic Signatures  Law on Copyright and Related Rights  Law on Personal Data Protection  Law on electronic communications  Telecommunication market de-monopolised since 2003

14. 14  Northern Europe culture  European business ethics  Very quality conscious  Versatile in English, Russian, German and Polish  Good understanding of eastern neighbors culture mentality(Russia, Ukraine, Belarus) CULTURAL COMPATIBILITY AND LANGUAGES

15. 15  To achieve that the Lithuanian ICT business corporations take the leading position among the providers of ICT service in Europe  To unite Lithuanian export-oriented ICT companies and to act as a single representative  To populate Lithuanian ICT industry and name  To increase part of information technologies in Lithuania’s export and GNP  To propagate international collaboration, implementation of modern standards and technologies INFOBALT MISSION:

16. 16  More information:  www.outsource2lithuania.com www.outsource2lithuania.com  www.infobalt.lt www.infobalt.lt  Office: Vokiecių g. 28/17-16, Vilnius 01130, Lithuania Tel: +370 5 2622623 office@infobalt.ltoffice@infobalt.lt  Contact person: Nikolaj Goranin Mob: +370 6 9817036 nikolajus@infobalt.lt THANK YOU FOR ATTENTION!