1. Business Outlook Opportunities & Resources for Doing Business in Mexico IMTS2006 International Breakfast Carlos G. Mortera General Manager Mexico Office & Tech Center

2. * Index up to August 2005 Source: Created with data from INEGI. Mexico Capital Equipment Investment Index All Manufacturing Base Index: 1993=100 % Index

3. Source: AMT/SIR Dept

4. Cars & Trucks Assembly Plants Mexicali Hermosillo Saltillo – Ramos Arizpe Aguascalientes Guadalajara Silao Toluca Cuernavaca Puebla San Luis Potosi Monterrey

7. Global Automotive Production

8. (millions of dollars) Source: Projected by Secretary of Economy with data from AMIA Projects under evaluation Establishe d projects 51,2 44,3 38,1 32,5 27,4 23,7 Projection Autoparts Industry Production Growth driven by components outsourcing seeking process automation

9. From 40 trucks to 60 a day in 2006

10. Gross Production US $120b projected for 2006 Why does it continue to grow?

11. Technology Intensive Products are the new wave

12. Electronics And Home Appliances Ship to U.S. more than $87 b/year

13. ELECTRONIC SECTOR EXPORTS 1998-2005 Parts and componentsElectromedicalTelecomm equip. IT Audio and video, 30,464 36,548 46,248 42,978 39,87140,036 47,398 49,648 Source: Bancomext

14. Lighting Products (CP) Acuña Juarez Capacitors (IS) Electric Motors (IS) Control Devices (IS) Data Processing Site (Capital) IT Comps. (MS) 35 Plants 5 Service Shops 2 Engineering Center 29 Warehouses 24 Sales Offices 35,000 Employees Saltillo Washing Machines JV (CP) Transmissions JV (IS) Light Fabrications JV (IS) Control Boxes (IS) Electric Harnesses (AE) Washing Machines JV (CP) Electric Motors JV (IS) Lighting Products (CP) Lighting Components (CP) Industrial Motors (IS) Control Boxes (IS) Transformers JV (IS) Fuji Drives JV (IS) X Ray Tables/Tubes (MS) Turbine Buckets JV (PS) Traction Motors (TS) Project Engineering JV (IS) Monterrey Reynosa Electric Motors (IS) Gas Ranges JV (CP) Refrigerators JV (CP) Mexico City Queretaro Refrigerators JV (CP) Appliance Components JV (CP) Technology and Development JV (CP) CIAT Advanced Engineering Ctr. (GET/GEE) San Luis Potosi Compressors JV (CP) Gas Ranges JV (CP) Electric Ranges JV (CP) Locomotive Services (TS) High Performance Comps (PL) Meters JV (IS) Pasteje Tampico Engineering Resins (PL) Chihuahua Locomotive Services (TS) Torreon Locomotive Services (TS) Guadalajara Locomotive Services (TS) Celaya Appliances JV (CP) Plastics Molding JV (CP) Caborca Data Processing Site (Capital) GE in Mexico         1,000 employees                     ED&C Components (IS) Nogales Tijuana Electric Sensing Components (IS) Navojoa Sensing Solutions (IS)    Industry continues to diversify... The Largest GE Operation Outside the US

15. Aircraft Components Industry

16. Oportunities Global companies demanding local presence from suppliers Quoting Ford: “Supply chain in automotive must go beyond Tier 1…” Intelligent Automation and increased technological value.

17. Aircraft Components Manufacturing Areas of Opportunity  Components & Sub-Assemblies:  Turbine,  Landing Gears,  Hydraulic components.  Sheet metal fabrication of super alloys Bombardier in Queretaro demanding technology

18. A snapshot of opportunities…

19. Board Mission to Mexico Feb 26 th. – March 3 rd. ’06 Recommendations Recommendations Provide Application Engineering Support; Explore opportunities in auto parts and appliance industries Address the growing aircraft components industry; Increase visibility of available resources; Increase support in Central Mexico; Identify financing options;

20. Applications Engineer at AMT Mexico Match Member with Customer Gather Market Intelligence Announce Trade Opportunity

21. Market Penetration Review Session Arms YOU to develop Sales & Marketing Strategy In depth discussions regarding: Product Launch Distribution & Agents Promotion Markets Cultural awareness Market Penetration Review Session Arms YOU to develop Sales & Marketing Strategy In depth discussions regarding: Product Launch Distribution & Agents Promotion Markets Cultural awareness Followthe yellow lane road… Follow the yellow lane road…

22. Manufacturing Tech Center: Resources Showroom  Showroom  Import Logistics for in-bond machinery  Spaces for Technical Training Exposure to new customer baseExposure to new customer base Linkage to Service & Integration organizationsLinkage to Service & Integration organizations Open HousesOpen Houses

23. Exhibition 26 members participated 9 machines under power running demos 350 visitors 3 days event Open House 2005 Technical Seminars 20 Technical Seminars 16 members participated 4 Academic Lectures 240 Attendants 350 guests to the reception, 56 members present, 4 committee meetings

24. Mexican Shows Join the AMT Pavillion in 2007!

25. In Summary In Summary Capital Investment growing at 6% a year Automotive trending to produce 3,5m units by 2010, autoparts market US$25b/year “Maquila” Industry growing at 15%/year Must connect to Small and Mid enterprises Let us help you!

26. Mexico is the Place to be in 2007 and beyond

27. Carlos G. Mortera General Manager AMT MEXICO OFFICE AND MANUFACTURING TECH CENTER Monterrey, Mexico E-mail: carlosgmortera@amtcenter.org.mxcarlosgmortera@amtcenter.org.mx Phone: 011 52 81 8359 1232 Your contact in Mexico: