1. Invest in southern pearl THE MEDVEDJA MUNICIPALITY THE MEDVEDJA MUNICIPALITY INVEST IN THE SOUTHERN PEARL

2. Invest in southern pearl WHERE TO INVEST? The Medvedja municipality covers the area of 524,24 km2. According to the 2002 census, there are the total of 10, 760 inhabitants in 34 communities and 42 villages. Distance from : Belgrade 320 km ( capital city ) Niš Niš 90 km ( airport airport ) Priština Priština 60 km ( Kosovo) Sofia 220 km (Bulgaria ) Thessalonica 360 km (Greece ) There are 44km from Medvedja to Corridor Corridor 10 10 and to the Belgrade- Athens Athens railway line. Медвеђа Ниш

3. Invest in southern pearl Geo-strategic location on the crossroads of Corridors 10 and 7, a connection between the East and the West A democratic country on the path to EU accession 7,5 million inhabitants, GDP 5,764 $ per capita, economic growth is 7,5% (2007) Average monthly salary is 485 euros and industrial productivity growth is 13,5% (2007) 180 million consumers with a profit-free access to the market (FTA with Russia, CEFTA) 2001-2007 the total FDI was 13.5 billion $ Attractive tax policy and facilities for investors WHY SERBIA ?

4. Invest in southern pearl Situated on the regional M-9 Leskovac-Priština road A good geographic position and favorable climatic conditions Tourist potentials (Sijarinska Spa and archeological sites) Natural resources ( led, zinc,silver and gold, geo-thermal waters, ecologically clean environment ) Natural recourses for the production of healthy food Industrial raw materials, especially wood (oak, pine) Greenfield investment opportunities WHY MEDVEDJA?

5. Invest in southern pearl NATURAL RESOURCES Large territories under high quality woods Large territories under high quality woods Reserves of zinc, led, silver and gold that will last over the next 35-40 years Reserves of zinc, led, silver and gold that will last over the next 35-40 years Geo-thermal water s of various chemical composition Geo-thermal water s of various chemical composition Excellent conditions for development of tourism Excellent conditions for development of tourism Natural predespositions for the production of milk, meat and fruits Natural predespositions for the production of milk, meat and fruits

6. Invest in southern pearl HUMAN RESOURCES Qualified labor force, while the current figures of the Medvedja labor market are as follows: Qualified labor force, while the current figures of the Medvedja labor market are as follows: * No qualifications : 793 * No qualifications : 793 * Skilled workers: 407 * Skilled workers: 407 * Secondary school: 426 * Secondary school: 426 * Higher education : 39 * Higher education : 39 * University education : 12 * University education : 12 The local secondary school - departments for economy,tourism and metal workers - with the total of 310 pupils, is a good base for new work places The local secondary school - departments for economy,tourism and metal workers - with the total of 310 pupils, is a good base for new work places Working potential of region is 250,000 workers Working potential of region is 250,000 workers

7. Invest in southern pearl INFRASTRUCTURE Asphalt roads and the connection between all local communities Asphalt roads and the connection between all local communities Stabile and quality water supply and sewage system Stabile and quality water supply and sewage system Modern electric power grid Modern electric power grid Digital telephone exchange with 1,131 users, ADSL Internet connection, the municipality is fully covered by mobile telephone signals of all three operators that provide mobile phone services the country. Digital telephone exchange with 1,131 users, ADSL Internet connection, the municipality is fully covered by mobile telephone signals of all three operators that provide mobile phone services the country.

8. Invest in southern pearl ECONOMY Unemployment rate is high and it amounts to 32,4% Unemployment rate is high and it amounts to 32,4% The total number of employed persons is 1, 578, and 47, 78% of them work in industry, 31,31% of them in state institutions, while 20,91% of them are engaged in the private sector The total number of employed persons is 1, 578, and 47, 78% of them work in industry, 31,31% of them in state institutions, while 20,91% of them are engaged in the private sector In August 2008, the average net salary in the municipality was 28,834 dinars or 351,63 euros In August 2008, the average net salary in the municipality was 28,834 dinars or 351,63 euros

9. Invest in southern pearl POTENTIAL FOR TOURISM

10. Invest in southern pearl POTENTIAL FOR TOURISM The major major potential of the Medvedja municipality municipality for tourism tourism is Sijarinska Spa, which is aunique gift of of nature. A natural natural geyser of hot mineral water, a clean environment,healthy food,non-polluted air and 18 springs of mineral waters, waters, which stretch over over 800 meters opf land, are the the main potentials for for attacting attacting investors. The location location for a mineral water manufacturing plant plant ( Greenfield investment) is fulluy regulated and completely equipped with infrastructure. infrastructure. Its Its situated on the plots 13,14,49,50,51,20/2,16/2, which are all in private ownership, as well as on the plots 36/5,36/6 484/2, which are in state ownership. The total total area area of these plots is 2 hectares.

11. Invest in southern pearl SUPPORT FOR INVESTORS Efficient municipal administration Efficient municipal administration Municipal service center 00381 16 891 158 Municipal service center 00381 16 891 158 60 days for getting a building permit 60 days for getting a building permit Regional chamber of commerce Leskovac 00381 16 250 011 Regional chamber of commerce Leskovac 00381 16 250 011 L E R office 00381 16 891 257 L E R office 00381 16 891 257 NGO sector and cooperation NGO sector and cooperation

12. Invest in southern pearl QUALITY OF LIFE Sport clubs in Medvedja Football club Jablanica Basketball club Jablanica Karate club and Chess club Registered non-government organizations (NGOs) in Medvedja : Center for Peace Studies Ecological Movement Medvedja Roma Center Medvedja Cultural Center Medvedja Womens Center Medvedja Sphetimi Sijarinska Spa GO-JA

13. Invest in southern pearl GREENFIELD OPPORTUNITIES The plots that are offered in Medvedja are as follows: The plots that are offered in Medvedja are as follows: 936,937,1938,1939,1940,1941,1942,1943,1944,1945,1946,1947,1948,1949,1951,23 67,2365,2364,2356/1,2341/1,2413/1,2313/2,2313,2314,2312,2310,2305/1,2306, 2303/2,2304,2296,2292,2291,2288,2279/1,2280/1,2281,2283,2286,2303/1. 936,937,1938,1939,1940,1941,1942,1943,1944,1945,1946,1947,1948,1949,1951,23 67,2365,2364,2356/1,2341/1,2413/1,2313/2,2313,2314,2312,2310,2305/1,2306, 2303/2,2304,2296,2292,2291,2288,2279/1,2280/1,2281,2283,2286,2303/1. All the aforementioned plots are in private ownership, and they cover the area of 8 hectares. Theyre fully equipped with the necessary infrastructure. All the aforementioned plots are in private ownership, and they cover the area of 8 hectares. Theyre fully equipped with the necessary infrastructure.

14. Invest in southern pearl TAXES AND INCENTIVES Taxes in Medvedja are the same as in the other parts of the Republic of Serbia: Taxes in Medvedja are the same as in the other parts of the Republic of Serbia: Capital gains tax - 10% Capital gains tax - 10% Income tax - 12% Income tax - 12% Value Added Tax (VAT) – from 8 to 18% Value Added Tax (VAT) – from 8 to 18% Exemption from taxes over a 10-year period for the investments that are larger than 7,5 mil. euros and for 100 new employees Exemption from taxes over a 10-year period for the investments that are larger than 7,5 mil. euros and for 100 new employees Exemption from customs duty for the import of raw materials and the equipment Exemption from customs duty for the import of raw materials and the equipment Medvedja offers 5,000 euros to investors for each newly opened work place. Medvedja offers 5,000 euros to investors for each newly opened work place.

15. Invest in southern pearl SUCCESS STORIES FARMAKOM MB - a domestic investor and new owner of the Lece mine, started operating - a brownfield investment worth 9,000,000 euros - intends to employ 200 workers in the first phase. FARMAKOM MB - a domestic investor and new owner of the Lece mine, started operating - a brownfield investment worth 9,000,000 euros - intends to employ 200 workers in the first phase. ADRIATIC STROINVEST – a Russian investor that started building a new luxury hotel in Sijarinska Spa - a greenfield investment worth 4,500,000 euros ADRIATIC STROINVEST – a Russian investor that started building a new luxury hotel in Sijarinska Spa - a greenfield investment worth 4,500,000 euros

16. Invest in southern pearl PHONE US ! PHONE US ! Municipality of Medvedja Jablanička 48, Medvedja 16240, Serbia 016 891 138, 891 106, 891 158 somedvedja@yahoo.com