1. Invest in Loznica Belgrade,december 2008.

2. LOCALITY: 44°33’ N,19°14’ E POPULATION-90.340 residents (94,1 homogenous Serbian population)

3. TRAFFIC INFRASTRUCTURE Main road:100 km to E70 Belgrade- Zagreb Corridor 10- connection to Croatia and Romania Highway roads: * M 19 that connects the city with Belgrade and Bosnia and Herzegovina is situated 100 km from the main road E 70. * M 4 which connects the town with the south of Serbia. Border with Bosnia and Herzegovina is 1,5 km from the city centre. Distance to Croatia is 100 km. Railroad: Belgrade-Ruma-Loznica connects the town with Bosnia and Central Serbia Distance to airport: 120 km from Belgrade and 130 km from Sarajevo

4. MARKET: SERBIA : 7,5 million of consumers Bosnia and Herzegovina, Croatia: 9 millions of consumers Contract on free trade with Russia and CEFTA: 210 millions of consumers

5. INVESTMENT POTENTIAL INDUSTRIAL ZONE “SEPAK” LOCALITY: 1,5 km from the Loznica town centre, On the border crossing with Bosnia and Herzegovina AREA: 82,66 hectares 18, 5 hectares are equipped with infrastructure

6. PRICE: The initial renting price for the 99 years lease of land is 7E/m2 With discounts for investors, the lowest lease can be 1 E/m2 LEASE DISCOUNTS FOR INVESTORS: -3000 E deduction for every new job post 51-200 employees -5000 E deduction for every new job post over 200 employees COMPENSATION FOR DEVELOPMENT OF THE CITY CONSTRUCTION LAND: -600 dinars/m2 or 7,5 E /m2 INCENTIVES FOR INVESTORS ON SPECIFIED COMPENSATION: -0,3% discount for every new working post but under no circumstances less than 60% of the total price -payment in instalments option -discount for cash payment 20% LOGISTIC SUPPORT TO INVESTORS: OFFICE FOR LOCAL ECONOMICS DEVELOPMENT

7. THE NUMBER OF THE UNEMPLOYED: 11 404 UNEMPLOYMENT STRUCTURE: Unqualified labour force 3328 Crafts 4219 Advanced/Secondary school 3663 University education 194 AVERAGE GROSS PERSONAL INCOME-July 2008: 32 662 dinars NUMBER OF FIRMS: 3248 mainly privately owned THE MOST IMPORTANT TYPES OF INDUSTRY: Textile, Wood processing, Metal, Paper, Pharmaceutical, Construction elements, etc. PRESENT INVESTORS: GOLDEN LADY, FARMAKOM, LUKOIL, OMV, EKOHELENIK, PETROLEUM, DELTA, BRAVO S&S, DIV CHABROS…..

8. THE CITY OF LOZNICA BUSINESS RESIDENTIAL ZONE LAGATOR AREA: 20 hectares Occupied 2 hectares, available 18 hectares PRESENT INVESTORS: Delta, shopping moll OTHER INVESTMENTS: Town swimming pool, church, housing building OWNER: The Republic of Serbia BENEFICIARY: The City of Loznica DISTANCE TO CENTRE OF THE CITY: 500 m

9. THE PRICE OF LEASE FOR THE PERIOD OF 99 YEARS: 1720 dinars per m2 or 21,5E per m2-2580 dinars per m2 or 32,25 E COMPENSATION FOR THE DEVELOPMENT OF THE CITY CONSTRUCTION LAND: 1846 dinars per m2 or 23 E per m2 DISCOUNTS FOR INVESTORS: -0,3 % discount on the price of compensation for the development of the town construction land but never more than 60% of the total price -payment in instalment option -discount 20% for the cash payment SUITABLE FOR: Construction of business housing facilities Commercial facilities Sport-recreational facilities Kindergartens DETAILED REGULATION PLAN: Adopted-quick procedure of licence issuance

10. HUGE POTENTIAL FOR TOURISM DEVELOPMENT BANJA KOVILJACA –Leader in the field of Health Tourism in Serbia 110 years long tradition High number of tourists throughout the year 2006 :Number of tourists 19 352, Number of nights 210.000 Insufficient number of beds Insufficiently developed hotel management EXISTING ENTERPRISES: - Special hospital for rehabilitation “Banja Koviljaca “ - HTP “Banja Koviljaca

11. INVESTMENT OFFER: LOCALITY: Banja Koviljaca center, 6 km from Loznica Plot: cadastre plot number: 550/9 and 163/1 83 acres 43m2 Initial bidding price: 22. 526.100,00 dinars or 281.576 E Compensation for the development of the town construction land: -3.240, 00 dinars per m2 or 29 E per m2 of the built facility. Compensation for usage: to be paid on monthly basis

12. The city of Loznica is one of the first three certified local communities with business friendly environment in Serbia.

13. Vision and strategic action plan for its realization Efficient administration Industrial zone Other localities for investments Organized service for support to investors Private public partnership Incentives for investors Good communication with Republic institutions Intensive cooperation with donors Cooperation with high number of European states Positive city image Vast offer of labour force Natural resources Rich cultural heritage

14. All above-mentioned facts confirm that the city of Loznica is desirable destination for life and work as well as one of the main centres of Serbia’s development in future.

15. LET`S SHARE THE FUTURE LED OFFICE CONTACTS: ljnikolic@loznica.rsljnikolic@loznica.rs www.loznica.rs +38115 879 293