1. Romania – Top Destination for Investments Thessaloniki, June, 2007

2. 2 Structure of the Presentation 1.Positioning Romania 2.Macroeconomics 3.Valuable human potential 4.FDI performance 5.Infrastructure development 6.Investment legal framework 7.Potential sectors for development 8.ARIS – one stop shop

3. 1. Positioning Romania

4. 4 Romania the largest market in CE Europe Our friend the windArea238,391 km 2Population 21.6 mill inhabitants Capital city Bucharest 1.9 mill inh Member of EU, WTO, IMF, WB, EFTA, NATO Major Cities Iasi, Timisoara, Cluj-Napoca, Brasov, Constanta

5. 5 Romania’s Strategic Location Helsinki – Bucharest – Odessa/AlexandropouloIX The Danube river 2,300 km longVII Dresden/Nuremberg Constanta/Thessaloniki/ IstanbulIV Pan European Transport Corridors Strategic position at the turning point where EU meets the Balkans and CIS countries Strategic position at the turning point where EU meets the Balkans and CIS countries

6. 2. Macroeconomics

7. 7 Significant Potential for Growth 2006 Rapid & sustainable GDP growth; 7.7% in 2006, based on increases in final consumption by 11.5% and in investment by 16.1%; Highly comparable with EU25 GDP growth rate of 2.9% in 2006. Source: EUROSTAT, *forecastSource: National Institute of Statistics GDP Growth Rate Slovakia8.3% Romania7.7% Czech Republic*6.1% Bulgaria6.1% Poland5.8% Slovenia5.2% Hungary3.9%

8. 8 Declining Inflation Consolidation of low inflation (sustainable disinflation); 3.66% ( Mar ' 07/Mar ' 06 ), a record low for the post-1990 period; Average annual rate - 6.56% in 2006. Source: EUROSTATSource: National Bank of Romania Inflation Rate Annual Inflation Rate Dec'06/Dec'05Hungary6.6% Bulgaria6.1% Romania4.9% Slovakia3.7% Slovenia3.0% Czech Rep 1.5% Poland1.4%

9. 3. Valuable Human Potential

10. 10 Human Capital Young population ( more than 50% under 40 years old ) Almost 21.7 million people Demographics Talent pool 160 higher education institutions 109 thou university graduates Availability of technical engineers High industrial experience Flexibility Increased labor productivity Low unionization Cities with more than 100,000 inhabitants more than 1,000,000 inhabitants 300,000 – 400,000 inhabitants 200,000 – 300,000 inhabitants 100,000 – 200,000 inhabitants Source: National Institute of Statistics

11. 11 BUCURESTI 376 thou State: 67% Private: 33% CLUJ-NAPOCA SIBIU TIMISOARA BRASOV IASI CRAIOVA GALATI 70 thou S: 93% P: 7% 67 thou S: 90% P: 10% 51 thou S: 89% P: 11% 46 thou S: 69% P: 31% 34 thou S: 89% P: 11% 24 thou S: 92% P: 8% 21 thou S: 87% P: 13% 20 thou S: 86% P: 14% PITESTI 14 thou S: 79% P: 21% TARGU - MURES BUCURESTI 10 Major University Centers 10 Major University Centers

12. 12 Competitive Labor Cost Regional Comparison 2006 - EUR Gross monthly wages EUR Source: Vienna Institute of International Economic Studies; National Institutes of Statistics The average gross monthly wage in Romania is the second lowest after Bulgaria It is expected to grow by 16.7% in 2007

13. 4. FDI Performance

14. 14 Inward FDI Flows 2006 Record value in 2006; FDI Stock over EUR 30 bill (1990 –2006); In February 2007 – EUR 870 mill Source: Vienna Institute of International Economic Studies Source: National Bank of Romania Annual Inward FDI 1Poland11093 2Romania9082 3Hungary4874 4Czech Republic4752 5Bulgaria4105 6Slovakia3324 7Slovenia303 EUR million

15. 15 Subscribed Capital by Country and by Field of Activity - March 2007 – NoCountry No. of companies Subscribed capital EURO mill 1Netherlands27873210 2Austria43572182 3France48771574 4Germany145691562 5Italy22314736 6USA5043674 7 Great Britain 2901630 8Cyprus2693617 9Greece3712554 10 Dutch Antilles 12547 Value of Subscribed Capital by Field of Activity Source: National Trade Register Office

16. 16 the Netherlands AustriaGermanyGreeceFrance 4.26 bill EUR 3.38 2.34 1.86 1.83 SwitzerlandItalyCyprusUSAHungary 1.56 1.50 0.82 0.57 0.42 Major Investing Countries (1990-2005) 12345 6 78910 Source: National Bank of Romania

17. 17 FDI by Field of Activity (1990-2005) Manufacturing – 8.2 bill EUR Main Activities – 21.9 bill EUR Source: National Bank of Romania

18. 18 North-West 5.8% 1.3 bill CENTRU 7.4% 1.6 bill West 6.8% 1.5 bill Bucharest-Ilfov 60.6% 13.2 bill South West 0.7 bill 3.4% South Muntenia 1.4 bill 6.3% South East 1.8 bill 8.4% North East 0.2 bill 1.3% FDI Regional Spreading (1990-2005) Source: National Bank of Romania 1 2 3 45 6 7 8

19. 5. Infrastructure Development

20. 20 Highway Infrastructure Development - 2013

21. 21 ARAD CRAIOVA TIMISOARA BAIA MARE SATU MARE CLUJ NAPOCA ORADEA TARGU MURES SIBIU OTOPENI IASI BACAU SUCEAVA M. KOGALNICEANU BANEASA MANGALIA CONSTANTA BRAILA GALATI OLTENITA GIURGIU SULINA CORABIA DROBETA TR. SEVERIN Ports and Airports International flights Domestic flights TULCEA

22. 22 Mobile Communication Infrastructure – coverage area - Consolidated market; Major international players; More than 90% network coverage.

23. 23 Map of Industrial Parks More than 40 Industrial Parks Both private & public Greenfield & Brownfield Access to utilities Package of services offered by the park administration Wide variety of activities to be developed Some created for high- tech activities

24. 6. Investment Legal Framework

25. 25 Competitive Taxation Corporate Tax VAT Social Contributions EmployeeEmployer Bulgaria10%20%12.43%24-24.7% Romania16%19%17%30.75-44.75% Hungary16%20%13.5%33.5% Poland19%22%18.71%17.23-20.12% Slovakia19% 13.4%34.4% Czech Rep. 24%19%12.5%35% Slovenia25%20%22.1%16.10% Source: CEE-CIS Tax Notes - PriceWaterhouseCoopers Many Central and Eastern European countries reduced considerably their corporate tax in order to diminish the fiscal burden Many Central and Eastern European countries reduced considerably their corporate tax in order to diminish the fiscal burden

26. 26 New Investment Law Incentives for investments in Romania in: regional development (including infrastructure) environment protection research and development human resources and social inclusion, including training Directed according to economic status of each region Law expected to be passed by Autumn 2007

27. 7. Potential Sectors for Development

28. 28 Potential Sectors for Investment Manufacturing Wood processing Automotive components Construction materials IT & Communication Textile industry Energy (non-conventional) Food processing Electric & Electronics Pharmaceuticals Real Estate Infrastructure

29. 8. ARIS – one stop shop for foreign investors

30. 30 WHO is A.R.I.S? Gove rnme ntal body unde r the auth ority of Prim e Minis ter In charge with attract ing and retaini ng foreig n direct invest ment Interfa ce betwe en invest ors and centra l & local author ities Providi ng free SERVIC ES of charge SERVIC ES for foreign invest ors in Roman ia Search and advice on the best location in Romani a to fulfill the compan y' needs includin g site search, analysis & touring around Search for industria l and service suppliers Value added informatio n on incentives and other administra tive procedure s SERVICES

31. Thank you for your attention! tel: +40 21 233.91.03 fax: +40 21 233.91.04 email: aris@arisinvest.ro website: www.arisinvest.ro