1. Generating High added value Business in Baja California May 2007 Generating High added value Business in Baja California May 2007

2. Closest State of Mexico to Asia Neighbor to California the 7 th most important Economy in the World Part of North America’s High-tech Corridor 6 Border Crossings Symbiotic Regional Culture Baja California Location

3. Sea Ports Los Angeles, Ca. San Diego, Ca. Ensenada, Mx Railroad Connection between Union Pacific and Ferromex Airports Los Angeles Imperial Valley Phoenix Mexicali Tijuana Ontario LOGISTICS

4. Water. Main source: Colorado River with 1,850 M3 Per Year. Supply to Tijuana and Tecate. Electricity. 4 Main sources available +2 (exports): Rosarito Geothermal Plant 1,168 MW CERRO PRIETO Geothermal plants(2) 720 MW INTERGEN (Private) 1165 MW SEMPRA ENERGY(Private) 600 MW Total Production 3653 MW Non Hazardous Land fill. Natural Gas. Available in the majority industrial zones in Baja California. Communications. Access to Fiber Optics (over 600 thousand tel. lines). Industrial Parks: More than 77 Industrial Parks and Industrial Complexes. 9 Industrial Developers, USA Building Standards, Flexibility and support Water. Main source: Colorado River with 1,850 M3 Per Year. Supply to Tijuana and Tecate. Electricity. 4 Main sources available +2 (exports): Rosarito Geothermal Plant 1,168 MW CERRO PRIETO Geothermal plants(2) 720 MW INTERGEN (Private) 1165 MW SEMPRA ENERGY(Private) 600 MW Total Production 3653 MW Non Hazardous Land fill. Natural Gas. Available in the majority industrial zones in Baja California. Communications. Access to Fiber Optics (over 600 thousand tel. lines). Industrial Parks: More than 77 Industrial Parks and Industrial Complexes. 9 Industrial Developers, USA Building Standards, Flexibility and support Baja California Infrastructure **Proprietary to Technology and Industrial Services de Mexico SA de CV**

5. Baja California in numbers 448 US Companies with over 131,000 jobs, ranking 1 st in all Foreign Direct Investment in Baja California GDP Participation: 3.42% (Mexico 625 BD-US) GDP Growth Rate: 7% (2005) 2005 Total Exports: $10.91 BD Total Imports: $8.67 BD 5 municipalities (Mexicali, Tijuana, Tecate, Rosarito, Ensenada) 15 High added value Industry Sectors (diversified) FDI Investment Ranking: 3 rd (2005 bellow Mexico City and Nuevo Leon) Total Population: 3.3 million Population Growth Rate: 4.15% (higher than the national average) 32 Universities, 114 Technical Training Centers & 17 Research & Development Centers Over 20 thousand students enrolled in Science, Engineering & technology fields (2005-2006) Over 7 thousand graduates in IT related fields (2000-2004) One of the top ranking Public University in the Country (UABC) Full Infrastructure Support (77 Industrial Parks, Silicon Border High-tech Park+1, Telecom, Broadband Services, Energy, Gas, etc.) Ranked as one of the top 5 most competitive states to do business in Mexico (Baja California, Mexico DF, Nuevo Leon, Aguascalientes, Baja California Sur). 448 US Companies with over 131,000 jobs, ranking 1 st in all Foreign Direct Investment in Baja California GDP Participation: 3.42% (Mexico 625 BD-US) GDP Growth Rate: 7% (2005) 2005 Total Exports: $10.91 BD Total Imports: $8.67 BD 5 municipalities (Mexicali, Tijuana, Tecate, Rosarito, Ensenada) 15 High added value Industry Sectors (diversified) FDI Investment Ranking: 3 rd (2005 bellow Mexico City and Nuevo Leon) Total Population: 3.3 million Population Growth Rate: 4.15% (higher than the national average) 32 Universities, 114 Technical Training Centers & 17 Research & Development Centers Over 20 thousand students enrolled in Science, Engineering & technology fields (2005-2006) Over 7 thousand graduates in IT related fields (2000-2004) One of the top ranking Public University in the Country (UABC) Full Infrastructure Support (77 Industrial Parks, Silicon Border High-tech Park+1, Telecom, Broadband Services, Energy, Gas, etc.) Ranked as one of the top 5 most competitive states to do business in Mexico (Baja California, Mexico DF, Nuevo Leon, Aguascalientes, Baja California Sur).

6. BUSINESSDEVELOPMENTPOLICY VOCATIONS COMPETITIVNESS & BUSINESS DEVELOPMENT LAW CLUSTERS FINANCING TARGETED FDI PROMOTION COMPETITIVNESS TRAINING TECHNOLOGY & INNOVATION STATE ECONOMIC DEVELOPMENT PUBLIC POLICY

7. BAJA CALIFORNIA’S VOCATIONS Reasonable Consumer Electronics Food Products Commerce Tourism To Promote Construction Wood Products Manufacturing Information Technology Automotive Industry Medical Devices To Incubate Retirement AttentionServices Custom / Luxury Automobile Manufacturing TIJUANA MEXICALI Reasonable Consumer Electronics Metal Mechanics Restaurant Industry Automotive Industry Plastics Commerce To Promote Tourism(San Felipe) Medical Devices Agricultural Aerospace To Incubate Specialized Electronics Semiconductor Microelectronics Information Technology Energy & Alternative Sources Reasonable Tourism Industry Restaurant Industry To Promote Aquaculture Fishery To Incubate Logistics Wine Industry Biotechnology AgroIndustry Mining Construction / Naval Repair Industry Reasonable Tourism Industry Restaurant Industry Manufacturing & Commerce of rustic & hand crafted furniture To Promote World Class Tourism Destination Select Manufacturing Resort Hotels To Incubate Sport Fishing Film Industry Theme Park & Family DestinationENSENADA ROSARITO TECATE Reasonable Food & Beverage Manufacturing Electronics Plastics To Promote Hand Crafts Clay Products Wine Industry To Incubate Eco Tourism Resort Hotels Automotive Retirement Homes Health & Rehabilitation Centers

8. Technology Based Clusters in Baja California Medical Devices Display devices (electronics) Automotive Aerospace Life Sciences Semiconductors Information Technology

9. Electronics: Baja California’s Display Device Industry at the National Context QRO. AGS. GTO. MO R. VERACRUZ HIDALGO TLAX. MEX. COAHUILA CHIHUAHUA BAJA CALIFORNIA NORTE BAJA CALIFORNIA SUR SINALOA DURANGO NAYARIT ZACATECAS S.L.P. TAMPS. COLIMA MICHOACAN GUERRERO OAXACA CHIAPAS TABASCO CAMPECHE YUCATAN QUINTANA ROO PUEBLA NUEVO LEON JALISCO SONORA MASA(RCA)   15 OEMS in Baja California   200 direct suppliers   Over 50,000 jobs   Japanese majority investment

16. Baja California (37) Sonora (12) Chihuahua (7) Querétaro (6) Nuevo Leon (13) Jalisco (5) Yucatan (2) San Luis Potosi (2) Coahuila (6) Aerospace Companies Distribution in Mexico Distrito Federal (6) Aguascalientes (2) Honeywell Gulfstream Rockwell Collins Lockheed Martin Lisi Aerospace Tyco Electronics Thayer Aerospace Chromalloy Aerospace GKN Aerospace The Mexmil Co. C&D Aerospace Orcon Corp. HST Volare Engineering Empresas L.M. Southco Inc. (Hartwell Dzus) Pacmin Delphi Connection Systems Leach International Crissair Inc. Suntron Corp. TDI Transistor Services Hutchinson Seal Mahetsa Ascotech Electromech Components Among Others… Goodrich Harco Gsp Smith West Precision Aerospace Turbine Components Parker-Hannifin Tolerance Master Vermillion Esco Turbine Technologies Sargent Controls & Aerospace Aerotech Talleres Diva Carlisle Delphi Connection Systems Ketema Unison (GE) Frisa (Wyman Gordon) Evco Plasticas de México Jaiter Kaydon Corp. Global Vantage Competitive Global de Mexico Cadinmex Vision & Automation ITR, Honeywell & Bombardier Motodiesel Mexicana Sermatech Tightco Partes Aereas Concorde Representaciones, Asesoria PCC Airfoils, Inc. Seal & metal Products Source: Ministry of Economy Companies by State: And more…

17. Aerospace Industry Baja California A unique concentration, 37 Companies established in the State, representing 38% of the total companies in Mexico. Employing around 8,000 people; labor with high knowledge in the industry (40% of the Aerospace Employees in Mexico). Sub-Industries with a representative growth: Military applications & jet components. Repair facilities operating in Baja California & approved by FAA. Metal-Mechanics & Plastics supply base, providing CNC precision machining (milling & routing), plating, chroming, sheet metal, anodizing, aluminum heat treatment, press brake forming, plastic injection molding, among others.

18. DESIGN MANUFACTURING Honeywell Aerospace: Honeywell Aerospace: Aircraft’s air conditioning systems (heat exchangers) Orcon Corp: Orcon Corp: Aircraft insulation blankets (Southco Inc.) Hartwell Dzus: (Southco Inc.) Hartwell Dzus: Manufacture of Rustless Steel Bolts C & D Aerospace: C & D Aerospace: Aircraft interior bins & assemblies Lockheed Martin Aeronautics: Lockheed Martin Aeronautics: Avionics & military equipment for training porpuses Pacmin: Pacmin: Scale aircrafts manufacture Horizon Sports Technologies (HST): Horizon Sports Technologies (HST): Diverse range of products, blankets for aerospace industry Electro-mech Components: Electro-mech Components: Electric & electronic devices (aircraft’s switches) Mahetsa: Mahetsa: Metal mechanics products, diverse machining components for aerospace industry Hutchinson Seal: Hutchinson Seal: Rubber Seals for aerospace & automotive industries Gulfstream (General Dynamics Co.): Gulfstream (General Dynamics Co.): Interiors manufacture, metal parts, avionics & fuselage sub-assemblies Lisi Aerospace: Lisi Aerospace: ¼” screws for aerospace purposes, break system components for automotive Volare Engineering: Volare Engineering: Design of aircraft interiors (galleys) & tech. publications Aerospace Industry Companies’ activities

19. ASSEMBLY SERVICE & REPAIRS Chromalloy: Chromalloy: Turbine components repair* Rockwell Collins Passenger Systems: Rockwell Collins Passenger Systems: Aircraft’s Audio & Video System)* Aerospace Industry Companies’ activities Suntron Corp. (Honeywell): Suntron Corp. (Honeywell): Avionics & electronics components GKN Aerospace - Chem-tronics: GKN Aerospace - Chem-tronics: Metal alloy structures, mainly for turbines Empresas L.M.: Empresas L.M.: Electrical motors for auxiliary systems (ex: landing gear auxiliary system) The Mexmil Company: The Mexmil Company: Insulation blankets Thayer Aerospace: Thayer Aerospace: High level machinig components LAT-Aeroespacial: LAT-Aeroespacial: Metal cutting for aircraft assemblies Leach International: Leach International: Avionics, relays & electronics assemblies Delphi Connection Systems: Delphi Connection Systems: Electronics assemblies, fiber optics & harnesses TDI Transistor Services: TDI Transistor Services: Diverse Electronic components Crissair Inc: Crissair Inc: Hydraulic Valves Manufacturing. Tyco Electronics: Tyco Electronics: Avionics & electronics components. * FAA Approved repair facility

20. Were do opportunities exist in Baja California General: –300 million Americans and 100 million Mexicans / current & future consumer base. –11 Trillion dollar GDP US / Mexico combined. –Direct access to the most important market in the US: California (world’s 7 th largest economy). –Above 30,000 dollar income per capita in the area. –Doorway to Mexican and Latin American Mkt. Electronics Industry: –Key component manufacturing: LCD, Plasma Panels, IC’s & MEMS MFG. –Contract Manufacturing of High-tech/High-end products/Service/Testing/Repair –15 OEM’s 22 Million Units production (27’’ and above, new technologies) –NAFTA MKT 62.5% European MKT 60% RCV (Regional Content Value) –Growth in Plasma, LCD Applications (Medical, Security, Aerospace, Automotive, Consumer Electronics) Automotive: –California MKT potential (subcompact, compact and others). –Growing Mexican Sub compact vehicle market (63% of total Mex. Mkt). –After MKT opportunity over 22 million registered units. Aerospace: –Regional airport infrastructure growth in Mexico and the US. –New Mexican air transportation service providers. –Growing airplane base (commercial and private). –Enhanced FAA and security regulations. –Closeness to Western Aerospace Hub (Phoenix, LA and San Diego) –Need for specialized suppliers of materials and services (700 MD x year) General: –300 million Americans and 100 million Mexicans / current & future consumer base. –11 Trillion dollar GDP US / Mexico combined. –Direct access to the most important market in the US: California (world’s 7 th largest economy). –Above 30,000 dollar income per capita in the area. –Doorway to Mexican and Latin American Mkt. Electronics Industry: –Key component manufacturing: LCD, Plasma Panels, IC’s & MEMS MFG. –Contract Manufacturing of High-tech/High-end products/Service/Testing/Repair –15 OEM’s 22 Million Units production (27’’ and above, new technologies) –NAFTA MKT 62.5% European MKT 60% RCV (Regional Content Value) –Growth in Plasma, LCD Applications (Medical, Security, Aerospace, Automotive, Consumer Electronics) Automotive: –California MKT potential (subcompact, compact and others). –Growing Mexican Sub compact vehicle market (63% of total Mex. Mkt). –After MKT opportunity over 22 million registered units. Aerospace: –Regional airport infrastructure growth in Mexico and the US. –New Mexican air transportation service providers. –Growing airplane base (commercial and private). –Enhanced FAA and security regulations. –Closeness to Western Aerospace Hub (Phoenix, LA and San Diego) –Need for specialized suppliers of materials and services (700 MD x year)

21. STATE’S PUBLIC POLICY GUIDLINE ON PROMOTING VALUE GENERATION RETAIN & EXPAND ATTRACT STRATEGIC FDI PROMOTE EXPORTS PROMOTE TECHNOLOGY & INNOVATION

22. Added Value Pre-manufacturingManufacturingPost-Mfg. Research & Development Fabrication of Strategic Components Fabrication of non strategic components New Products Design Package & Assembly Customization Logistics & Distribution Brand Development / Mkt Post sale services DISTRIBUTION OF THE BUSINESS VALUE CHAIN L1L5 2001 2006

23. World class manufacturing EVOLUTION OF THE LOCAL ECONOMIC DEVELOPMENT STRATEGIES Productive Re-conversion Old national & regional industries Heightening of worldwide competition Worldwide Economic Recession Increasing loss of regional & national competitiveness Productive Chains & Clusters of high added value and technology PROINNOVAPlan FDIDrivenPolicies Local Nodes Of Innovation Coming of the new economy BusinessDevelopmentPolicies Strategies for Development + + Added Value + + Technological Complexity   Business Clustering Strategy.   Value chain rapid scaling due to key and high added value projects.   high added value and high-tech manufacturing business opportunities.   Creation of capacities for the innovation, development of technologies with MKT Sense.   Capital & Technology Intensive Investments.   HC in research, development & design.   Support to previously established industries   Attraction of OEM, EMS, Manufacturing Capabilities

24. Local Innovation Systems of Organization: Clusters that don’t necessarily share the same industry sector but they do integrate around the same innovation & technology businesses. They are networks of businessmen, corporations, investors, scientists and technologists, bankers, universities, strategic support agencies, business organizations, all focused on reaching a successful development and sustainability of high-tech business.

25.   DRIVING INSTANCES   BCInnova   FronTec/BorderTech   PRODUCEN   CENTRIS PROMOTING INSTANCES Local Innovation Councils CDT, CDIM, COPREEN, etc. CANIETI, CANACINTRA, etc. City Governments. INDUCING INSTANCES SEDECO/SEE Ministry of Economy CONACYT NAFIN Local Capacity for Technological Innovation (High Value FDI, High-tech Jobs, High-tech business) GENERATING INSTANCES CENI2T, Design Centers UABC, CICESE, IPN, UNAM, etc. H.R. Development Centers SEE/Science Centers, Museums Systems of local Strategic Organizations for Innovation Mexicali, Tijuana-Tecate-Rosarito, y Ensenada

26. Business in: Business in: Research +Development +Design IT Initiative (Embedded Systems, Gaming & Firmware) BiotechnologyInitiative (Biomedical, Biometrics, Aquaculture.) NanotechInitiative ( ( Nanomaterials, Nanodevices) Specialized Electronics Initiative (Display Tech) Six great technology & innovation initiatives of BC Mechanical Design+ R&D+TestInitiative (Aerospace & Automotive) MicroelectronicsInitiative (MEMS, ICs, Semiconductors ) 1. Science & Technology Parks (Silicon Border + others) 2. High-tech Clusters (Software, Biotech, etc.) 3. Innova Grant Fund 4. CENI2T Innovation Centers Program 5. State Fiscal Incentives + Federal Government Support AlternativeEnergies ( ( Solar, Fuel Cells Etc.)

27. FronTec/BorderTech Research, Networking Institutional Design BC Innova Government Subsidies Risk & Angel Investment Capital Infrastructure Investment Financial Evaluation of the Policy Investor Capitalization CENI2T Innovation Projects with technological and commercial objectives PRODUCEN Competitive Intelligence Regional – Productive Linkage Centris Creation, Development and Support of Technology based companies R&D Centers and Higher Learning Institutions Project Identification Networking in the US Local Technological Innovation Dynamics Creation and Attraction of Technology based companies R&D Center attraction Indicators: # technology based jobs, # technology based companies and Centers # of patents and new products, $ expense and investment in R&D Technological Intelligence Networking in the US Financial Sources Spin Offs from CENI2T Human Resources – Scientific Knowledge High-tech Investment attraction of companies and R&D Centers Creation of New Technology based companies Demonstration of Capacities for Innovation Human Resources Human Resources – Scientific Knowledge Human Resources Support & Development of New Companies Human Capital & Subsidies Follow-up and evaluation of the technological innovation capacities Productive Linkage of Institutions – Organizations and actors for innovation Return on Investment Patents and Licenses High level Skill Centers Linkage of institutions and instances Driving Mechanisms of the Technology & Innovation Policy Linkage of institutions and instances Driving Mechanisms of the Technology & Innovation Policy Instances coordinated by SEDECO

28. Added Value Pre-manufacturingManufacturingPost-Mfg. Research & Development Fabrication of Strategic Components Fabrication of non strategic components New Products Design Package & Assembly Customization Logistics & Distribution Brand Development / Mkt Post sale services DISTRIBUTION OF THE BUSINESS VALUE CHAIN The function of innovation in the productive & economic escalation strategy L1L5 Innovation &Technology Development Strategy Value Chain Control Control of the introduction of new products Brand and mark-up (overpricing)

29. CRT Generally 13-40” models CRT Generally 13-40” models REAR PROJECTION Generally 42 - 65” models (some models up to 73”) REAR PROJECTION Generally 42 - 65” models (some models up to 73”) COMMON TECHNOLOGY (70’s - 90’s) (70’s - 90’s) LCD Generally 13 - 60” models PLASMA Generally 32 - 61” models DLP / DiLA / RPLCD Generally 43 - 70” models REPLACEMENT TECHNOLOGY (new millennium) All 15 OEM’S in Baja California have changed in the last 3 years to new millennium technology platforms.All 15 OEM’S in Baja California have changed in the last 3 years to new millennium technology platforms.

30. OEM´s Direct Suppliers TIJUANA TECATE MEXICALI ROSARITO ENSENADA Northwest Display Devices Cluster SAN LUIS RIO COLORADO SAN LUIS RIO COLORADO 15 OEM Plants that represent over 22,000 jobs. More that 200 direct suppliers that represent over 20,000 additional jobs. PROINNOVA Strategy Focus: 1. 1.Facilitate New Tech Introduction 2. 2.Diversify Display Technology Products 3. 3.Support local MKT ventures & suppliers growth 4. 4.Attract or develop R&D and design teams 5. 5.Attract LCD, Plasma Fab.

31. BASIS FOR BAJA CALIFORNIA STATE GOVERNMENT BENEFITS & INCENTIVES LAW FOR THE PROMOTION OF COMPETITIVENES AND ECONOMIC DEVELOPMENT OF BAJA CALIFORNIA (Approved by the State Congress on May 19, 2005) I. TAX FREE BENEFITS GIVEN TO NEW AND ESTABLISHED COMPANIES THAT: A)Exhibit a new, expansion or technological investment project*. They may be awarded with a: 25 to 100% exemption on the payroll tax, during a period of 1 to 5 years. 20 to 50% exemption on the water connection system tax. LAW FOR THE PROMOTION OF COMPETITIVENES AND ECONOMIC DEVELOPMENT OF BAJA CALIFORNIA (Approved by the State Congress on May 19, 2005) I. TAX FREE BENEFITS GIVEN TO NEW AND ESTABLISHED COMPANIES THAT: A)Exhibit a new, expansion or technological investment project*. They may be awarded with a: 25 to 100% exemption on the payroll tax, during a period of 1 to 5 years. 20 to 50% exemption on the water connection system tax.

32. Aspects Evaluated The investment project are evaluated by the following aspects: –Number of jobs, incorporation of students in the production processes as well as disable and 60+ year old people. –Quality of jobs. –Amount and origin of the investment. –Amount invested in technology. –National and Local Suppliers. –Market access –Place of establishment The investment project are evaluated by the following aspects: –Number of jobs, incorporation of students in the production processes as well as disable and 60+ year old people. –Quality of jobs. –Amount and origin of the investment. –Amount invested in technology. –National and Local Suppliers. –Market access –Place of establishment

33. Activities that award Tax Free Benefits B) Reuse or treat 100% of their water consumption, with a 30% exemption from the monthly bill as long as the reuse it or treat it. C) Hire disabled or 60+ year old people, with a 100% exemption in the payroll state tax as long as they are hired. B) Reuse or treat 100% of their water consumption, with a 30% exemption from the monthly bill as long as the reuse it or treat it. C) Hire disabled or 60+ year old people, with a 100% exemption in the payroll state tax as long as they are hired.

34. II. ADITIONAL NON-TAX BENEFITS: A) Public Infrastructure.- A public fund to support public infrastructure required for the establishment or expansion of strategic companies. B) Business Development.- Direct support for small and medium enterprises and strategic projects for: Training Consulting Financial aid R&D, Innovation & Design: Equipmient, Tech Transfer, Training Information regarding static, economics and data for decision making Articulation of programs, products, tools and actions in order to increase their competitiveness A) Public Infrastructure.- A public fund to support public infrastructure required for the establishment or expansion of strategic companies. B) Business Development.- Direct support for small and medium enterprises and strategic projects for: Training Consulting Financial aid R&D, Innovation & Design: Equipmient, Tech Transfer, Training Information regarding static, economics and data for decision making Articulation of programs, products, tools and actions in order to increase their competitiveness

35. ADITIONAL NON-TAX BENEFITS: C) Assistance.- An investment promoter will be assigned to your project to serve as a liaison between your company and the governmental federal, state, and municipal offices. D) Market Access.- The Secretariat of Economic Development in coordination with other authorities will support small and medium companies in different markets by: Providing technical assistance to companies with high exportation possibilities. Promoting their products in national and international fairs and shows. C) Assistance.- An investment promoter will be assigned to your project to serve as a liaison between your company and the governmental federal, state, and municipal offices. D) Market Access.- The Secretariat of Economic Development in coordination with other authorities will support small and medium companies in different markets by: Providing technical assistance to companies with high exportation possibilities. Promoting their products in national and international fairs and shows.

36. Federal Benefit for Research and Development A 30% Tax Benefit is awarded by the Federal Government to Research and Development Projects. The cost and investment that are considered eligible are exclusively related to the development and execution of projects that must be oriented to the research and development of products, materials and/or processes of production that represent a scientific or technological advance. The benefit is given by the Federal Government through the National Commission of Science and Technology (CONACYT). + Other Federal Incentives Mechanisms A 30% Tax Benefit is awarded by the Federal Government to Research and Development Projects. The cost and investment that are considered eligible are exclusively related to the development and execution of projects that must be oriented to the research and development of products, materials and/or processes of production that represent a scientific or technological advance. The benefit is given by the Federal Government through the National Commission of Science and Technology (CONACYT). + Other Federal Incentives Mechanisms

37. PROINNOVA Support Structure Business Development Law (Fiscal Incentives) Infrastructure & Public Infra. Support High tech & University Research Parks Automotive, Aerospace, Biotech, IT Incubators Innovation & Technology Development Grants Private sector Professional services and support Federal support and incentives negotiations support

38. Accumulated Investment in Technology Sectors 2004-2006 (Millions of Pesos)* Program200420052006Total Federal 25.8442.2672.55*140.65* PROSOFT18.849.4739.8568.16 TECNOLOGY SME’S417.792849.79 CONACYT3154.7022.70 State 18.2935.3382.90*136.52* SEDECO/Prosoft11.297.8315.734.82 SEDECO/Pymetec464.514.50 SEDECO/F.Innova---5.55762.50 FONDO MIXTO/SEE3165.7024.70 Total F+S Resources44.1377.59155.45* 277.17* Private Funds20.3597.35499.85* 617.55* TOTAL64.48174.94655.30* 894.72* * Approximate investments according to 2006 investment commitments Source: 2004-2006 committed investments: PYME, PROSOFT, BC-Conacyt Mixed Funds. SEDECO, SEBS

39. Examples of current FDI in High-tech Sectors

40. 1.Softtek is a leading Software development company in Mexico and in North America and South America. 2.Softtek offers IT related services in Latin America, Europe and the US. 3.Softtek strives on its near shore concept. 4.They have over 3,500 IT professionals all over the world. 5.Softtek will open a new Global Development Center in Ensenada B.C. in April of 2006. 6.Start-up investment: $1.5 Million Dollars. 7.Goal: Have 400 IT positions by the end of 2007. 8.50% of Start up cost provided as incentive by the State and Federal Governments (PROSOFT Funds). 9.Building provided by UABC University (10 years). 10.Financial support will continue in 2006-2007. 11.Projected additional investment 06-07: 3 million dollars. 1.Softtek is a leading Software development company in Mexico and in North America and South America. 2.Softtek offers IT related services in Latin America, Europe and the US. 3.Softtek strives on its near shore concept. 4.They have over 3,500 IT professionals all over the world. 5.Softtek will open a new Global Development Center in Ensenada B.C. in April of 2006. 6.Start-up investment: $1.5 Million Dollars. 7.Goal: Have 400 IT positions by the end of 2007. 8.50% of Start up cost provided as incentive by the State and Federal Governments (PROSOFT Funds). 9.Building provided by UABC University (10 years). 10.Financial support will continue in 2006-2007. 11.Projected additional investment 06-07: 3 million dollars.

41. 1.Amplitec is a 100% Mexican company that provides DNA analysis services. 2.They have over 25 years of experience in the biotech field with some of the best biotech researchers in Mexico. 3.Amplitec will have operating a new biotech lab in Tijuana Baja California by April 2006 specialized in research Sexually Transmitted Diseases (STD’s). 4.UABC University will provide the space and general services (water, electricity, parking, etc.) over the next 5 years to the lab. 5.The State Government of Baja California provided an initial grant of $200 thousand dollars for R&D infrastructure adaptations and equipment. 6.At the turn of 5 years, Amplitec will donate updated equipment & infrastructure to the University + it will develop joint research projects with the UABC. 1.Amplitec is a 100% Mexican company that provides DNA analysis services. 2.They have over 25 years of experience in the biotech field with some of the best biotech researchers in Mexico. 3.Amplitec will have operating a new biotech lab in Tijuana Baja California by April 2006 specialized in research Sexually Transmitted Diseases (STD’s). 4.UABC University will provide the space and general services (water, electricity, parking, etc.) over the next 5 years to the lab. 5.The State Government of Baja California provided an initial grant of $200 thousand dollars for R&D infrastructure adaptations and equipment. 6.At the turn of 5 years, Amplitec will donate updated equipment & infrastructure to the University + it will develop joint research projects with the UABC.

42. 1. 1.Honeywell is one of the leaders in the aerospace industry, and has been operating in Baja California for more than 25 years. 2. 2.Honeywell produces high quality products for a variety of commercial and military applications that are used by mayor aircraft manufactures, major airlines and repair facilities worldwide. Honeywell has more than 750 employees at their Mexicali facility. 3. 3.Honeywell is expanding its operations in Baja California with a new System Integration Lab (SIL) and Design Center that will be operating by January 2007. There will be only 2 Labs like this one in the world. 4. 4.The SIL and Design Center will support Honeywell’s efforts in developing the next generation of Electric Power Systems, and support wide range of Honeywell product lines across the globe. 5. 5.The project investment exceeds US $40 Million Dollars, and with a facility of 100,000 sq ft. at the turn of 6 years Honeywell will employ more than 350 people in the Lab (90% will be engineers and technicians). 6. 6.Baja California through the new Law of Competitiveness has supported Honeywell’s project on payroll, infrastructure and training with fiscal incentives and grants.

43. “Reflect on the past, act on the present, plan for the future ” Baja California: Technology & Knowledge Frontier