1. Invest in Loznica 2012.

3. City identity card Location Western Serbia Population86.413 – Census 2002. Territory 612Km²; 59.3% arable land, 27% forests, 13.7% roads and other Budget 2012 1.850.441.000 RSD; 25% allocations for capital investments Address15300 Loznica, St. Karađorđeva 2 Telephone Tel. +381 15 879 206 Fax. +381 15 882 921 E-mailoffice@loznica.rs Web-sitewww.loznica.rs

4. Geographical position Distance of Loznica to major cities Belgrade139 km Vienna639 km Budapest510 km Istanbul1060 km Sofia519 km Thessaloniki839 km

5. Distance to nearest border crossings Border crossing: Šepak, toward B&H 3 km Border crossing: Karakaj, toward B&H 19 km Traffic connections Highway (Corridor X)Direct access Belgrade Zagreb (section of Corridor X) distance - 80 km Highway roadsM - 19 and M - 4 Railway roadsDirect access to line Belgrade - Ruma - Loznica The Danube river (Corridor VII) Distance to the Sava port in Šabac 55 km, distance to the Danube port in Belgrade 139 km AirportDistance to the international airport Nikola Tesla in Belgrade - 110 km

6. Human resources Number of the unemployed Total number of the unemployed: 10.832 (December 2011.) Unemployment rate 37,5% Average gross salary415 € / monthly

7. Local economy Number of enterprises 3.504 (business companies and entrepreneurs, i.e. legal and physical entities performing some activities within the municipal territory) Size of enterprises 96,52 % small-scale, 3,02% middle-scale, 0,46% large- scale Dominant economy fields textile industry, construction engineering, food processing industry, paper and packaging material processing, wood processing industry, metallurgy and metal processing, hotels/restaurants management and tourism Major local companies Rio Tinto (metal mining company); Golden Lady-Valy (textile industry); DIV Chabros (wood processing); RT Zajača (metallurgy); MN (construction engineering); Nelly (food processing industry)

8. Location area Industrial zone Šepak At the border crossing with Bosnia and Herzegovina; 1500 m distance from the town centre; Between two highway roads M - 4 and M – 19 Total area of the zone is 82.660 m², 46.000 m² are fully infrastructure equipped (17.000 m² occupied and 29.000 m² available for investors). Purpose of the landCity construction land Plot division Plot division was made; Plots ranging from 00.15.20 ha to 3.37.66 ha are offered (explanation: ha, ar, m²); Plot division can be made at the investor’s request. Facilities built on the location Golden Lady-Valy – textile industry, area 55.000 m² Ownership structure Owned by the Republic of Serbia, used by the Loznica City Investment possibilities

9. Infrastructure Water supply network, sewerage network, gas network, high voltage electricity system, access road and telecommunications are already available. Land prices 9,62 € / m², lease for 99 years Compensation for development of the city construction land Unit price of the compensation per square meter of the gross area of the facility as of 16/05/2012 amounts to: - for facilities designated for production 582,53 dinars, - for commercial facilities 873,79 dinars, 5,82 - 8,74€ / m²

10. Local discounts and incentives Incentives on the land lease price: The City Assembly adopted Study on leasing land at the price below the market price (possibility of decrease of the land market price for 1.689 € per job, on the condition that the amount of lease can not be less than 1 €/m²) Incentives on the compensation price for development of the city construction land: 0,3% discount for the price for every newly opened job, but certainly not less than 60% of the total price. Instalment payment option, no more than 36 monthly instalments. Discount for one-time payment is 20%. Compensation for the use of the city construction land: Paid at monthly level. Note: The value of the compensation is harmonized with retail market price trends, at monthly level.

11. Subsidies of the state institutions Republic agency for export promotion SIEPA: Financial grants for investments The funds are allocated depending on the value of the investment and criteria prescribed by the decree, as follow: from 4.000 to 10.000 Euros per newly opened job. More details at: www.siepa.gov.rswww.siepa.gov.rs National Employment Agency: Grants are allocated for the newly opened jobs, based on defined criteria. More details at: www.nsz.gov.rswww.nsz.gov.rs

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

14. The City of Loznica has: Vision and strategic action plan for its realization Favourable geographic – traffic position Efficient administration Industrial zone and 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

15. All above-mentioned facts confirm that the city of Loznica is desirable destination, a town of vast potentials and open possibilities.

16. Let’s share the future! Local development office office@loznica.rs www.loznica.rs +381 15 898 500