1. Wireless Technology Centre 2010 A cost/quality comparison (Based on information from the Financial Times fDi Benchmark tool)

2.  The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by the Financial Times (FT)  fDi Benchmark compared the Scottish Central Belt with the leading locations globally for a Wireless Technology Centre based on an analysis of over 55 quality factors and 10 cost factors  A key emphasis was placed on:  Labour availability and quality  Presence of industrial cluster  General business environment  Infrastructure and accessibility  Other factors including the living environment were also assessed Benchmarking Study

3. Project Profile Overview Weighting Model OverviewWeight Labour Availability and Quality35 Presence of an Industrial Cluster30 General Business Environment20 Infrastructure and Accessibility10 Living Environment5 Employee TypeProfile Head count Information Technology Network Analyst1 Network Engineer1 Programmer5 Project Team Leader1 Senior Designer1 Senior Manager1 Senior Programmer1 Senior System Analyst1 Software Development Engineer4 Software Development Manager1 Software Programmer10 Systems Analyst2 Systems Designer1

4. fDi Benchmark Matrix The fDi Benchmark Matrix shows the trade off between cost and quality across the 8 selected locations for the Wireless technology centre (NEW) profile. The average cost and quality score is 100 for the selected locations. Source: fDi Intelligence, from the Financial Times Ltd The ‘ideal’ quadrant is the top left (high quality/lower operating costs)

5. fDi Benchmark Matrix The matrix is based on the weighting and cost model for the Wireless technology centre (NEW) profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs. The results indicate the different location solutions for the investor as follows: Beijing offers higher quality at lower cost than the average of all the selected locations London, Tokyo offer higher quality but at higher cost Boston (MA), Dusseldorf and the Scottish Central Belt offer lower cost, but at lower quality The Operating Cost value is in GBP – United Kingdom Pound LocationQualitative Score Operating Cost Index Operating Cost Value Boston (MA)90.5104.52,339,475 Brussels79.297.12,173,479 Dusseldorf65.294.62,119,525 London122.1110.82,482,011 Paris87.5100.12,242,150 Scottish Central Belt89.262.01,387,426 Beijing118.887.71,963,698 Tokyo147.6143.33,208,366 Source: fDi Intelligence, from the Financial Times Ltd

6. Location Attractiveness Index The location attractiveness index shows the overall attractiveness of the 8 selected locations for the Wireless technology centre (NEW) profile. The ratio of quality to cost is 50:50 Source: fDi Intelligence, from the Financial Times Ltd

7. Cost Quality Competitiveness The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that: The top locations offering the highest quality for a given level of cost are the Scottish Central Belt and Beijing London and Beijing offer an above average level of quality and good value for money as there relative quality is higher than their relative cost. Source: fDi Intelligence, from the Financial Times Ltd

8. Cost Competitiveness The annual operating cost calculation for Wireless technology centre (NEW) is based on the following primary input costs: Labour Cost The average cost across the selected locations for Wireless technology centre (NEW) is GBP 2,239,515 The greatest cost saving between the selected locations is GBP1,820,942 per annum The values in the chart below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd

9. Cost Competitiveness 9 The locations with the lowest operating costs are the Scottish Central Belt and Boston (MA) In terms of the individual cost factors, the locations with the lowest costs are: Labour Cost: the Scottish Central Belt and Beijing Property: Dusseldorf and Brussels The values in the table below are in GBP - United Kingdom Pound LocationLabour CostProperty Boston (MA)2,149,366190,108 Brussels2,004,127169,350 Dusseldorf1,960,645158,879 London1,532,650949,360 Paris1,820,880421,270 Scottish Central Belt1,139,821247,603 Beijing1,447,392516,305 Tokyo2,423,646784,720 Source: fDi Intelligence, from the Financial Times Ltd

10. Quality Competitiveness The quality competitiveness assessment is based on the weight model for the Wireless technology centre (NEW) profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100. The locations with the highest quality scores are Tokyo and London Source: fDi Intelligence, from the Financial Times Ltd

11. Quality Competitiveness In terms of the individual quality factors, the locations with the highest scores are: General Business Environment: the Scottish Central Belt and London Labour Availability and Quality: Tokyo and Beijing Presence of an Industrial Cluster: Tokyo and Beijing Infrastructure and Accessibility: London and Paris Living Environment: the Scottish Central Belt and Boston (MA) Location General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Boston (MA)342120510 Brussels2331105 Dusseldorf26168510 London394423610 Paris24341569 Scottish Central Belt372611412 Beijing274432510 Tokyo29644159 Source: fDi Intelligence, from the Financial Times Ltd

12. General Business Environment The quality competitiveness breakdown for General Business Environment for the Wireless technology centre (NEW) profile is shown below The locations with the highest overall scores for General Business Environment are the Scottish Central Belt and London Source: fDi Intelligence, from the Financial Times Ltd

13. General Business Environment In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are: Economic growth and stability: Tokyo and London Operating risk: Beijing and London Taxation and incentives: the Scottish Central Belt and London Regulatory environment: Paris and London Location Economic growth and stability Operating risk Taxation and incentives Regulatory environme nt Boston (MA) 1.286.5816.639.65 Brussels 1.023.2810.248.89 Dusseldorf 1.193.2213.398.49 London 1.898.7918.259.77 Paris 1.303.209.2910.07 Scottish Central Belt 0.558.7918.259.77 Beijing 0.6511.238.836.61 Tokyo 4.132.9213.118.73 Source: fDi Intelligence, from the Financial Times Ltd

14. Labour Availability and Quality The quality competitiveness breakdown for Labour Availability and Quality for the Wireless technology centre (NEW) profile is shown below The locations with the highest overall scores for Labour Availability and Quality are Tokyo and Beijing Source: fDi Intelligence, from the Financial Times Ltd

15. Labour Availability and Quality In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are: Overall size of labour market: Tokyo and London Tightness and competition for labour: Brussels and London Experienced industry-specific staff: Tokyo and Beijing Flexibility of labour regulations: Boston (MA) and London Location Overall size of labour market Tightness and competition for labour Experienced industry- specific staff Flexibility of labour regulations Boston (MA) 2.9110.924.213.11 Brussels 1.0725.203.031.77 Dusseldorf 0.7712.381.791.07 London 6.3914.4521.082.05 Paris 5.6312.9614.360.93 Scottish Central Belt 1.2213.498.962.05 Beijing 6.181.8934.671.34 Tokyo 17.826.7037.891.68 Source: fDi Intelligence, from the Financial Times Ltd

16. Presence of an Industrial Cluster The quality competitiveness breakdown for Presence of an Industrial Cluster for the Wireless technology centre (NEW) profile is shown below The locations with the highest overall scores for Presence of an Industrial Cluster are Tokyo and Beijing Source: fDi Intelligence, from the Financial Times Ltd

17. Presence of an Industrial Cluster In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are: Size of industry: Tokyo and London Track record: Beijing and London Research and Development Capabilities: Tokyo and Boston (MA) Proximity to consumers: Boston (MA) and Beijing Export competitiveness: Beijing and Tokyo Location Size of industry Track record Research and Development Capabilities Proximity to consumers Export competitiveness Boston (MA) 0.941.2211.512.533.82 Brussels 3.720.841.300.263.61 Dusseldorf 0.621.401.490.733.89 London 10.466.252.050.664.01 Paris 2.934.253.340.573.77 Scottish Central Belt 2.372.201.690.664.01 Beijing 9.1012.464.131.584.51 Tokyo 9.873.3822.491.004.38 Source: fDi Intelligence, from the Financial Times Ltd

18. Infrastructure and Accessibility The quality competitiveness breakdown for Infrastructure and Accessibility for the Wireless technology centre (NEW) profile is shown below The locations with the highest overall scores for Infrastructure and Accessibility are London and Paris Source: fDi Intelligence, from the Financial Times Ltd

19. Infrastructure and Accessibility In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are: Access to major overseas markets: London and Paris Quality of local infrastructure: Beijing and Boston (MA) Quality of utilities: Brussels and Dusseldorf Quality of ICT infrastructure: London and Paris Location Access to major overseas markets Quality of local infrastructure Quality of utilities Quality of ICT infrastructure Boston (MA) 0.861.701.131.10 Brussels 1.360.841.401.05 Dusseldorf 1.251.081.450.97 London 2.340.941.131.49 Paris 1.881.171.211.76 Scottish Central Belt 0.650.941.130.93 Beijing 0.792.031.231.32 Tokyo 0.881.311.331.38 Source: fDi Intelligence, from the Financial Times Ltd

20. Living Environment The quality competitiveness breakdown for Living Environment for the Wireless technology centre (NEW) profile is shown below The locations with the highest overall scores for Living Environment are the Scottish Central Belt and Boston (MA) Source: fDi Intelligence, from the Financial Times Ltd

21. Living Environment In terms of the individual quality criteria within Living Environment, the locations with the highest scores are: Cost of living: the Scottish Central Belt and Beijing Attractiveness for international staff: London and Tokyo Location Cost of living Attractiveness for international staff Boston (MA) 7.582.82 Brussels 7.562.76 Dusseldorf 7.142.88 London 5.524.53 Paris 5.902.95 Scottish Central Belt 9.182.38 Beijing 7.762.49 Tokyo 5.373.18 Source: fDi Intelligence, from the Financial Times Ltd

22. To realise the potential, please contact: Scottish Development International 150 Broomielaw, Atlantic Quay Glasgow G2 8LU Scotland, UK T +44 141 228 2828 F +44 141 228 2089 www.sdi.co.uk Worldwide offices in: Americas, Europe, Middle East, Africa and Asia Pacific