1. INFORMATION & COMPUTER TECHNOLOGIES INDUSTRY ASSOCIATION e-mail: info@apkit.ru; www.apkit.ru Marina Rumyantseva, Communication Manager of International relationship and investment committee

2. Why Russia? Growing: - IT Market - Government support - Interest from other countries - Investment attractiveness

3. Russian IT Market Double-digit growth across all segments for 5 consecutives years (11% in 2002). The expected growth rate for 2004 is higher than 14% Hardware ($6,1 bln in 2002, of which 90% is imported) represents 80% of the total IT market, with local companies dominating in the final assembling (75%). Software ($350M in 2002) is dominated by import (70%), with system software growing and applications outweighing other software types. Local consumer market is growing with 100% a year, still it is too small. IT services ($900M in 2002) is fast growing, second biggest domestic IT industry. The expected turnover of software services for 2003 is $1,08 Bln. IT consulting is fast growing. For 2003 its turnover is expected to reach $115 mln Prime export IT industry ($350M in 2002) – software development outsourcing, with the growth rate of 30-40% a year. Ernst&Young, 2002-2003

4. Strategic changes in the Russian IT Industry in 2000-2003 Steady growth of the internal IT market brought to the Industry a new value Increasing Governmental Support Massive implementation of modern QA standards Formation of APKIT Association as a voice of the Industry and of “Fort Ross” Consortium as the major PR and marketing tools

5. Qualitative Indicators by Country, Gartner Group – IndiaIsraelIreland Philip- pines Russia Overall Climate CanadaChina j Government Support Labour Pool Infrastructure Educational System Cost Process Quality Cultural Comp. (US) Legal System Globalization Skills Low Medium High

6. The Association Today Association unites more than 200 companies; Association is the most representative non-profit IT organization in Russia. Its members are the largest domestic and international companies in software, hardware and equipment production, the leading domestic distributors, system integrators, Russian IT manufacturers and developers; The total sum of annual revenue of the Association members is more than $ 2 Bln.; Association members hold up to 70% in a number of sectors of IT market; АП КИТ works in collaboration with the Ministries of Communication, Economic Development, Education, State Customs Committee, and participates in the activity of the number of committees and public councils of Gosduma; Russian version of “Computing Curricula-2001 has being translated and published with the Association’s help; Member of WITSA; The concept - АП КИТ as the umbrella association covering all segments of IT industry – is being implemented; Site of the Association is www.apkit.ru

7. Questions? ic@apkit.ru