Romania – Top Destination for Investments

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

2. Structure of the Presentation • Positioning Romania • Macroeconomics • Valuable human potential • FDI performance • Infrastructure development • Investment legalframework • Potentialsectors for development • ARIS – one stop shop

3. 1. Positioning Romania

4. Romania the largest market in CE Europe Our friend the wind

5. Pan European Transport Corridors IV Dresden/Nuremberg Constanta/Thessaloniki/Istanbul VII The Danube river 2,300 km long IX Helsinki – Bucharest – Odessa/Alexandropoulo Romania’s Strategic Location • Strategic position at the turning point where EU meets the Balkans and CIS countries

6. 2. Macroeconomics

7. GDP Growth Rate Significant Potential for Growth 2006 Source: EUROSTAT, *forecast Source: National Institute of Statistics • 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.

8. Inflation Rate Declining Inflation Source: EUROSTAT Source: National Bank of Romania • 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.

9. 3. Valuable Human Potential

10. Demographics Talent pool Human Capital • Young population (more than 50% under 40 years old) • Almost21.7millionpeople • 160 higher education institutions • 109 thou university graduates • Availability of technical engineers • High industrial experience • Flexibility • Increased labor productivity • Low unionization

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

12. CompetitiveLabor 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. Annual Inward FDI Inward FDI Flows 2006 EUR million Source: Vienna Institute of International Economic Studies Source: National Bank of Romania • Record value in 2006; • FDI Stock over EUR 30 bill (1990 –2006); • In February 2007 – EUR 870 mill

15. Subscribed Capital by Country and by Field of Activity- March 2007 – Value of Subscribed Capital by Field of Activity Source: National Trade Register Office

16. 1 2 3 4 5 6 7 8 9 10 Major Investing Countries (1990-2005) Source: National Bank of Romania

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

18. 1 2 3 4 5 6 7 8 FDI Regional Spreading (1990-2005) Source: National Bank of Romania

19. 5. Infrastructure Development

20. SUPLACU DE BARCAU IASI Highway Infrastructure Development - 2013 PIATRA NEAMT BORS SABAOANI MIHAILESTI SOVATA BICAZ ALBITA CAMPIA TURZII TARGU MURES GILAU GHEORGHIENI PRAID NADLAC SIGHISOARA ARAD DEVA SEBES FAGARAS SIBIU FOCSANI ORASTIE TIMISOARA BRASOV CRISTIAN GHIMBAV LUGOJ PREDEAL COMARNIC BUZAU PLOIESTI PITESTI DRAJNA CERNAVODA BUCURESTI CONSTANTA FETESTI CRAIOVA ADUNATII COPACENI GIURGIU CALAFAT

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

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

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. CompetitiveTaxation Source: CEE-CIS Tax Notes - PriceWaterhouseCoopers Many Central and Eastern European countries reduced considerably their corporate tax in order to diminish the fiscal burden

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. Potential Sectors for Investment

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

30. SERVICES WHO is A.R.I.S? Governmental body under the authority of Prime Minister In charge with attracting and retaining foreign direct investment Interface between investors and central & local authorities Providing free of charge SERVICESfor foreign investors in Romania Search and advice on the best location in Romania to fulfill the company' needs including site search, analysis & touring around Value added information on incentives and other administrative procedures Search for industrial and service suppliers

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