RUSNANO priorities and principals in working with foreign partners

1. Sergey Mostinskiy Director for International Cooperation RUSNANOpriorities and principals in working with foreign partners 11March 2011

2. Russian Economy: Gap in innovations Sources: World Economic Forum – The Global Competitiveness Report 2009-2010; IMF data GDP (purchasing power parity),$ trillion Russia is ranked 7th-8th for its GDP and 73rd for its innovation level Innovation level (rated under WEF methodology) Page2

3. 1990-2020: Milestones of initial development and further growth of Russian economy 2010 - 2020 New model of innovation-based economic growth 2000 – 2010 Economic growth dependent on raw materials export 1990-2000 Setting the base for market economy Page3

4. Russia’s Modernization:Main Policy Challenge VladimirPutin,Feb 8, 2008: DmitryMedvedev,Nov12, 2009: ”In our work to make our economy radically more effective we also need to put in place incentives and conditions for progress in a whole number of different directions [...] This calls for large-scale modernisation of production facilities in all economic sectors” “Inthetwenty-firstcentury, ourcountryonceagainneedstoundergocomprehensivemodernisation.[…] I seethisasaquestionofourcountry’ssurvivalinthemodernworld” Page4

5. RUSNANO: Brief Overview • Founded in 2007 • Mission: to implement the state policy in the field of nanotechnologies • manufacturing of nano-enabled products and materials • Tasks: • commercialization of nanotech industry projects and innovations • production volume of Russian nano-enabled products by 2015 – • ~ $30bln per year • foresight and road maps, standardization, certification, safety in nanotech industry • education, popularization • Areas of financing: • creation of infrastructure of nanotechnology projects Page5

6. RUSNANO’s Terms of Financing • Financing projects at early stage and stage of expansion • Ownership participation — no more than 50% minus 1 share • Favorable loansandguarantees • Investment horizon — up to 10 years Page6

7. RUSNANO: Support for Co-investors Financial support Non-financial support • Infrastructural: • Equipment as service, • start-up incubation • Technical and investment • expertise, certification, • foresight and road maps • Equity: • RUSNANO’s minority stake • in all projects • Credit: • Long-term and • comparatively cheap money. • Guarantee for loans • Managerial: • Assistance in marketing, • investment spending • supervision in the interests • ofall shareholders • Friendly exit strategy: • RUSNANO does not aim to maximize its share price but to cover the expenses • Administrative • Shielding from the red tape • and corruption Page7

8. Foreign Applicants’ Requests for Financing From RUSNANO(Statistics as of 09.03.2011) Page8

9. Investment Projects Types Statistics as of 09.03.2011 Industrial projects Financial infrastructure Non- financial infrastructure 40 8 4* 16 92 7 4 10 Investment funds Nanotechnology Centers Nanomaterials • Dubna (Moscow Region) • Zelenograd(Moscow Region) • Kazan (Tatarstan) • Tomsk and Novosibirsk • (West Siberia) • RUSNANO Capital • DFJ-VTB Aurora • Russian-Kazakh Fund • Metallurgy Fund • Skolkovo Fund • Perm Region Fund • North Region Fund • Pan -European Fund Nanophotonics 15 Nanomedicine Nanomaterial production technologies and equipment Nanoelectronics Other Page9

10. Clusters of Investment Projects Solar energy and energy conservation Nanostructured materials Medicine and Biotechnology Mechanical engineering and metalwork Optoelectronics and nanoelectronics Infrastructure and Education Page10

11. RUSNANO’s Investment Projects: Summary Statistics as of 09.03.2011 • Approved by the Supervisory Council: 104 projectsin 30 Russian regions • Out of 104 – 27 projects with foreign participation (out of which12 – EU) • For its approved investment of $4.5 bln RUSNANO has attracted co-investors for • $6,7 bln (overall budget of projects – $11.2 bln) • Consolidated revenue- 2015: above $13.3billion (conservative scenario) Page11

12. RUSNANO Plans: Timeline 2007 2008 2009 2010 2011 2012 2013 2014 2015 RUSNANO is founded. Government makes contribution into the charter capital First project is financed Debt financing via open markets started RUSNANO transformation into a joint-stock company Mass production in project companies started Exit from projects started • Additional major challenge: • IPO after RUSNANO transformation into a joint-stock company Page12

13. Sales of Russian nanoindustry products (target) Incl. revenue of project companies set up with participation of RUSNANO (target as of 2007 ) Incl. revenue of 93 projects already approved by RUSNANO (adjusted forecast 2010 ) Dynamics of the Russian Nanoindustry Market: Target and forecast $ bln as of October 2010 Page13

14. RUSNANO’s strategic goals towards 2015 6,7 30 6 7 935 30 20 3,5 $ bln $ bln 10 0 0 Russian nanoindustryexport by 2015 Sales of Russian nanoindustry products by 2015 Sales of innovative goods and services in Russia in 2008 Russian export of innovative goods and servicesin 2008 Goals set by RUSNANO are comparable with the current volumes of the entire Russian innovation industry (goods and services) Page14

15. What We Can Do Together RUSNANO offers • Co-investment • Support for companies in entering the Russian market • Access to RUSNANO’s scientific and technical expertise • Joint creation of venture funds You can • Apply for financing of your project at www.rusnano.com • Invest in a joint project together with RUSNANO • Consider opportunities for your portfolio companies’ expansion into Russia Page15

16. RUSNANOinvestment projects

17. Clusters of Investment Projects Solar energy and energy conservation Nanostructured materials Medicine and Biotechnology Mechanical engineering and metalwork Optoelectronics and nanoelectronics Infrastructure and Education Page17

18. Projects cluster: Solar energy and energy conservation

19. HEVEL Solar Energy and Energy Conservation Product The largest manufacturer of solar modules in Russia will produce thin film photovoltaic cells based on micromorph silicon, ultrathin layers of amorphous silicon with submersed nanocrystallites of 10 nanometers to 30 nanometers. Design capacity for the manufacturing facility is more than one million solar modules per year (130 MW per year). The project, in addition to undertaking production, will establish a large research center with equipment value about one billion rubles. The research center will collaborate with the Ioffe Physical Technical Institute of the Russian Academy of Sciences. ФОТО, ГРАФИКИ, ИЗОБРАЖЕНИЯ Product features • higher efficiency compared to other technologies at high temperatures • perception of both direct and scattered light, does not require the tracking system • ecologically friendly (no toxic elements) • longer life time • the lowest price compared with other types of modules Page19

20. Solar Energy and Energy Conservation Thunder Sky Russian Plant of Li-Ion Batteries Product Technology: Integration of nanotechnology,electrochemistry, materials science, metallurgy andelectronics into high-end product. Project: Set up manufacturing facilities of novellithium Ion batteries to EV in Russia (Novosibirsk). Product: Batteries to EV based on novelnanostructured LiFePO4 materials. Product features • high unit power of batteries • cost is two times lower than similar products • safety and reliability of batteries Page20

21. Energy Efficient Solid State Lighting Solar Energy and Energy Conservation Technology Optogan was founded in 2004 by three former students of prof. Alferov, Nobel Prize winner, and has developed a cutting edge technology for ultra-bright LEDs and a solid IP base. Optogan LEDs are intended for backlighting of mobile appliances, computer screens and LCD TVs, as well as general lighting applications. Product features • the most advanced lighting technology • maximum efficiency (illumination per watt): - 2 times higher than fluorescent lamps - 8 times higher than incandescent lamps • ecological compatibility (no mercury and glass, unlike fluorescent lamps) • the maximum life time (50,000 - 100,000 hours): - 8 times higher than that of fluorescent lamps - 50 times higher than incandescent lamps • the light spectrum is the closest to the day spectrum of the sun - better health, capacity for work and stress resistance Page21

22. Projects cluster: Nanostructured materials

23. Nanostructured materials CJSC "Prepreg-ACM" Product • Large-scale manufacturing of semi-products for a new generation polymer matrix composites – high quality prepregs with improved, as compared with analogues, strength and other performance characteristics with carbon and mineral fibers and nanomodified and filled with nanoparticles polyimide and epoxy resins. • Prepreg - material made by impregnation of the reinforcing fiber base (ribbons, cords, fabrics) with precisely metered amount of uniformly distributed polymer matrix. Impregnation of the fibrous material is done in a way that allows the best use of the physical and mechanical properties of the reinforcing material and to ensure uniformity of the properties of the cured composite. • Application areas: aircraft industry, wind power industry, sporting goods manufacturing, construction, motorcar- and shipbuilding. Page23

24. Nanoclay polymer composites Nanostructured materials ЗАО «МЕТАКЛЭЙ» Product • Technology: Polymer nanocomposites with organically modified and exfoliated montmorillonitenanoparticles uniformly distributed in the polymer matrix. • Project:Powerful up-to-date production of nanomaterials in Russia based on bulk polymers and their co-polymers • Product and application: • Refined and modified natural bentonite clay • Oil and gas industry (drilling muds and oil refining) • Food industry (adsorbents for impurities in fat-and-oil, winemaking and other industries) • Cosmetic and pharmacological industry • Polymeric nanoclay-based nanocomposite • Packaging industry (high-barrier films and PET preforms) • Automotive industry (plastics) • Protection of trunk pipelines • Aircraft industry • Cable industry (nonflammable cable compositions) Micrograph of Polymeric nanoclay-based nanocomposite Potential Application Product features • high mechanical properties (module, impact resistance, etc.) • better chemical resistance • lower gas and vapor permeation • higher flame retardant properties. Page24

25. Nanostructured materials Asphalt modifier UNIREM ЛОГО ПРОЕКТА Product Improved fatigue durability UNIREMis developed to modify asphalt mixes by “dry” method. UNIREM application does not require changes in the technology process of asphalt plants or temperature and timing modes of asphalt mixture production Asphalt pavements with UNIREM have improved durability, high resistance to rutting and cracking, high water resistance, high toughness at subzero temperatures Product features • increased durability of asphalt pavements by 25-30% • high resistance to rutting and cracking, • high water resistance, • high toughness at subzero temperatures Page25

26. Projects cluster: Medicine and Biotechnology

27. Medicine and biotechnology Microsources, microspheres and components for brachytherapy Product The project will establish production in Russia of new, effective materials for treating prostate, liver, and pancreatic cancer—radioactive microsources and nanostructured microspheres. These tools, called seeds, are used in brachytherapy, a method of treating cancer using a radioactive source that is introduced into the diseased organ and that acts directly on the cancer. The newtechnology provides for modification of the surface of the microspheres at the nanoscale level (30 nm to 50 nm). As a result, the microspheres become biocompatible, which improves their fixation in the patient’s tissues. Product features • affects the tumor without damaging other organs Page27

28. Skulachev ions – mitochondrially targeted pharmaceuticals Medicine and biotechnology ЛОГО ПРОЕКТА Technology The project is based on a new technology providing precise targeting of pharmaceuticals into mitochondria – intracellular “power-stations”. Since 2004 the project applicants developed several pharmaceuticals based on new mitochondrially−targeted antioxidants. Wide range of preclinical studies showed high efficacy of developed drugs in treatment of age-related eye-diseases, cardio-vascular pathologies etc. In 2009 first project’s drug-candidate entered clinical trials. The project is based in Moscow State University. Product features • treatment for dry macular degeneration (now cured nowadays) • stops the development of glaucoma (currently effective means of guaranteeing the preservation of vision not available) • safety during prolonged use, the expected lack of side effects • simple and cheap way to reduce the likelihood of heart attack and treatment of arrhythmia in case of coronary heart disease Page28

29. Cascade plasmapheresis equipment using track membranes Medicine and biotechnology Product • The company produces track membrane (diameter 20 – 100 nm) and devices for plasmapheresis based on the membrane. • Continuous process of membrane plasmapheresis using the apparatus "GEMOFENIKS“ is carried out in a sterile single-needle extracorporeal circuit for single use.During the procedure at the same time: • formed elements are returned to the patient's bloodstream • plasma is collected in a special receiver • plasma substitution process Product features • method of blood cleaning - filtration • membrane technology • pore diameter: 20 - 100 nm (analogues - 400 nm) • small volume of extracorporal circuit: 35 ml • hardware-based and non-hardware-based application • single-needle connection Page29

30. Projects cluster: Mechanical engineering and metalwork

31. Technological Systems for Protective Coatings Mechanical Engineering and Metalwork Product • About technology: • Development of technologies of multifunctional nanostructured coating deposition to extend the life cycle of equipment and to upgrade Russia's machinery, oil & gasand other industries. • Production: • Nano-structured coating application services (heat-proofing, heat-resistant, wear-resistant, corrosion-protective, electroinsulating, superconducting composition); • End solution for nano-structured coating application (supply, adjustment and maintenance of equipment, adaptation of nano-structured coating application technology and licence selling, development of nano-coating material, e.t.c.) Product features • increase corrosion resistance, plasticity • improved resistance to shock load • improving thermal insulation properties Page31

32. Mechanical Engineering and Metalwork MICROBOR NANOTECH – CBN AND NCBN CUTTING TOOLS Product The company produces soldering and solid cutting tools for metal and other hard materials processingin various fields (engineering, aerospace, automobile industry, etc.) Microbor Nanotech is a new generation manufacturer of composite materials based on micro- and nano – crystalline Cubic Boron Nitride (CBN and NCBN) and cutting tools made of these materials. Microbor was the first in the world to create tools based on nano CBN material. Product features • high-efficiency tool • reduction in processing cost • reduction in processing time by 40-90% Page32

33. Mechanical Engineering and Metalwork SETTING UP MASS PRODUCTION OF HIGHLY-RELIABLE SPRINGS USING CONTROLLED FORMATION OF HOMOGENEOUS NANOSUBSTRUCTURES INSPRINGMATERIAL Product The final goal of the Project is to set up the technology of the multifunctional springs mass production. The technology is based on the high-temperature and mechanical treatment with resulting nanosubstructure formation in the spring material, which leads to a major improvement of the springs characteristics. This technology may be utilized for any springs of hot winding and as a product itself. The plans include construction of automatically adjusted production line of the hot-wound springs using basically new technology. Product features • number of cycles till destruction is 10 times higher in comparison with other technologies • level of permissible operating voltages is 35-40% higher in comparison with other technologies • cost reduction due to the possibility of using cheaper grades of steel • no subsidence Page33

34. Projects cluster: Optoelectronics and nanoelectronics

35. Optoelectronics and Nanoelectronics CJSC Galileo Nanotech Product • The equipment of Galileo Vacuum Systems s.p.a. for surface metallization utilizes the thermal vacuum deposition method, based on the process of thermal evaporation of metals by heating them to high temperatures with subsequent dispersion of matter in vacuum space of chamber and its condensation on the processed surface • The project is geared toward manufacture of RFID-tags and metalized packing material using unique equipment of Galileo Vacuum Systems s.p.a.. • RFID-tags are used as a substitute for bar-codes for the purpose of stock tracking and identification in different systems. • Metal packaging materials (film and paper) for food and cigarettes • Equipment for metallization of roll materials Product features • contents identification without opening • readout out of sight,on the run • simultaneous readout of several tags Page35

36. Optoelectronics and nanoelectronics Manufacturing of multimedia DSPs and consumer devices based on them Product Multimedia processors (SoC) HD decoderandencoder - multiprocessingplatform intended for decoding and encoding HD-video Digital set-tops(Set top box) with enhanced functionality user set top boxes implementing digital broadcast reception, IP broadcast reception, IP Telephony, decoding video and audio of all modern formats in real-time, home network router, home server for Video-on-Demand and Time-shift, personal payment terminal with a reverse communication channel Digital broadcasting studios: professional device for capturing and encoding HD-videoand HQ-audiofrom signal sources of different types Product features • production based on its own chips • broad functionality of the software Page36

37. RUSNANO welcomes opportunities to collaborate withforeign companies, governmental organizations, investment funds and private investors • You can: • Apply for financing of your project at www.rusnano.com • Invest in joint project together with RUSNANO • Further develop your technology with RUSNANO help • Participate in RUSNANO industrial and infrastructural projects • We guarantee: • Financial & Non-financial support for co-investors Page37