Russia

1. An industrial type special economic zone “Kazinka” will be situated at the territory of the Gryazy district of the Lipetsk Region. The Lipetsk Region is situated in the centre of the Europeanpart of Russia, at the intersection of important transportation lines which connect Moscow, Russian capital, with the Northern Caucasus, and Russia’s western part with its Volga regions. Region’s territory: 24.1 thousand sq. km. Population: 1.19 mln., urban – 771 ths. (67%), rural – 419 ths. (33%). Population density: 49.4 persons/sq. кm. The administrative and cultural centre of the region is Lipetsk, with population of 503 thousand. The industrial type special economic zone “Kazinka” borders with the Lipetsk industrial zone, while it is situated at the territory of the Gryazy district at equal distance from Lipetsk and Gryazy, along the Lipetsk-Gryazy highway. The Lipetsk Region Russia

2. The Lipetsk Region is one of the most favorable Russian regionsto invest Stable and sustainable social and economic development of the Lipetsk Region makes it possible to make an optimistic forecast for the forthcoming period. Fitch Ratings CIS Ltd, a branch of Fitch International Ratings agency, has given the Lipetsk Region long-term and short-term ratings on borrowings in currency and roubles, both at the national and international scales. The ratings reflect high budget indicators of a debt-free region, a high potential for the investments growth through borrowings, and wide prospects of diversification of its economy. The regional budget is totally formed with own revenue sources, with no transfers coming from the Federal budget. The Ministry of Economic Development and Trade of the Russian Federation rates the region among those where the level of social and economic development is above average. The foreign investments in 2004 into region’s economy surpassed $ 1 bln., which is 4 times higher than in 2003. The region is among Russia’s biggest exporters. Its foreign trade turn-over is growing from year to year, and it has nearly doubled by the year 2004, reaching $ 3.8 bln.

3. Special Economic Zone of the Industrial Type in the Lipetsk Region To the Lipetsk Airport, Moscow, Voronezh, Orel; M4 Federal Highway “Don” Lipetsk Railway Station, Eletz Railway Station (South-East Railway) Lipetsk The Matyrskoe Pond Tambov, Volgograd, M6 Federal Highway “Kaspy” Gryazy Special Economic Zone of the Industrial Type in the Lipetsk Region. Area: 1000 hectars Gryazy District Gryazy Railway Station, Voronezh Railway Station (Sout-East Railway)

4. Special Economic Zone of the Industrial Type in the Lipetsk Region Lipetsk and Eletz Railway Station TPP-2, Thermal Capacity – 250 HCAL/HR Free Capacities – 150 HCAL/HRE Lipetsk Airport, Moscow, Voronezh, Orel, M4 Federal Highway “Don” Lipetsk Washing Machines Plant Stinol Refrigerator Plant Special Economic Zone of the Industrial Type in the Lipetsk Region Gryazy

5. Objects Of Transport Infrastructure • There is an airport “Lipetsk” 25 km far from the SEZ. It can serve aircrafts of any class. • There are two active railway stations in the area of the SEZ: Lipetsk Station (20 km) and Gryazy-Voronezh Station (18 km). • The SEZ is 1,2 km far from Kazinka Station. An approach line was built from Kazinka Station to the area of the SEZ in 2005. • Density of the railway network is 309 km per 10000 square meters. • The SEZ lies along the highway of regional importance – “Lipetsk-Gryazy”. The highway has II technical category and runs to federal highways and motorways: • highway Orel – Tambov (16 km); • motorway M-4 “Don” (70 km); • motorway M-6 “Moscow-Volgograd” (85 km). • Density of the regional motor network is 217,6 km per 1000 square meters.

6. Infrastructure Objects of the Special Economic Zone Gas Supply (32 mln. rub.) Fence with Check-Points (125 mln. rub..) Electric Supply 220/10/6/0,4 kV (401 mln. rub.) Telephone Sewerage (25 mln. rub.) Office (92 mln. rub.) Water Supply and Sewage System(105 mln. rub.) SEZ Reconstruction of Sewage Disposal Plant (120 mln. rub.) Heating Supply (255 mln. rub.) Area of Solid Industrial and Domestic Wastes (80 mln. rub.) Railway Tracks (137 mln. rub.) Motor Tracks (70 mln. rub.)

7. List of Companies that Confirmed their Participation in the SEZ Project as Residents • METR S.p.A- Production of Rotors and Stators for Electric Engines • VERGOKAN- Production of Cable Trays • SIGNODE SYSTEM GMBH - Production of Packing Systems with Steel-cord Belts application • Viterie Italia Cetrale - Production of Fasteners • EKINLER ELEKTRONIK - Production of Electric Cables • Компания “BEEPLAST” - Production of Plastic Components for Domestic Appliances • CIAMAGLIA - Production of Furniture • INDESIT COMPANI - Production of Gas Ovens, Components for Refrigerators and Washing Machines • Electrolux - Production of Washing Machines • SEST - Production of Evaporators for cooling stands and shop windows

8. List of Companies that Confirmed their Participation in the SEZ Project as Residents • Pro-mould - Production of Mountings for Plastic Articles producing VERNIGLASS - Production of Glass Articles • Elektrowerkzeuge - Production of Electric Tools • Odenwald Faserplattenwerk GmbH - Production of Slabs out of Mineral Fibers • B/S/H Bosch und Siemens Hausgeräte GmbH - Production of Motor-car Spare Parts, Diagnostic Equipment and Electric Tools, Domestic Appliances, Safety Systems and Industrial Equipment • Siemens GmbH - Production of Complex Domestic Appliances and Equipment • Akzo Nobel - Production of Medical Supplies, Coatings andChemicals • Sisu Diesel - Production of Internal Combustion Engines • Bundy Refrigeration - Production of Evaporators, Condensers and other liquid cooling components for refrigerators and domestic appliances