TABLE OF CONTENTS By regions & districts

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3 CONTENT 1 TABLE OF CONTENTS By regions & districts Letter from the publisher...2 Czech Republic...3 CzechInvest...4 Office market in CR (analysis)...6 CzechInvest...7 Prague...8 Central Bohemia Region...14 Districts Bene ov...20 Beroun...21 Kladno...22 Kolín...23 Kutná Hora...24 Mûlník...25 Mladá Boleslav...26 Nymburk...27 Praha-v chod...28 Praha-západ...29 Pfiíbram...30 Rakovník...31 South Bohemia Region...32 Districts âeské Budûjovice...37 âesk Krumlov...38 JindfiichÛv Hradec...39 Písek...40 Prachatice...41 Strakonice...42 Tábor...43 PlzeÀ Region...44 Districts DomaÏlice...49 Klatovy...50 PlzeÀ-jih...51 PlzeÀ-mûsto...52 PlzeÀ-sever...53 Rokycany...54 Tachov...55 Karlovy Vary Region...56 Districts Cheb...61 Karlovy Vary...62 Sokolov...63 Ústí nad Labem Region...64 Districts Chomutov...69 Dûãín...70 Litomûfiice...71 Louny...72 Most...73 Teplice...74 Ústí nad Labem...75 Liberec Region...76 Districts âeská Lípa...82 Jablonec nad Nisou...83 Liberec...84 Semily...85 Hradec Králové Region...86 Districts Hradec Králové...91 Jiãín...92 Náchod...93 Rychnov nad KnûÏnou...94 Trutnov...95 Pardubice Region...96 Districts Chrudim Pardubice Svitavy Ústí nad Orlicí Vysoãina Region Districts HavlíãkÛv Brod Jihlava Pelhfiimov Tfiebíã Îìár nad Sázavou South Moravia Region Districts Blansko Brno-mûsto Brno-venkov Bfieclav Hodonín Vy kov Znojmo Olomouc Region Districts Jeseník Olomouc Prostûjov Pfierov umperk Moravia-Silesia Region Districts Bruntál Fr dek-místek Karviná Nov Jiãín Opava Ostrava-mûsto Zlínsk Region Districts KromûfiíÏ Uherské Hradi tû Vsetín Zlín List of AFI Members Methodology of Research...163

4 2 INTRODUCTION LETTER FROM THE PUBLISHER Liberec Region Ústí Region Hradec Králové Region Karlovy Vary Region Prague Pardubice Region Moravia Silesia Region Central Bohemia Region Olomouc Region PlzeÀ Region Vysoãina Region Zlín Region South Bohemia Region South Moravia Region Dear Readers, After two years, Stanford publishing house has again brought you the new edition of City Invest Czech, the essential investor s guide to Czech Republic s regions. We trust that City Invest Czech will, as well as other Stanford s products do, help entrepreneurs, managers, business people and investors. City Invest Czech is part of Stanford s group of B2B publications Czech Business Weekly, PROFIT (weekly for entrepreneurs) and Book of Lists. City Invest Czech, which Stanford compiled with the Investment & Business Development Agency CzechInvest, seeks to help readers better orient themselves to specific regions of the country and their investment potential. The publication provides a unique and comprehensive outline with demographic information, basic statistical data, lists of industrial zones and the list of the leading dynamic companies in each region. One of the new features added this year is the lists of A Class office spaces and prices of office and retail space rentals. We would like to thank our partner investment and business development agency CzechInvest for its cooperation in the preparation of the publication. We would also like to thank our advertisers and business partners who contributed content to the publication, especially to Dun & Bradstreet Czech Republic and Cushman & Wakefield. We also welcome any comments or suggestions that might help us ensure the quality and accuracy of the next edition of City Invest Czech with a view to better meet the needs of our readers. Thank you for your attention and for your faith in us. The Board of Directors of Stanford, a.s. City Invest Czech 2008 Publication of: Stanford a.s. (publisher of PROFIT, Czech Business Weekly & Book of Lists) Residence: Provaznická 397/13, Praha 1 Year of publication: 2008 Publisher: Stanford a.s. Iâ: Publisher: Mgr. Jan Kreidl Project Manager: Mgr. Alice Bídová Research: Ing. Pavel Rieger, Mgr. Dana Sodomková, Bc. Lucie Koupená, DiS., Hana Hübschová, English editor: Mollie McGurk Cover & Publication Designer: Jindfiich Jetel Production: Jindfiich Jetel, David Rákosník Maps supplied by: T-MAPY spol. s r.o., Hradec Králové Business Development: Adéla Pitts, Eva Krejãí, Klára Kortusová, tûpánka Selicharová, Markéta Nezbedová Coordinator of Advertising: Naìa Hlaváãková Marketing & Circulation: Lubo Vesel Distribution: Martina Jannová, Marie ebelová Printed by: âeská Unigrafie, a.s. ISBN: The data included in City Invest Czech is, to the publisher s best knowledge, accurate at the time of going to press. Every effort has been made to ensure accuracy and thoroughness. Corrections or additions to the lists should be addressed to the Book of Lists team at lists@cbw.cz or seznamy@profit.cz. Reproduction, automated or electronic storage, public transmission and other commercial or public usage of the publication or the information contained herein are subject of the consent of the respective copyright owner(s). Copyright by Stanford, a. s. Reproduction, automated or electronic storage, public transmission and other commercial or public usage of the trademark City Invest Czech contained herein are subject of the consent of the respective copyright owner(s). Copyright by Investment & Business Development Agency CzechInvest.

5 BASIC INFORMATIONS 3 Corporate Environment in the Czech Republic The Czech Republic is a land-locked country, sharing borders with Germany, Poland, Slovakia and Austria. The country has over 10.3 million inhabitants. The capital city is Prague with almost 1.2 million inhabitants. According to the latest data revealed by Eurostat, Prague is the richest region (GDP per citizen) in the Czech Republic. Prague is also the 12th richest state among the EU countries. The rest of the Czech and Moravian regions are below 75% of the average EU threshold and, as a result, these regions are entitled to draw support from the EU funds. The second richest region is Central Bohemia, with 70% of the European average. The poorest region is Central Moravia in which GDP is 59.8% (per citizen) of the European average. The Czech Republic, being one of the post-communist countries, is politically and economically stable. Inflation here is considered to be one of the lowest in Europe, although it rose markedly to 7.5% in January 2008, this being its maximum since November The country s economy is mainly industrial. The largest sector is engineering, reflecting the strength of the motor car companies and their sub suppliers which are experiencing a great boom. The efficiency of the Czech economy is rising; the year-on-year growth of GDP in the third quarter of the year 2007 was 6%. The economy has maintained growth of 6% or more for 10 quarters in a row. GDP was 3.2 trillion CZK at the end of 2006, which came to 313,662 CZK per citizen. Turning to unemployment, this has fallen slightly in the past few months. It was 6.1% in January Increasingly, companies are looking for greater numbers of competent staff, whether they are qualified experts or ordinary blue-collar workers or craftsmen. As a result of this demand for experienced staff, gross wages are rising. The average of the gross wage was 21,470 CZK in the third quarter of 2007 (year-on-year growth was 7.6 %). Frequent revisions of important laws, the generally opaque system of laws, the rising deficiency of the working force, the slow construction of the motorway infrastructure, an overprotective labour code, slow courts and the poor system of claiming rights are the pressing problems of the corporate environment. Some companies also worry about the strengthening of the Czech crown. Income tax of corporate bodies will, based on the last year s government reform, gradually fall. The rate fell from 24% to 21% during the taxation period for 2008; it will be lowered to 20% in 2009 and to 19% in Individuals, including entrepreneurs, pay 15% flat tax during the taxation period of 2008, which will fall to 12.5% in There have been changes in VAT as a result of the recent government reforms. The base rate for VAT is 19% but the reduced rate rose from 5% to 9% in January Financially interconnected companies can use group registration to register for VAT from the beginning of this year. The groups and the size of groups of companies are voluntary. The groups can then report and hand in the declaration of taxes as a single entity. Paper handling and costs, therefore, will be reduced. Consumer tax has to be paid for spirits, beer, wine and intermediate products such as mineral oils and tobacco products. Details for this are stated in law no. 353/2003, St., as amended. A special type of reform, the so-called ecological energy tax, has been put into practice since This tax has to be paid for the damage to the environment which is done when energy is produced. These taxes, with a few exceptions, are on electricity, gas and solid fuels. Renewable resources or ecological sources and gas to provide heating in households are exempt from this tax. Vehicle Excise Duty has to be paid for road carriages and their attached vehicles used for business purposes. Details and more concrete rates are stated in law no. 16/1993, St., as amended. Among other taxes there are real-estate transfer taxes, gift taxes, succession duty and real estate (property) taxes. There are many associated administrative charges and these changes can be found in law no. 634/2004, 353/2003, St., as amended. The main regulations for entrepreneurs are Commercial Code (no. 513/1991St.), The Trade Licensing Act (no. 455/1991 St.), and Labour Code (no. 262/2006 St.). Overall legal regulations are fragmented and consist of many other regulations (mainly contained in the Civil Code, Consumer Protection, Employment Act, Building Act, Insolvency Act, Economic Competition Protection Act and many other tax laws). The Companies Register is the main registry for entrepreneurs, which is accessible on. The Trades Register is for sole traders with its website. Unless the applicant runs the business as an individual (there are some exceptions but they must have a business licence), the applicant can set up a number of types of companies. The two most common companies are a limited liability company and a joint stock company. Other forms of companies include a public limited company, a limited partnership company, and a contingent company, which are also mentioned in the Commercial Code. A limited liability company is a company whose capital stock is made up of deposits from all partners who are liable for the accountability of the company until the company is registered in the Companies Register. The company can be set up by one person and it can have up to 50 members. One individual may be a partner in up to three limited liability companies. The capital stock has to be at least 200,000 CZK. The company is liable for all its debts and liabilities. Partners are jointly and severally liable for the company s liabilities up to the total amount of the unpaid part of the deposits of all the partners in accordance with the written status of the company in the Companies Register. Similar conditions for establishing limited liability companies can be found in of the Commercial Code. The capital stock of a joint stock company is itemized into a certain number of shares which have a nominal amount per share. The shares can be issued in the name of the owner or another individual. The company may be set up by one founder, if he is a corporate body, or by two or more founders. The capital stock of the company established by a tender offer has to be at least 20 million CZK. Where a company is set up without undergoing the tender offer the capital stock has to be at least 2 million CZK. The company is liable for all its debts and liabilities. Shareholders are not liable for the company s liabilities. Detailed conditions for establishing joint stock companies are specified in of the Commercial Code. Ministries in Czech Republic Name of ministry Address Phone Fax www Ministry for Regional Development Staromûstské námûstí 6, Praha info@mmr.cz Ministry of Agriculture Tû nov 17, Praha info@mze.cz Ministry of Culture Maltézské námûstí 1, Praha posta@mkcr.cz Ministry of Defence Tychonova 1, Praha info@army.cz Ministry of Education, Youth & Sports Karmelitská 7-8, Praha info@msmt.cz Ministry of Finance Letenská 15, Praha 1 - Malá Strana informace@mfcr.cz Ministry of Foreign Affairs Loretánské námûstí 5, Praha info@mzv.cz Ministry of Health Palackého námûstí 4, Praha mzcr@mzcr.cz Ministry of Industry & Trade Na Franti ku 32, Praha posta@mpo.cz Ministry of Justice Vy ehradská 16, Praha posta@msp.justice.cz Ministry of Labor & Social Affairs Na Pofiíãním právu 1/376, Praha posta@mpsv.cz Ministry of the Environment Vr ovická 1442/65, Praha info@env.cz Ministry of the Interior Nad tolou 3, Praha 7 - Letná posta@mvcr.cz Ministry of Transport nábfieïí L. Svobody 1222/12, Praha posta@mdcr.cz

6 4 INTRODUCTION INVESTMENT WHY INVEST IN THE CZECH REPUBLIC In 2007 CzechInvest supported a total of 182 Czech and foreign investment projects. Business development activities covered fields of manufacturing, business support services and R&D in the Czech Republic. Domestic and international companies invested over 3.5 billion dollars and employed nearly 31,000 people. CzechInvest tûpánská 15, Praha 2 tel.: fax: CzechInvest foreign offices abroad: Belgium - EU Affairs Rue Trone 60, Czech House 1050 Brussels Belgium tel.: fax: brussels@czechinvest.org Benelux 5. Place du Champ de Mars 1050 Brusseles Belgium tel.: fax: brussels@czechinvest.org France 18, rue Bonaparte 75006, Paris France tel.: fax: paris@czechinvest.org Germany Feringastrasse Munich Germany tel.: fax: munich@czechinvest.org Germany Hansaring Köln Germany tel.: fax: koeln@czechinvest.org Japan Shinko, Naka-ku Yokohama, Japan tel.: fax: yokohama@czechinvest.org South-East Asia Hong Kong Tower II, Lippo Centre 89 Queensway, Hong Kong Hong Kong tel.: fax: southeast-asia@czechinvest.org U. K. & Ireland 1 Harley Street W1G 9QD London United Kingdom tel.: fax: london@czechinvest.org USA - Chicago - East 222 Merchandise Mart Plaza, Suite 938 Chicago, IL 60654, USA tel.: fax: chicago@czechinvest.org About a quarter of newly arriving investment projects directly consist of investments in technology centres and business support services. These kinds of investments fully demand a qualified and sophisticated labour force. Mentioned projects are making a major contribution to the knowledge-based economy. In the competition among countries for placement of direct foreign investment, it is absolutely necessary to offer a qualified and highly-educated working force. Czech Republic (the former Czechoslovakia) ranked among countries with the highest percentage of university-science and technology graduates in the world. Presently this tradition continues: the number of university-science and technology graduates directly related to the highest in Europe. Our country also pays considerable attention to foreign-language education, where English and German predominate. At least one world language is studied by 76 % of university students, while 20% study two and 4% study three or more languages. The outstanding geographical location of the Czech Republic - in the centre of Europe - offers excellent connections to the majority of the important transit routes. The Czech transportation network belongs to one of the best among countries in Central and Eastern Europe. As for the offer of business properties suitable for manufacturing and production, business support services and technology centres, CzechInvest Business Development and Investment agency administers a business property database which currently consists of more than 350 industrial zones and buildings fully prepared for potential investors, including the necessary infrastructure. The Czech Ministry of Industry and Trade s special support programme for industrial-zone development has been operated in the Czech Republic since The project also helps to mediate cooperation between the state, developers and local authorities. In addition to this fact, since 1998 the Czech Republic has been offering another benefit - investment incentives to the manufacturing, business support services and technology centres investors (both foreign and domestic). Investment incentives and support for investors The Investment Incentives Act precisely defines the criteria for receiving incentives, from the outset it has been discussed with the European Commission and complies with the EU s rules for granting state aid. The Czech investment-support scheme includes tax relief, job-creation grants, training and retraining grants as well as construction and development of industrial properties. Investors can obtain distinctive state aid in the regions worst affected by unemployment (support of job creation programmes, employment of people registered at the labour office, secondary school graduates and the handicapped). However, companies or projects which, for whatever reason, do not meet the criteria of the Investment Incentives Act may take advantage of another form of the aid available in the Czech Republic, for example EU structural funds. The Czech Republic a European hub of new technologies and innovation Since 1993 a host of major multinational companies have come to the Czech Republic, investing billions of dollars in our country and creating tens of thousands of new jobs. For example, Czech Republic is now home to global management centres of DHL; Accenture, Olympus, Honeywell and IBM. Among Central Bohemia production you can find the car factory of Toyota Peugeot Citroen Automobile (TPCA), which is one of the biggest investment projects of any kind in Europe. We shouldn t forget to mention the most successful project from the automotive sector Hyundai, whose investment of 1.2 billion dollars represents the investment record in the Czech Republic. Hyundai created more than 3,000 new jobs and its full production reached 300,000 cars a year. Investment projects such as IPS Alpha and Hitachi, which are involved in the unequalled concentration of production of LCD monitors and flat-screen televisions, requiring the creation of a remarkable number of new jobs. Each project employs up to 2,000 people. The structure of foreign investments recently shows that the Czech Republic is shifting from quantity towards quality. Investors who require thousands of cheap workers are moving further east and there are more and more smaller projects heading to the Czech Republic which employ a high educated labour force with language skills. The big potential of a small country In the near future the trend of direct investment into sophisticated production, research and development activities, business shared services can be expected to continue in the Czech Republic. Greater emphasis in business development projects will be placed on modern fields such as biotechnology, nanotechnology, microelectronics and pharmaceuticals. Czech Republic is directly located in the centre of Europe, often called the heart of Europe. It has huge potential and will not be afraid to use it. CzechInvest, the Investment and Business Development Agency, is an agency coordinated by the Ministry of Industry and Trade of the Czech Republic. CzechInvest fully supports coming FDI (foreign direct investment), business activities of local small and medium sized enterpreneurs with a wide range of services, development programmes to attract investment projects and promote the development of Czech companies and the country s business environment abroad. The main objective of CzechInvest is to advise and support existing and new entrepreneurs and foreign investors in the Czech Republic. The agency acts as an intermediary between the EU and small and medium-sized enterprises in utilizing EU Structural Funds in the Czech Republic. In order to facilitate contacts with foreign investors, CzechInvest has eight branch offices around the world Brussels, Cologne, Munich, London, Paris, Hong Kong, Yokohama, and two in the United States (Chicago). With the aim of being as near as possible to our existing and potential clients within the Czech Republic, the agency also operates 13 regional offices. For more information please have a look at our web page:

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8 6 INTRODUCTION ANALYSIS OFFICE MARKET IN THE CZECH REPUBLIC IS RAPIDLY GROWING Years 2006 and 2007 clearly showed that although most development activity and the majority of office space in the country is still concentrated in Prague, modern offices are no longer limited exclusively to the capital city. Rapid growth in Brno, a growing market in large regional cities such as Ostrava and PlzeÀ and emerging smaller regional markets are expected to contribute to the overall Czech office market in PRAGUE Prague, however, remains the central hub for modern offices in the country with most international companies present in the Czech Republic. The total modern office stock (A-class and B-class buildings with more than 800 m 2 of rentable space) comprised 2,182,285 m 2 at the end of the year 2007, increasing by more than 10 percent from Around 69.4 percent of the total stock is represented by A-class properties. In 2007, new supply reached 162,000 m percent of this new supply was in inner city location most of that in Prague 4. The rest is located in the outer city. The number of new construction or refurbishment in the city centre remained on the low level with only one significant project in the pipeline with expected completion in 1Q Around 68 percent of the total stock in 2007 is represented by newly built properties. Major completions in 2007 comprised âsob building (37,700 m 2 ), Gemini building A (17,550 m 2 ), E-Gate (16,855 m 2 ), Technology Centre âeská Spofiitelna (15,000 m 2 ), BB Centre building E (14,600 m 2 ), Oasis Florenc (14,393 m 2 ), The Park buildings 9 and 11 (7,600 m 2 and 7,836 m 2 ) and East Building (7,212 m 2 ). Although Brno started to develop five years ago, the Brno office market already has a well established position among other regional markets. It is not only due to the existence of universities and direct traffic connections to Prague, Bratislava and Vienna, but Brno also offers attractive conditions to IT, shared services and call centres. The total modern office stock reached more than 177,000 m 2 in 2007 and it is expected to grow to more than 240,000 m 2 by the end of Although speculative development plays a significant role in current market growth and higher vacancy rate is related to the rapid expansion of the market, new projects are completed in response to expected demand. Ostrava is becoming an increasingly attractive location for developers as well as for international and Czech companies looking for office space to lease. With a population of approximately 1.2 million people, the Moravia-Silesia Region offers a sufficient quantity of qualified labour force as well as new university graduates. Educated people and an easily accessible location give the city an important competitive advantage. Large companies already recognised this high potential and some of them currently thinking above locating their call centres and shared service centres there. The total stock reached nearly 65,000 m 2 in The office market in PlzeÀ is in its early stage of development with first signs of activity. The total office stock was almost 40,000 m 2 in The future growth of supply will be strongly influenced by the success of the existing projects. The growth of the Czech economy is also contributing to the development of office markets in regions. An inflow of foreign direct investments and good relationships with neighbouring countries are the examples of the main key drivers. âeské Budûjovice, Hradec Králové, Liberec, Ústí nad Labem, Pardubice and Olomouc are shifting into the focus of developers and prospective tenants but currently offer only a small amount of modern office space. Major completions expected in 2008 are Kavãí Hory (42,120 m 2 ), City Tower (42,072 m 2 ), Palladium (20,000 m 2 ), PPF building âeská poji Èovna seat (20,000 m 2 ), Gemini building B (18,734 m 2 ), Opatov Park (13,500 m2), The Park building 12 (12,000 m 2 ) and Corso Karlín IIa (10,724 m 2 ). When compared to the previous year, take-up of office space was significantly lower in 2007, reaching a volume of 195,197 m 2. Regarding the structure of take-up, 2007 saw a shift back towards the newly built properties. These included more than 80 percent of all transactions - significantly more than in the previous year. The financial and professional services, banking, insurance, and manufacturing sectors recorded the largest take-up per sector in The average size of a deal in 2007 was 685 m 2. We expect total take-up for 2008 to be around 200,000 m 2. The most significant take-up deals in 2007 were Skanska (13,500 m 2 in Opatov Park in Prague 4), Raiffeisenbank (8,796 m 2, renegotiation in Raiffeisen Centrum in Prague 4), Generali Poji Èovna (8,389 m 2 in City Element in Prague 4), âeská spofiitelna (8,300 m 2 in E-Gate in Prague 6), PPF Investments (8,035 m 2 in E-Gate in Prague 6), Vegacom (5,200 m 2 in KCD 4 in Prague 10), Toyota (4,800 m 2 in Toyota HG in Prague 5), âeské dráhy Cargo (3,200 m 2 in Lighthouse in Prague 8), Unipetrol (3,143 m 2 in Gemini building A in Prague 4), Komerãní banka (2,922 m 2 in Rokytka I in Prague 9), TNS Aisa (2,739 m 2 in Trianon in Prague 4), Ness Technologies (2,695 m 2 in The Park building 9 in Prague 4) and Fujitsu Siemens (2,500 m 2 in The Park building 11 in Prague 4). Prague 4 remained the most attractive district in Prague with more than 32 percent of the total take-up in Prague. The vacancy rate in Prague dropped from 2 percent at the end of 2006 to 5.76 percent at the end of 2007, which was 125,622 m 2 of office space. This was mainly due to a lack of new office stock coming onto the market and constantly increasing demand. The vacancy rate of Class A office buildings reached 5.7 percent and Class B properties had a vacancy rate of 5.97 percent. The declining vacancy and the shortage of available stock in the city centre created favourable conditions for slight growth of prime rents than in previous years. Rents currently range between 19 and 20 per m 2 per month. The overall rental prediction for 2008 is stable although the expected extensive new supply with the exception of the city centre may create a pressure for rent reduction. REGIONAL MARKETS There is a significantly growing interest from international occupiers for modern, A-class purpose-built office space in secondary cities across the Czech Republic. Demand is mainly driven by the shared service sector and call centre industries searching for a cost effective alternative to Prague. Up to now, developers have predominantly focused on Brno and Ostrava. With the expected improvements of regional infrastructure and the shortage of qualified labour in Prague, the regional office markets will continue strengthening their position. CUSHMAN & WAKEFIELD IN THE CZECH REPUBLIC Cushman & Wakefield is one of the world s largest commercial real estate services firms. Founded in 1917, the firm has 215 offices in 56 countries, and 12,000 talented professionals. Cushman & Wakefield delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, lenders and investors through every stage of the real estate process. These solutions include representing clients in the buying, selling, financing, leasing and managing of assets. The firm also provides valuation advice, strategic planning and research, portfolio analysis, site selection and space location assistance, as well as many other advisory services. The company entered the Czech market in 1993 to assist clients in identifying and achieving their goals in commercial property in the Czech Republic. Clients vary from public to private sector, from major logistics and office occupiers to one-person set-ups, and from international to local retailers, developers, investors and banks. The company currently has 110 staff and disposes with dedicated teams by sector providing complete range of real estate services. - Office, Retail, Industrial, Hospitality and Residential Agency - Capital Markets Group - Tenant & Landlord Representation - Development Consultancy - Asset Management & Facilities Management - Valuations - Research & Consultancy Na Pfiíkopû 1, Praha 1 Czech Republic (420) reception.prague@eur.cuswake.com

9 CZECHINVEST 7 CZECHINVEST TODAY A thousand investors have relied on CzechInvest CzechInvest, the Investment and Business Development Agency of the Czech Republic, has helped nearly one thousand foreign and domestic investors to realise their plans in the country. Since its establishment in 1992, the agency has played a role in 963 investments worth a total of EUR billion. Nearly 188,000 people have found or will find work directly in projects mediated by CzechInvest, with thousands of other jobs being created in related projects. In 2007 alone, 182 companies turned to CzechInvest with projects valued at nearly EUR 3.6 billion. In terms of the number of new investors, 2007 was thus the most successful year in the agency s history. Czech companies were the most active, followed closely by investors from Germany and the United States. Last year, new investors in the Czech Republic undertook to create 30,598 new jobs. Investors find success in the Czech Republic Among the 182 projects in which the agency took part last year, 65% involved expansions. This means that companies in the Czech Republic have been successful to the point that not only are they not interested in leaving, but are rather expanding their activities. The expansion of production on the part of investors operating in the Czech Republic is clearly the most important indicator of the domestic business environment s quality. Particularly gratifying is the fact that in the great majority of cases these expansions represent a qualitative leap and bring investment in state-of-the-art technologies, services and research and development. Credit for the lion s share of these expansions goes to investors that CzechInvest has cooperated with over the years. A range of these investors first set up manufacturing projects in the Czech Republic and are now establishing development centres and centres providing the broadest range of business services, from accounting and customer service to custom software development. Strengthening research and development Twenty-eight new technology centres for science and research have been established in the Czech Republic with CzechInvest s assistance, which is the same number of investors who decided for the Czech Republic in 2007 in this field. Half of these applied for inclusion in the national Framework Programme for the Support of Technology Centres and Centres of Shared Services, whereas the other half chose the European Potential Programme. In 2006, CzechInvest attracted 13 similar projects to the Czech Republic. CzechInvest expects similar development also among centres providing business services. There were 13 fewer investments last year in comparison with However, this was not due to a lack of interest on the part of investors, but rather on their waiting for the launch of national and European support programmes. The national programme started in the first half of April 2007; the European programme began this year. The greatest number of investors last year focused on South Moravia. In coming years, 3,900 people will find work there in 40 new companies worth CZK 13 billion. The Ústí region ranked second with 31 projects, while the North Moravia, Olomouc and Plzen regions each attracted 17 new investors. CzechInvest tûpánská 15, Praha 2 tel.: fax: CzechInvest Regional Offices: Hradec Králové Region Regiocentrum Nov pivovar Soukenická 54/8, Hradec Králové tel.: fax: hradeckralove@czechinvest.org Karlovy Vary Region Na Vyhlídce 53, Karlovy Vary tel.: fax: Liberec Region nám. Dr. E. Bene e 4/12, Liberec tel.: fax: Moravia-Silesia Region NádraÏní 923/118, Ostrava tel.: fax: ostrava@czechinvest.org Olomouc Region Jeremenkova 40 B, Olomouc tel.: fax: olomouc@czechinvest.org Number of jobs mediated by CzechInvest in 2007 by sector technology centres 3 % chemicals, plastics, rubber 15 % engineering, metallurgy 3 % other 10 % electronics and electrical engineering 25 % automotive 25 % biotechnology, medical technology 2 % business support service centres 2 % wood processing, paper, printing 2 % Pardubice Region nám. Republiky 56, Pardubice tel.: fax: pardubice@czechinvest.org PlzeÀ Region Anglické nábfi. 1, PlzeÀ, tel.: fax: plzen@czechinvest.org Prague, Central Bohemia Region tûpánská 14, Praha 2 tel.: fax: South Bohemia Region Husova 5, âeské Budûjovice tel.: fax: Volume of investment mediated by CzechInvest in 2007 by region of location Olomouc Region 6 % Moravia-Silesia Region 9 % Zlín Region 1 % Prague 1 % Central Bohemia 12 % South Bohemia 2 % PlzeÀ Region 4 % Karlovy Vary Region 1 % South Moravia Region Holandská 3, Brno tel.: fax: brno@czechinvest.org Ústí Region Mírové nám. 34, Ústí nad Labem tel.: fax: usti@czechinvest.org South Moravia Region 18 % Ústí Region 26 % Vysoãina Region Komenského 31, Jihlava tel.: fax: jihlava@czechinvest.org Vysoãina Region 1 % Pardubice Region 7 % Hradec Králové Region 11 % Liberec Region 2 % Zlínsk kraj Vavreãkova 5262, Zlín tel.: fax: zlin@czechinvest.org

10 8 PRAGUE BASIC ECONOMIC & DEMOGRAPHIC DATA PRAGUE ABOUT REGION The capital of Czech Republic is situated in the middle of Stfiedoãesk kraj ( Central Bohemia Region) which surrounds it completely. On January 1, 2006 the area of Prague amounted to 496 km 2 (0.6 % of Czech Republic territory). The region (kraj) of Prague is smaller then all other Czech regions. Its population was decreasing in the last 15 years but now it is growing again with more people moving to the capital. Population of the metropolitan region on December 31, 2006 reached 1,188,126 inhabitants, i.e % of the population of the Czech Republic. As number of inhabitants is concerned, Prague is number two among regions, second only to Moravskoslezsk kraj (Moravia-Silesia). The Historic Centre of Prague was put on the UNESCO World Heritage List in 1992 as one of the largest urban sanctuaries in the world. There are more then 1,300 historic buildings protected by law as national monuments. The capital s economy is being strongly supported by the mass development of tourism. Prague accommodation services account for half of nights spent by foreign tourists in Czech Republic. The capital is also number one among destinations for all foreign tourists visiting the country (89.8 %). However, some indexes put Prague in an inferior position, e.g. average number of nights spent (by foreign tourists) per capita in this respect Prague is second to the region Karlovy Vary. The Czech capital is still lacking accommodation capacity in the category of five star hotels. Prague is also the seat of several universities. Univerzita Karlova (Universitas Carolina - Charles University) was founded in Virtually all non-technical fields of studies are being taught at its 17 colleges, 14 of which are located in Prague. Other examples of Prague s universities are: âeské vysoké uãení technické (âvut - Czech Technical University), Vysoká kola ekonomická (V E - University of economics) âeská zemûdûlská univerzita (âzu - Czech University of Life Sciences) and Vysoká kola chemicko-technologická (V CHT - Institute of Chemical Technology). Study of the arts is available at Akademie múzick ch umûní (AMU - Academy of Performing Arts), Akademie v tvarn ch umûní (AVU - Academy of Fine Arts) and Vysoká kola umûlecko prûmyslová (V UP - Academy of Arts Architecture and Design). The Police Academy of the Czech Republic is also located in the capital. More then 20 private universities have been founded in Prague since In the area of research and development of new technologies, Prague is the undisputed leader in the country. Nearly all of the institutes of the Academy of Sciences of Czech Republic are seated in Prague. Expenditure on science and research in 2004 per capita in the Prague Region amounted to Kã 11,362 with 2.06 % of employees from the capital working in this field. For several years now, Prague has seen development in the line of retailing, transport and tourism. In the manufacturing industry, production of business machines and computers is in good shape and there is there is starting to be growth in the construction business. Prague, as a seat for business, has its advantageous points: there is a qualified workforce and supplying firms within easy reach. Furthermore, universities and other schooling institutions, as well as development centers, are at hand to provide education for prospective employees. Traditional domains that are well developed in Prague and its vicinity are car manufacturing, pharmaceutical and brewing industries. The strong potential of this region is re-enforced by its well developed structure of roads and railways connected to the European transportation network, well established municipal transport although the road orbital has not been yet completed, and the newly refurbished airport with 50 regular flight connections. There is good accommodation capacity in the capital, many historic buildings and monuments, more than average density of the telephone system network, a population with a high proportion of people in productive age, highly qualified workforce and a high proportion of foreign investments flowing to the city. Suppliers are never far away. Sciences, education, health care and culture in the region are of a very top quality.

11 BASIC ECONOMIC & DEMOGRAPHIC DATA 9 BASIC DATA Land Area km 2 ADMINISTRATIVE BREAKDOWN Number of districts...1 Number of municipalities...1 of that, number of towns...1 POPULATION Total...1,188,126 Percentage in the total population of Czech Republic (%) Population density (persons/km 2 )...2,395 Average work force...720,113 Number of job seekers...21,364 NUMBER OF ECONOMIC UNITS ACCORDING TO PREVAILING ACTIVITY Total...437,882 Industry...35,354 Construction...40,040 Agriculture & forestry...2,964 Services...359,524 REPRESENTATION OF PROFESSIONAL CLASSES (%) Unskilled and unqualified workers Plant and machine operators and assemblers Craft and related trades workers Skilled agricultural and forestry workers Workers in services & sales Administrative Specialists Legislators, senior officials and managers... Armed forces Technical, health care, pedagogical workers & workers in similar sectors of which Technicians in physical, technical & related branches Technicians in biology, health care & agriculture Pedagogical workers Others assistant skilled workers EDUCATION POPULATION MORE THAN 15 YEARS OLD AVERAGE MONTHLY GROSS WAGE 5-YEAR TREND 22.4 % 41.0 % 12.9 % 23.8 % Basic and without education Secondary without GCE Secondary with GCE 28,000 25,000 22,000 19,000 16,000 13,000 CZK/year Czech Republic Region 19,901 15,844 21,073 16,917 22,437 18,035 24,782 19,631 26,160 20,844 GDP BY REGIONS Total Per capita Region mln. CZK mln. EUR CZK EUR Prague 784,492 27, ,815 23,385 Average GDP for Czech regions 230,827 8, ,679 10,400 Share in GDP of the Czech Republic % UNEMPLOYMENT 5-YEAR TREND 10.3 District Czech Republic Average in all regions UNEMPLOYMENT ACCORDING TO SEX STRUCTURE Number Share Women 9, % Men 8, % Total number of job seekers 17,363 FOREIGN DIRECT INVESTMENT Region FDI (mln. CZK) FDI (mln. EUR) Karlovy Vary (min) 16, Prague 801,100 27,619 Prague (max) 801,100 27,619 Average 106,540 3, %/year Original methodology New methodology Source: Czech National Bank, AVERAGE GROSS MONTHLY WAGE 5-YEAR TREND Year Region CZK EUR CZK EUR CZK EUR CZK EUR CZK EUR Prague 19, , , , , Average for Czech Republic 15, , , , , Average for Czech regions 14, , , , ,

12 10 PRAGUE LISTS OF AIRPORTS Specifications Flight time (hrs) Public/Private Civil/Military/Varied International/Intranational Prague Berlin Vienna Kbely Private Military International/Intranational no flights no flights no flights Praha LetÀany Public Civil Intranational no flights no flights no flights Praha Ruzynû Public Civil International/Intranational London 1:40 0:50 0:45 Toãná Public Civil Intranational no flights no flights no flights Source: Ministry of Transport, SCHOOL SYSTEM Dresden (150 km) Ústí nad Labem (80 km) Dresden (150 km) Liberec (105 km) Szczecin (510 km) Number of schools Number of students Number of graduates Secondary schools ,066 17,055 Technical fields 50 17,744 4,238 Economic fields 75 21,575 5,819 ICT fields 20 6,504 1,551 Karlovy Vary (130 km) Nürnberg (320 km) Hamburg (779 km) R6, E48 R7 E55 D8 R10, E65 D11 Hradec Králové (100 km) Warszawa (630 km) Brno (255 km) Wien (400 km) Higher schools 37 6,580 1,734 Technical fields Economic fields 12 2, ICT fields PlzeÀ (90 km) Nürnberg (320 km) München (380 km) E50 D5 Praha R1 D1 E50, E65 Universities ,612 NA Technical fields 7 28,255 NA Economic fields 14 31,390 NA ICT fields 11 11,212 NA Source: Institute for Information on Education, PlzeÀ (114 km) München (440 km) Pfiíbram R4 âeské Budûjovice (169 km) Linz (294 km) Brno (200 km) âeské Budûjovice (150 km) Linz (240 km) Wien (320 km) Motorway Road Railroad Airport - Private Airport - Public TOP 20 COMPANIES RANKED BY REVENUES 2006 Name of company Location www Phone Activity (sector) Revenue 2006 (CZK) Employees âez, a. s. Praha 4 cez@cez.cz Electric services 105,196,000 6,467 RWE Transgas, a.s. Praha 10 martin.chalupsky@rwe-transgas.cz Liquefied petroleum gas, distribution through mains 104,204, âez Prodej, s.r.o. Praha 4 jakub.klima@cez.cz Business services 68,743, Telefónica O 2 Czech Republic, a.s. Praha 4 hana.hejskova@o2.com Telephone communication, except radio 62,458,000 9,816 âeské dráhy, a.s. Praha 1 info@cd.cz Passenger rail transportation 48,051,395 58,823 Shell Czech Republic a.s. Praha 4 paliva@shell.com Gasoline service stations 40,746, âepro, a.s. Praha 7 ceproas@ceproas.cz Service station supplies, petroleum 38,217, âeská poji Èovna a.s. Praha 1 cpas@cpoj.cz Life insurance 37,528,805 5,251 Tesco Stores âr a.s. Praha 10 info@cz.tesco-europe.com Supermarkets, greater than 100,000 square feet 36,484,933 12,700 MAKRO Cash & Carry âr s.r.o Praha 5 marketa.svetlikova@makro.cz Variety store merchandise 35,557,009 3,297 OMV âeská republika, s.r.o. Praha 4 helen.mensdorff@omv.cz Gasoline service stations 35,286, âeská spofiitelna, a.s. Praha 4 csas@csas.cz Savings institutions, except federal 33,824,000 10,856 PCA LOGISTIKA CZ, s.r.o. Praha 4 Durable goods 33,775,220 T-Mobile Czech Republic a.s. Praha 4 info@t-mobile.cz Radiotelephone communication 31,935,472 5 Kaufland âeská republika v.o.s. Praha 4 frank.lehmann@kaufland-online.cz Supermarkets, greater than 100,000 square feet 31,269,840 6,050 METALIMEX a. s. Praha 1 info@metalimex.cz Precious metal mill shapes 28,305, Agip âeská republika, s.r.o. Praha 4 sekretariat@agip.cz Gasoline service stations 27,635, âeské aerolinie a.s. Praha 6 info@csa.cz Air transportation, scheduled 25,424,072 5,442 Komerãní banka, a.s. Praha 1 info@kb.cz National commercial banks 24,352,000 7,552 LUKOIL Czech Republic s.r.o. Praha 5 vit.dostal@eu.lukoil.com Gasoline service stations 23,797, Source: Dun & Bradstreet, spol. s r.o., LABOUR OFFICE City Address Phone Fax Praha DomaÏlická 1139/11, Praha posta@aa.mpsv.cz Praha - v chod nám. Republiky 3/4, Praha posta@py.mpsv.cz Praha - západ Kartouzská 200/4, Praha posta@pz.mpsv.cz

13 11 A-CLASS OFFICE SPACES (PRAGUE) Project District Total size (m 2 )* Completed Comments Amazon Court Prague 8 19,800 2Q 2009 Third part of the project River City Prague. Environmentally friendly technologies, low cost office building. Easy access from the city centre, metro stations Florenc and KfiiÏíkova in walking distance. Andûl Park Prague 5 32,518 1st phase 2004, 2nd phase 2005 Successful office project in Smichov area close to metro station Andûl, Novy Smichov shopping centre and three international hotels nearby. Avenir Business Park Prague 5 28,927 "1st phase 2004, 2nd phase 2005, Phased office development located in walking distance from metro station Nove Butovice, direct connection 3rd phase 2007" to D5 highway leading to Germany. Shopping centre Galerie Nove Butovice nearby. BB Centrum Prague 4 220,000 ongoing phased development since 2002 Very succesful office park, at the moment composed of 17 buildings situated next to D1 highway. City Tower Prague 4 38,353 4Q 2007 The tallest building in the Czech Republic (109 m) offers great visibility, high standard of technology and design, next to metro station Pankrác. Corso Karlín I-III Prague 8 19,878 ongoing phased development since 2001 The phased development located in developing office district of Prague 8. The metro station KfiiÏíkova nearby. âsob Prague 5 37, The seat of âsob headquarters located next to metro station Radlická. Fully occupied by âsob. Danube House - River City Prague Prague 8 19, First phase of succesful River City Project, situated in booming office district of Prague 8. Danube house offers A class office space and unique displacement ventilation system. Two metro stations nearby. Diamond Point Prague 8 18, The project is located in the middle of several main roads junction. Metro station Florenc in walking distance. Hilton hotel accross the street. Explora - Jupiter Prague 5 21,100 Autumn 2008 The phased development located in developing district of Prague 5, well established administrative and residential area. Metro station Nové Butovice next to the project. Gemini Prague 4 33,000 1st phase Dec 2007, 2nd phase 4Q 2008 The project is located in a dynamically developing district of Pankrác, surrounded by a wide range of services. Metro station Pankrác is close to the project. Hadovka Office Park Prague 6 22, The scheme is situated next to Evropská street, direct connection to Prague airport. Tram stop in front of the project. International Business Centre Prague 8 24, Three buildings around a lanscaped yard. Close to Florenc bus and metro stations. Hilton hotel nearby. IPB Vinice Vinohradská Prague 10 22, The office building located close to the metro Stra nická. In the location where residental element prevails. Jungmannova 29 Prague 1 23, The historical building reconstructed for The Prague City Hall. Located in the city center nearby to the metro station MÛstek. Kavãí Hory Prague 4 36,550 Q Extensive office development with the nice view to the Prague Castle. Two metro stations in walking distance. Lighthouse Prague 7 22, Situated in developing location of Prague 7 - Hole ovice, overlooking the banks of Vltava river. Close to a tram stop. Luxembourg Plaza Prague 1 23, Fully occupied office building located next to metro Flora. Close to the city center. Office Park Nové Butovice Prague 5 33,435 ongoing phased development since 2000 The office project which is composed of 4 buildings in developing district of Prague 5. The metro station Nové Butovice is adjacent to the scheme. Opatov Park Prague 4 33,500 1st phase 2008, 2nd phase 2009 Phased development located in walking distance from the metro station Opatov. The first phase is fully leased. Palladium Prague 1 19,500 3Q 2007 Prominent office and retail project in the city centre. Above metro station Námûstí Republiky. Prosek Point Prague 9 25,300 ongoing phased development since 2008 Consists of three separate buildings located next to metro station Prosek at outer city location. The Park Prague 4 108,200 ongoing phased development since 2002 Successful office development with 11 buildings at the moment. Good visibility from D1 highway. T-Mobile Center Prague 4 29, The office project fully occupied by T-Mobile. Located in walking distance from the metro station Roztyly. Trianon Prague 4 18,500 1Q 2009 New office project located close to metro station Budûjovická. *) Total size of office space Source: Cushman & Wakefield, s.r.o., OFFICE AND RETAIL SPACE RENTALS EUR/m 2 /month In demand Other A-Class Office Space (Prague) Shopping Centre Area * City Centre Office space Inner City Outer City Retail space * Rental levels for average 100 m 2 retail unit. The given prices are for rental in the regional city. The prices are listed separately as prices in locations in demand and other locations. Source: Cushman & Wakefield, s.r.o. (A-Class office space and Shopping Centre Area) and European Club of Estate Agencies (other data) Location SELECTED CZECHINVEST PROJECTS IN THE REGION Name Location Investor Country Sector Year Accenture Services, s.r.o. Praha Accenture USA shared services center 2006 CSC Computer Sciences s.r.o. Praha Computer Sciences Corporation USA shared services center 2006 CSC Computer Sciences s.r.o. Praha Computer Sciences Corporation USA IT, software 2006 Deutsche Börse Services s.r.o. Praha Deutsche Börse Germany software development 2006 InBev Business Services Czech s.r.o. Praha InBev Belgium shared services center 2006 JNJ Global Business Services s.r.o. Praha JNJ Global Business Services s.r.o. USA SC 2007 Logos a.s. Praha LOGOS SC Czech Republic IT, software development 2007 Sita Information Networking Computing B.V. - org. sloïka Praha SITA Switzerland IT, software 2006 Skype Czech Republic s.r.o. Praha Skype Technologies Luxembourg software development 2006 NA Praha GE Aviation USA aircraft 2007 Source: CzechInvest,