ULYANOVSK REGION

1. RUSSIA ULYANOVSK REGION

2. Ulyanovsk Region Economic and Geographic Location Area: 37,000km2 Cities:Ulyanovsk– 650,000 inhabitants,Dimitrovgrad – 130,000 inhabitants. Ulyanovsk region is located on the south-east of European part of Russia. Distance to: Moscow - 875 km Saint-Petersburg– 1575 km Nizhny Novgorod – 440 km Kazan – 210 km Samara – 260 km Perm – 765 km Ulyanovsk isranking the 19th by size in Russia. Optimal haul distance and effective logistics system to any spot in Russia. • Transport: • Two airports of class A are capable to accept any planes • 3 lines of Russian railway departments (Kuibyshevsky, Povolzhsky and Gorkovsky) • Well developed road system • The deep-water cargo port is the most northern port on Volga moorings of which are adapted for servicing river-marine vessels. The 1st place in civil aircraft manufacturingin Russia The 5th place in automobile production rate in Russia

3. Ulyanovsk Region POINTS OF INCREASE • The Biggest Aeronautic Bunch in Russia • JSC «Aviastar – SP» - the biggest aeronautic enterprise in Russia producing civil aircrafts Аn-124 and Тu-204, and it was chosen as the main assembly site of the Conjoint Aeronautic Corporation; • ОJSC «UTYOS» produces aerometric equipment , systems of air signals, star –solarorienting devices, security systems VS, monitoring and checkout devices, etc. • ОJSC «UКBP» works out and produces wide range of aircraft instruments: sensors, signaling devices, magnet and astronomic compasses, systems of electronic induction, etc. • State Scientific Center – Research Institute of Atomic Reactors • 7unique reactors • Development of various research and advanced nuclear facilities • Development and production of a variety of ionizing sources for scientific, industrial and medical purposes

4. Ulyanovsk Region HUMANRESOURSES Ulyanovsk – a large educational and scientific aeronautic center The UlyanovskTechnological Center Branch of All-Russian Institute of Aeronatical materials – working out of new technologies in aeronautics. The UlyanovskResearch Institute of Aeronautical Technology and Industrial Engineering - working out and producing ofequipment for aeronautical engineering. (within a few kilometers of the offered site) The UlyanovskHigh Air Force Academy of Civil Aeronautics – educating of pilots of civil liners. The UlyanovskState Technical University – educating of specialists in aeronautical and helicopter engineering.

5. The investment projects realization system supervised by Governor Functioning of the authorized agency of investment attraction and investment projects supervision (ULYANOVSK REGION DEVELOPMENT CORPORATION) Ulyanovsk Region Arrangements for investors support Progressive legislative background in the field of investments Exemption from property tax for 5 years Exemption from land tax for 5 years Profit tax rate reduction by 4,5 % Decrease in the rent rate for the earth for building to 0,75 % from cadastral cost of the ground area Foundation of the public Agency – «Investment council» The appointment of supervisors responsible for large investment projects among the members of the Ulyanovsk region government Fixed periods of document examination

6. ZAVOLZHYE INDUSTRIAL AREA Ulyanovsk Region There is the industrial zone of "Zavolzhye" with the prepared industrial platforms generated in the territory of the Ulyanovsk Region : Direct connection to federal and regional highways(bypassing the city) Adjacent to the existing industrial area In immediate proximity to the existing comprehensive engineering infrastructure Railway line No special implications in terms of environmental issues ‘Transparent’ status of land plots Supply of engineering infrastructure to the border of industrial area Complete administrative support of the project by the Government of the Ulyanovsk region Construction of Factory of fodder productionfor domestic animals Construction of Brewery Factory

7. Ulyanovsk Region SPECIAL ECONOMIC PORT ZONE BENEFITS FOR SEPZ RESIDENTS CONCEPTION Creation of terminal logistic bunch Building of manufactures on preparation of the goods for sale and transportation (packing, sorting); the simple assembly operations Exchange trade in the goods; wholesale trade in the goods Creation of aircraft maintenance and repairing complex with all kinds of base line aircraft maintenance Creation of upgrading and aircraft coversion manufacturing Secondary activities: handling, shipping maintenance, cargo transportation, profiled consulting and legal support Exemption from customs duties Exemption from VAT Exemption from excise taxes VAT refund for goods/equipment placed in SEPZ Exemption from property tax for 5 years Exemption from land tax for 5 years Profit tax rate reduction by 4%

8. RUSSIA WELLCOME TO ULYANOVSK REGION ! INFRASTRUCTURE LOCATION RUSSIA HUMAN RESOURCES Ulyanovsk One flight hour Two flight hours Preferences for investors HIGH MARKET CAPACITY

9. ТИТУЛЬНЫЙ СЛАЙД WE ARE INVITING TO LONG-TERM AND MUTUALLY PROFITABLECOOPERATION! Ulyanovsk Region Development Corporation 41 Ryleyeva str, Ulyanovsk, Russia 432071 phone/fax +7 8422 444572, 444573 e-mail: info@ulregion.com http://ulregion.com