DP «DES», NOVI SAD

COMPANY PROFILEAGENCY CONTACT:Aleksandar SaricE-Mail:asaric@priv.rsPhone: +381 11 30 20 855Fax: +381 11 30 20 816D P « D E S » , N O V I S A DGENERAL INFORMATIONMain identification data:Full legal name:Socially Owned Enterprise “DES“ vocational rehabilitation, training andemployment of disabledIdentification Number: 08066205Address: Novi Sad, Bogdana Garabantina 3Foundation Year: 1961Director:Radojica Dzaric, dipl.eccContact Person:Managing Director Radojica Dzaric, dipl.eccNumber of Employees: 201Phone number: 021/522-894Fax number: 021/527-995E-mail address:desdir@neobee.netCapital structure (%)Capital Structure% of the total capitalSocially owned 100%State ownedCooperativePrivateCore operating activities- Activity Code: 8899- Activity: not mentioned social work without accommodationDistance from the Company (km) to:BelgradeRegional CenterMain roadPortRailway85 km5 km3 km2 km

Associated Legal Entities:Share of other legal entities in Company’sequityCompany nameForm ofassociation% of sharein totalcapitalShare of the Company in other legal entities’equityCompany name«UIPS»Form ofassociation% of sharein totalcapitalPRODUCTION AND CAPACITYProduction of main products (quantities and value)Product/QuantitiesValue in 000 RSDService Unit 2007 2008 2009 2007 2008 2009CONTAINERS pc 142 205 125 2899 4515 3284FRAME FOREK460 002 / 1WINTERJACKET FORDRIVERSMomma(Instrumentcabinets)PANTS FORDRIVERSpc 8225 12240 10378 7071 8678 6847pc - 274 433 - 945 1494pc - - 1969 - - 18945pc - 548 866 - 764 1208Capacity utilizationMachine(Productionline)UnitInstalledcapacity(invent. num.of vehicles)Realcapacity(num. ofvehicles inuse)2007(u %)2008(u %)1. Machine Shops pc 10000 8000 50 55 602. Surface protection dm 2 1000000 1000000 30 35 403. Locksmithprocessing4. Wood ProcessingProcessing5. Cutting andsewingpc 5000 5000 50 55 60pc 2000 2000 40 45 50pc 10000 10000 50 60 706. Digital Printing page 1000000 800000 45 50 552009(u %)The Company does not own quality assurance certificate ISO 9001.

Main equipment (in 000 RSD)NameCNC hydraulicmachinery forbreaking euro macCNC hydraulicmachinery apcantPlant materialincludingVertical formatizerholz-herKant machineholz.-herTypeand purposePunchingsheetBendingplasticizationCutting platematerialFor bandingEstimated statecorrectcorrectCorrect,the newcorrectCorrectYear ofproductionPurchasevalueAmortizedvalueCurrent value2008. 13,749,770.34 41,681.80 13,708,088.542008. 8,864,526.85 20,283.50 8,844,243.352010. 5,728,791.45 0.00 5,728,791.452007. 1,358,884.65 84,420.70 1,274,463.952007. 1,777,539.58 110,429.64 1,667,109.94TOTAL 31,479,512.88 256,815.64 31,222,697.23Land and BuildingsName and type of land Purpose Surface m 2Building land in B. Garabantina No.3 Construction6,211Building land Futoški put No.6Construction3,225TOTAL LAND 9,436Name and type of building Purpose Surface m 2Building land in B.Garabantina br.3Production facilities and office space5,411Building land in , Futoški put br.5Production facilities and office space1,840TOTAL BUILDING 7,251EcologyThe Company is not in compliance with all ecological regulations, prescribed by the law.REALIZATIONMovement in sale volumeProduct/Value in 000 RSDService 2007 2008 2009CONTAINERS 2899 4515 3284FRAME FOR EK460 7071 8678 6847002 / 1WINTER JACKET- 945 1494FOR DRIVERSMomma (Instrument- - 18945cabinets)PANTS FORDRIVERS- 764 1208TOTAL: 9970 14902 31778

Age structure of employeesAge -25 25-35 35-40 40-45 45-50 50-55 55+Number 16 34 15 29 38 46 23Average salaries (gross and net) in 2007, 2008 and 2009.Year Gross Net2007 25213,51 16307,672008 30623,97 19698,622009 31469,78 20276,56SWOT ANALYSISStrengths:1. Many years of manufacturing experience2. a wide assortment of products3. average degree of technical equipment4. possession of certificates for quality policy5. experience in working with disabled osaobama6. reimbursement of wages for a large number of employees7. possession of office space in the center of Novi SadOpportunities:1. New Legislation2. The restructuring process3. process of ownership transformation4. defining the final status of enterprises for professional rehabilitation of disabled persons5. cooperation with foreign countriesWeaknesses:1. low-grade professional staff and insufficient sense of teamwork2. low productivity3. poor motivation4. insufficient commitment to the organization5. weak organizational Suitability increased workload6. poor run-in in the production process of new productThreats:. large number of domestic competitors in the market as well as experienced foreign companies (very greatthreat to the poor quality imported goods)2. weakening the purchasing power of population3. dinar exchange rate volatility4. unresolved status of the state in the international communit

INCOME STATEMENT (in EUR 000)2007 2008 2009Sale incomes 1,029 1,058 1,158Changes in inventories - 72 145Оther operating income 579 650 292OPERATING INCOMES 1,607 1,780 1,594Costs of goods, material and services 626 643 756Wages, salaries and other personal indemnities 762 1,036 874Depreciation costs 60 41 35Other operating expenses 230 269 193OPERATING PROFIT/ OPERATING LOSS (70) (209) (264)Financial incomes 28 19 9Financial expenses 37 94 58Other incomes 28 319 459Other expenses 29 18 137PROFIT / LOSS FROM REGULAR BUSINESSOPERATIONS BEFORE TAXATION 80 16 8NET PROFIT SUSPENDED - - -NET LOSS SUSPENDED - - -PROFIT / LOSS BEFORE TAXATION 80 16 81 - -Tax expenses for the period 11 -Deferred tax expenses for the period - - -Deferred tax income for the period - - -Personal earnings paid to employer - -NET PROFIT / NET LOSS 80 5 8NET PROFIT DUE TO MINORITY INVESTORS - - -NET PROFIT DUE TO OWNERS OF THE PARENT LEGALENTITY - - -INCOME PER SHAREInitial income per share - - -Decreased income per share - - -

LOCATION OF THE ENTERPRISEDES, Novi SadA) Information contained in this document is based on the data received from the company,and as such has not been verified by the Privatization Agency. Accordingly, the PrivatizationAgency shall have no liability with respect to the accuracy and validity of the informationcontained herein.B) Pursuant to the law, enterprises from the Republic of Serbia were obliged as of 2004 toprepare Financial Statements in accordance with the International Standards of FinancialReports (ISFR).C) For the indicated periods, commercial exchange rate has deviated from the official exchangerate. Commercial exchange rates used for calculating the above stated financial statementswere as follows:Income Statement was calculated by using the median annual exchange rate.2009: 1EUR = 93.9366 RSD; 2008: 1 EUR = 81.4672 RSD; 2007: 1 EUR = 79.9640 RSD.Balance Sheet was calculated by using the exchange rate valid on 31. December of theindicated year.2009: 1 EUR = 95.8888 RSD; 2008: 1 EUR = 88.6010 RSD; 2007: 1 EUR = 79.2362 RSD.