* Where your profits climb to the top. Wilfried Gunka Austrian Business Agency September 2006...

*Where your profits climb to the top

Wilfried GunkaAustrian Business Agency

September 2006

Austria Land of Innovation and

Gateway to Europe´s Growth Markets

Austrian Business Agency

Official inward investment promotion agency

Provides advisory services for foreign investors

legal and tax regulations

location search

27 expert staff

International network

Facts & Figures

Currently more than 4,000 inquiries and 500 projects are being worked on

Results 2005

123 companies

217.9 m Euro investment

1,310 jobs created

Target industries

Automotive

Environmental and renewable engery

IT/Software

Life Sciences

Mechatronic

Tourism

Business-oriented education

8,0

8,0

7,5

7,3

5,7

5,7

5,5

5,0

4,8

4,4

4,2

Singapore 1

Finland 2

Austria 3

Switzerland 6

Netherlands 17

USA 18

France 21

Germany 24

Japan 28

Great Britain 33

Italy 35

Source: World Competitiveness Yearbook 2006

10=Educational system meets the needs of a competitive economy

Austria – Facts 2006

8.2 m. inhabitants

GDP growth: 2.6 %

GDP/capita: 27,800 €

Inflation: 2.3%

Emergence of GDPAgriculture: 1.5%Industry: 30.6Services: 67.8

30,6

29,7

29,2

26,3

26,6

24,4

24,1

22,3

21,7

Austria

Germany

Japan

Switzerland

EU-25

Netherlands

Great Britain

USA

France

Industrialized country

Source: OECD, Eurostat

Production sector as percentage of GDP, 2005

High productivity/Services

107.518

82.068

81.486

77.100

75.264

71.331

63.009

60.938

58.731

58.058

56.092

Luxembourg 1

USA 2

Belgium 3

Italy 4

France 5

Austria 8

Great Britain 14

Netherlands 17

Germany 21

Japan 22

Switzerland 24

Source: World Competitiveness Yearbook 2006

GDP (PPP) per person employed in services 2005

Availability of qualified staff

7,92

7,24

7,17

6,89

6,85

6,79

6,74

6,56

5,21

5,17

Austria 1

Switzerland 2

India 3

USA 8

Germany 11

Netherlands 12

Japan 15

France 20

Italy 37

Great Britain 40

Source: World Competitiveness Yearbook 2006

10=Skilled labor is readily available

Investor friendly tax system

Corporate tax rate: 25%

Special group taxation for corporations

Attractive allowances for R&D

Double taxation treaties

Moderate corporate tax

16

19

19

24

25

25

30

31,5

33

33,8

38,3

40

40,7

Hungary

Poland

Slovakia

Czech Rep.

Austria

Slovenia

UK

Netherlands

Italy

France

Germany

USA

Japan

Quelle: KPMG; Leitner+Leitner

Maximum taxation on profits in % (2006 )

(raise planned to 19% in 2007)

Investment Incentives

New technologies/innovative projects

R&D

SME

Training

Environmental projects

Export financing and guarantees

Establishing a business in Austria

Investor friendly business climate

Representative Office (Liaison Office)to carry out market research

Limited Companyminimum capital: 35,000 €

Moderate office rents

380

407

440

510

548

567

799

1062

299

333

335

Vienna

Warsaw

Prague

Budapest

Rome

Brussels

Munich

Zurich

Frankfurt

Paris

London (City)

Source: CB Richard Ellis

In Euro per m² and year

Austria: The Heart of Europe and Gateway to the East

Ideal access to Central and Eastern European markets

Excellent infrastructure

Austrian service providers´ Central and Eastern European know-how

Neighbouring markets

Germany:81,2 mGDP: 1.7%

Czech Republic (10,3 m)GDP: +5.4%Exports +12.7%

Slovakia (5.4 m)GDP: +6.3%Exports: +13.9%

Hungary (10,1 m)GDP: +4.2%Exports: +10.4%

Liechtenstein: 0,03 m

Switzerland7,1 mBIP: 1.8%

Italy:58,1 mBIP: 1.3%

Slovenia (2,0 m)GDP: +4.0%Exports: +10.0% Croatia (4,5 m)

GDP: +4.4%Exports: +10.1%

Source: Bank Austria, European Commission

forecast 2006

Austria: 8 millionGDP: 2.6%

Extensive Know-how

Banks

Management consultants

Tax experts

Advertising agencies

Logistics

Economic and Social Stability

Predictable legal system

High security

Excellent labor relations

Euro zone

High quality of life

9,58

9,41

9,41

8,73

8,42

8,29

8,20

7,14

6,90

6,73

Austria 1

Iceland 2

Switzerland 2

Germany 10

Netherlands 14

USA 17

France 18

UK 20

Japan 25

Italy 26

Source: World Competitiveness Yearbook 2006

Scale: 1-10

Regional Headquarters

More than 300 international companies have their CEE headquarters in Austria – for example:

Bank of Tokyo-Mitsubishi BenQ Mobile CEECanon Coca-ColaFedEx FlextronicsGoodyear JVC InternationalKraft Foods LogitechMazda Mc Donald´sMCI Worldcom MinoltaOtis PanasonicSamsung Siemens

Austria

One of the most competitive business locations in Europe

High stability, low risk

Flexible, qualified and motivated workforce

Benefit from dynamic, expanding markets

Reasonable costs

Austrian Business Agency

In China

Ms. Jenny JiaInvestment Manager

Austrian Consulate General Shanghai

E-mail: shanghai@austriantrade.org

In Austria

Mr. Wilfried GunkaInternational Director

E-mail: w.gunka@aba.gv.at

Ms. Daniela DerkaExecutive Assistant

E-mail: d.derka@aba.gv.at

www.aba.gv.at