10 reasons to invest into invest in COAHUILA1. Strategic Location

2. World Class Infrastructure and Access to Global Markets

3. Strong Economy Supported by Skilled and Qualified Workforce

4. Competitive Production Costs

5. Regions Industrially Diversified

6. Opportunities to Speed Innovation

7. High Quality of Life

8. Low Cost of Living

9. Professional and Supportive Government

10. Who is Doing Business in Coahuila

STRATEGICLOCATION

Your best choice: COAHUILA

STATE OF COAHUILA

STATE OF COAHUILA

PacificOcean

AtlanticOceanUNITED STATES OF AMERICA

CANADA

MEXICO

SOUTH AMERICA

Our state, located northeast of Mexico and bordering with United States has become a competitive international investment dLocated northeast ofMexico and bordering with the US

Our State has become a competitive international investment

destination

Your best choice: COAHUILA

WORLD CLASS INFRASTRUCTURE& ACCESS TO GLOBAL MARKETS

512Mi

413Mi347Mi173Mi

189Mi119Mi

173Mi

180Mi

340Mi

143Mi 245Mi

640Mi688Mi

DistanceTable

A region with constant flow ofproducts, services andpeople

Source: Ersys

Access to

Europe

Access to

NorthAmerica

Access toglobal markets

international airports, bridges and sea ports

Manzanillo Lázaro Cárdenas

Access to Asia

Strong highway connectivitythat facilitates commercial flow within

Mexico and the United States

situated in the crossing of thetwo most important federal

highways of Mexico(highways 57 and 40)

Source: Secretariat for Transports and Comunications

privilegedlocation

Sea Ports

International Bridges

San Antonio

Kansas City SouthernFerromex*

Tampico

Altamira

Corpus Christi

Galveston

VeracruzLazaroCardenas

Saltillo

Monclova

Torreon

Piedras Negras

Laredo

Shreveport

Tepic

Mazatlan

Mexico City

El Paso

Ojinaga

Manzanillo

*Note: Ferromex and connections within the US Source: Kansas City Southern, Ferromex and Secretariat of Economic Development

RailroadsThe two railroadcompanies of Mexico

cross through Coahuila.

Dallas – Ft. Worth

San Antonio

Topeka

Sea Ports

International Bridges

World Class Infrastructure

The State has a world class infrastructure with direct influence in the performance and

economic growth of companies

*Note: Coahuila has 3 airports with commercial flights (Monclova, Torreón and Saltillo). Acuña and Piedras Negras’ airport have capacity to receive international flights.Source: Secretariat of Communications and Transport (SCT). Government of Coahuila – Secretariat of Economic Development

5 5,181miles

51,378

More than

More than

1

Industrialparks

Internationalairports*

Internationalborder by railway

of railroad tracks

of roads

88Universities& institutes

of higher education

miles

2

3Internationalborder bridges

SKILLED AND QUALIFIED WORKFORCE

STRONG ECONOMY SUPPORTED BY

Your best choice: COAHUILA

A strong industrial sector makes Coahuila an exceptional opportunity to do business

GDP StructureSelected States of México*

*Note: GDP Average. Data from 2001 to 2006Source: SIREM

Gua

naju

ato

Chi

huah

ua

Jalis

co

San

Lui

s Po

tosí

Nue

vo L

eón

Agu

asca

lient

es

Pue

bla

Que

réta

ro

COAHUILA

3.1%

55.9%

6.5% 6.6% 8.0% 1.7% 6.4% 2.8% 7.2%

60.8% 64.3%66.2% 65.6% 66.3% 62.2% 56.3% 57.3%

27.3% 29.1% 26.4% 32.0% 31.4% 40.9% 35.5%35.2%41.0%

SERVICESECTOR

PRIMARYSECTOR

INDUSTRIALSECTOR

4.0%

• Stable relations between unions andcompanies

• From 1998 to 2006, Coahuila ranked1st place nationally on productivity andcompetitiveness, according to the State’sInstitute of Employment

• Business-oriented labor culture to achieve competitiveness

Ranks 1st placenationally on manufacturing

industry’s productivity

Productivity in Manufacturing Industry* 2006 (USD/Worker/year)

$20,334

$31,106

$16,530

$33,165

$14,554

$17,410

$17,579

$33,215

$40,241

San Luis Potosí

Querétaro

Puebla

Nuevo León

Jalisco

Guanajuato

Chihuahua

Aguascalientes

Coahuila

*Note: Productivity is calculated as total output in the manufacturing industry, divided by the number of workers on the industry. Exchange Rate at $11.00 MXP/USD Source: SIREM, INEGI, Secretariat of Economic Development, Coahuila Institute of Employment.

We have the highest industrial productivity in the country; each worker produces more than USD $40,000 per year…

Source: INEGI. 3° Trim. 2007.

… an also one of the most educated workforce in Mexico

WORKFORCE 2007in the Educational System

Average Number of YearsC

oahu

ila

Agu

asca

lient

es

Chi

huah

ua

Gua

naju

ato

Jalis

co

Nue

vo L

eon

Pue

bla

Que

réta

ro

San

Lui

s

9.8 9.6 9.18.0

9.0 10.17.9 9.1 8.4

OccupationalLevel

Labor CompetitivenessSurvey SEFOMEC 2007 Survey Coparmex 2006 Survey Delphi 2007

Turnover Absenteeism Turnover Absenteeism Turnover Absenteeism

Direct Labor 2.06% 2.35% 2% 1% 1.22% 1.12%

Monthly Labor Turnover and Absenteeism

Source: CCH Unscheduled Absence Survey 2006. Bureau of Labor Statistics. SEFOMEC with information of COPARMEX and Delphi Enterprise.

Coahuila’s labor force is also characterizedby its stability and commitment to theenterprise

0 strikes in the region

In In thethe lastlast 16 16 yearsyears

Turnover:

1.9%

Rates in the US (2006)Absenteeism:

2.5%

PRODUCTION COSTSCOMPETITIVE

Your best choice: COAHUILA

Technician Wage (USD/hr)

MAQUILA STATISTICS 2006*

Direct Labor Wage (USD/hr)

Our labor market provides an important opportunity to reduce costs, our region has the lowest wages amongindustrial states

Notes: *Wages without benefits. Benefits around 20-30% of wages. Exchange rate 10.90 MXP/USD.** Minimum wage for January 2008 for Zone A. Source: INEGI; Secretariat of Economic Development

Coahuila ChihuahuaSonora TamaulipasNuevo Leon Coahuila Chihuahua Sonora Tamaulipas Nuevo Leon

$3.51$4.22

$3.63

$5.44$4.68

$1.72 $1.76 $1.76$1.85

$1.98

4.82 USD / Day**Coahuila’s minimum wage:

DIVERSIFIED

Your best choice: COAHUILA

REGIONS INDUSTRIALLY

Coahuila has a solid and diversified industrial structure …

Source: Secretariat of Economic Development

a. Largest consolidated automotive industry cluster in Mexico

d. Strong plastic industry that supports other regional industries

c. The biggest steel producer in Mexico

e. An electrical and electronics industrythat concentrates companies recognized globally for their competitiveness

b. A metal-mechanic industry fully developed across the state

f. A rapidly growing aerospace industry

g. The fourth biggest mining industry

Source: INEGI / AMIA 2007

Automotive Industry

number oneproducer of vehicles

of national productionThe state has the most importantautomotive cluster in México

Approximately

%26

Coahuila is Mexico’s

AUTOMOTIVE INDUSTRY

Main CompaniesChryslerGeneral MotorsFreightlinerMagna

Johnson ControlsDelphiLearStabilus

more than

480,000vehicles every year

MECHANICMETAL-

more than

of the total

metal-mechanicindustry products

13%

Cifunsa John DeereEstampados Magna DeAceroRassiniCaterpillarTrinity Industries

Lincoln ElectricPace Industries Brown CorporationIndustrias QuestMaterial HandlingDudek and BockNacco

national

Main Companies

We produce

Basic Metal industry and MetalicProducts industrySource: Economic Census 2004 Secretariat of Economic Development.