Promising Sectors: Promising Sectors: Where are the High-Return Where are the High-Return

Deals?Deals?

Rodolfo M. OppenheimerRodolfo M. Oppenheimer

Buenos Aires, September 21, 2005Buenos Aires, September 21, 2005

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Uruguay’s BackgroundUruguay’s Background

Excellent intellectual capacity in the technology Excellent intellectual capacity in the technology area.area.

Background of basic research at educational Background of basic research at educational centers (e.g.: Chemistry, Medicine, Software, centers (e.g.: Chemistry, Medicine, Software, Agriculture, etc.).Agriculture, etc.).

Development of technology center (state policy).Development of technology center (state policy). One of the highest Internet and PC penetration One of the highest Internet and PC penetration

rates in LA.rates in LA. One of the largest exporter of software in Latin One of the largest exporter of software in Latin

America.America. New economic cycle following the financial crisis.New economic cycle following the financial crisis. Very attractive valuations of companies.Very attractive valuations of companies. Difficulties to obtain financing.Difficulties to obtain financing.

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The Uruguayan advantages can be exploited with The Uruguayan advantages can be exploited with attractive risk return potential due to:attractive risk return potential due to:

The evolution of global telecom and technology, permitting The evolution of global telecom and technology, permitting increased access to new markets.increased access to new markets.

The tested business proposition and proven products of a The tested business proposition and proven products of a number of companies that were forged during the 1990’s.number of companies that were forged during the 1990’s.

These companies survived the internet bubble and have These companies survived the internet bubble and have grown strictly with internal sources of capital.grown strictly with internal sources of capital.

Some can capture now clear worldwide trends.Some can capture now clear worldwide trends. The application of new technologies in Uruguay’s traditional The application of new technologies in Uruguay’s traditional

service and agro-industry sectors.service and agro-industry sectors.

Value Creation OpportunityValue Creation Opportunity

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Investment OpportunityInvestment Opportunity

Uruguay isn’t Argentina, Brazil nor Mexico.Uruguay isn’t Argentina, Brazil nor Mexico. Local market very limited:Local market very limited:

No capital markets;No capital markets; No consumption market; and,No consumption market; and, No significant traditional local brands.No significant traditional local brands.

Companies have grown from the lab to products.Companies have grown from the lab to products. From its stability, educational background, From its stability, educational background,

institutional stability, and now with a new institutional stability, and now with a new entrepreneurial class:entrepreneurial class:

Great Opportunity for Niche Great Opportunity for Niche Market VC!!!Market VC!!! 4

Prosperitas Capital PartnersProsperitas Capital Partners

PCP is investing in entrepreneurial teams w/PCP is investing in entrepreneurial teams w/uniqueunique replicablereplicable and and scalablescalable ideas outside of the region ideas outside of the region improving valuation not just by increasing profitability, improving valuation not just by increasing profitability, but by improving its quality:but by improving its quality:

Targeting companies with unique technologies or “know-Targeting companies with unique technologies or “know-hows” in the “high-tech”, services and agro-industries. hows” in the “high-tech”, services and agro-industries.

Supporting with very “Hands-On” management by its team Supporting with very “Hands-On” management by its team members.members.

Applying a strict professional approach combining analytical Applying a strict professional approach combining analytical and problem solving skills with a disciplined, strategically-and problem solving skills with a disciplined, strategically-driven investment process.driven investment process.

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Creating an “Eco-system” Creating an “Eco-system” for Successfor Success

Capital & Mgmt.Capital & Mgmt.

Entrepreneurial SpiritEntrepreneurial Spirit

Scientific Scientific EvolutionEvolution

Market Market RealityReality VALUEVALUE

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Medicaa

TrazabilidadTrazabilidadTrazabilidadTrazabilidad

World TrendsWorld Trends(From Uruguayan Perspective)(From Uruguayan Perspective)

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Technology MapTechnology Map

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Thank You!Thank You!

¿Questions?¿Questions?

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