Proposal for a corporate location in the

JSC DITTON DRIVING CHAIN FACTORY

Lāčplēša iela 10, Daugavpils, LV-5401. Tel. +371 654 07444, Fax +371 654 07445 E-mail: info@dittongroup.lv

Daugavpils, Latvija, LV-5400

Daugavpils welcome you!

Daugavpils - the capital of Latgale. Latgale - part of Latvia and the Euroregion.

TEN-T in the structure of the Eurasian transport corridor.

Latgale and Vidzeme regions, Pskov and Leningrad regions occupy a strategic position, being in the region of the Northern axis "that offers development opportunities, thanks to its geographical position and finding the relative locations of investment in transport corridors TEN-T, as well as through access to the Baltic Sea ports.TEN-T - Trans-European Networks are an initiative of the European Community, which aims to facilitate the creation and development of the domestic market and to strengthen economic and social cohesion. Transport routes are included in the network TEN-T, are considered the main route to the EU

Established that the major traffic flows passing through the region in the directions:Smolensk - Vitebsk - Daugavpils - Jekabpils-RigaMoscow Rezekne - Jekabpils - RigaWarsaw - Kaunas, Daugavpils - Rezekne - St. Pitersburg

At the crossroads of these strategically important areas of cargo flows between Russia and Europe, in the border region is formedSmall multi modal transport Eastern European triangle, finding which gives companies - huge opportunities for residents.

Small triangle in the structure of Eastern European TEN-T

2. With well-developed infrastructure for industrial development based on technology

adoption and productivity;

2. With well-developed infrastructure for industrial development based on technology

adoption and productivity;

1. With the geographical location in the global movement of goods;1. With the geographical location in the global movement of goods;

Conclusions

Using this potential gives companies wishing to enter the markets of the EU,

Russia and the CIS countries, a huge competitive advantage.

Using this potential gives companies wishing to enter the markets of the EU,

Russia and the CIS countries, a huge competitive advantage.

3. With the availability of cheap skilled labor and of their preparation;3. With the availability of cheap skilled labor and of their preparation;

4. With the availability of funding and conditions for investment;4. With the availability of funding and conditions for investment;

The economic potential of the region is directly connected:

Location on the border between the EU and Russia suggests opportunities for companies resident in the EU, to establish their distribution centers for import into Russia and take advantage of the tax.

An economic and geographic advantages

And as for companies doing international trade between Asia and Europe, the opportunities for customs and tax regulations.

EU BORDER

An economic and geographic advantages

Location on the border between the EU and Russia makes it possible for companies not resident in the EU to deploy in the region of production facilities for final assembly, benefiting from favorable customs regime.

An economic and geographic advantages

Tradeoffs to business success.

JSC DITTON DRIVING CHAIN FACTORY

JSC Ditton driving chain factory

Year of establishment: 1949Location Daugavpils street Vishki 17Daugavpils Industrial ZoneIndustry: machine building and metalworkingAverage number of employees: 3403,5 km from the center of the city of Daugavpils4 km from the railway station "Daugavpils Freight Station"

JSC Latgales Invest Holding

The company operates 100% of the company METEOR KETTENFABRIK GmbHNürnberger Straße 236456 Barchfeld / Werra. GermanyThe company produces the drive circuit for a narrow segment of the consumer markets of Europe, Africa, America,From 2006 to 2008. company reinvests profits in the modernization of production.

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USA & CANADA

GermanyItalyFrancePolandHungary

RussiaBelorussiaUkraineKazakhstanUzbekistanRomania

VIETNAM

Our products are used

SwedenDenmarkSpainFinlandLithuania

Kazakhstan

Мы находимся во втором потребительском сегменте цена-качество в общем объеме производства, составляющего 800-850 milj.USD (т.е.50% мирового рынка) среди таких компаний как:REX, A&S, WIPPERMANNSEDIS, REGINA, EUROCHAIN, DPR занимает 12%

The quality of our products confirm Certificates

PROPOSALS

Lāčplēša iela 10, Daugavpils, LV-5401. Tel. +371 654 07444, Fax +371 654 07445 E-mail: info@dittongroup.lv

SIA Ditton Chain (new project Ltd.)

•SIA Ditton Chain – company created on the basis of JSC Ditton Driving Chain Factory for implementation of new production technologies that assist to:

• expenses optimization,

• quality providing,

• development of new products ,

• increase of competitive ability

• openingup new markets.

Planned investments :

10 000 mln. EUR

Realization terms: 2009-2010.

Investors:

Ditton Bank 5,7 mln.EUR

ERAF return of investments in grant in 4.3 mln.EUR

“ITP Ditton” Project of development of industrially technological park on the

basis of JSC ‘’Ditton Driving Chain Factory’’

• On freed territories and production squares can be placed new enterprises aimed at high technological production. Investments in reconctruction will be: ~12 mln.EUR

There are agreements to plance in park:

Production of plastic products - 4-5 mln. EUR ;On the basis of JSC Ditton Driving Chain Factory will be founded companies:

For assembly of units and machine aggregates;

Production of instruments, machine tools, robotics.

Planned investments in period 2010-2017 will be : 25 mln. EUR

Besides main activity JSC Ditton Driving Chain Factory will realize :

• - maintenance and development of park;• - forming of necessary conditions for activity of park

residents.• - forming of competitive advantages for the account

of using of strategic resources of region.

ITP Ditton business model: development of innovation companies and real estate managing

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Managing company «ITP Ditton management »

Business «Innovation projects»

Business «Real estate»

Business stabilization

Projects in enter Businesses

for sell

Innovation projects

Investments in infrastructure

Dividend income

Construction and managing of different real estate objects

Income from business sell

Income from business selling

Strategic investorReal estate owners (JSC

Ditton Driving Chain Factory, JSC Latgales

Invest Holding)

Land and real estateInvestments

Business evaluation.Projects evaluation

Office real estate Commerical real estate

Service infrastructure

Social infrastructure

Production premises

Warehouse premises

EU Founds

Plan Plant JSC DPR

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1

3

4 6

51. A / S DPR Višķu 17 - 139,457 m ² 2. The production building - Square - 63 000 m ² - Free area - 33 000 m ² 3. AO "Latgales Invest Holding" Višķu 17A - 58 012 m ² 4. Administrative body - Total area - 14 400 m ² - Free area - 8,000 m ² 5. Ancillary buildings (the Corps of Engineers          garages, compressor, flotation plant warehouses, transport station, etc.) - Total area - 13 700 m ² - Free area - 8,000 m ² 6. Wastewater Treatment Plant - The capacity of sewage treatment - 450 m ³ / day reserve the use of - 225 m ³ / day 7. Railway line. Normal wear and tear of buildings - no more than 30% 

Infrastructure and utilitiesInternal transport roads and parking places are paved,Pollution are not ascertained,Free area of the buildings have landscaping,The territory is fully secured networks:drinking and industrial water supply

economic - and fecalstorm sewer

summed up the natural gas

electric power supply

link

Premises for the production of

1Building № 1 free areas of main body

Area of 30,400 m2Height 12 mThe building is supplied with the engineering services and computer networksAccess roads: railway and road transport

Equipped with ventilation systems and compressed air supply.

Equipped office, household and warehouse

Premises for the production of

4Building № 4 4-storey building for industrial, laboratory and

domestic needs.Area 8,000 m2Floor height of 3 mThe building is supplied with the engineering services and computer networks.Access roads: for vehicles

The building has its own heating unit, operating on natural gas

Premises for the production of

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The building number 9Area of 1300 m2Height 7,2 mThe building is supplied with the engineering services and computer networks.Access roads: railway and road transport

Premises for the production of

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Building № 6 Bonded WarehouseArea 1,832 m2Floor height 10.35 mOpen area № 13 area of 3000m2The building is supplied with the engineering services and computer networks.Access roads: for vehicles

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Premises for the production of

9Building № 14 Administrative nine storey building. proposed to

accommodate offices, laboratories, manufacturing - 2 floors.Area of 4500 m2Floor height 3,0 mThe building is supplied with the engineering services and computer networks.Access roads: for vehicles

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№ 14. Free area under construction - 30 000 m2

Premises for the production of

ABOUT US

Managing structure of administration team:

Managing structure of administration team:

Managing structure of administration team:

CONTACT

JSC DITTON DRIVING CHAIN FACTORY

INGA GOLDBERGAVP JSC DITTON DRIVING CHAIN

FACTORY Phone.:+371 65402338

Fax: +371 65445101

GSM:+371 2955008

SKYPE: ingagoldberga

E-mail: inga_gold@inbox.lv

Adders: Višķū iela 17, Daugavpils, Latvia

ALEXANDR MISYUKOVETCProjects coordinator

Phone.:+371 65402332

Fax: +371 6545101

GSM:+371 29577870

SKYPE:alex.mng28

E-mail: alex.mng28@gmail.com

Adders: Višķū iela 17, Daugavpils, Latvia

Is a trustworthy partner!Let’s unite our efforts in realization of our offers!

Together we will achive more!

THANK YOU and

SUCCESS in initiation!