YOUR IDEAL PLATFORM FOR BUSINESS

SINALOA:QUALIFIED HUMAN RESOURCES

• High Productivity

• Low Rotation Level

• Excellent Labor Environment

•2,700 ,000 Population•More than 55 Universities and specialized schools.•14,000 School Graduates per annum•Abundant, skilled, qualified and competitive labor forceNo strikes in the last 20 years•High Bilingual percentage

SINALOA:Qualified Human Resources

Universities which have electronic careers:

Tecnológico de Culiacán, Tecnológico de Los Mochis, Tecnológico de Mazatlan, Universidad Politécnica de Sinaloa, Tecnológico de Monterrey and the Instituto Tecnológico Superior de Sinaloa.

* The table shows the total of graduated in Sinaloa

Technical schools which have electronic careers:

Icatsin, Cecatis, Conalep and Cetis:

Engine e r’s de gre e s Annua l Gra dua te d

2006 -2007 400

Te chnicia n’s de gre e s Annua l Gra dua t e d

2006 -2007 700

SINALOA:

Annual Employee Turnover Rate:

5.2%

Inflation percentage (YTD):

3.65%

Annual Economic Growth (YTD):

4.11%

*All the shown wages are in Mexican pesos

Job posit ion M onthly average w ageOperators $2,485.00

Technicians $7,067.50Superv isors $11,022.00

Average wages, Manufacture Companies in Sinaloa:

SINALOA:NATURAL RESOURCES & PRIVILEGED LOCATION

Located in Northwestern Mexico, Sinaloa is strategicallypositioned to do business with the US, Canada and Asia.

LOGISTICS DEVELOPMENTInfrastructure in Place

Guasave

Los Mochis

Topolobampo

Mazatlan

Culiacan

Choix

El Rosario

Highway Mzt-Dgo

to be finished 2010

Ra ilroa d Syste m

Chihuahua – Pacifico:

Norte – Sur:

Connects from North of Sinaloa – Topolobampo to Chihuahua and Texas (East U.S)

From Sinaloa to North USA (Arizona ad Cali fornia) and South of Mex ico

Highway SystemInternational Highway from Mexico City to Nogales and Tijuana and a Highway Project from

Mazatlan to Durango that will be finished by 2010

Port System CurrentlyTopolobampo Mazatlan

Channel Access Channel AccessDredged (-12 m) Dredged (-12 m)Width 200 m Width 150 m

Ciaboga 200 m Ciaboga 500 m

General Charge Pier (Lenght) 475 m 826.42 mGeneral Charge

Pier (Lenght)

In ternat ional Airports Los M ochis Culiacan M azat lan

Operations 2007 37154 61380 28900Weekly Flights 546

International DestinationsTucson, Phoenix, Las Vegas, Los Angeles, Houston, Salt

Lake City, Denver, Minneapolis, St. Paul, San Diego, Seatt le, Vancouver with Connection

SINALOA:Services and Costs

b) Electricity supply

Medium tension general rates 2008 (in KW/hr)

*All the shown costs are in Mexican Pesos (MXP)

Ra te Conce pt Ja nua ry Fe brua ry M a rch April M a y June July August

HMC

1 1 1.01 1.02 1.02 1.01 1.01 1.01

1.04 1.02 1.03 1.04 1.03 1.03 1.03 1.04

1.08 1.04 1.05 1.07 1.04 1.05 1.04 1.06

Charge on demand

Charge on point energy

Charge on intermediate and

base energy

SINALOA: Fiscal Benefits

Preferential treatment on acquisitions of industrial land & warehouses.

Substantial tax reductions:

Tax Reduction: Taxes on Public Register and Property Payroll Taxes Real State Acquisitions Property Tax Water and Sewage Tax Construction Licenses

Custom tailored incentives packages.

Permanent support from CIT key-account executives.

EL CIUDADANO RENATO VEGA ALVARADO, Gobernador Constitucional del Estado Libre y Soberano de Sinaloa, a sus habitantes hace saber: Que por el H. Congreso del mismo, se le ha comunicado lo siguiente: El H. Congreso del Estado Libre y Soberano de Sinaloa, representado por su Quinuagésima Quinta Legislatura, ha tenido a bien expedir el siguiente,

DECRETO NÚMERO 166*

LEY DE FOMENTO A LA INVERSIÓN PARA EL DESARROLLO ECONÓMICO

DEL ESTADO DE SINALOA

TÍTULO I DISPOSICIONES GENERALES

ARTÍCULO 1o. Esta Ley es de orden público y de interés social, de observancia general en el Estado de Sinaloa. Su aplicación corresponde al Ejecutivo del Estado por conducto de la Secretaría de Desarrollo Económico y a aquellas instancias previstas en la misma Ley. ARTÍCULO 2o. La presente Ley tiene por objeto impulsar el desarrollo económico del Estado, a través del establecimiento de políticas que estimulen la inversión y el empleo y favorezcan la consolidación de la alianza estratégica entre el Gobierno y los sectores privado y social de Sinaloa. Dentro del objeto de la Ley se buscará cumplir con los siguientes fines:

I. Fomentar la inversión para el desarrollo económico de la Entidad sobre bases sustentables, promoviendo nuevas inversiones y favoreciendo el crecimiento de las ya existentes;

II. Promover la desregulación económica y simplificación administrativa a fin de crear

un entorno altamente favorable y competitivo para impulsar las actividades económicas;

* Publicado en el P.O. No. 143, de 27 de noviembre de 1996.

INVESTMENT PROMOTION LAW FOR THE ECONOMIC DEVELOPMENT OF SINALOA

SINALOA: Incentive TableIncentive Table

COMPANIES INSTALLED IN INDUSTRIAL PARKS AND TURISTIC COMPANIES THAT GENERATE BETWEEN 100 AND 249 PERMANENT JOBS

50Water and Sewage Tax

100Construction Licenses

100Taxes on Public Register and Property

100Real State Acquisitions

809090Property Tax

7090100Payroll Taxes

%%%Contribution Reduction for the Following

6th - 7th Year4th - 5th Year1st - 3rd YearConcepts

Added Value: Win - Win

In Sinaloa we’re looking to work together with the enterprises in order to achieve mutual benefits.

First Employment program. Law of Promotion to the Inversion. Competitive costs. Support in transactions and government's Services. Attention to the investor by a promoter specialized in the sector. Excellent Relation Company - Government. Personalized attention to Investors.

SINALOA:Performance on Scholarship Program

Performance 2007No States Performance

1 San Luis Potosí 143

2 Coahuila 142

3 Michoacan 137

4 Yucatan 137

5 Sinaloa 132

6 Nuevo Leon 132

7 Oaxaca 131

8 Nayarit 129

9 Guerrero 128

10 Baja California Sur 125

11 Distrito Federal 124

12 Veracruz 123

13 Tlaxcala 122

14 Morelos 121

15 Chihuahua 121

16 Queretaro 121

17 Chiapas 121

18 Guanajuato 120

19 Colim a 119

20 Hidalgo 118

21 Tam aulipas 11722 Zacatecas 116

23 Aguascalientes 115

24 Jalisco 115

25 Quintana Roo 114

26 Durango 114

27 Puebla 113

28 Estado de México 111

29 Cam peche 108

30 Sonora 106

31 Tabasco 96

32 Baja California 92

•The Scholarship program (BECATE) is about to support training to satisfy the requirements of the industry by generating new jobs.

In 2005 Sinaloa was at 28th National place in this program.

•Since 2006 Sinaloa has and keep the 5 th place up to 2007.

MIXED TRAININGMIXED TRAINING

SINALOA:National Employment Services

• Unemployed

• Older than 18 years

• Profile required for the speciality

• Do not work or had been working in the company.

• No students

• Without being on an unemployment program before

Characteristics

• Economic aid of 2 minimum wages plus $15 pesos for transport

• 1 to 3 months of seminars depending of speciality.

• Groups of 25 persons

TARGET GROUP :TARGET GROUP :

FOR ALL THESE…SINALOA IS

YOUR IDEAL BUSINESS PLATFORM