Among its many activities in Bosnia and Herzegovina, the United States Agency for International Development (USAID)

is currently supporting the Privatization of Strategic Enterprises in Bosnia and Herzegovina. In this capacity, USAID through International Business & Technical Consultants Inc. (IBTCI) is providing technical assistance to Privatization Agencies in the Federation of BiH, and the Privatization Directorate in the Republika Srpska in the privatization of the enterprises presented in this brochure.

"Bosnia and Herzegovina has changed; because it has changed, I believe it is entitled to a fresh look from investors. You will not find everything to your liking. There is still a great deal to be done. But I can say with confidence that Bosnia and Herzegovina justifies very detailed and extensive research. There are investment opportunities arising from the particular phase of transition in which this country finds itself. Labour costs, rental costs and taxes remain extraordinarily competitive; infrastructure is improving noticeably month by month; and the governments, from the state down to the municipalities, are starting to think in terms of what incoming businesses need. This is fertile ground for economic success. BiH is, indisputably, open for business." Excerpt from the speech by the High Representative Paddy Ashdown Economist Conference, Sarajevo, September 22, 2003

Reasons to invest in Bosnia and Herzegovina

The Investment Opportunity
The privatization of state-owned property offers investment opportunities. In spite of the drawbacks, the interest of foreign investors is picking up. Positive factors include a stable currency with low inflation. The proposed reduction of trade barriers among Balkan countries is also encouraging, and Bosnia & Herzegovina, with its low labor costs, could become an attractive regional export base. There are many reasons to invest in Bosnia and Herzegovina, some of which are: BiH has a very favorable geographic position - it is situated on the crossroads between Western Europe and the Middle-East High potential for economic growth in Central and Eastern Europe Stable currency - the Convertible Mark - KM with fixed exchange rate against the Euro Lowest inflation rate in Central and Eastern Europe Opportunities for growth in tourism Protection of foreign investments - Bosnia and Herzegovina is a member of Multilateral Investment Guarantee Agency (MIGA) Economy open towards the European Union and neighboring countries Educated, highly skilled and motivated labor force Competitive labor costs Natural resourses Reformed banking system with a significant number of foreign banks Law on Foreign Investments regulating the policy and principles of foreign investments Foreign investors have equal rights to domestic ones Rights of foreign investors are particularly protected (tax holiday for 5 years) Several major foreign investors listed by the value of their investments are given in the table below:

PRIVATIZATION SUCCESS STORIES

The following enterprises were the benefactors of USAID technical assistance during the process of their privatization

Standard, Sarajevo Furniture Factory

Company Profile Standard is the largest furniture producer in Bosnia and Herzegovina and is well located in the industrial zone of Sarajevo. Standard produces furniture both for the household and office markets. Standard has two groups of products: Case products accounting for about two-thirds of sales, and upholstered products accounting for one-third of sales. Standard has strengthened both its design and marketing capabilities in recent years, resulting in many new products and now has a broad, modern product range. Improvements since the privatization of the company Germany's Schieder Gruppe, which owns 42 furniture production facilities in Europe, acquired 51.53% (book value KM 9,947,976) of the Standard capital owned by the state in October 2001. Per the contractual agreement and a three-year investment plan, Schieder Gruppe is to invest KM 4 million, keep all the existing workforce and employ 40 new workers. Schieder Gruppe kept all of the 285 existing workers, has employed 28 new workers and has implemented 54% of the agreed investments so far. Two years following the privatization, Standard has doubled its pre-privatization production, 75% of which is exported. The company is still running at a loss, but this is a planned and controlled loss due to 10% and 9% amortization rates for the years 2002 and 2003. The year 2004 is expected to be not only break even, but a profitable business year. During 2002 and 2003, Standard has developed several new products: German chairs, upholstered chairs and tables made from thick wood boards.

FOGS, Sarajevo Leather Footwear Manufacturer

Fabrika Obuce i Galanterije d.j.l. Sarajevo (FOGS) commenced operations in 1946 as a leather products factory. In 1957 the factory started producing plastic products under the name of Shoe Factory 'Novitet'. In 1962 the company shifted production from plastic products to leather footwear. From 1966 to 1978 FOGS operated as a subsidiary of KTK Visoko, the largest leather goods producer in B&H. In 1978 FOGS became an independent social enterprise owned by the state. Prior to the 1991-1996 war in BiH, revenues reached KM 12 million annually with 90 percent of sales going to exports. Export markets included the European Community, former Soviet Union and the United States. During the war FOGS operated without interruption, utilizing about 20 percent of capacity producing footwear for humanitarian organizations and the BiH military. In 1999, FOGS operated at 70% of capacity, realizing revenue of KM 7.5 million. Improvements since the privatization of the company In April 2001, Slovenian company Alpina acquired 67% (book value KM 6,843,772) of the FOGS capital owned by the state. Per the contractual agreement, Alpina took on KM 3 million of the FOGS debt and agreed to invest in the next three years KM 1.5 million and keep 305 workers. Alpina employed an additional 22 workers and increased production from 300,000 pre-privatization level to 350,000 pairs of shoes per year. In order to become more efficient, FOGS also went through considerable technological and organizational transformation.

Vitaminka, Banja Luka Food Processing Company

Company Profile Vitaminka produces processed fruits and vegetables, juices and spirits. It started its operations in 1947 as a small workshop. Over the years, Vitaminka has established its name in the food industry internationally as well as in the former Yugoslavia. Until 1987, Vitaminka was a part of IPK Bosanska Krajina, an agricultural state-owned holding company, and since then it has been an independent entity. Vitaminka produces 136 different kinds of products in four production halls (juice line, concentrate line; jams, marmalades and vegetable processing line; and cold storage). Fifty percent of its products are fruit-based products (production of juices, jams, spirits etc), and other 50% are vegetable-based products. In 1989 and 1990, average yearly production represented 18,000 tons. The beginning of the 1980s are considered to be peak years when Vitaminka produced 27,000 tons of produce, most of which was exported abroad. Improvements since the privatization of the company In January 2002, Swiss company Kreis-Industriehandel AG purchased 66.35% of Vitaminka capital, that was owned by the state, for KM 250,000. Per contractual agreement and investment plan, Kreis-Industriehandel AG took over KM 5 million of Vitaminka debts, with a plan to invest KM 10.15 million within three years; in year one KM 2.4 million, year two KM 3.75 million and year three KM 4 million. Kreis-Industriehandel AG invested in the first year KM 3.3 million, currently plans over KM 4 million investment in new equipment and has kept all of the 205 workers and employed an additional 15, as well as some 200 seasonal workers. Since the privatization, Vitaminka purchased some 8,000 tons of raw produce from local farmers and co-ops, indirectly employing several hundred rural households. Vitaminka's production volume prior to privatization was 4,000 tons a year, and now, for two consecutive years since the privatization, production volume has increased to 8,000 tons a year. Revenues for 2002 were KM 16 million, resulting in minimal loss, and revenues for 2003 are expected to be around KM 20 million, making it a profitable business year. At the moment, Vitaminka is working on development of new products, getting back to pre-war levels of production, improving design, packaging and products promotion.

Fruktona, Banja Luka Producer of non-alcoholic and alcoholic beverages

Company Profile Fruktona was founded in 1958, initially as a small producer for the local market. In 1967, the company began producing carbonated drinks and fruit juices, and made significant capital investments to extend its coverage of the former Yugoslav market. In 1974, Fruktona signed its first ten-year exclusive agreement with Pepsico Inc. to produce and distribute Pepsi products in Bosnia and Herzegovina. At this time, the company also became part of an agro-industrial holding company "Bosanska Krajina." In 1991, the company registered as an independent company MP "Bosanka" d.d. By this time, Pepsi products represented the bulk of the company's sales. While the war in Bosnia and Herzegovina (1992-1996) did not damage any of the Fruktona's buildings and equipment, it significantly impacted the company's business: production and sales declined (in 1996, only 15.6% of the pre-war production was realized); equipment was not adequately maintained. Furthermore, from 1992-1996 regular communication with Pepsico broke down, though reestablished in 1996, with contracts extended on an annual basis, but relating only to the Republika Srpska market. Improvements since the privatization of the company In June 2003, Swiss company Kreis-Industriehandel AG, the investor that is also majority shareholder in Vitaminka, purchased 51.09% of Fruktona capital, that was owned by the state, for KM 25,000, taking on over KM 13 million of Fruktona's debts. Although, contractually, Kreis-Industriehandel AG is not obliged to make any further investments in Fruktona, in order to keep the Pepsi licence, Kreis-Industriehandel AG is expected to invest some KM 3-4 million in Fruktona in the near future. By contract, Kreis-Industriehandel AG is to keep 150 workers and in the next couple of years employ an additional 20. It was also agreed that Kreis-Industriehandel AG will arrange for pension and severance packages for 40 workers. According to Kreis-Industriehandel AG five-year business plan, the future is bright for Fruktona. Fruktona's production capacity is expected to be increased even over pre-war levels, and Fruktona's leading market position is expected to be regained once again.

LATEST DEVELOPMENT On November 10, 2003, the Director of the Sarajevo Cantonal Privatization Agency, as Seller, and representatives of Alpha Baumanagement GmbH (Austria), as Buyer, executed the Sale-Purchase Agreement for 100% of the capital of the Holiday Inn Sarajevo. The tender was launched on May 30, 2003, and expired on August 29, 2003. The sole bid, 44 million KM ($26 million), was submitted by Alpha Baumanagement GmbH, which was announced as winner of the bid in mid-September. Closing of the transaction is scheduled for mid-December 2003.

Hospitality
100% of the Holiday Inn Hotel capital, owned by the state, is offered for sale
The Holiday Inn Hotel Sarajevo is an international class hotel, which has been awarded five stars by local authorities. It opened shortly before the winter Olympic Games of 1984. The hotel has 354 keys (338 rooms 52 single and 286 double, and 16 suites eight of them being two-bedroom suites, six of them threebedroom suites and two five-bedroom suites), an atrium style lobby, three restaurants, a pizzeria, coffee shop, lobby bar, extensive conference facilities with booths for simultaneous translation for up to 500 guests, discotheque, fitness center, business center, garage, parking, fountain and several business premises of various dimensions. The hotel is the most prominent in the country. It is situated in front of the Parliament Building and close to the old city and the railway and bus station. The Holiday Inn Hotel is located on the main avenue of Sarajevo. It is easily accessible from the international airport (10 km). Public transportation runs by the hotel and there is a taxi stand at the entrance. The hotel is Sarajevos main hotel and the venue for most international conferences and official visits to the State of Bosnia and Herzegovina. It is the largest hotel in Sarajevo with 20.7% of the present available hotel beds in the Canton Sarajevo that have been registered in the Cantonal Chamber of Commerce. The Holiday Inn Hotel share within the competitive set is 28% of the total number of beds. The hotel operated continuously even during the 1992 1995 war in Bosnia and Herzegovina. One of the most successful years was 1996 when revenues reached KM 21.0 million. Hotel Occupancy Occupancy in the period from 1998 to 2001 averaged 17.6%. The occupancy in 2002 increased significantly reaching 45.9%, in part because the number of rooms taken as a basis for the calculation was

reduced to 222 rooms (I VII floor), in comparison to the total number of rooms 354, which used to be the basis for the calculation in the previous years. The top three floors (VIII X), i.e. 132 rooms, have been leased as business premises. Sarajevo Canton Years prior to the war years show Sarajevo as a regional tourism hub. The best year was 1987 with 608,000 visitors or 763,648 bed nights. While the majority of visitors were from the former Yugoslav republics, 137,000 visitors came from abroad. Not only was Sarajevo an international destination, it was also part of a tourist circuit which included tours to and from Dubrovnik and other costal cities in Croatia, Montenegro, Mostar, Medjugorje (center of pilgrimage) and other regional cities. These tours are starting once again, especially with the recent revival of Dubrovnik as the main regional tourist center in this part of Europe. In 1997, 40,565 visitors were reported. In 2002, the number of the reported visitors was 80,269, out of which 54,866 foreign and 25,403 domestic visitors, which represents an increase of 10.7% in comparison to the year 2001. Should the 2002 tendency continue, the number of visitors is now estimated to reach 90,000 by the end of 2003. Sarajevo Canton has an area of 1,277 km2 with approximately 400,000 inhabitants. As the capital of Bosnia and Herzegovina, Sarajevo is the political, administrative, economic and cultural center of the country. The city is easily accessible from Europe by road, air (Munich, Vienna, Zurich, Ljubljana, Zagreb, Belgrade) and by bus and rail. Telecommunications connections are good. Sarajevo Canton has many tourist attractions. It has an architectural and cultural heritage dating from the Austro-Hungarian and Turkish Empires embellished with its own Bosnian history, culture and development. In the old town, one can feel the true oriental spirit. Theatres, museums, galleries and other cultural institutions contribute to the richness and diversity of this capital city. Sarajevo is a bustling city, with open-air cafes, bars, restaurants, churches, markets, minarets and mosques: a unique microcosm of western and eastern cultures. Since the end of the recent war, Sarajevo has once again become the host city for international scientific and professional conferences and seminars, symposiums and gatherings. Many of these are being held at the Holiday Inn Hotel conference center. Investment Opportunity An investment in the Holiday Inn Hotel offers the following advantages to an investor: The acquisition of the prime hotel in Sarajevo and Bosnia and Herzegovina The hotel is one of the most prominent in the country situated in front of the Parliament Building and close to the old city and the railway and bus station Holiday Inn Hotel is the prime location for international meetings and the hotel of choice for foreign embassies. It also has far and away the finest meeting facilities By acquiring this hotel the purchaser will own and control 28% of beds stock of the main hotel market in the Sarajevo Canton The hotel is in good physical condition. The renovation of 170 rooms and 16 suites situated on the first five floors (I V) was recently completed. It included renovation of the bathrooms and installation of air-conditioning in the rooms and suites The casino is ready to be utilized, and the discotheque has recently been refurbished and opened for business The land surrounding the hotel, which is the property of the hotel, has potential for future development There are many opportunities for enhanced sales and profit The staff is experienced, trained and highly skilled in organization of seminars, conferences, gatherings and various events

livnica sarajevo

Steel Casting Foundry

67% of the Energoinvest Livnica capital, owned by the state, is offered for sale
The Foundry was founded in 1950 and is situated on 36,000 m2 of land, five kilometers away from the Sarajevo City Center and six kilometers away from the Sarajevo International Airport. The closest sea port is Plo~e in Croatia on the Adriatic Sea, 198 km from Sarajevo. Industrial rail track goes trough the factory yard. Customs terminal is situated one kilometer from the factory. During its longstanding business conduct the Foundry achieved remarkable results, and in 1990 it had one thousand employees and granted scholarships to more than one hundred students. Almost the entire production was sold on the former Soviet Union and U.S. markets. Business-production buildings and facilities, totaling 16,500 m2, and located at a single location are mostly functional. Generally, the buildings are in good condition, needing some smaller roof repairs and repair of the heating system. The Headquarters building, 733 m2 in size, is functional, except for the second floor that is yet to be finished and equipped. The Foundry is fully equipped for processing almost all products from its production program. Some of the typical products of the Foundry include: components for armatures equipment, machine parts and industrial production equipment, covers and grates of sewage systems, pipe and pipe fittings, parts for melting and mining industry, castings for general engineering industry, stoves and fireplaces inserts, automotive components, electrical components, components for cement, petrochemical and chemical industry and components for power plants. Energoinvest Livnica operates on the world market and has only a few domestic customers. A large percentage of company sales goes through other Energoinvest companies, manufacturers of final products. Before the Bosnian war, 70% of the total production was exported to the former USSR, while 20% was sold on the U.S. market. The company was on the vendor list of well-known international oil companies like Texaco, Chevron, British Petroleum, Exxon, etc. In the postwar period, various companies from USA, Russian Federation, Germany, Croatia, Italy, Slovenia, Iran, Singapore, Norway and other countries showed their interest in the Foundry's production program. The Foundry produces castings used in the following industry branches: Process equipment Components for petrochemical and chemical industry Components for power plants Machine parts and industrial equipment Railroad building Mining Automotive components Food and construction industry Shipbuilding Water supply The Foundry has the following main product lines: Production of steel castings of the following qualities: carbon casting-construction casting alloy-hard casting-steel for improvement highly alloyed-non rusty-fireproof steel for specified purpose

 Molding is being carried out in molding rooms, whose dimensions vary between 650x500/250/250 mm and 1020x800/450/450 mm for mechanical molding, while manual molding is being carried out in the molding rooms whose dimensions may go up to 2200 x 1950 x 880/1000 mm. Casting weight ranges from 0.5 to 2,000 kg Malleable Iron Casting whose weight ranges from 0.5 to 500 kg Services: Thermal processing - gloving and tempering Testing of quality control of the materials whose main component is either iron, aluminum or copper and certifying them in accordance with the appropriate standards: - Metallographic analysis - Spectral and classical chemical method - Mechanical testing on high and low temperatures - Testing of castings by methods without blasting Model making according to the delivered documentation or sample (metal, wooden, plastic and combination of these materials). Ductile iron casting is a new product line, which was developed in the year 2000. The Company commenced developing this type of casting to meet the altered market requirements Energoinvest Livnica is one of the larger steel casting foundries in the Balkans. There is one large foundry in Belgrade, Serbia and Montenegro, but it is specialized for automobile industry. Therefore, it does not represent a serious competitor to the Foundry. There is another Foundry in Tuzla that is also producing steel castings, but the capacity of that foundry is smaller then the Energoinvest Livnica, Sarajevo. The quality of casting produced in Sarajevo matches top quality in terms of steel castings production in Europe.

The Investment Opportunity An investment in Energoinvest Livnica offers the following key advantages: Foundry Sarajevo is one of the rare companies in Bosnia and Herzegovina that deals with steel castings, particularly valves intended for petrochemical industry, processed equipment, wagon construction, food and construction industries Suitable location, in the western part of Sarajevo, with its own railway track Foundry preserved production know-how of complex castings for nuclear valves During the war period, Foundry obtained particularly significant experience in military production The capacities of Livnica are capable of meeting market needs The Foundry managed to keep the majority of its highly skilled and trained staff It is capable and willing to start processing new products/technologies/metals There are many opportunities for final processing because one such processor is situated in the Factory area (the company "Armature")

Dairy
67% of the Milcos capital, owned by the state, is offered for sale
Milco's has the largest milk line capacity in Bosnia and Herzegovina of approximately 100,000 liters per one eight-hour shift, while the ice cream line has the capacity of 6,000 kg per one shift. With a wide range of products Milco's used to cover the biggest part of the market of Bosnia and Herzegovina. Milco's facilities consist of the main production and administration building and several warehouses. These buildings are located in an industrial zone in Sarajevo, on 14,413 m2 compound. All facilities are owned by Milco's. Milco's product lines are: pasteurized milk products fermented products: yogurt, kefir and sour cream ice cream products cottage cheese butter Markets Milco's prime market is Sarajevo Canton. The Sarajevo Canton has an area of 1,277 km2 with approximately 400,000 inhabitants. As the capital of Bosnia and Herzegovina, Sarajevo is the political, administrative, economic and cultural center of the country. The city is easily accessible from Europe by air (Munich, Vienna, Zurich, Ljubljana, Zagreb and Belgrade) and by bus and rail. Since 1996, the number of residents gradually increased. Should the projected population levels continue to rise by 2.5% per annum in the upcoming years, we can expect Sarajevo population to reach 540,000 inhabitants by 2015. Nowadays, approximately 10,000 15,000 expatriates live and work in Sarajevo and their presence is important to the Canton economy. The expatriate population consists of many international community employees and other international organizations in more than thirty missions. The Diplomatic Corps is significant: 39 embassies, 6 consulates, and 33 non-residential embassies. Milco's has good potential for geographic expansion outside its current prime target market to the entire BiH market. In the Federation of Bosnia and Herzegovina, Tuzla and Mostar represent good future potential along with the Middle-Bosnia Canton. In Republika Srpska entity, Milco's' primary interest could be focused on the regions of Eastern Bosnia and Eastern Herzegovina. Furthermore,the Republika Srpska also has several potential markets in the larger cities. In terms of ice cream, Banja Luka is certainly the largest region where Milco's could focus its attention. With necessary investments in the production equipment and marketing activities, while using its historical domestic position as a base, Milco's' strategic goal would be the export of its products to the foreign markets. Raw Material Base Milco's traditionally has bought raw cow milk from private farmers, state farms and other dairies. The main supplier of Milco's used to be the state-owned farm in Butmir (10 km away from the Dairy). Currently, the farm has around 500 milking cows producing daily between 8,000 and 10,000 liters of raw milk. Apart from the big farms in Butmir and Sokolac, there is a significant number of small farmers. Some of these small farmers ceased their production of raw milk because of unreliable sales. However, according to the latest data provided by the Cantonal Ministry of Economy, there is a large interest on the part of the rural population in reviving the milk production provided that they are offered reliable markets, prompt payments, training and favorable credit lines. The small farmers could, thus, increase the sale of raw milk by up to 50%. The Cantonal Ministry of Economy will give its professional support in terms of the training in order to reestablish the raw material base. According to assessments by the Cantonal Ministry of Economy and its Sector for Agriculture, Watermanagement and Forestry, there are 6,500 milking cows in Sarajevo Canton. However, if a larger region of Sarajevo is taken into account, i.e. the area around Olovo (Nii}i Highland) and the areas around Visoko, Vare{, Breza, Kiseljak, Konjic, Sokolac (Romanija Highland), the number of milking cows is significantly larger. Milco's used to satisfy a major part of its needs for raw milk in the afore-mentioned regions. The transportation costs are relatively low given that these areas are very near Sarajevo. The future buyer of

Milco's will have a solid basis to become a core initiator of this branch of industry in the wider Sarajevo region. The same raw milk is used for production of ice cream as for the other products. Another ingredient of ice cream is chocolate, which Milco's buys from the local producer "Sarabon." Flavors and stabilizers are bought from the Austrian company "SA ROM." Milco's has had good long-term relations with these two companies. The suppliers of packaging materials for milk and dairy products, like plastic bags (polypropylene heat-sealed), pure-packs and plastic cups, are based both in BiH and neighboring countries. Milco's buys cones, sticks, packaging paper, paper cups, lids, and card boxes for the production of ice cream in the domestic market, in Croatia and Serbia and Montenegro. Packaging materials like paper wrappings, lids, pure-packs and PVC bags have Milco's logo on it. Local public utility companies provide Milco's with adequate supplies of electricity and water. The boiling chambers for steam production can burn both gas and heating oil. Distribution Milco's formerly had sales contracts with 1,800 retail shops and wholesalers all over Bosnia and Herzegovina. These were annual contracts providing a framework for possible cooperation by defining prices and terms of payment. They were usually renewed every year. Milco's' customers were divided into three major categories with the following shares of total sales: 1) private wholesalers 10%; 2) private retail shops 30%; and 3)enterprises and institutions 60%. Milco's has its own fleet to distribute its products. In Sarajevo Canton, most of the production was distributed directly to small private retail shops. If sent longer distances, the products are distributed through large wholesalers. Milco's' advantage relative to competitors is its factory location covering the most populated part of Bosnia and Herzegovina. The distribution channels are mainly short, as well as the supply channels (therefore, the transportation costs are low). Its range of products allows Milco's to be responsive to its customers. It also has a large refrigerating capacity allowing the company to absorb fluctuations in the market. The Investment Opportunity An investment in Milco's offers the following key advantages to an investor from the dairy industry: Largest dairy in Bosnia and Herzegovina well located in major consumer market in Sarajevo Well known brand name among consumers in Bosnia and Herzegovina High capacity production equipment Infrastructure in good working condition Relatively new yogurt production line, which ensures yogurt production without any quality oscillation Established technology of fermented products Well established network of retail and wholesale outlets Good market position on the institutional market Increasing amount of quality raw milk available from farmers near Sarajevo Well located facilities on a major site of 14,413 square meters Potential for product line development and expansion Potential for expansion of customer base to other parts of Bosnia and Herzegovina, and to neighboring countries Skillful employees

UNIS TADIV
Manufacturer of bolts, nuts, studs and special automobile parts
67% of the UNIS TADIV capital, owned by the state, is offered for sale
UNIS TADIV, founded in 1971, operates in an industrial park in the regional township of Konjic. The land on which it is located occupies 36,918 m2 of which 15,035 m2 is workshop and warehouse buildings in operation. The facilities and equipment in operation are in good working condition and the maximum production capacity is 5,000 tons a year. UNIS TADIV, a major producer of nuts and bolts, has the capability of making literally thousands of different specifications with its range of tooling. The production process commences with the surface treatment of the raw wire material. In the pre-war period, UNIS TADIV produced nuts and bolts of a generic type (50%) and customized specification (other 50%), the latter of which was absorbed by the automotive industry, primarily German Volkswagen. The most important advantage of UNIS TADIV is the facilities for raw material preparation, thus, UNIS TADIV can work with rolled steel wire as a raw material, not the extruded one. UNIS TADIV obtained ISO 9001 certification in February 2000. Seventy-five percent of UNIS TADIV's current production is exported and the rest is either bartered or sold inside Bosnia and Herzegovina to wholesalers. UNIS TADIV appears to enjoy a good reputation with some significant customers in Germany and Slovenia, and the bulk of exports is sold in these markets. UNIS TADIV has been prospecting for new customers in these countries and in the Czech Republic. UNIS TADIV's primary customers are bound by buyer / supplier contracts of up to five years. Flexibility to customers has been one of their strengths and some buyers come to them with custom specifications, to which they respond promptly in quality, quantity and design. Production Facilities and Production Flow UNIS TADIV applies cold forming technology when producing its products. The cold forming technology offers a number of technological advantages with respect to scrap fillings removal (such as better mechanical properties - the internal structure of the material remains the same, stress concentration is eliminated) and a

number of financial advantages (such as rational material consumption, short technological processing, better productivity, small production costs). A special emphasis is given to the advantages of the cold forming technology when it comes to the castings used in automotive and motor industry. UNIS TADIV deploys multistage transfer presses. These are very productive machines given that several processing stages are being done on a single machine. In order to meet the costumers' requirements, UNIS TADIV has the program which includes removal of scrap fillings on the machines (such as lathes, milling machines, drilling machines and grinding machines). Heat treatment is performed on the electric flow furnaces with protective atmosphere. The surface protection (such as phosphating, zinc-plating, cadmium-plating, chromium-plating, nickel-plating, silver-plating and other types of protection) is performed in up-to-date equipped facilities. Inspection system consists of initial, current and final inspection. The inspection is performed in a modern measuring laboratory. UNIS TADIV currently manufactures standard and nonstandard products. The main groups of standard products are bolts, studs and nuts by the following specification: hex cap bolts of M4 to M24mm (length l = 8mm to 200mm) hexagon socket head cap bolts; dimension of M4 to M16mm hex socket head cap bolt - with short head height; M5, M6, M8, M10 hex socket pipe plug - with conical thread cylindrical head bolts with welding nipples; M5, M6, M8, M10 semi-rounded head bolts with nose for general use; M6, M8, M10 studs of M6 to M24 hex cap bolts - finished 1/4" do 1" hexagon nuts of M5 to M20 hexagon self-locking nuts hexagon welding nuts M5 to M16 The nonstandard program of production covers the following: special fasteners on request or drawing of the customers (bolts for motor, car and tractor industry and similar) dynamically loaded bolts (connecting rod bolts, linking bolt on motor where dynamic shape design is required) forgings of knobs for links for car and tractor industry forgings of valve lifters for motor industry valve spring seatings and other connecting elements for motor industry special self-locking nuts with design of the self-locking part according to the customer's request special, various purposes nuts, and nuts for welding according to the customer's request various closing plugs used in motor industry various forgings which can be technologically formed by the technology of cold forging; maximum diameter 30mm and maximum length up to 220mm The most profitable are the special, non-standard bolts manufactured according to special requests regarding quality, complex configuration and shape. These are mainly bolts and forgings for motors and automobiles (e.g., bolts for connecting rod, bolts for wheels, knobs for links, dynamic bolts, etc.) The most profitable bolts from the standard line are bolts of higher consistency - quality 8.8; 10.9; 12.9, nuts and hexagonal headed bolt. The products undergo continuous innovations and quality improvements. Customer's requests are becoming more and more complex - follow up is performed and continuous improvement of the technological processes takes place in order to meet future customer's requests. The Investment Opportunity An investment in UNIS TADIV offers the following key advantages to a potential investor: Continuous demand in the European market and the possibility of business expansion Known name in the market of the former Yugoslavia and Europe ISO 9001 Certification Proven high quality products Wide product range and possibility of customized production Well-trained and experienced middle and top management Low labor costs Short terms of delivery Good location with access to the European market Easy access to raw materials (Italy and Czech Republic) and in the future also from local market (Zenica) Full production process cycle (material preparation, production, heat treatment, protection and packaging) Production processes in accordance with the existing regulations on environment protection

Food Processing Company

56.8% of the SAVA capital, owned by the state, is offered for sale
SAVA is one of the most important food processing companies in Republika Srpska (RS), Bosnia and Herzegovina. Until 1988, SAVA was functioning as a part of UPI Sarajevo, a large state-owned enterprise; since then it has operated independently. The company went through a major reconstruction in 1984, at which time a new production facility was built and new equipment from West Germany was installed. During the Bosnian war 1992-1995, SAVA managed to operate continuously despite enormous difficulties. Since the end of the war, its efforts have been directed to the increase and development of production and market expansion. SAVA is located in the heart of the Semberia prairie, famous for its fertile land. The company's main production facility and plants/installations are placed on 10ha of the prime land complex in Bijeljina in the eastern part of RS, BiH, of which cca. 20,000 m2 are covered by administration, factory, storage and other buildings. The location provides a range of benefits, including easy access to raw materials and markets. Bijeljina is, after Banja Luka, the second largest city in RS, BiH. The distance between Bijeljina and some major cities in the region: Bijeljina - Beograd, 136 km; Bijeljina - Zagreb, 400 km; Bijeljina - Sarajevo, 186 km. Bijeljina has a good road and rail network and it is only 30 km from the highway Beograd-Zagreb. The railway is 200 meters from the factory and it leads to the rail center Sid in Serbia where it connects to the international track. SAVA is the largest food producer in the eastern part of RS, BiH. Installed production capacity was 12,000 tons, while the current capacity is 7,000 tons due to certain obsolete equipment. The plants and infrastructure are in relatively good condition, although some equipment has to be replaced and some buildings need renovation. There are ten production lines placed in the main production facility: 1. green peas and string beans line; 2. carrot and beets line; 3. pepper and cucumber line; 4. "Djuvec"; 5. compotes and pasteurized fruits line; 6. "Pindjur" and "Ajvar" line; 7. marmalade line; 8. tomato concentrate line; 9. filling line; 10. auxiliary line (sterilization). Freezing plants for fruits and vegetables are placed in a separate building. Fruits and vegetables produced in Semberia are of exceptional quality and flavor. The use of pesticides is reduced to a minimum and most crops would qualify as

"organically produced" under internationally recognized standards. This is an exceptional opportunity for SAVA to create a market and develop a new line of natural products, thus meeting increasing international demand for this kind of food products. SAVA's production program can be divided into two categories: Sweet - production of jams and compotes Sour - processing of peppers, green peas, string beans, beets and tomato processing SAVA's major markets today are Bosnia and Herzegovina and other ex-Yugoslavian republics. The company realizes about 60% of its revenues in the domestic market. SAVA exports to Montenegro, Serbia, Croatia, Slovenia, Germany, Switzerland, Greece and Canada. Investment Opportunity SAVA is an internationally recognized food producer with a long tradition in production of high quality products. The company meets the most important requirements for the successful processing of fruits and vegetables. SAVA's attributes are the following: 1) Reputation and tradition for over 50 years 2) Availability of raw materials: the factory is placed in the center of the raw materials production area, practically in the field and the nearest farm is only 20 km distant 3) Good supply of high quality water: the factory is located on a source of water, which is an essential resource in this type of business starting from irrigation to the enormous utilization in the production process 4) Bijeljina is the city with the greatest number of sunny days in ex-Yugoslavia 5) Quality of products is incomparable with others in the market owing to the processing method. SAVA products are mainly preservatives free, since after the cooking and sealing they are being sterilized at a temperature exceeding 100 Celsius, which is the thermo method for extermination of all microorganisms and funguses. Compared to some foreign producers and even with the local "Vitaminka" company from Banja Luka, SAVA's products are more homemade, seem not to be gelatinous and after a long period of time, water does not appear at the surface 6) High level of agricultural knowledge, 'know-how" among farmers and factory workers In brief, SAVA's advantages cover all processing stages, from the resources to the final product.

MLJEKARA BANJA LUKA

Dairy
65.75% of the Mljekara Banja Luka capital, owned by the state, is offered for sale
Mljekara Banja Luka is located in the city center of Banja Luka, capital of the RS, on 20,280 m2, out of which 14,284 m2 is occupied by the production yard and facilities. The distance from Banja Luka to Vienna is 560 km, Zagreb 200 km, Belgrade 320 km and Sarajevo approximately 240 km. Banja Luka has a good road and rail network connection to the Belgrade-Zagreb highway. There is an international airport "Mahovljani" Laktai, twenty km outside Banja Luka. Mljekara Banja Luka is the second largest dairy in Bosnia and Herzegovina, with an installed capacity of 90,000 litres per day. The plant consists of the following production lines: pasteurized milk, sterilized (UHT) milk, fermented products, butter, fresh cheeses, feta cheese, semi-mature cheeses and an incomplete line for production of ice cream (missing freezing tunnel). There are appropriate storage facilities for all products. Mljekara Banja Luka used to sell most of its products on the Bosnia and Herzegovina market, and exported part of its production to Croatia and Serbia. In 1991 the company realized its highest annual sales of over KM 30 million. Products The production program of Mljekara Banja Luka consists of: Pasteurized milk Sterilized milk (UHT) Yogurt Sour cream Fresh cheeses Melted cheese Semi-mature cheeses ("Trapist" and "Edam" cheese) Butter Ice cream (bulk) There are three laboratories in the dairy (acceptance, chemical, microbiological). It has a CIP washing system installed and automatic systems for neutralization and biological decomposition of waste waters. Cooling is performed by an ammonia cooling system, which is a part of previously mentioned systems. The factory has its own thermal energy production using fuel oil boilers. The company organizes its own distribution of raw milk and finished products. The surplus of milk is sent to the city of Tuzla, FBiH, to be processed into milk powder and in that form used during winter time. Production Plants and Equipment The dairy was originally built to meet the hygienic standards and requirements at the time of construction. The buildings were constructed with space left for prospective expansion. Even though the facilities of the Dairy have been adequately maintained, they can easily be upgraded technically, to comply with current standards. The production equipment is in good condition.

Acceptance of Raw Milk Three installed lines for acceptance of raw milk capacity 20,000, 15,000 and 10,000 l/h Three depots for raw milk storage: 50,000 and two with 30,000 liters capacity Thermal Processing Lines There are four pasteurization lines installed: two for "low" pasteurization, and two for "high" pasteurization: "Low" pasteurization at 75 - 78 Celsius: capacity 8,000 l/h "Low" pasteurization at 75 - 78 Celsius: capacity 15,000 l/h "High" pasteurization line at 95 - 98 Celsius, for fermented products: capacity 5,000 l/h "High" pasteurization line at 95 - 98 Celsius, for pasteurization of sour cream: capacity 3,000 l/h Storage Facilities for Pasteurized Milk 4 x 10,000 liters for storage of sterilized or UHT milk 1 x 10,000 liters for storage of milk for skimmed cheese 1 x 10,000 liters for UHT milk bottling/filling in case of break in production Facilities for Preparation, Treatment and Maturing of Fermented Products 12 Duplicators with Agitators. Capacity: 9 x 2,000 liters, 1 x 5,000, 1 x 3,000, 1 x 1,000 liters and 1 x 10,000 liters for storage of milk for skimmed cheese Four Duplicators for pasteurized sour cream of the following capacity: 2 x 2,500 and 2 x 2,000 liters Packaging Machines Machine for pasteurized milk filling into PVC bags "Prepak" France (IS-6) Machine for packaging into cups "Hamba" type BK 6005/5 capacity 18,000 cups/h Production Lines Sterilized Milk: Three production Lines for sterilized milk: sterilization lines of 4,000 l/h and 8,000 l/h capacity and packaging/filling line of 3,600 l/h capacity Cheese: Two production lines for cheese: semi-hard cheese line capacity 10,000 liters, and fresh cheese line, capacity 8,000 liters The pilot system for ultra-filtration is installed in the factory, accompanied by the equipment for pasteurization of "permeates" and preparation of feta cheese production Duplicator (maturing chamber) Duplicator (maturing), capacity 2,000 liters Butter making (firming) machine Alfa - Laval, capacity 400 liters Packaging machine "Benhil" for 1 kg packaging All equipment for production is installed, except for the shock tunnel for deep freezing.

Feta Cheese:

Butter:

Ice Cream:

Cleaning Systems: CIP cleaning system is installed within the consumable products production plant. The capacity of detergent containers is 4 x 5,000 liters. An independent cleaning system is installed in the cheese production plant. There is a system for milk truck tanks cleaning. Energy Supply: Power supply is reliable and there is a power generator installed in case of emergency. Heating is provided from the fuel oil steam boilers.

Investment Opportunity Apart from the company's tangible assets, a future investor will benefit from: Recognized brand name in Bosnia and Herzegovina Skilled and experienced workforce Developed network of raw milk suppliers and a well-developed distribution network Producer of the high-quality "Trapist" trademarked cheese with an export potential

Industry of fabrics and garments

66.63% of the Svila capital, owned by the state, is offered for sale
Svila is located in the vicinity of Celinac, 18 km south-east of Banja Luka, RS, Bosnia and Herzegovina. The company is situated on 57,040 square meters of land, 15,345 square meters of which are occupied by administrative buildings and production facilities. The company has a permanent right of use of the land. Svila consists of the following buildings: Production plant and offices Production facility for ready-made clothes, with warehouses and office Maintenance facility Water supply and purification Wastewater filter, with pools for sedimentation Heating plant Svila has the following installed capacities:

History Svila was founded in 1979. Following a test production period it commenced regular production in 1983. The primary business of the newly founded factory was the production of synthetic filaments PES and PAM, as well as a mixture of these fibers with PAM and CELL fibers. Synthetic fabrics underwent various treatments and finishing procedures (i.e. scouring, bleaching, dyeing, printing and coating), to make them waterproof, water resistant, glossy, durable, etc. In this way, their use was expanded from textile applications also to be used in rubber, chemical and leather industries, specialty clothing and accessories, as well as in the production of furniture. Before the war, Svila was the only factory with this type of fabric production program in Bosnia and Herzegovina (B&H), and was one of the biggest producers of its kind in the former Yugoslavia. In 1985, the sportswear production plant was constructed, which enabled the launching of value-added products and the expansion of the production program to garment production for children and adults. The companys most successful year since founding was 1989, when Svila had sales of about KM 22 million and employed 745 workers. Production overview Production is being performed on well-maintained equipment that was purchased from well-known European manufacturers. Due to its good choice of the acquired equipment, the companys production program can easily be adjusted to meet market requirements. The company produces a variety of products, which could essentially be divided into two groups garments and fabrics. In addition to textile production, Svila produces steam that is required in the production process. Garments production - fashion, sportswear, workwear and protective clothing Svila entered the business of garment production in 1985. Currently the company produces good quality, well-designed ladies, gents, and childrens casual wear garments for customers in Bosnia and Serbia. There are also occasional exports to Italy. The production capacity varies depending on the style and complexity of the garment or non-garment product being produced. Since production started in 1985, sales of garments have continuously increased to reach KM 1.5 million in the year 2000.Depending on the market situation and customers requests, designers make models by sketches. Based on the models, a new collection is made, which must undergo stages of team approval, further elaboration of the model and commercial order for the model. Afterwards, the fabric is cut. The cutting room prepares the fabric for the Sewing Department, where the fabric is taken over by production lines. The Sewing Department makes constant controls between stages, and a final control determines whether the produced garments have met the required standards.

Retail sales outlets Svila has two retail cash and carry outlets, which contribute positively to the companys cash flow. One of these units is located in the town of Banja Luka and the other is a factory outlet. Steam/heating production In addition to textile production, Svila produces steam, which is required for the production process. Depending on the level of production and other conditions, approximately 40% of the steam produced is used for its own production processes, while the surplus is delivered to heat apartments, offices and various institutions in Celinac. In addition to the production plant, there are auxiliary facilities on the premises that ensure uninterrupted flow of production from the companys own supply of water and electrical energy to laboratory, maintenance workshops and employees cafeteria. Investment opportunity In addition to the fixed assets owned by the company, an investment in Svila will offer the following benefits to a future majority shareholder: Production with tradition and a recognized name in fabric production Wide range of products and services Ability to customize products and services to meet customers requirements Well-maintained equipment Good infrastructure in and around the factory Potential for rapid and uncomplicated upgrading of existing or introduction of new production lines Production location in close proximity to the European market Ambitious and highly-educated management team Well-trained and experienced workforce Relatively low-cost labor Growing local market due to increased purchasing power of the population Export opportunities for both fabrics and garments Opportunities to introduce new products in local market Potential to introduce the brand name products of major shareholder or to perform licensed products of trademark garments Duty free access to EU countries for products made in B&H Liberal law on foreign investment

Jel{ingrad .MU
Production of machine tools and equipment for mechanization
65% of the Jel{ingrad .MU capital, owned by the state, is offered for sale
Jel{ingrad .MU is located in the industrial zone of Kotor Varo{, RS, Bosnia and Herzegovina, on 86,634 square meters of land, 15,718m2 of which is occupied by the plant and equipment. Kotor Varo{ is situated 37 km south-east from Banja Luka and 85 km from the town of Doboj, famous as a strong railway hub. The international market for machine tools is estimated to be worth around 40 billion US dollars per year. The former Yugoslav market is estimated to be around 50 million US dollars per year, with a growth potential as a result of the expected increase of industrial production in the years to come. Plant and Equipment The company has production facility at 7,084 m2 of floor space and 8,634m2 of space in accompanying buildings, including restaurant for workers, parking place and playground. All buildings are in good condition and are functional, but do require minor repairs. The .MU production is performed in the following production facilities: Material preparation (gas cutting, saw cutting, shear cutting and straightening, etc.) Cleaning and welding fittings Mechanical processing of parts (removal of chips is a dominant part of production) Semi-finished fittings and sub-fittings Thermal and surface processing (annealing, tempering and cementing) Assembly of finished products as follows Assembling fittings and sub-fittings Assembling electro and stirring equipment Assembling hydraulic and pneumatic components Quality control Depending on weight, dimensions, and shape of the product, various means of internal transportation are provided: hand trolleys, forklifts, electrical trolleys, console lifts, cranes, etc. Products Eccentric presses Universal presses: EPU 50, EPU 63, EPU 100, EPU 125 where the mark of type presents, eccentric press universal, with the power expressed in tons. Inclinary presses are mostly aimed for the packaging industry. The primary types of such presses are: PEN 25, PEN 40, PENA 40, PENS 63, and PENS 80. This group of presses has also a special mini line for making foil lids and plates for the food industry of the pressure 5KN, that also belongs to the group of type PMP . Universal eccentric presses originated from the cooperation with the company Schmeral Trnova from the Czech Republic. Sheet feeding devices Sheet feeding devices are produced as mechanical devices with rolls, and NC (Numerical Control) with rolls, and when combined with a press, straightening machine and winch, they can make an automated line for sheet processing.

Mechanical sheet feeding devices are produced in 150 variations and are designed such that a maximum number of fittings and parts are universal for all of them. Types of sheet feeders: V double- sided VJ one - sided VR double - sided with the straightening machine at the feed side VRJ one - sided with the straightening machine VRP double - sided with rollers on straightening machine VRPJ one - sided with rollers on straightening machine .or feeding over 2 Hz (120 mov/min) a break is built in. This type of sheet feeder is designated with anH before every basic type (HV, HVJ, HVR, HVRJ, HVRP , and HVRPJ). Depending on the sheet width, there are 100, 200, 300, 400 and 500 feeders, and, depending on the step of insertion, there are three types and those are: 100,200 and 300. NC feeding devices are based on mechanical feeders, with their own drive, engine and steering unit, which provide perfect accuracy of feeding and continued intake of tin, as well as the fast change of tools (knives). Depending on the sheet width, five models are produced (DVP 3,2/100, DVP 3,2/200, DVP 3,2/300, DVP 3,2/400 and DVP 3,2/500), where the first number indicates the maximum thickness of the sheet, and the second maximum width of the sheet. Heat-metal (formats) inserters Heat metal (formats) inserters are used in combination with inclined presses during the processing of sheet tin. They provide a very accurate tempo of insertion and continued feed of tin into the machine. .our different types are produced (U.1, U.2, U.3 and U.4). Tin straightening machines Tin straightening machines are used for straightening sheets in automated production of tin parts, tin prints and tin cuts. The following straightening machines are produced: Straightening machines for normal straightening with 7 rollers, with one or two pairs of towing rollers, type (MR 125/2, MAR 250/2, MAR 250/4 , MAR 400/2), are combined with winch without engine. Straightening machines for precise straightening with 19 rollers and supporting rollers types (SPRT 250/5, SPRT 400/3), are combined with winch with engine. All straightening machines have their own drives, with the ability to match their speed with the primary machine. Winches for rolling and unrolling sheets Winches for rolling and unrolling sheets are used for carrying and unrolling rolls of sheets, and can be combined with a sheet stretcher. Winches without engine (drive): (MHD 125/5, MHD 250/2, MHD 250/4, MHD 400/2), and they are combined with towing rollers, and Winches with engine (drive): ( KSP 100, KSP 250/220, KSP 315/300, KSP 250/4, KSP400/2 ) All types without engines are produced as double sided and with engines as one-sided. Shears Circular shears KM for cutting smaller format of tin in sheets or strips which can be used independently or as part of a production line Scrap shears MM 315/3 - which are used for disposal of scrap strips Mechanical and thermal processing services Depending on the production capacity available, the factory also provides lathing, milling, drilling, thin works and welding services, as well as thermal processing. The company focuses on the further development of its production program in terms of applying the latest achievements and findings in the area of mechanical construction and contemporary stirring systems. A great deal of effort is also being given to the development of new products, and activities in adopting the following new products: Production line for making TWIST O.. lids (caps) Hydraulic presses of smaller pressures Investment Opportunity In addition to the companys tangible assets, the future investor will benefit from: An established brand in the region (metal industry) Skilled labor Complete technology and documentation for the existing production program The ideal strategic investor would provide: Access to previous and new markets Working capital Capital equipment upgrades

Jel{ingrad .AM
Manufacturer of metalworking machinery
65% of the Jel{ingrad .AM capital, owned by the state, is offered for sale
Jelsingrad FAM is located 3 kilometers from Banja Luka, RS, Bosnia and Herzegovina. Banja Luka has a well-developed infrastructure, including road networks, railway, and international airport. Jelsingrad FAM is situated on a total of 179,680 m2 of land, out of which various buildings cover 55,280 m2 as follows: Production building Assembly department Warehouses Auxiliary buildings Office building Total 21,600 m2 10,800m2 10,000m2 2,420m2 10,460m2 55,280m2

All production facilities are fully operational Jelsingrad FAM was founded in 1937 as a mechanical workshop and foundry. In 1952, production of metalworking machines commenced, and in 1961 the factory started exporting machines. During this period the company had very successful business operations. In 1977 a modernization program was started with the construction of a a new and modern factory, and this program was concluded in 1986 with the construction of a separate building for the assembling department. In 1987 Jelsingrad FAM achieved sales of more than DEM 80 million, the highest level ever. Jelsingrad FAM has been selling its products to over 40 countries for several decades. During that time, the company sold more than 12,000 machines of various types (e.g. presses, shears and other machines) all over the world. The largest export market was the former USSR, followed by Western European countries e.g. Germany, Italy, Belgium, Switzerland, Denmark, Sweden. The company also sold their products to the US and Canada. Beside final products, Jelsingrad FAM also sells spare parts and machine components, which are mostly machine bodies (above all for presses and shears). Today, the company exports its products, either directly or through sales agents, to Germany, Sweden, Australia, Switzerland, Belgium, Egypt, South Africa, Denmark, Serbia and Montenegro, Slovenia, Croatia, Italy and Greece. Export sales represent about 75% of the companys total sales revenues, while sales to the local market is about 25%. The biggest customer for machines, components and spare parts is LVD Belgium, with whom Jelsingrad FAM has had years of successful cooperation. Production overview Jelsingrad FAM uses modern technology and components in its production, enabling it to compete with the global competitors (CNC, PC-NC managing systems, PLC systems, measuring systems, servo drives,

protection system by European standards, etc.). The companys products are used in a number of industries, including the automobile and home appliance industries. Production takes place in two plants, which are connected by an industrial railway. Parts production takes place in the first hall and assembly in the second. The company owns its own transportation system and a maintenance unit, as well as a restaurant for the workers. Metalworking machines production takes place in the following production departments: 1. Preparation of materials (gas cutting, saw cutting) 2. Welding of fittings (bearing structures of machinery) 3. Mechanical processing of parts (removal of chips is dominant part of production) 4. Making and assembling hydraulic components 5. Thermal and surface processing (annealing, tempering and cementing) 6. Assembling of finalized products -. assembling of fittings and sub-fittings -. adding electrical and stirring equipment -. quality control Depending on weight, dimensions and shape, various means of internal transportation are provided: hand trolleys, forklifts, electrical trolleys, console lifts, cranes, etc. For assembling of super-heavy machinery there is an assembling channel. Products The company produces: Hydraulic shears (standard and CNC) Mechanical shears Billet shears Hydraulic notching and punching machines with fixed angle 90 Hydraulic press (40-1000 tons, standard and CNC) Hydraulic drawing press (315 tons) Plate bending roll machines Mechanical eccentric presses, C frame (160-400 tons) High speed eccentric presses, H frame (150-400 tons) Leveling machines Coilers, decoilers, feeders Other products and services Most of the standard products are the result of work of the local experts, as well as cooperation and license agreements with LVD Belgium (1972), Raster Germany (1972), Erfurt Germany (1971), Schmeral Czech Republic (1967). Beside these standard products, Jelsingrad FAM also produces to order according to customers requests. In that respect, production of presses for deep drawing, all types of straightening machines, wrenches, sheet feeding devices, as well as a line for tin finishing, have been developed. Investment opportunity In addition to the companys physical assets, the future investor will benefit from: A recognized name in the metal industry A wide assortment of products, developed in association with LVD Belgium, RASTER Germany, ERFURT Germany, SCHMERAL Czech Republic Skilled labor Liberal Law on Foreign Investments in Republic of Srpska

TRUDBENIK
Metal processing and machinery production: production of compressors, pneumatic tools and energy equipment
57.39% of the Trudbenik capital, owned by the state, is offered for sale
Trudbenik Doboj was established in 1949, and in 1952 produced its first types of compressors and pneumatic tools. As an independent enterprise Trudbenik operated until 1967 when it became a part of the Energoinvest Sarajevo conglomerate. In November 2002 Trudbenik became an independent joint stock company. Since 1949, Trudbenik has gone through many different development stages resulting in its wide production program. The main development feature is certainly development of screw compressors in 1985 when Trudbenik developed its own screw profile. Quality of Trudbenik products is confirmed by the certificate ISO 9001 of Lloyds Register. Trudbenik is located in Doboj, RS, Bosnia and Herzegovina, 100 km southeast from Banja Luka. Favorable geographical position and good transportation infrastructure (road and railroad network) enable quick communication with all regions of Former Yugoslavia, Western and Eastern Europe. Trudbenik Doboj belongs to the group of larger enterprises and consists of three factories at three different locations: Compressors Factory Doboj-Usora with management and administration of the enterprise located two kilometers south of downtown Pneumatic tools Factory Doboj-Bare with complete production some four kilometers north of downtown Compressors equipment Factory-Teslic specialized in production of pressurized tanks and other process equipment, located some 25 kilometers south from Doboj Total land area including all three locations is 140,117 m and total surface of facilities is 35,161 m. The land is registered as construction land and Trudbenik has the right of permanent use. Production overview Compressors Factory Usora produces small compressors with specialized machines for casings, cylinders, crankshafts and valves production, machines for surface protection, an assembly line and testing area. On the same location but in a different building there is equipment for production of large and screw compressors and sets: lathe, boring and turning lathe, milling machines, processing centers, grinding machines, machinery for toothed screws, sharpeners, assembling line for blocks and sets, presses, welding, surface protection, thermo processing, foundry of light metals and galvanic protection. Department for prototypes is a part of the Research and Development Sector, that also includes Tools Shop and Testing Laboratory for development and testing of compressors. Quality Control Sector consists of Chemical Laboratory, Machinery Measuring Department and Testing station for compressor sets. Service Sector consists of Repair Workshop for disassembling and repair and of Warehouse for spare parts. Pneumatic tools Factory Bare, produces pneumatic tools with specialized machinery for pneumatic tools and machines of smaller dimensions: drilling machines, lathes, milling machines, machinery for teething, processing centers, grinding machines, thermo processing, preparation and material cutting, surface protection, assembling and testing space. Compressors equipment Factory Teslic, produces compressor equipment with installed hydraulic presses, cutting scissors for thin metal, up cant presses, welding automats EPP, argon and CO2 procedure, equipment for curving and gas cutting and equipment for testing of welding spots. Products Production program includes following groups: 1. large compressors 2. small compressors 3. compressor equipment 4. pneumatic tools and accessories Compressors Screw, oil cooled, compressor blocks, five basic types and graded by engines from 250 kW and pressure of 15 bars Small piston compressor sets up to 11 kW Piston stable compressor sets, air and water cooled up to 110 kW

 Rotational compressor sets and blowers up to 200 kW Screw oil stable, air and water cooled, sets up to 250 kW Mobile piston and screw compressor sets up to 250 kW Screw compressors with frequency switch (electricity saving) Beside standard type of compressor units for air, specific types for railways and other pressures are available. Compressor equipment Tanks under pressure Cyclonic separators Separators Coolers Driers Tanks Elements of pneumatic transport Pneumatic tools Drilling machine Grinding machine Screw drivers (impact and rotational) Saws Rasps Scissors Cutting hammers Construction hammers Breaking hammers Staplers Cranes Accessories and equipment for pneumatic tools 200 types of these products are available. Projection and creation of compressor stations and pneumatic installations with existing production program can satisfy even customer specific requirements. All products are developed in accordance with world standards in this area. Trudbenik also offers its own construction-technological solutions. In addition to the production program there is a foundry with the following activities: Casting with silumina (silica oxide) in sand up to 30 kg/pc Casting under pressure up to 5 kg/pc Stamping and pressing up to 10 kg/pc Tanks under pressure of all sizes and welding of constructions up to 500 kg/pc Machine processing of drilling, grinding and milling Investment opportunity Beside material property owned by the enterprise, investment into Trudbenik offers the following benefits to a potential investor: a producer with tradition and recognized name competitive quality of products wide production program facilities and equipment in good condition good infrastructure significant machinery capacities trained and experienced labor force favorable location liberal Law on foreign investments