INDUSTRIAL ZONE KUTNÁ HORA



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GENERAL INFORMATION The Kutná Hora Na Rovinách (On the Plains) Industrial Zone is a highly attractive location for engineering manufacturing companies seeking to take advantage of a highly skilled, cost-effective work force, extensive supplier-base and the opportunity to supply new customers currently investing heavily into the region and to export throughout Europe. Automotive manufacturers in particular will be highly attracted to the region; the ambitious investment of Toyota Peugeot Citroen Automotive Czech (TPCA) into a new manufacturing facility in the City of Kolín just 10km from Kutná Hora makes the site ideal for first- and second-tier automotive suppliers and other engineering companies to provide just-in-time deliveries to the most successful global car company. A long tradition in mechanical and electro-technical engineering in the region provides a highly skilled work force and supplier base. The automotive supplier base in the region and throughout the country has been thoroughly restructured following over ten years of intensive efforts by Volkswagen to bring Czech automotive suppliers up to world standards. The site was developed in close co-operation with the developer, Investorsko Inženýrská a.s. and the City of Kutná Hora. Investorsko Inženýrská is the first private developer specialising in industrial parks in the Czech Republic. Our first industrial zone project, Liberec South, has been an outstanding success and is now 90% occupied, mostly by international automotive companies including Denso Corporation of Japan, a major, first-tier Toyota supplier. The Kutná Hora site has an area of 95 ha. Forty-two hectares are still vacant. Complete infrastructure is in place. The site has good road access to the highway connecting Prague-Brno and to other cities in the region. The location has good road transportation access including public transport provided by the Kutná Hora municipal mass transit service. Capacity of infrastructure is sufficient to meet occupant requirements. Maximum elevation gain of the site is two metres. Two roads lies on either side of the site providing good access to Prague, Kolín, Pardubice and Hradec Králové. Included in the price of the plots is the land itself, a new road, and other infrastructure connections (water, gas, rain sewage, and telecomms) leading to the site border. Investorsko Inženýrská a.s. will accommodate the specific requirements of individual investors for capacity and location of the connection points.

LEGISLATION Zoning and Permits Zoning for the whole area of the industrial zone is authorized for manufacturing and warehousing with accompanying administration, services, research, road network and green space in the city zoning plan. No limitations exist on the size of individual manufacturing facilities within the boundaries of the site. Technical and legislative preparations for individual investor s requirements can be initiated immediately. Grading and building permits usually take two and four months respectively to be issued.

THE LABOUR FORCE Approximately 3 257 unemployed are registered with the labour office as actively searching for a job in the district of Kutná Hora. About 2 500 of those registered are able and willing to commute up to one hour. The unemployment rate recorded by the labour office in the Kutná Hora district is 8,3% as at August 31th, 2006. The ratio of job applicants to openings is 1: 8 at the same time. A large potential pool of qualified labour exists in the area due to the long presence of mechanical engineering, textile and electro-technical industries in the area. Approximately 17% of the labour force commutes to outside of the district, mainly to Prague, Kolín and Pardubice. The unemployment rate is expected to continue to increase as further large, obsolete factories are shut down in the region. At CZK 16 900, the average monthly wage in the region is 90% of the national average.

EDUCATION The educational levels and structures of job applicants is shown below. Figure 1 Education level of job applicants (30.12.2004) No education Elementary school University education Education level Secondary education without graduation exam Secondary technical education with an apprenticeship certificate Secondary education with graduation exam (A level) Secondary technical (professional) education with graduation exam (A level) Post-secondary technical education Nr. of applicants 21 1354 68 1646 659 282 42 128 The education and training system in the Kutná Hora region has a long history based on the traditional industries of the area with a range of vocational secondary schools in the fields of mechanical engineering, textile and food processing. New secondary and post-secondary educational institutes have been established in recent years providing courses and degrees in economics, business, and services. Source: Labour Office Kutná Hora

EDUCATION The education structure in the Kolín and Kutná Hora regions is well suited to providing qualified labour for manufacturing industries. Educational institutes at all levels are established in the region. There are 33 secondary schools and specialised secondary schools, focused mainly on the electro-technical industry and mechanical engineering. Two universities are located in the region, in Pardubice and Hradec Králové, (40km and 53km distant resp.) with faculties in the fields of electro-technical engineering, information technology, management, chemistry, economics, education, and social sciences. Good language abilities of the local population are the result of historical tradition (Czechs having been one small language group in a multi-lingual society dominated by German language and culture for hundreds of years), the proximity of Prague, and Kolín with its industrial zone, and an extensive and modern educational system.

Road and highway network The city of Kutná Hora is only 70 km from Prague, connected by a first class road, I/2. Travel time to Prague is about 35-40 minutes. Another major road, the II/126, leads south from the industrial zone to the four-lane D1 highway about 30 km near Zruč nad Sázavou. The D11 highway, running between Prague and Hradec Králové, is located north of Kutná Hora, near the city of Poděbrady, about 20 km away. Construction of a highway connecting the D11 to Kolín Ovčary Industrial Zone is scheduled to be completed by the end of 2005. This new branch will reduce the distance from the Kutná Hora Na Rovinách (On the Plains) Industrial Zone to the highway to 10km. INDUSTRIAL ZONE TRANSPORTATION

TRANSPORTATION Airports Prague Ruzyně international airport is 70 km (43 miles) from Kutná Hora by motorway, a journey of approximately 45 minutes. The Czech Airport Authority (CAA) offers flights from Prague to more than 50 destinations in Europe, North America, North Africa, Asia, and the Middle East. There are several domestic flights to Brno and Ostrava every day with Czech Airways (ČSA). Airfreight transport is carried out by the Cargo Service of the CAA. Another international airport is in the city of Pardubice, about 40 km from the industrial zone. This airport is equipped with loading ramps for road and rail freight transport. Railway The industrial zone is connected to the main railway corridor Prague Kolín (including the Toyota Peugeot Citroen industrial zone)- Brno. The nearest train station is located directly in the area of the industrial zone. This station is also equipped with a freight ramp. Should an investor require, railway lines can be extended to any section in the zone. Waterway The Elbe (Labe) River flows through Kolín, 10 km from Kutná Hora. The river is a major cargo transportation artery with numerous ports and port storage and loading infrastructure. It is possible to rent warehouses, loading and handling equipment, and plots etc. The Elbe (Labe) waterway forms Section IV of the Trans European Multimodal Corridor, connecting the Czech Republic and Western European waterways with access to oceanic ports.

INFRASTRUCTURE Electricity A 110 kv substation is located in the industrial zone with 15 MW of free capacity for use in the zone. Capacity can be increased by adding another transformer station according to project requirements. Individual facilities will be connected with a 22 kv underground cable with capacity according to individual requirements. Gas The industrial zone is connected to a gas line of 200 DN / 2.1 Mpa with sufficient capacity for all investors. Each area will be connected by a mid-pressure 160 DN pipeline. Infrastructure main networks are located on the border of the site, beside the ČKD plant. Construction of a service road and water drainage is planned to begin in 2005. Every investor s individual site will be connected with all networks according to the customer s capacity requirements.

INFRASTRUCTURE Water Supply and Sewage Systems Connecting lines will be installed from the main pipeline to each investor s site with the required capacity according to client specification. Water and sewage charges for the year 2006 Drinking water 26.10 CZK/m3 incl. VAT Connection fee: none Size of the water pipeline is of 125 DN Waste water treatment charges One cubic meter of treated water - 21.54 CZK/m3 incl. VAT Connection fee: none Diameter of sewage pipeline - 300 DN Rain water sewage There is a concrete pipeline of DN 1200 in the area. Telecommunications 0ptical cable has been laid in the area with ample capacity for all investors phone and data lines. A telecommunications centre that will offer its services to investors is under construction. Investors may freely choose amongst various the service providers currently present on the Czech market for their telecommunications requirements.

WE PROVIDE FOR ALL YOUR INDUSTRIAL AND COMMERCIAL REAL ESTATE NEEDS Developer: Investorsko inženýrská a.s. Kontakt: Address: U Prašné brány 3 110 00 Praha 1 Czech Republic T: +420 221 146 350 F: +420 221 146 364 www.cdinvest.cz CZECH REPUBLIC