finance nwes

Bogoljub Kranic , Mobtel
Martin Schlaf
Jovica Stefanovic
Netwest Finance
Slobodan Petrovic : New World Value

02/02/2006 -Messer Tehnogas
The representatives of Messer Tehnogas stated that this enterprise's total income in 2005 was CSD 2.1 billion which was by 11% higher than in 2004. The business plan for 2006 projects the increase of total income in 2006 by 30% or to CSD 2.8 billion.

01/31/2006 -Tigar
Tigar-MH General Manager, Vladimir Nikolic stated that Tigar-MH, a part of rubber corporation Tigar, will start manufacturing tires for speeds over 230 km/h thanks to the procurement of state-of-the-art software. In 2006, the factory plans to increase output by 7% to some 6.2 million tires, correcting its earlier report that the plant expects to boost production to some 16.2 million tires.

01/31/2006 -Hemofarm
The engineering enterprise Hemofarm Inzenjering, which is a part of the Hemofarm Group signed a € 3.6 million agreement to repair the oral polio vaccine (OPV) production line at the Torlak immunology and virology institute as part of a European Investment Bank (EIB) loan for the urgent reconstruction of 20 local health institutions. Following the reconstruction, which should be completed by early 2007, Torlak will become the fifth largest OPV producer in the world with a capacity to produce 100 million oral polio vaccines a year. The representatives of Torlak stated that they are expected to receive a Good Production Practices (GPP) certificate from the World Health Organization (WHO) in the first half of 2007 and that the WHO plans to eradicate infantile paralysis over the next 15 years. The Serbian Minister of Health Tomica Milosavljevic stated that Torlak hopes to establish a strategic partnership with one of the three largest vaccine producers in the world, Sanofi Pasteur, GlaxoSmithKline and Chiron. Mr. Milosavljevic also stated that the institute is planning to launch a USD 1 million overhaul of its flu vaccine production line in the first half of 2006.

01/30/2006 -Mobtel
The representatives of the Serbian government stated that a mixed working group of the Serbian and Austrian governments in charge of solving the so-called Mobtel case has made an agreement in principle that a public tender for a new mobile phone operator for the 063 telephone network in Serbia should be called as soon as possible and that details will be coordinated at the group's next meeting this week.

01/30/2006 -Hotel Majestic
The British Virgin Islands-based Atlas Venture has launched a takeover bid for at least 25% of central Belgrade hotel Majestic at CSD 18,000.00 per share. The hotel’s majority owner, with a 51% stake, is Serbian firm Atlas System, while the Share Fund and the Pension and Disability Insurance Fund hold 31% and 10% respectively. The remaining shares are in the hands of small shareholders. The takeover bid will be open until February 9th. Majestic has issued a total of 21,260 shares that have a nominal value of CSD 12,000.00 and a book value of CSD 17,368.00.

01/27/2006 -Komercijalna banka
The Minister of Finance, Mladjan Dinkic stated that the negotiations with European Bank for Reconstruction and Development (EBRD) are in progress for providing an additional 25% of capital for the Komercijalna banka. Mr. Dinkic also stated that this bank would shortly begin a campaign to secure the Bosnia and Herzegovina (BiH) and Macedonian markets.

01/27/2006 -Knjaz Milos
The beverage producer Knjaz Milos was granted quality certificates from independent Belgrade-based certification house Jugoinspekt for sparkling mineral water Knjaz Milos, low-carbonated water Aqua Viva, and energy drink Guarana. The head of quality control at Knjaz Milos, Zorica Vukcevic-Kljajic stated that Knjaz Milos was invested € 2 million in an ecotoxicological laboratory that ensures top quality.

01/27/2006 -Milan Blagojevic Smederevo
The representatives of the stove producer Milan Blagojevic stated that they are expecting the rose of the production by 40% in 2006. They are planning to evolve the production program and quality of its products.

01/25/2006 -Coca Cola HBC
The representatives of the enterprise Coca Cola HBC (CCHBC) stated that they reached an agreement to take over 100% of Subotica-based fruit juice producer Fresh & Co. in a joint venture with Coca Cola Co.. The net amount to be paid for the acquisition is € 19.5 million and the final takeover price is subject to adjustments and includes the settlement of some of Fresh & Co.’s financial obligations. The acquisition includes Fresh & Co.’s production facilities in Subotica and its Next and Su Voce juice brands, and the transaction should be finalized by the end of February. In 2005, CCHBC and Coca Cola Co. bought 100% of Serbian mineral water producer Vlasinka for € 22 million. Mr. Zivojin Djordjevic controls 65.15% of Fresh & Co., while the European Bank for Reconstruction and Development (EBRD) owns 32.4%.

01/24/2006 -New World Value / Salford Fund
The investment fund New World Value, whose financial fund is managed by Salford fund, acquired five dairies and confectionery producers Bambi and Banat two years ago. The General Manager of Salford fund, Slobodan Petrovic stated that New World Value invested USD 195 million in Serbia so far, and that the total value of its planned investments in Serbia is USD 500 million. Among the acquired dairies there are Imlek, Subotica dairy, which has got the HCCP certificate, Novi Sad dairy, Zemun dairy and Zajecar dairy. Mr. Petrovic also stated that Salford owns 28% of shares of the mineral water producer Knjaz Milos and that they are planning to acquire additional 20% of shares which are state owned. Mr. Petrovic also stated that Salford is not planning to sell this enterprises before 2008 and that they are expected the annual income of 10 to 15%.

01/23/2006 -Coca Cola HBC
The representatives of Coca Cola HBC stated that they have agreed with Coca Cola Company to acquire 100% of the soft drinks producer Fresh & Co. The enterprise Fresh & Co is one of the leading enterprises of soft drinks in Serbia and Montenegro. The acquisition will be referred on production facilities of Fresh & Co, based in Subotica and soft drinks brands such as Next and Su – voce.

01/20/2006 -Belex
The representatives of Belex stated that the General Manager of Belex, Gordana Dostanic, and a member of the Managing Board of Vienna’s stock market, Michael Buhl, signed a Partnership Memorandum in Vienna, which joined the powers of these stock market institutions and, in the future, they will work together on improving the market in various fields. By signing this agreement the two stock markets are planning a partnership in the field of derivative trade, development of new indexes and mutual distribution of stock market information.

01/19/2006 -Centrobanka
Cypriot’s largest bank, Laiki Bank became the majority owner of Centrobanka by aquiring 90.4% of Centrobanka’s shares. Centrobanka has a capital of € 18 million and 50,000 retail and corporate clients. UK’s Finance Central Europe magazine named it the best small bank in Serbia-Montenegro in 2004.

01/19/2006 -Vojvodjanska banka
The Minister of Finance, Mladjan Dinkic stated that Vojvodjanska Banka will be put up for sale in late April or early May and the state expects to collect at least € 300 million in sale price. The General Manager of Vojvodjanska banka, Zoran Radonjic stated that the bank is expected to get a new owner in the third quarter of 2006. Mr. Radonjic also stated that seven European banks have submitted letters of expression of interest to acquire 99% of Vojvodjanska banka. The submitters include Hungary’s OTP Bank, BNP Paribas, Credit Agricole, Poland’s PKO Bank Polski, and Greece’s National Bank of Greece, Commercial Greece, and Piraeus Bank. The bank reported a CSD 6.1 billion loss in 2004 because it had to settle debts to international creditors. In 2005, however, it posted a CSD 69 million profit. In 2005, Vojvodjanska banka’s total assets grew by about CSD 5 billion year-on-year to CSD 41 billion and its capital climbed 63% to CSD 6.5 billion. Its corporate loan portfolio rose from CSD 5.5 billion in 2004 to CSD 11.1 billion in 2005, when the bank also reported a 50% hike in dinar deposits that reached CSD 13.7 billion and a 17% increase in foreign currency deposits. Last year, Vojvodjanska banka also posted a 17% growth in retail deposits that reached CSD 12 billion and a 45% surge in corporate deposits that hit some CSD 15 billion. The bank serves some 61,000 corporate and 625,000 retail clients.

01/19/2006 -DDOR Novi Sad
The Minister of Finance, Mladjan Dinkic stated that the biggest Austrian insurance company Wiener Stadtische is interested in acquiring the insurance enterprise DDOR Novi Sad. Mr. Dinkic also stated that the tender for privatization of DDOR Novi Sad will be announced in mid 2006.

01/19/2006 -Delta osiguranje
The General Manager of the insurance company Delta osiguranje rose its business size by tree times in 2005 and achieved CSD 3.3 billion in insurance premium. The number of insurers is 500,000 of which 141,500 are new clients.

01/18/2006 -Hotel Jugoslavija
The representatives of the Privatization Agency stated that the Hotel Jugoslavija has been sold to the enterprise Alpe Adria hoteli for € 31.3 million. The initial price, on yesterday public auction, was € 26 million. The insurance company Dunav osiguranje was the owner of Hotel Jugoslavija.

01/18/2006 -Radijator
Zrenjanin-based foundry Radijator exported 9,400 tons of goods worth some € 6 million in 2005, up 33% year-on-year. On the other hand, the enterprise sold 2,200 tons of products on domestic market in 2005, down from 2,400 tons in 2004. Radijator plans to boost total sales in 2006 by at least 2,000 tons year-on-year and it has already agreed to deliver at least 1,000 tons of goods to Germany’s fireplace manufacturer Hark. The government is expected to call a tender for the sale of a 50.6% stake in Radijator by the fall of 2006.

01/18/2006 -DDOR Novi Sad
The marketing manager of the insurance company DDOR Novi Sad, Nikola Juric stated that this insurance enterprise increased its market share from 35% in 2004 to 40% in 2005 and its 2005 revenues rose 26% year-on-year. Mr. Juric also stated that DDOR Novi Sad, which is 50.06% owned by the state, will be privatized by the end of 2006. The enterprise gained more than 100,000 clients and hiked insurance premiums 25%, or by over CSD 2.5 billion, in 2005 year-on-year.

01/17/2006 -Jagodinska pivara
The small shareholders of the Jagodinska pivara brewery announced that former NBA star Vlade Divac is interested in the takeover of the enterprise. The shareholders have challenged the brewery’s acquisition by Novi Sad-based Pan Beer, which bought 51.2% of Jagodinska pivara for € 75,000 last August and pledged to invest an additional € 4.48 million over five years. Earlier this month, the Privatization Agency ordered Pan Beer to settle its CSD 5.4 million debt to the brewery within 30 days or face the annulment of the takeover agreement. Divac joined forces with French food company Danone to take over mineral water bottler Knjaz Milos in 2004 but withdrew from the takeover race amid legal controversy.

01/17/2006 -Coca Cola HBC
Croatian Coca Cola Beverages Hrvatska (KKBH), part of Greek Coca Cola Hellenic Bottling Company (CCHBC), plans to close down its facility in Solin and move production to Serbia and Montenegro. KKBH, a market leader in the production of carbonated drinks, fruit juice and tea, invested € 39 million in various undertakings in Croatia over the past few years. (source: Blic)

01/17/2006 -Dairy Impaz
Zajecar - based dairy Impaz, owned by UK hedge fund Salford, is set to start exporting to the EU and US markets in 2006. Impaz obtained the ISO 9001:2000 quality management certificate and invested € 220,000 in new equipment and the acquisition of heifers in 2005 in a bid to increase output from 23 million to 35 million liters of milk a year. The representatives of the enterprise stated that its infant formula brand Impamil and powdered milk stand the best chances of being marketed to the EU and the US.

01/16/2006 -Vojvodjanska banka
The representatives of Vojvodjanska banka stated that it hiked its securities portfolio to some CSD 2 billion and emerged as the investment banking leader on Belex in 2005. The bank’s representatives also stated that it assumed leadership in terms of dinar deposits, adding that it was also one of top banks by foreign currency deposits last year. Vojvodjanska banka served over 625,000 retail clients and operated 303,000 current accounts in 2005. The bank issued over 400,000 Visa and DinaCard payment cards in 2005, and it has co-branded one-quarter of all Visa payment cards and one-third of all DinaCard payment cards issued in Serbia.

01/16/2006 -Mobtel
The Commercial arbitration in Zurich denied the request for bringing the partial verdict about the ownership in Mobtel. The process of arbitration is under way and it is in its final stages.

01/13/2006 -Mobtel
The Serbian Government gave an acceptance to PTT Serbia (state owned telecom) to take over the Mobtel’s debt in the value of € 91.3 million. By this act, PTT Serbia became the largest Mobtel’s creditor and the state could significantly increase its majority stake in a capital of the enterprise Srbija BK-PTT d.o.o.. PTT Serbia took over the Mobtel’s debts from the two Austrian banks, Raiffeisen Bank (€ 19.7 million) and Hypo Alpe Adria Bank International (€ 71.6 million). The Serbian Minister for Capital Investments, Velimir Ilic stated that due to the Antimonopoly Act the state will be forced to sell the license for Mobtel network in the coming months.

01/13/2006 -Putevi Cacak
The representatives of the Privatization Agency stated that for acquiring 70% of the socially owned capital of Putevi Cacak has received four offers. Among the interested investors there is a consortium of Putevi Uzice, Novi Pazar – put, Granit Pescar and Putevi Kipar.

01/12/2006 -MB banka / FIB
Bulgarian First Investment Bank (FIB) signed a letter of intent to acquire Nis-based MB banka. FIB is expecting to obtain formal approval from the National Bank of Serbia (NBS) as it is required by law and to sign a sale-purchase agreement by the end of January 2006.

01/12/2006 -Toza Markovic
Croatian Nasice Cement, part of Nexe Group, is in negotiations with Delta Holding and the Government of Serbia to acquire their stake in Toza Markovic and increase its stake in the construction materials producer from the current 30.3% to at least 55%. Delta Holding controls some 10.4% and the state 28% of Kikinda’s roof tile manufacturer.

01/11/2006 -Tigar
The representatives of Pirot Free Zone stated that the goods worth more than € 100 million were exported from this zone in 2005. The number of 95 domestic and 55 foreign enterprises are doing business within this zone. Among 11 free zones in Serbia, Pirot Free Zone is the only zone that is productively oriented. The enterprise Tigar is the majority owner of the Zone with 70% of the shares and Tigar uses the zone for all of its exports.

01/11/2006 -Toza Markovic
The General Manager of Toza Markovic, Dmitar Segrt stated that the production of roof tiles will be increased by 12% and the production of ceramic tiles by 15% in 2006. Mr. Segrt also stated that this enterprise will produce the decorative ceramics in cooperation with well known Spanish and Italian producers of ceramics.

01/10/2006 -AIK banka
The total turnover on Belex in December 2005 was CSD 5.9 billion of which almost CSD 2 billion was achieved with the trading of AIK banka shares.

01/10/2006 -Panonska banka
The General Manager of Panonska banka, Srdjan Petrovic stated that the state will earn not less than € 90 million which by 3.5% more than banks estimated value. Mr. Petrovic also stated that the buyer will be known by the mid of 2006. The state is the majority owner of Panonska banka with 87.3%. The bank’s total assets are increased by 50% or € 40 million. Panonska banka was among first 50 banks in East and Southeast countries.

01/10/2006 -Mobtel
A legal team representing Bogoljub Karic, former co-owner of Mobtel, stated that the mobile provider will pay out dividends to the state once the government complies with the Supreme Court of Serbia ruling on the return of extra profit tax worth USD 50 million. According to earlier reports, Mobtel owes some € 52 million in unpaid dividends to the state. Karic’s lawyers further said that the state owes Mobtel over € 1 billion, on top of more than € 200 million supposedly owed by state postal company PTT Srbija for interconnection payments. On the other hand, PTT has asked the Belgrade Commercial Court to introduce temporary measures in Mobtel as part of efforts to reverse what it described as illegal management board decisions and prevent further adverse financial consequences for the company. The Kosovo Telecommunications Agency, with UNMIK support, reportedly started switching off Mobtel transmitters in the province, cutting off some 100,000 mobile subscribers. In late December 2005, the government revoked Mobtel’s license over a 2003 deal under which the company sold its Kosovo license to mobile operator Mobikos without government permission. Austrian investors who bought into Mobtel after acquiring Karic’s BK Trade vowed to take the government to court.

01/10/2006 -Alfa plam
The General Manager of Alfa plam, Velin Ilic stated that this enterprise is planning to produce 170,000 heating devices of the total value of CSD 3.5 billion. Mr. Ilic also stated that 2005 was very succesful for Alfa plam. It was produced 154,000 heating devices of the total value of CSD 2.9 billion. The total value of export in 2005 was € 18 million or 87,157 products of Alfa plam.

01/10/2006 -Univerzal banka
The trading of shares of Belgrade – based Univerzal banka a.d. Beograd will start on January 17th on Belex.

01/09/2006 -Mobtel
The Serbian Government decided to take away Mobte’s licence. Mobtel is one of only two mobile operators in Serbia, therefore this leads to a situation where PTT Serbia, the 80 percent state-owned company has a monopoly in the market. Mobtel management was charged with unlawfully signing an agreement with Mobikos, the Kosovo mobile operator. Upon the Serbian Government’s decision to revoke Mobtel’s work licence, the Austrian group of investors led by Martin Schlaf is asking for returns of almost 250 million euros, adding that the consortium is ready to press charges against Serbia. The consortium bought 51 per cent of Mobtel’s shares last summer for € 250 milliion. The Government has announced that by mid 2006, a tender for the new operator will be launched.

01/09/2006 -Share Fund Sells 254 Minority Stakes for € 125.8 Million in 2005
The representatives of the Share Fund stated that it sold 254 minority stakes from its portfolio in 2005, cashing in € 125.8 million. The fund has so far sold stakes in a total of 501 enterprises for € 379 million.

12/30/2005 -Agrobanka
The General Manager of Agrobanka, Dusan Antonic stated that total assets of Agrobanka reached CSD 16 billion and total amount of deposits reached more than CSD 5 billion. Mr. Antonic also stated that for the first ten months of 2004 the bank issued more than CSD 7 billion loans mostly to the agricultural purposes.

12/30/2005 -Metalac
The representatives of cooking ware manufacturer Metalac stated that this enterprise in 2006 will restructure into a holding enterprise made up of 12 entities. The planned income for 2006 is € 52.4 million, which is by 40% more than in 2005 due to the start of utilization of a new boiler plant. The total amount of export in 2005 is € 9.5 million.

12/30/2005 -Bambi
The General Manager of the enterprise Bambi, Miroslav Miletic stated that the total amount of export in 2005 is € 8 million with the expected export of € 10 million in 2006. The total amount of sale in 2005, is 16,000 tons of products, of which 25% was exported, and Bambi is planning to increase sale by 11% in 2006.

12/30/2005 -Novosadska mlekara
The representatives of Novosadska mlekara dairy stated that this dairy, which operates under the Danube Food Group, invested € 9 million in 2004 into the procurement of quality calves, the crediting of partners and the modernization of production.

12/30/2005 -Knjaz Milos
The mineral water producer Knjaz Milos got the HACCP certificate. This represents the precondition for the export in EU countries and USA.

12/28/2005 -Credy banka
The government intends to offer a controlling stake in Kragujevac-based Credy banka on a tender in January 2006. According to the Deposit Insurance Agency, which handles banking sector privatization, the government controls 72% of Credy banka, either directly or through liquidated banks. Credy banka had assets of € 42 million and capital of € 13.6 million on September 30th. The bank also owns property spanning 11,000 square meters. Through 54 branch offices across Serbia, the Kragujevac bank serves 14,000 enterprises and 175,000 retail clients.

12/27/2005 -Niska banka / OTP Bank
The Hungarian OTP Bank won a tender to acquire 89.4% of Niska banka for € 14.2 million. The Minister of Finance, Mladjan Dinkic stated that the price exceeded the nominal value of Niska banka’s capital 1.3 times and that the takeover will be completed within 60 days. Mr. Dinkic also stated that Niska banka is the fourth majority state run bank to be privatized this year, bringing associated revenues to € 289 million. According to earlier reports, Niska banka had a 0.7% market share in Serbia on March 31, with assets worth of € 40.2 million and deposits of € 13.2 million. The bank has about 80,000 clients. OTP Bank Deputy General Manager Laszlo Wolf stated that OTP Bank is planning to invest an additional € 20 million in a bid to add at least 30 branch offices to Niska banka’s current network of 24 banking branches and install 100 new ATMs and 500 POS terminals. Mr. Wolf also stated that the Hungarian bank is also interested in acquiring Vojvodjanska banka and Panonska banka as part of a strategy to boost its market share in Serbia to between 5% and 10% within the next three years.

12/27/2005 -Tigar
The tire producer Tigar has been selected the best corporate brand in Serbia in 2005, followed by Backa Palanka – based fruit juice producer Next and furniture manufacturer Simpo. Cooking oil producer Vital from Vrbas received the best consumer brand award, coming ahead of water maker Voda Voda, while Telekom Srbija won the top prize for the best corporate brand in the services sector. At the same time, consumers named beverage producer Knjaz Milos the top Serbian enterprise in 2005 and Bambi’s “Plazma” biscuit Serbia’s best product in 2005. The award competition was organized by Belgrade daily Pregled in cooperation with the Ministry of Trade, Services and Tourism and the Serbian Chamber of Commerce.

12/27/2005 -Hemofarm
The General Manager of Hemofarm, Miodrag Babic stated that this enterprise produced 170 million of package of medicines in 2005, which is by 16.3% higher than in 2004. The total value of export was € 63 million which is by 43.6% more than past year.

12/27/2005 -Metalac
The General Manager of cooking ware producer Metalac, stated that Metalac is expecting the record value of export on the Russian market. The total value of exported goods in Russia is expected to be € 3.25 million or 38% more than in 2004. Until 2008, Metalac is planning to have 20% of Russian market.

12/27/2005 -Kulska banka
The Governor of National Bank of Serbia (NBS), Radovan Jelasic stated that NBS gave the negative opinion for the offer of Russian Konvers Group for acquiring Kulska banka.

12/23/2005 -NIS
A consortium of Merrill Lynch and Raiffeisen Investment placed the best financial bid to advise Serbia on the privatization of oil company Naftna industrija Srbije (NIS) for € 900,000.00 and 1.2% success fee. Other consortium candidates were JP Morgan and McKinsey, Goldman Sachs and CAIB Corporate Finance and Credit Swiss First Boston Consortium.

12/21/2005 -DDOR Novi Sad
The Chairman of the Managing Board of the insurance enterprise DDOR Novi Sad, Boris Marovic stated that the tender for privatization of DDOR Novi Sad will be announced in May 2006. The General Manager of the enterprise, Bogdan Kuzmanovic stated that this enterprise attracted 100,000 of new insurance policies in 2005 and achieved the revenue of insurance premiums higher by 26%.

12/20/2005 -Tigar
The General Manager of tire producer Tigar, Dragan Nikolic stated that Tigar exported € 70 million worth of goods in 2005 or 22% more than in 2004. At a gathering dedicated to the company’s 70-year anniversary, Mr. Nikolic also stated that Tigar is exporting 85% of its output and identified strategic partnerships with tire makers Goodrich and Michelin and agreements with international financial institutions as major contributions to Tigar’s success over the past period.

12/20/2005 -Banini
The General Manager of the biscuit producer Banini, Radojko Stanic stated that this enterprise increased production by 14.3% in first ten months of 2005 and that the total amount of investments in Banini development was around € 4.5 million. Mr. Stanic also stated that this enterprise is planning to buy 15 hectares of land for building a new plant. The production size in 2005 was 13,000 tons of products.

12/20/2005 -Danubius
The enterprise Delta M and the consortium of MK Komerc and Fidelinka submitted the offers to the Privatization Agency, for acquiring 70% of Novi Sad based enterprise Danubius.

12/20/2005 -Zdravlje
Leskovac-based drug producer Zdravlje, part of Icelandic generic drug company Actavis Group, intends to invest over € 3 million in development programs in 2006. According to the acquisition contract, Actavis has agreed to invest a total of € 20 million in the company following the takeover. In the first nine months of 2005, Zdravlje increased its market share from 12.6% to 14.5%.

12/20/2005 -Minakva
The General Managers of Novi Sad – based mineral water producer Minakva and Budapest company Evolution Consulting Group, Branislav Bogicevic and Laslo Cuka, signed a one-year agreement about the export of Minakva mineral water into EU. First shipment of mineral water will go towards Hungary, Slovakia, Czech Republic, Poland, Austria and Germany, in the beginning of March.

12/20/2005 -Government Approves 4% Price Increase for Imported Drugs, 10% Hike for Domestic Medicines
The government approved a 4% price increase for imported drugs along with a 10% price hike for domestic pharmaceutical producers. Assistant Health Minister Vasilije Antic explained that prices would also be adjusted for domestic drugs that are more than 35% cheaper than comparable drugs in Slovenia, Croatia and Italy. The domestic pharmaceutical industry, which sought this correction several times this year in a bid to offset a growing disparity in prices of foreign and local drugs, commended the government’s decision and promised a better drug supply in 2006. According to the current legislation, domestic manufacturers have to implement EU standards in drug production by 2009, a process that will require substantial investments on the part of local producers. (source: Danas)

12/20/2005 -Lukoil / Beopetrol
Russian oil giant Lukoil has until December 26 to meet its investment obligations under a contract that gave it a majority stake in Serbia’s second-largest fuel chain Beopetrol. In September 2003, Lukoil acquired a 79.53% stake in Beopetrol for € 117 million, pledging to invest € 70 million in the first year of acquisition, € 14 million in the second, and € 1 million in the third year following the takeover. The company, however, stalled with the investment program, citing time-consuming procedures for obtaining construction, technical, and environmental licenses. The Privatization Agency has given Lukoil until December 26 to keep its end of the bargain after receiving an explanation for the delay from an auditor. According to the sell-off authority, the state will turn to a local court and possibly to international arbitrage if it is discovered that Lukoil has again broken the investment deadline. The Russian company has said that it invested € 84 million in Beopetrol’s retail infrastructure this year and pledged to pour another € 1 million in 2006. Lukoil-Beopetrol posted a USD 13 million loss in 2004, and it expects to end 2005 in the red as well. (source: Politika)

12/15/2005 -Coca Cola HBC
The representatives of Coca Cola HBC stated that this enterprise decided to drop the negotiations to acquire Subotica – based producer of soft drinks, Fresh & Co. The reason for this decision is that Fresh & Co succeeded in refinancing its debts.

12/15/2005 -Dunav osiguranje
The largest business income among Serbian insurance companies, during 2005, was realized by the company Dunav osiguranje in the amount of CSD 7.65 billion. Dunav osiguranje was followed by DDOR Novi Sad, with CSD 7.3 billion, Delta osiguranje with CSD 1 billion, Zepter osiguranje with CSD 804 million and AMS osiguranje with CSD 550 million.

12/13/2005 -Galenika
The Spanish publisher Trade Leaders Club named Belgrade drug producer Galenika the best pharmaceutical company in Southeastern Europe. Galenika’s sales rose 9% to CSD 4.5 billion this year, with exports growing 15% against 2004 to € 5.5 million. The enterprise is planning to build a € 46 million plant next year and expects 2006 investments to hit € 57 million.

12/13/2005 -Srbolek
The majority owner of Srbolek, Mr. Jovica Stefanovic and the enterprise MK Komerc purchased 51% of Padej – based enterprise Menta for CSD 18.4 million. The enterprise Menta is producing medical plants, balms and spice plants. According to company’s director estimate with full production an annual revenue can be € 8 million.

12/07/2005 -Nova banka
Italian Findomestic Banca gave a takeover bid to acquire a stake in Belgrade – based Nova banka AD Beograd. Fidomestic Banca is planning to purchase minimum of 95% plus one share or maximum of 100% less one share of comon shares and the same percent for the preferred shares. The offered price is CSD 19,759.95 (€ 230.43). The nominal value of Nova banka shares is CSD 10,000.00 and the market value of the shares is, for common shares CSD 18,000.00 and for preferred shares CSD 10,074.00. The offer will be opened until December 27th.

12/07/2005 -Panonska banka
Ten foreign banks are interested in acquiring 87.39% of Panonska banka. Among the interested banks there are Greek banks, Piraeus Bank, National Bank and Alpha Bank, Hungarian OTP Bank and Polish PKO Bank, HVB Bank, Credit Agricole, Bayerische Landesbank and Italian banks, Sao Paolo and Intesa.

12/06/2005 -Panonska banka / OTP Bank
The representatives of Hungary's biggest commercial bank OTP stated that this bank submitted a letter of intent to buy 87.39% of Serbia's Panonska Banka. They also stated that Panonska banka had total assets worth € 126.8 million on June 30, and a market share of 1.7%. OTP said earlier that it also expected to close a deal to buy a 89.4% stake in Serbia's Niska banka in December or January.

12/06/2005 -Hotel Jugoslavija
The Privatization Agency will attempt to sell hotel Jugoslavija in Belgrade for the third time at an auction scheduled for January 17. The initial price tag is € 26 million, € 16.4 million lower than at the first auction held in late June and € 6.3 million short of the price listed at a repeat auction in July, both of which failed to attract any bids. The hotel, owned by insurer Dunav osiguranje, has eight floors and available space of 53,000 square meters.

12/06/2005 -C Market
The enterprise Primer C offered CSD 25,800.00 per share to acquire 51% of C Market shares. The bid will be successful even with 33.4% of acquired shares. The nominal value of C Market shares is CSD 22,118.00 and the book value of shares is CSD 16,975.00. In the hands of small shareholders is about 76% of shares and the biggest individual shareholder is Mr. Slobodan Radulovic, who is also Managing Director of C Market and Primer C.

12/06/2005 -Delta banka
After 14 years of doing business under the name of Delta banka, starting from yesterday, this bank changed its name to Banca Intesa AD Beograd. The General Manager of Delta banka, Draginja Djuric stated that this bank increased its total assets by 40% or € 900 million. Due to strategic partnership with Banca Intesa, the loan portfolio increased by 60% in favor to long term loans. The amount of € 360 million or 50% more than last year was invested and the retail credits and loans were doubled and exceeded to € 120 million. The deposits increased by 40% in comparison to 2004 and the foreign currency savings increased to € 100 million.

12/01/2005 -Agrobanka
The trading of shares of Agrobanka a.d. Beograd (AGBNPB, AGBN) will start on December 8th on Belex.

12/01/2005 -Srbolek
A private local investor Jovica Stefanovic became the largest individual Srbolek shareholder. Mr. Stefanovic acquired 481,330 shares or more than a half of a total issue of shares of Srbolek.

11/29/2005 -Metalac
The representatives of cooking ware manufacturer Metalac stated that this enterprise in 2006 will become a holding made up of 10 enterprises with total estimated income of € 50 million. They also announced building of a new factory in 2006. The subsidiary for manufacturing of cooking ware will maintain its major part in total income and the two other production subsidiaries such as Metalac Scullion and Metalac Print & Saga Print will be also ready to enter the market with their products such as luxury transport packaging. The building of new factory for manufacturing of electric, gas and solar boilers will be finished by April 2006 as 11th subsidiary of Metalac. The planned income of a new factory in 2006 is estimated to be around € 14 million which will increase the total of planned income at the end of 2006. In the past fifteen years, Metalac invested more than € 35 million and mostly from its own sources.

11/29/2005 -Srbolek
Bulgaria’s biggest pharmaceutical enterprise Sopharma improved its takeover bid for Belgrade drug enterprise Srbolek on Friday, offering to acquire a minimum of 477,537 Srbolek shares at CSD 1,401.00 apiece. Sopharma, which initially offered CSD 910.00 per share, pledged to invest € 20 million to modernize Srbolek’s production facilities, keep all workers, and create new jobs in the process. Moreover, the Bulgarian firm is ready to invest in the implementation of the GMP manufacturing standard, which includes relocating the drug plant outside of the city center to meet related environmental requirements. In the meantime, Nis businessman Jovica “Nini” Stefanovic became the largest individual Srbolek shareholder with total stake in the enterprise of over 43%. Yesterday, on November 28th, the trading volume of Srbolek shares were 125,905 shares. The Share Fund offered its part of shares (approx. 60,000 shares) on Belex and with the record of CSD 1,970.00 per share.

11/25/2005 -Tigar
At the Managing Board meeting, which was held on November 24th, the Managing Board was introduced with the business results for the first nine months of 2005. The total amount of sale, for this period, is € 90.4 million and it is by 21% higher in comparison to the value of the sale to the same period last year. Almost 80% or € 69.2 million of the sale was realized through export. Also the total income of the enterprise Tigar, in this period, was CSD 150.2 million. This amount does not include the income which Tigar realized abroad, in the amount of CSD 34 million. In comparison with 2004, when the total income was CSD 82.6 million.

11/25/2005 -Henkel Merima
The representatives of Henkel Merima stated that the total income in 2005 will be more than € 57 million which is by 50% higher than in 2003, when the total income was € 38.5 million.

11/23/2005 -Banini
The biscuit producer Banini won the ISO 9001, 14001 and 18001 and HACCAP certificates by the USA AQE. Banini managed to implement these four international standards in the period of nine months. In the last ten years, production size increased from 747 tons in 1996 to nearly 13,000 tons which is expected to be at the end of 2005. For the first ten months of 2005, production size was 14.3% higher than last year’s production and the total income for 2004 was € 3.4 million. The General Manager of Banini, Radenko Stanic stated that the value of export in 2005 is above € 1.8 million. Mr. Stanic also stated that the total amount of investments in Banini in the last five years was around € 12 million.

11/21/2005 -Tigar
The accepted decisions on the shareholders assembly held on October 27th were made public. The shareholders of the enterprise Tigar decided to increase the initial capital for CSD 187,464,000.00 and the enterprise`s reserve fund for CSD 294,044,000.00. The value of CSD 187,464,000.00 will be used for issuing 15,622 of new shares by the nominal price of CSD 12,000.00 per share.

11/21/2005 -Energoprojekt
Energoprojekt issued an operational report for 2005 that stated that the consolidated revenue will be € 143 million (or 86% of forecast), gross profit of € 4.7 million (or 120% of forecast) and value of new mandates in the amount of € 270 million (or 94% of forecast).

11/21/2005 -Sintelon
The floor covering producers Sintelon and Tarkett opened a € 15 million plant in Backa Palanka. The factory was built in 17 months and it will operate as part of a joint venture set up by the two floor covering producers. The new production facility is the largest export oriented project currently under way in Serbia and it is expected to export 95% of its estimated annual production of € 70 million.

11/18/2005 -Vojvodjanska banka
The Minister of Finance, Mladjan Dinkic stated that eleven foreign banks are interested in acquiring Vojvodjanska banka. Among the interested banks there are, two Franch banks, Credit Agricole and BNP Pariba, Italian banks such as Intesa, Unicredito and Sao Paolo. Also, four Greek banks such as National Bank of Greece, Alpha Bank, Piraeus Bank and Emporiki showed interest to participate in privatization of Vojvodjanska banka. As Hungarian OTP Bank and Polish PKO Bank.

11/17/2005 -Erste Bank / Novosadska banka
The representatives of Austrian Erste Bank stated that this bank became the owner of 95.6% of shares of Novosadska banka. They intent to increase bank’s operations by opening new branches, increasing the total market share from the present 2% to 10% for the period of next five years. This will be achieved by an investment of € 35 million.

11/14/2005 -Srbolek / Sopharma
Bulgarian drug producer Sopharma offered CSD 910.00 per share for acquiring a 50% stake in the third-largest drug distributor in Serbia, Srbolek. Srbolek has between 1.5 and 2% of the Serbian market and 32% of the shares is in the hands of the state.

11/14/2005 -Simpo
The trading of shares of furniture manufacturer Simpo will start on November 21st on Belex.

11/10/2005 -Hemofarm
The pharmaceutical enterprise Hemofarm signed an memorandum of understanding with Slovenian drug manufacturer Lek, on November 7th. This memorandum refers to technical and marketing cooperation between these two pharmaceutical enterprises. It is not disclosed what exactly this cooperation will cover, but it will encompass 10 different products, which will be marketed and sold to countries like Russia, where Hemofarm is traditionally strong. The enterprise Lek is a part of Sandoz Group which is generic part of Novartis.

11/10/2005 -Delta Holding
By the unconfirmed information, reported by daily “Novosti” Delta Holding became the owner of minimum 10% of Slovenian Mercator. The package of shares was sold to Delta Holding by the price of € 150.00 per share. Delta did not comment on the news.

11/10/2005 -Vojvodjanska banka Receives 11 Letters of Interest
Minister of Finance of the republic of Serbia, Mladjan Dinkic has said that 11 different international banks, including 4 Greek banks, and two apiece from France and Italy, have shown interest in buying out the state stake in Vojvodjanska, which totals 99.2 percent. Vojvodjanska banka is one of the largest banks in Serbia, its network consists of 122 branches and sub-branches. Number of employees is 2635, total assets are € 510 million and equity is larger then € 50 million.

11/10/2005 -Dunav Osiguranje to Launch Health Insurance
Dunav Insurance, the largest insurer in Serbia is about to start offering the private health insurance. Premiums will cost appr € 5 to 12 per month and clients will be offered a list of private clinics and polyclinics to chose from.

11/10/2005 -State Stake in Mobtel to Sold on Tender
Serbian ministry of Economy has announced that the state owned stake in Mobtel will be offered on tender, but only when the international arbitrage in Zurich decides on which part of Mobtel is state owned. Serbia has sued the Karic family which claims that their part of ownership is 52 percent. Serbia claims that the state owned part is between 55 and 70 percent.

11/09/2005 -Simpo
The minority package of shares of the enterprise Simpo is offered on Belex today. A total of 111,511 shares will be available on the stock market, owned by Simpo`s small stockholders, and the nominal value of one stock equals CSD 5,760.00. Along with the stocks of small stockholders, a package of 23% of government stocks will also be offered for sale and, for now, the majority package of Simpo`s shares (65%) will not be offered for sale on Belex. The enterprise Simpo has the total of 1,050,000 shares.

11/09/2005 -OTP Bank / Vojvodjanska banka
The representatives of OTP Bank stated that they submitted a letter of intent to buy Vojvodjanska banka a.d. Novi Sad and will pursue another Serbian lender, Panonska banka, next week. Vojvodjanska banka has a market share of 6.2% and total assets of € 463.5 million as of June 30, 2005. The Serbian bank has 680,000 clients and 175 branches.

11/08/2005 -Laiki Bank Signs Deal to Purchase Centrobanka
Cypriot’s largest bank, Laiki Bank, has signed a deal to acquire 100% of Belgrade’s Centrobanka. The value of the deal will be between € 38 million and € 45 million, depending on the evaluation by an independent auditor. Centrobanka has a capital of € 18 million, deposits exceeding € 50 million, and 50,000 retail and corporate clients. UK’s Finance Central Europe magazine named it the best small bank in Serbia-Montenegro in 2004.

11/08/2005 -Sopharma to Buy 50% Stake in Srbolek
Bulgarian drug maker Sopharma said on Monday it planned to acquire a 50% stake in the third-largest drug distributor in neighbouring Serbia, Srbolek, through placing a buyout bid. Srbolek has between 1,5 and 2 percent of the Serbian market.

11/07/2005 -Piraeus Bank / Atlas banka
The representatives of Piraeus Bank announced the capital increase in the amount of € 7.5 million in Atlas banka, which results in stake of 88.23 %.

11/03/2005 -Tigar
The General Manager of Tigar, Dragan Nikolic stated that this enterprise exported products worth € 69.2 million in the three quarters of 2005, a 23% improvement over the year before. The domestic sales went up 17% to € 21.3 million in the same period.

11/03/2005 -Hemofarm
The representatives of the pharmaceutical enterprise Hemofarm stated that this enterprise exported € 39.7 million worth of products in January-September 2005, a 22.2% increase year-on-year. The majority of Hemofarm exports, or 61%, targeted the former Soviet Union. Southeastern Europe accounted for 30% of the enterprise’s exports, Africa for 4%, the Middle East 3%, and the EU 2%. During the same period, Hemofarm increased production 18.9% with an output of 122 million packages.

11/03/2005 -Cacanska banka
The representatives of Cacanska banka stated that bank`s capital reached CSD 1.5 billion at the end of September, specifying that 15 shareholders own 77% of the bank. The bank approved loans worth CSD 2.5 billion through three quarters of this year and its stock trades on the Belex at CSD 27,000.00 per share.

11/03/2005 -Bambi
Confectionary producer Bambi unveiled a new, € 1.8 million production line that will allow it to add more than 20 sweets to its assortment of available products. The Director of Bambi, Miroslav Miletic stated that the new manufacturing line incorporates modern German equipment and has a capacity to produce four tons of sweets per shift. By recapitalizing Bambi in mid-2004, UK investment fund Salford helped the Pozarevac enterprise boost its value 2.5 times and post a CSD 201 million profit on revenues of CSD 2.5 billion last year. Salford also announced plans for further investments in new equipment and human resources, adding that a stronger emphasis will be placed on more aggressive marketing campaigns and efforts to boost exports to the region.

11/03/2005 -FAD
Gornji Milanovac-based spare auto parts manufacturer Fabrika Automobilskih Delova (FAD) exported over € 2 million worth of goods in January- September 2005. Export revenues accounted for 55% of FAD’s total sales income in the same period. The factory exports to Greece, Egypt, Iran, Germany, the Netherlands, and 25 other countries.

10/28/2005 -AIK banka
Due to the large daily volume of AIK banka, it will be moved to continuous trading from Monday October 31st.

10/28/2005 -Tigar
The shareholders of the enterprise Tigar decided to increase capital from retained earnings, and therefore pay a share dividend of 10 percent, which means that every shareholder will receive one share per each 10 he/she owns on the day of the GA meeting. In addition the GA decided to elect 2 new members of the managing board and selected Deloitte and Touche as Tigar’s auditor for 2005. All decisions were supported by the State Share Fund, which has a 34 percent stake in the enterprise.

10/28/2005 -Panonska banka
The Ministry of Finance announced the sale of minimum of 87.39% of Panonska banka AD Novi Sad. The potential investors were called to submit their expressions of interest by December 5th. Panonska banka`s total assets amounted to € 126.8 million and the total capital amounted to € 32.5 million.

10/27/2005 -Tehnogas Messer
The enterprise Tehnogas decided to cancel 114,417 of own shares with a nominal value of CSD 1,800.00 for a decrease in capital in the total of CSD 205 million (€ 2.38 million). This reduces the number of shares outstanding by 9.9 % for a total of 1,036,000 shares.

10/26/2005 -Niska banka / OTP Bank
Hungarian OTP Bank placed a bid for acquiring 89.39% of Niska banka for undisclosed amount, yesterday. Niska banka covers 0.7% of the Serbian banking market with about 80,000 clients and 24 branches. Niska banka`s total assets amounted to € 40.2 million and the total deposits were € 13.2 million. Its total capital amounted to € 18 million.

10/25/2005 -Tigar
The enterprise Tigar is in the phase of testing the new tire “hitris”, which has asymmetrical tracing or double dapples, which represent the innovation on the domestic market. The tire “hitris” is the product of the Tigar`s experts and it is design for speed up to 210 km/h.

10/25/2005 -Sintelon
The enterprise Sintelon and the Switzerland - based enterprise Enia Carpets AG, signed a letter of intentions which implies the founding of a joint venture for the production of floor covers. The partner from Switzerland will invest significant financial means, knowledge and rich experience in the production of floor covers and Sintelon will secure the necessary infrastructure, equipment and specialized personnel.

10/25/2005 -Tetra Pak
The plant Tetra Pak, based in Gornji Milanovac was voted for the best plant in the world within the Tetra Pak Company. The criteria was the efficiency of the printing in the 2004. This plant was also voted for the fourth plant in the world and second in the Europe in efficiency of laminated of the packaging. Printing and laminating are the key processes in the packaging production with the important impact on the quality of the final product.

10/19/2005 -Nova Ljubljanska Banka (NLB) / Continental banka
Nova Ljubljanska Banka (NLB) Group offered CSD 11,285.26 per share for acquiring the remaining portion of the small shareholders equity. The offer is opened until November 7th.

10/18/2005 -Erste Bank / Novosadska banka
The Austrian Erste Bank offered € 218.98 per share for acquiring 67,045 shares or 16.71% of Novosadska banka from small shareholders. In August this year, Erste Bank acquired 83.3% of Novosadska banka for € 73.2 million by the same share price. The offer is opened until November 7th.

10/18/2005 -Simpo
The representatives of the Simpo`s shareholders association Akcionar stated that a minority share package of Vranje - based furniture manufacturer Simpo will be offered for sale on Belex this week. The organization gathers 1,250 Simpo shareholders, who own 120,000 shares, or approximately 18% of the enterprise. Therefore Simpo will soon start trading.

10/17/2005 -Tigar
The representatives of the enterprise Tigar stated that the project for building a factory for recycling of old car tires is completed. The value of the project is € 4.8 million.

10/17/2005 -Nova Ljubljanska Banka (NLB)
Nova Ljubljanska Banka (NLB) Group is looking to increase its market share in Serbia from the current 3% to 10%. NLB management board member Andrej Hazabent stated that Serbia is one of the most important Southeast European markets for the largest Slovenian bank, which is planning to merge its recent Novi Sad acquisition, Continental Banka, with Belgrade-based LHB banka. NLB President, Marjan Kramar stated that the Group’s 2005 profit before taxes is expected to reach € 116.9 million, boosting NLB’s total assets by 18% to some € 12 billion.

10/17/2005 -Milan Blagojevic Smederevo
Belgrade – based enterprise Invej offered CSD 2,000.00 per share for acquiring 31,500 shares or 25% of Smederevo – based enterprise Milan Blagojevic. The enterprise Invej owns 5.93% already. The offer is opened until November 20th.

10/17/2005 -Belex
The trading of shares of the enterprises Zorka Pharma a.d. Sabac, Panonska banka a.d. Novi Sad, Mlekoprodukt a.d. Zrenjanin, Fad a.d. Gornji Milanovac, Centrobanka a.d. Beograd and Progres a.d. Beograd started with continuous trading.

10/11/2005 -Nacionalna stedionica / EFG Eurobank
The state started the negotiations with EFG Eurobank for selling its stake in Nacionalna stedionica bank. The state owns 37% of the total.

10/11/2005 -Aik banka
The trading of shares of Aik banka a.d. Nis (AIKBPC, AIKBPB, AIKB) will start on October 18th on Belex.

10/10/2005 -Bambi
GA of Bambi, the largest confectionary manufacturer in Serbia decided to move retained earnings to surplus capital. It has also decided to abolish plans for capital increase.

10/07/2005 -Lukoil
The General Manager of Russian oil company Lukoil, Vladimir Repin stated that Lukoil invested about € 300 million in Serbia and that the company was interested in participation in investment processes in entire oil sector.

10/04/2005 -Greek EFG Eurobank / Nacionalna stedionica
The EFG Eurobank International Division Director, David Watson stated that EFG Eurobank is planning to start negotiations with the Finance Ministry on the possible takeover of at least a part of the state-run capital in the Nacionalna stedionica bank. Mr. Watson also added that the government offered no promises to that effect, and announced the bank’s plans to make fresh investments in Nacionalna stedionica and keep all 900 employees. Mr. Watson further specified that EFG Eurobank spent € 44.4 million to acquire 62.3% of Nacionalna stedionica, bringing the bank’s total SCG investment to around € 95 million. EFG Eurobank currently has 24 banking branches throughout Serbia and the two banks now have a combined market share of between 4% and 6%, with hopes of conquering up to 30% of the market in the coming period.

10/03/2005 -ProCredit Bank Serbia
Frankfurt-based ProCredit Holding AG become the largest shareholder of ProCredit Bank in Serbia after boosting its stake to 50%. The company acquired an additional 22% stake from the Dutch Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden – FMO and the International Finance Corporation (IFC), which will continue to have indirect ownership of the bank via their stake in ProCredit Holding AG. The General Manager of ProCredit Bank, Doerte Weidig stated that the change in ownership structure will affect neither the bank’s strategy in the Serbian market nor its focus on financing SME development in a bid to spur job creation.

09/30/2005 -Vojvodjanska banka
The Ministry of Finance announced the sale of 99% of Vojvodjanska banka. The potential investors were called to submit their expressions of interest by November 7th.

09/30/2005 -BAT (DIV)
The enterprise British American Tobacco which acquired Duvanska industrija Vranje (DIV) built a new factory with aim to modernize the production.

09/30/2005 -Ball Packaging Europe
The enterprise Ball Packaging Europe opened a new plant in Belgrade. The value of an investment was € 50 million.

09/29/2005 -Alfa plam Increases Exports
Alfa Plam has increased the number of heating devices sold in Slovania by 20% to 3,000 pieces, while the placement in Croatia increased by 30%. In Bosnia and Macedonia Alfa Plam holds the major market share while its strength in Kosovo market is accelerating as Alfa managed to suppress Turkish competitors and overtake the leading position. Previously mentioned markets will assist the Company to further expand and conquer Austrian, Romanian, Bulgarian, and Albanian markets. Source: Pregled

09/29/2005 -Knjaz Milos Introduces HACCP Standard
Mineral water bottler Knjaz Milos is readying to implement the Hazard Analysis and Critical Control Point (HACCP) standard in a bid to secure access to all markets world-wide. Knjaz quality control sector head Zorica Vukcevic said that the Arandjelovac-based firm is looking forward to the implementation of the new law on mineral waters, adding that the company plans to maintain its “leading position” in Southeastern Europe. Source: Politika

09/28/2005 -Ratar
The Managing Director of Pancevo – based agricultural enterprise Ratar, Miroslav Mitic stated that the trading of Ratar`s shares will start on Belex. The core business activity of the enterprise Ratar is processing of food grains, especially wheat and production of all types of flours and additives for bread and pastry. The starting price of shares will be CSD 4,190.00. The total capital of the enterprise was estimated on CSD 509 millon and the total number of shares is 125,000, of which 69% is in the hands of small shareholders and the rest of the shares is state owned. Mr. Mitic also stated that Ratar had the total turnover of CSD 1.2 billion last year and the total revenue of CSD 700 million. The main buyers of the enterprise’s products are enterprises like Bambi, Banini, Swisslion, Belgrade`s Bakery Industry and others.

09/27/2005 -Jaffa
Biscuit producer Jaffa CEO Aleksandar Veselinovic stated that this enterprise will start building a new plant. The value of the construction is estimated at approximately € 20 million, and will be completed in eight months. The equipment will be acquired from Swiss supplier HTV and the factory will have an output capacity five times bigger than the old one.

09/27/2005 -Brewery Celarevo
The Managing Director of the brewery Celarevo, Bogoslav Barcak stated that 2005 will be the most successful year in the history of brewery Celarevo with total sale of about 900,000 hectoliters of Lav and Tuborg beer. The brewery Celarevo changed its name into Carlsberg Serbia.

09/23/2005 -Nacionalna stedionica / EFG Eurobank
The EFG Eurobank is completing their takeover process of Nacionalna stedionica shares. Their offer for takeover of 49% of shares will end on Monday. This purchase will cost around € 60 million. The EFG Eurobank already has a 10% of stake of Nacionalna stedionica bank. The Minister of Finance, Mladjen Dinkic stated that the state will retain a partial ownership of the Nacionalna stedionica bank. The state owns 37.5% of the shares of Nacionalna stedionica bank.

09/21/2005 -Hemofarm
The Slovenian enterprise Viator & Vektor acquired 100% of Hemofarm transport subsidiary “Hemofarm transport i spedicija” d.o.o. for € 3.3 million. The representatives of Hemofarm stated that this step represented their decision to focus on their major activity, the production of medicaments.

09/21/2005 -Hemofarm / Zanini Group
The pharmaceutical enterprise Hemofarm and Italy`s Zanini Group promoted their joint cardboard packaging manufacturer Zanini East in Vrsac. Zanini Group President Flaminio Farenzi pointed out that the group is planning to expand its operations in Serbia, China and India, as well as to make the most of Hemofarm`s operations in Russia. The President of Hemofarm, Miodrag Babic stated that Serbia`s trade agreement with the Russian Federation will enhance investor interest in the local market.

09/19/2005 -Toza Markovic
The representatives of roof tile producer Toza Markovic stated that this enterprise exported 3.3 million roof tiles in August which represent the record in monthly exports. In August, the revenue was CSD 270 million which represent one of the greatest in the last 15 years.

09/19/2005 -Hotel Moskva
The representatives of Belize – based enterprise Netwest Finance, which is the major owner of the Belgrade - based hotel Moskva, stated that they intend to purchase all shares from the small shareholders. The redemption of shares on Belex will last for the next five months and the shares will be bought up by the price of € 74.6 per share. The enterprise Netwest Finance acquired the 51% of hotel Moskva by the price of CSD 14,137.00 per share in August 2005.

09/16/2005 -Tigar
The tire producer Tigar MH is diversifying its operations and setting long-term strategic goals. The General Manager Dragan Nikolic stated that Tigar expects to end the year with a 20% increase in tire exports, which were worth € 80 million in 2004 and this enterprise anticipates increase in exports in 2005 that will reach € 100 million. For the past two years, Tigar was manufacturing tires in collaboration with French Michelin.

09/16/2005 -Centrobanka
The trading of shares of Belgrade – based Centrobanka (CEBAPB) will start on September 23rd on Belex.

09/16/2005 -Vital
The enterprise Bunge offered CSD 2,500.00 per share for the takeover of 580,593 shares or 76% of the cooking oil factory Vital. The other bidder, Invej offered CSD 2,250.00 per share for the takeover of minimum of 25% of shares. Both offers will be open until October 6th.

09/15/2005 -Energoprojekt Holding
The General Manager of Energoprojekt Holding, Vladan Pirivatric gave the official statement, yesterday, where he stated that the conduction of the decisions brought by shareholders assembly held in July 2005 is in progress in Energoprojekt business system. The part of the new issued shares was earmarked for conversion of the shares of Energoprojekt subsidiaries into the shares of Energoprojekt Holding, and the second part of shares for the capital increase. The conversion of shares was planned to fulfill in the last quarter of 2005. The final list of potential investors and the number of shares that would be offered for them to purchase, will be brought by the Managing Board of Energoprojekt Holding until the end of September and the decision will be realized until the end of 2005. Mr Pirivatric also stated that the preparations for the payment of dividends for 2004 to shareholders are in progress. The dividends were planed for 2005, also. The enterprise Energoprojekt Holding is continuing with its successful business results. The revenue for the period from January to June 2005 is € 70 million and it was planned that the total revenue for 2005 would be € 167 million. In first half of 2005 there had been arranged a number of new businesses in the value of € 164 million (€ 30 million in Serbia and Montenegro and € 134 million abroad in), which represent the 60% of the agreed amount.

09/15/2005 -Vital
The Ashmore fund offered CSD 2,300.00 per share for the takeover of 190,985 shares (25%) of the cooking oil factory Vital. The other bidder, Bocatoro enterprises limited, offers the same price per share, but the minimum number of shares for the takeover is 381,970 or 50%+1 share. Both offers will be open until October 6th.

09/14/2005 -Hotel Moskva
Trading of shares of Belgrade – based hotel Moskva (HMSK) will start on September 21st on Belex.

09/14/2005 -Carnex
According to unofficial information, meat producer Carnex will be sold by Midland Resources to Delta Holding very soon. The British off-shore company Midland Resources asks for € 30 million for Carnex. Midland acquired Carnex two and a half years ago for approximately € 14.5 million and owns 51% of the enterprise, while the 40% is in the hands of Share and Pension Funds.

09/13/2005 -Lafarge BFC
The General Manager of Lafarge BFC, George Bobvos stated that this enterprise invested around € 55 million in the revitalization of the cement factory in Beocin over the last four years, adding that the enterprise fulfilled all investment obligations before the prescribed deadline. In addition, the enterprise specified that the overhaul of the rotary production furnace facilitated cement production of 1,5 million tons annually. This modernization cost € 17.46 million, with command center upgrades incurring additional expenses of € 700,000.00. Mr. Bobvos also paid tribute to a well-trained workforce at the factory, noting that the enterprise invested over € 500,000.00 in job training last year.

09/12/2005 -Fresh and Co
Coca-Cola HBC seeks to acquire 100% of Serbian juice maker Fresh & Co. Politika daily announced that Coca-Cola HBC, the Greek bottling company which owns the Serbian Coca-Cola entity, entered negotiations with Fresh and Co. the largest manufacturer of fruit juices in the country. “Fresh and Co” has been said to be in financial difficulty and Coca Cola HBC is looking to expand its line of business in the region to include non soft drink juices.

09/12/2005 -Luka Beograd
Luxembourg investment fund «WORLDFIN S.A.» launched a bid for acquiring 25 to 100 percent of “Port of Belgrade” for a maximum of 40 million EUR for the 100 percent of the company. The fund offered a price of 800 dinars per share, twice the book value. The company is not yet listed on the Belgrade Stock exchange.

09/08/2005 -Tigar
The representative of the enterprise Tigar, Srdjan Stojanovic stated that 16% of a total of issued shares or a quarter of package of shares of small shareholders was sold on Belex for € 5 million for a period of tree months. Mr. Stojanovic also stated that the main buyers of Tigar shares, on long term, were US investment funds, who were also purchasing the shares of another big Serbian enterprises like Hemofarm, Energoprojekt, Metalac, Alfa plam. The biggest individual buyer of Tigar shares was one foreign investment fund, who purchased so far 4.96% of shares.

09/07/2005 -Vital
The representatives of Vrbas – based cooking oil factory “Vital” stated that the offer for purchasing the package of shares of this enterprise will be open until September 14th. They are also stated that potential investors can improve the conditions of the offer for acquisition after this deadline. The potential investors for acquiring Vital are US enterprise BUNGE, Belgrade – based enterprises Invej and Fokus Capital Partners, Swisslion Takovo. The 60% of shares (or 458,000 shares) of Vital is in the hands of 5,000 shareholders and 40% is held by the state.

09/05/2005 -Nacionalna stedionica / EFG Eurobank
The representatives of Greek EFG Eurobank stated that SEC approved their offer for purchasing 90% of Nacionalna stedionica shares by the price of CSD 627,540.00 per share. The offer will be open until September 26th.

09/01/2005 -Komercijalna banka
According to the data of National Bank of Serbia, Komercijalna banka is among the leading banks on the Serbian financial market in terms of net profit for the first half of 2005. Profit from interest and commissions is CSD 2,537 million or above € 30 million.

08/31/2005 -Vojvodjanska banka
The Managing Director of Credit Agricole bank for South East Europe, Bozidar Djelic stated that this bank is interested in purchasing Vojvodjanska banka. Credit Agricole acquired 71% of Novi Sad – based Meridian banka for € 34 million in May, 2005.

08/30/2005 -Nacionalna stedionica / EFG Eurobank
EFG Eurobank is prepared to pay € 74 million for the takeover of the Nacionalna stedionica bank. The Greek bank is ready to set aside CSD 630,000.00 per share, or five times the book value of Nacionalna stedionica whose shares are currently valued at CSD 179,000.00 apiece on Belex. The SEC is expected to approve a EFG Eurobank`s bid for the takeover of Nacionalna stedionica bank this week, enabling the Greek bank to complete the acquisition around September 20. The representatives of EFG Eurobank, which has a 10% stake in Nacionalna stedionica, stated that they reached an agreement with the bank`s small shareholders to take over a further 49% of the bank`s capital and that they are ready to buy the rest of the bank as well. The Minister of Finance, Mladjan Dinkic stated that the government will decide the future of its 37.5% stake in Nacionalna stedionica as soon as the takeover bid is officially announced. Mr. Dinkic also stated that the state will retain partial ownership of the bank regardless of the outcome, if it decides to sell any shares at all. According to a statement from EFG Eurobank, the Nacionalna stedionica bank, which has a network of 70 branch offices across Serbia, had total assets of € 122 million at the end of June 2005.

08/30/2005 -Progres
The trading of shares of the enterprise Progres started today. The initial price was CSD 941.00 per share.

08/29/2005 -Alfa plam
The enterprise Alfa plam finished voluminous, expensive and significant investment – reconstruction of the unit for cleaning and enameling of stove and range parts. The Alfa plam’s Enamel shop was completely rehabilitated (the other enameling unit was renovated three years ago) and every risk of production stoppage has been eliminated. The entire project costs € 1.5 million and it is paid from Alfa plam own resources. Renovation of the unit lasted for three months – from complete reconstruction of the factory hall to replacement of entire equipment. Vranje-based manufacturer of ranges and stoves invested € 1.15 million in procurement of new machines (VET, Germany) of the last technological generation. Alfa plam had very high expenses of maintenance of Enamel shop because of the very old equipment. These expenses are now much lower, especially the consumption of electric energy and water, enamel consumption has also been reduced (introduction of procedure of so-called wet dipping) and all possibilities of environment pollution eliminated. Modern technology conditioned cut in number of workers in the factory and excess workers are directed to some other works. What is most important, the quality of design was improved and the capacity of Enamel shop increased, which will be reflected in further growth of Alfa plam`s production and productivity. New Alfa plam’s Enamel shop entered trial phase and start of regular production is expected in September.

08/26/2005 -Nacionalna stedionica / EFG Eurobank
The representatives of EFG Eurobank stated that they submitted the application of public offer for acquiring the controlling stake of shares in Nacionalna stedionica to SEC. The manager of international sector of EFG Eurobank, David Watson stated that they are expecting the positive response by SEC. The representatives of EFG Eurobank also stated that the EFG Eurobank offer refers to all shares of Nacionalna stedionica which are not in their possession and that the state shareholders are familiar to their intention. The EFG Eurobank made this step after they reached an agreement with the individual shareholders of Nacionalna stedionica for acquiring 49% of shares of the total. The EFG Eurobank already holds 10% of shares of Nacionalna stedionica.

08/25/2005 -Coca Cola HBC
The representatives of the enterprise Coca Cola HBC stated that they are interested in expending on the Serbian mineral water and beverages market. Coca Cola acquired the enterprise Vlasinka, one of the leading producers of mineral water and beverages and now they are mentioned as potential investors in the acquisition of the Subotica – based enterprise Fresh & Co. The enterprise Fresh & Co is famous for its juice “Next”. At the beginning of 2005, the “Next” raspberry juice was voted for the best juice in the world.

08/25/2005 -Toza Markovic
The Croatian enterprise Nasicecement failed to acquire the majority package of shares in the tile producer Toza Markovic. So far, this enterprise acquired 30% of shares of Toza Markovic and the enterprise TM Invest, created by the Toza Markovic shareholders, and its domestic partner Delta succeed in acquiring more than 35% of the total of Toza Markovic shares.

08/23/2005 -C Market
The representatives of Delta M, the subsidiary of Delta Holding stated that they are prepared to buy all shares from small shareholders and the state of the retail chain C Market at CSD 25,500.00 per share. Delta M, however, accused the C Market management of trying to undercut the enterprise share value through an illegal capital increase attempt. On the other hand, the representatives of the C Market management backed Shareholders Association claim that the agreement with Delta M is illegal, warning small shareholders not to sell their shares at a depressed rate offered under the deal. Last week, Delta M said it reached an agreement with C Market’s small shareholders to buy their stock in a deal that would allow it to become the new majority owner of Serbia`s largest retail chain. Small shareholders control more than 51% of C Market. On the other hand, the representatives of the Serbian Ministry of Economy stated that the sate stake of C Market`s shares, 16% of the total, will be offered on the Belgrade Stock Exchange.

08/23/2005 -The Increase of Drugs Prices
The Health Ministry has approved a 3% increase in the prices of drugs in an attempt to prevent shortages of both foreign and domestic drugs. The ministry also stated that the price hike should also help stabilize the market supply in the second half of 2005, adding that the government has approved a rationalization plan for health services to facilitate the employment of several hundred young doctors in the near future. The ministry has also increased so-called participation fees from CSD 10 to CSD 20 for basic health services in hopes of boosting associated revenues from CSD 750 million last year to CSD 1.2 billion in 2005.

08/22/2005 -Delta M / C Market
The enterprise Delta M, the subsidiary of Delta Holding reached an agreement with C Markets small shareholders to buy their shares in a deal that would allow Delta M to become new majority owner of Serbia largest retail chain. Legal adviser to small shareholders, Branko Pavlovic sated that Delta M, which operates Maxi supermarkets and Pekabeta stores, would need to buy the states 23% stake and over 27% from small shareholders, who control more than 51%, to become the majority owner. Mr. Pavlovic also stated that the shareholders of C Market have to register the shares they want to sell to Delta M, until September 15, adding that the transaction will not be carried out on the securities market, but rather through individual contracts. Mr. Pavlovic failed to disclose the takeover price, but said it will exceed CSD 18,000.00 per share that Slovenian supermarket operator Mercator offered before the Commercial Court in Belgrade blocked C Markets takeover process last year. According to Mr. Pavlovic, the agreement with Delta M will not mean an end to small shareholders litigation with C Markets shareholder assembly, which recently reached a decision on a € 32.7 million recapitalization.

08/18/2005 -Tigar
The representatives of the tire manufacturer Tigar stated that its minority shareholders have so far sold 24,857 out of a total of 101,458 shares for € 3.5 million on the Belgrade Stock Exchange (BSE). Foreign investment funds are the largest buyers of Tigar shares, which currently sell at about CSD 16,500 per share in the BSE continuous trading.

08/18/2005 -Aleva
The Sales Manager of the enterprise Aleva, which majority owner is US Flory Trading, Vladimir Cukurov stated that this enterprise will try to enter the markets in the Middle East. Mr. Cukurov also stated that Aleva has dispatched its first shipment containing 17 tons of various products and worth a total of € 80,000.00 to Iraq and is also in talks with importers in Jordan, Iran, Syria, Libya and Turkey. According to Mr. Cukurov, exports to the Ukraine will be launched this fall.

08/17/2005 -Agroseme
Shareholders controlling a 56% stake in Novi Sad - based trading enterprise Agrocoop accepted a takeover bid of Sremska Mitrovica - based enterprise Agroseme. Agroseme placed the best bid of CSD 4,120.00 per share, offering to buy a 49% stake in Agrocoop.

08/16/2005 -ProCredit banka
Germany – based ProCredit Holding is ready to acquire minimum of 400,000 and maximum of 800,000 shares of the total number of ProCredit banka shares by the price of CSD 380.71 per share. The offer will remain open until September 2nd.

08/16/2005 -Erste Bank / Novosadska banka
The representatives of Erste Bank stated that they completed the € 73.2 million takeover of an 83.3% stake in Novosadska banka. Within the next 90 days, Erste Bank will place a bid for the remaining 16.7% of the Novi Sad-based bank`s capital held by some 2,000 small shareholders, offering the price of € 218.98 per share.

08/12/2005 -Planum / Ratko Mitrovic
Belgrade Airport opened four offers for runway reconstruction in a tender procedure which began two months ago. Among the bidders there are consortia of construction enterprises Planum and Ratko Mitrovic which demand € 3 million for the completion of the job.

08/11/2005 -Delta banka / Banca Intesa
The representatives of Italian Banca Intesa stated that they completed the acquisition of 90% plus one share of Serbia's second largest bank, Delta banka, as part of a strategy to expand into Eastern Europe. On July 20, Banca Intesa launched a € 333 million bid for Delta banka whose remaining 10% of capital is in the hands of shareholders. At the end of 2004, Delta banka had assets worth of € 691 million. The bank, which has a network of 144 branch offices and serves some 400,000 clients, posted a net profit of € 22 million in 2004. The representatives of the Italian bank also stated that they launched a € 12.4 million takeover bid for Bosnia's ABS banka, hoping to take over 50% plus one share of the bank and conclude the acquisition by September.

08/10/2005 -Agroseme
Sremska Mitrovica – based enterprise Agroseme offered CSD 4,120.00 per share for the takeover of up to 49% (74,039 shares) of Novi Sad - based trading enterprise Agrocoop. The offer will remain open until August 16.

08/09/2005 -Toza Markovic
The Croatian Nexe Group became the largest individual shareholder in construction materials producer Toza Markovic by adding a 28.3% stake to the 1.8% it previously owned. In its takeover bid, closed on August 4, the Croatian enterprise offered to buy 55% of Toza Markovic shares. The manager Djurica Misin stated that Nexe Group now hopes to acquire the state’s 14% stake, adding that they will continue to buy from small shareholders through August 24. The management and independent union of Toza Markovic described Nexe Group bid as hostile, while 70% of employees have set up an enterprise called TM Invest, which holds 30% of the Toza Markovic shares, in an attempt to create a controlling stake.

08/08/2005 -Dijamant
The General Manager of Frikom, which is owned by the Croatian food enterprise Agrokor, Zeljko Brozovic, stated that Agrokor has purchased a 26.9% stake in Zrenjanin cooking oil plant Dijamant from a Vienna-based investment fund backed by Austrian HVB Group and Croatian investment bank CAIB. Mr. Brozovic also stated that Agrokor is interested in buying more shares of the Balkan`s largest cooking oil factory. The trading of shares of enterprise Dijamant (DJMN) will start on August 12th on Belex.

08/05/2005 -Jelen Do
Construction materials producer Jelen Do, part of Croatian Nexe Group, produced more lime in the first six months of 2005 than in year 2004, while the output of stone aggregate was nearly 500,000 tons. Last year, it produced 779,000 tons of stone aggregate and 50,000 tons of lime, raising revenues of € 7 million. Jelen Do`s target for 2007 is to post an output of 2.12 million tons of stone aggregate and 206,000 tons of lime. In 2003, when it took over Jelen Do, Nexe Group agreed to invest € 750,000.00 in production in 2004 and a further € 946,000.00 in 2005. The General Manager of Jelen Do, Milovan Gavrilovic stated that this enterprise got nearly EUR 2 million in new equipment, last year and added that investment in 2005 will reach almost € 4 million.

08/03/2005 -Energoprojekt
The Management of Energoprojekt gave the official report with decisions that were brought up on last weeks GA. The number of new issued shares is 4,215,216 of which the professional investors can purchase 900,000 and the number of 3,315,216 shares is earmarked for actual shareholders of Energoprojekt subsidiaries. They can make the conversion of shares they posses in Energoprojekt`s subsidiaries for the shares of Energoprojekt Holding shares. The right on conversion have the shareholders of these subsidiaries: Energoprojekt Visokogradnja a.d., Energoprojekt Niskogradnja a.d., Energoprojekt Oprema a.d., Energoprojekt Industrija a.d., Energoprojekt Entel a.d., Energoprojekt Urbanizam i arhitektura a.d., Energoprojekt Energodata a.d. i Energoprojekt Hidroinženjering a.d. The shareholders have the right to dividend in value of CSD 14.00 per share.

08/03/2005 -Erste Bank / Niska banka
Chief Executive of Erste Bank, Andreas Treichl stated that this bank is going to participate in the privatization process of Niska banka. Erste Bank signed an agreement for the takeover of 83.28% of Novosadska banka for € 73 million last month. Mr Teichl also stated that the participation in the privatization of Niska banka is their next step for further expansion in the Serbian banking sector.

08/02/2005 -Energoprojekt
The construction enterprise Energoprojekt will soon start works on the construction of new Belgrade`s railway station Prokop. The value of the works is estimated on € 14 million. Ministry of the capital investments have already secured CSD 10 millions (€ 12,000.00) for the construction of the block above the station that will be offered to investors to construct 132,000 m2 building.

08/02/2005 -Hemofarm
The pharmaceutical enterprise Hemofarm announced rise in semiannual production and sales compared to year earlier by 22% and 17%, respectively. Hemofarm produced 80 millions of medicines in 2005 while the plant is operating at full capacity even during the summer season. The prices of drugs have not been modified regardless of agreements reached with domestic producers. Receivable collection periods are extending, imposing some constrains on the liquidity of not only Hemofarm but majority of the pharmaceuticals. Hemofarm placed € 25 million on the foreign markets realizing 21% increase year-on-year.

08/02/2005 -Zdravlje Actavis
The pharmaceutical enterprise Zdravlje, part of Icelandic generic drug enterprise Actavis Group, has started introducing SAP business application software. The Leskovac enterprise will be the fourth drug producer in the region to introduce SAP business solutions, which have already been implemented by Pliva, Delupo, and Bosna Lijek.

08/02/2005 -Sintelon / Tarkett
The representatives of Backa Palanka-based Tarkett stated that this enterprise exported more than 80% of the floor coatings it produced in the first six months of 2005, posting hard currency revenues of € 40 million. This year, the enterprise is planning to invest some € 15 million in several projects across Serbia, including a new plant in Backa Palanka, which will employ some 200 people. In 2007, Backa Palanka enterprise expects to raise more than € 150 million in revenues and to become one the best performing units of French multinational flooring manufacturer Tarkett, which employs over 7,000 people at 28 factories worldwide and posts annual revenues of more than € 1.5 billion. Backa Palanka`s Tarkett, with around 350 workers, is a joint venture of local floor covering manufacturer Sintelon and French Tarkett.

07/29/2005 -Energoprojekt / Preduzece za puteve / Vojvodinaput / Putevi
The state Road Directorate have signed four road reconstruction deals worth a total of CSD 2 billion with Serbian leading construction enterprises. The funding will come from loans approved by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The construction enterprise Energoprojekt will build 10.6 kilometers of road between Cukarica and Ostruznica in an investment worth nearly CSD 300 million and Belgrade-based road builder Preduzece za puteve will handle a CSD 365 million project for the construction of 10.6 kilometers of road between Centa and Besni Fok. The construction of a 7.3 kilometer section on the Belgrade-Pancevo highway will cost around CSD 236 million and will be carried out by Novi Sad-based Vojvodinaput and Italian Adige Bitumi. Also, Uzice-based Putevi was granted a CSD 1.3 billion contract to build seven new bridges and modernize 17.5 kilometers of road between Borova Glava and Uvac over 12 months.

07/29/2005 -NIS / Societe Generale
The state oil enterprise Naftna industrija Srbije (NIS) has received a USD 35 million loan from Societe Generale after signing an agreement on a long-term cooperation with the Belgrade-based bank. Under the cooperation agreement, Societe Generale will become one of NIS`s key partners in the restructuring process and it will support the state oil enterprise through financial, banking, and consultancy services.

07/29/2005 -Philip Morris International / DIN
Minister of International Economic Relations Milan Parivodic stated, during his visit to tobacco factory Duvanska industrija Nis (DIN), that the government is determined to help foreign investors in Serbia because their success here is Serbia`s success as well. Philip Morris International, which acquired DIN 20 months ago, has invested a total of USD 700 million, including the initial € 387 million. Mr. Parivodic also stated that the existing investors are the government`s first concern but it will also seek to help those who intend to invest and noted that the state must protect the principle of competition rather than individual producers. Over the next two years, Serbia expects more investments as large as Philip Morris investment in DIN. DIN Managing Director Eugenio Sidoli stated that the output at the Nis factory has been increased and he explained that infrastructure investment will be followed by further investment in products, employees, and production process. Philip Morris acquired 70% of DIN for € 387 million in August 2003, pledging to invest € 64 million over five years.

07/28/2005 -DDOR Novi Sad
The Minister of Finance, Mladjan Dinkic stated that the agreement about beginning the privatization process of insurance enterprise DDOR Novi Sad is signed and an advertisement, for a privatization advisor, will be published by the end of the week. This insurance enterprise will be the first one to be privatized because it has already sold 32.5% of its shares to a Slovenian Investment Fund. Mr. Dinkic also stated that they agreed to offer their shares together, to the future strategic partner and that they are planning to offer for sale, over the stock market, the shares of Dunav osiguranje, as well as Komercijalna banka to a large number of domestic shareholders.

07/27/2005 -Energoprojekt
The shareholders of Energoprojekt gave acceptance, on yesterday assembly, that the interested investors can purchase 900,000 of new issued shares by the price of CSD 1,106.00 per share. The total bid for the capital increase of Energoprojekt of six investors is € 32 million. The potential investors are Belgrade based brokerage house Beo monet, US funds Terra Partners and QVT, Swedish fund East Capital, Luxembourg based enterprise Delmont and Great Britain fund Ashmor. The assembly has also decided that the shareholders have the right on dividend in value of CSD 14.00 per share.

07/27/2005 -Toza Markovic
The representatives of Croatian Nasice Cement, part of Nexe Group, stated that this enterprise received authorization from the Securities and Exchange Commission to increase the maximum stake in its takeover bid for Toza Markovic from 49% to 55%. The new offer, which includes detailed investment and social programs, will remain open until August 4. Originally, Nasice Cement offered to pay CSD 2,300.00 per share for a package comprising between 25% and 49% of the Toza Markovic shares. However, the management and independent union of the biggest roof tile maker described the takeover bid as hostile.

07/25/2005 -Toza Markovic
The Croatian enterprise “Nasicecement”, member of Nexe grupa, failed to succesed in take over of “Toza Markovic” shares.

07/25/2005 -U.S. Steel Serbia
The representatives of U.S. Steel Serbia (USSS) stated that its number two blast furnace churned out 83,145 tons of iron last month, or 9,705 tons more than planned. Number one blast furnace, which resumed operations on June 22 following 18 years of idleness, produced its first quantities of iron, projecting this year’s output at 1.6 million tons of iron, up from 1.1 million tons the year before.

07/22/2005 -Delta osiguranje / Generali Group
Italy`s Generali Group has signed a preliminary agreement to buy 50% plus one share of Serbia`s third-largest insurer Delta osiguranje, a subsidiary of Delta Holding. The stake will be purchased through Generali Holding Vienna. In 2004, Delta osiguranje collected € 16 million in premium income, of which about 85% was in the non-life sector. In the first half of 2005, the premium income of Serbia`s largest private insurer reached the level posted for the whole of 2004. Generali Group operates in 40 countries with € 56 billion in annual premium income. The representatives of Generali Group stated that the takeover of Delta osiguranje is part of its expansion strategy in Central and Eastern Europe and that they are expecting a strong growth in Serbia`s insurance market, which generated over € 370 million in premium income in 2004 and posted a penetration rate of 2.2% of GDP.

07/22/2005 -Napred
The operating capacity of the construction enterprise Napred is fully employed. Recently, Napred closed an agreement to construct the biggest shopping mall in Balkans (200,000 m2) for Hypo Group. Napred is further engaged in the construction of the Ikea`s warehouse which is planned to be the biggest one in Russia. Relaying on the extensive experience gained in this market, where Napred has constructed more than 60 buildings in the last 15 years, the management expects that the enterprise will get two new projects in Moscow: a business building (50,000 m2) and a plant for the production of vodka.

07/21/2005 -Grand kafa / Soko Stark
The enterprise “Grand kafa” purchased 92.7% of shares of confectionery producer “Soko Stark” for € 33 million. The additional € 15 million will be placed in investment program.

07/21/2005 -Serbia LT Ratings Raised to “BB-” on Faster Reform, Lower Political Risk; Outlook Stable
Standard & Poor's Ratings Services stated that it raised its long-term sovereign credit ratings on the Republic of Serbia to “BB-” from “B+”. The “B” short-term rating was affirmed. The outlook is stable. Standard & Poor's credit analyst Beatriz Merino stated that the upgrade reflects Serbia's improved medium-term fiscal outlook, its diminishing political risks, and improved external indebtedness indicators. The government has revised its medium-term fiscal target for 2005 to a surplus of about 1.5% of GDP, from a deficit of 1.4% of GDP. Standard & Poor's expects that the 2005 fiscal surplus will be achieved, largely because of booming tax revenues following the introduction of VAT in January 2005. The tighter fiscal stance should help to contain inflationary pressures. Inflation, which has accelerated to more than 15% by mid-2005 largely due to buoyant domestic demand, is expected to decline only gradually. Privatization, restructuring of large public enterprises, and preparatory work on pension reforms have gained pace over recent months. Ms. Merino also stated that in the medium term, they expect the government to maintain the budget close to balance by reducing subsidies to public enterprises, keeping real public sector wage growth in check, and trimming the high pension deficit that is currently running at about 5% of GDP. Political risks have diminished following the EU`s decision to start negotiations on a Stabilization and Association Agreement. This is helping to build consensus across reformist parties to pursue the goal of EU membership. Nevertheless, political stability is fragile and political risks weigh heavily on the ratings. These risks stem from unresolved issues, such as the status of Kosovo, the future of the union with Montenegro, and further cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY). Serbia's external debt indicators have improved beyond earlier forecasts, reflecting higher-than-projected growth of exports and central bank foreign reserves. The external position, however, remains a concern, with the current account deficit projected to stay about 10% of GDP over the medium term. Despite the sizable external gap, the National Bank of Serbia has been able to rebuild reserves to an estimated USD 4.4 billion at the end of June 2005, not least due to large unregistered trade and capital inflows. The unpredictability of the latter, however, highlights the vulnerability of Serbia's external accounts and a need to improve transparency and the quality of balance-of-payments data. The stable outlook reflects Serbia's good medium-term economic prospects, with real GDP projected to grow between 4% and 5% per year, and expectations that the government will adhere to its prudent policy and economic reform program. Any lasting setback to political stability, fiscal performance, or the reform agenda, however, would endanger macroeconomic stability and Serbia's debt sustainability, thereby placing downward pressure on the ratings. Ms. Merino also stated that by contrast, further improvements in the political environment and good progress toward EU accession would support economic reforms, which would eventually lead to improvements Serbia's creditworthiness.

07/19/2005 -Novosadska banka / Erste Bank
Erste Bank has signed an agreement for the takeover of 83.28% of Novosadska banka for € 73 million and the Austrian bank will set aside around € 14.6 million to purchase all stock held by small shareholders. The new owner will provide € 15 million in lending for small and medium-sized enterprises and € 15 million for financing mortgage loans at attractive interest rates. It also pledged severance payments for voluntary redundancies and promised to increase the number of Novosadska banka workers from the current 881 to some 1,250 over the next five years. Erste Bank will also furnish an additional € 2 million in donations and € 10 million in long-term loans to Novosadska banka corporate clients over the next five years.

07/19/2005 -Toza Markovic
A group of shareholders of Toza Markovic, led by CEO Dmitar Segrt, has created an enterprise - TM Invest, where small shareholders and the management teamed up as the single largest consortium with a 27 percent stake in Toza Markovic. The goal of the enterprise is to acquire a controlling stake in Toza Markovic, according to Mr. Segrt. The move is viewed as a defensive maneuver to disallow the takeover bid by Nasice Cement.

07/19/2005 -Putnik
Shortly after the Privatization Agency severed travel agency Putnik takeover contract with US Uniworld, a Greek investors’ consortium that was disqualified during the initial tender sale restated its interest to acquire Putnik for USD 10.1 million. The consortium was excluded from the Putnik privatization process for failing to submit an adequate financial guarantee on time.

07/19/2005 -Hemofarm
German Ambassador to Serbia and Montenegro, Andreas Zobel visited pharmaceutical enterprise Hemofarm highlighting the longstanding cooperation between Hemofarm and German Fresenius as an excellent partnership model. The two enterprises started their collaboration in the 1970s when Hemofarm began producing infusion solutions based on a German license. Mr. Zobel underlined that Germany is one of Serbia’s largest foreign trade partners with around € 400 million invested since 2000.

07/18/2005 -Knjaz Milos
Six months after it was taken over by FPP Balkan Ltd. and investment fund Salford, “Knjaz Milos” has seen many changes, including the introduction of a logistics department for better production, distribution and sales, including the employment of 120 new workers. Upon arriving in the enterprise, the new owners found a € 18.6 million debt to suppliers and a € 4.7 million loss at the end of 2004. FPP Balkan Ltd. pledged to invest € 25 million in “Knjaz Milos” and it has already injected € 12 million. FPP Balkan Ltd. is also planning to include brand modernization and package improvement.

07/18/2005 -Putnik
The Privatization Agency terminated the Putnik sale agreement with Uniworld Holdings Ltd. over the repeated failure to furnish a USD 7.3 million guarantee for successful operations in the travel agency in the July 1, 2004 - July 31, 2005 period. Putnik`s assets will be transferred to the Share Fund, which will name a provisional manager of Serbia`s oldest travel agency. Uniworld bought a 70% stake in Putnik for USD 5.2 million in May 2003, pledging to invest USD 44.3 million by June 2008. Last year, the Privatization Agency established that the new owner failed to meet the first-year investment target and provide the USD 7.3 million guarantee on time. Irish hedge fund United Entertainment Partners, which owns a number of hotels in Montenegro, Croatian “Atlas” from Dubrovnik, and a hotel on Serbian mountain Kopaonik, has expressed interest in Putnik.

07/15/2005 -Serbian Oil Industry NIS
NIS union representative stated that Deloitte and Touche has estimated the book value of state-run oil enterprise NIS at € 1.6 billion. Lukoil, British Petroleum, MOL, Shell, Petrol, Gasprom, and Petrobart were mentioned as possible buyers of the Serbia biggest oil enterprise.

07/15/2005 -Kontinental banka – NLB Grupa
The new name of Kontinental banka is Kontinental banka AD Novi Sad – Grupa Nove Ljubljanske Banke (NLB Grupa). Slovenia largest bank, Nova Ljubljanska Banka (NLB) acquired 98.5% of Continental banka for € 49.5 million at the beginning of July.

07/15/2005 -Alfa plam
The representatives of the enterprise “Alfa plam” stated that this enterprise has increased production for the first half of 2005 by 17% in comparison to 2004. “Alfa plam” produced 78,500 heating appliance units while the value of manufactured goods reached CSD 1.5 billion (or approximately € 18 million). Export revenues for 2005 reached € 5 million. The enterprise started exporting to Russian market interested in Alfa`s electric and solid fuels ranges. In cooperation with “Lorberger”, “Alfa plam” made steps to enter Austrian market, where the enterprise will place its solid fuel appliances that are rare in Europe. In 2005, € 700,000.00 was invested in expansion of production facilities for electric ranges.

07/15/2005 -Henkel Merima
The General Manager of “Henkel Merima”, Gradimir Milosevic stated that this enterprise increased the production for 16% in first half of 2005.

07/15/2005 -Zdravlje Aktavis
Commercial Director in the regional branch of “Zdravlje Aktavis”, Goran Orlic stated that this enterprise increased sale of medicine and parapharmaceutical products by 30%, in the first half of the year in comparison to the same period in 2004. The biggest sale growth was registered in the field of veterinarian medicines, of about 42%. Mr. Orlic also stated that the total sale on domestic and foreign market in reference to the first half of the last year was increased for 20% in comparison to last year same period. Compared to the projected turnover, the realized sales are bigger by 10%, which is the highest rate of growth in the domestic pharmaceutical industry. Commercial sector signed over 100 agreements with wholesale pharmacies and about 50 agreements with pharmacies and hospitals in 2005.

07/15/2005 -Sojaprotein
The construction of the silo for storing of 10,000 tons of cereals and kiln with capacity of 47 tons per hour in Kikinda - based agricultural enterprise “Kindja”, which majority owner is “Sojaprotein” is finished. The construction was cost € 1 million. The General Manager of “Kindja”, Aleksandar Olajic stated that they are planning to build another silo of the same capacity, during 2006.

07/15/2005 -Si&Si Company
Water Voda Voda, bottled by Si&Si Company, won the ISO 9011:2000 and HACCP certificates. The HACCP certificate was given to Voda Voda by the Belgrade office of German TIV Bayern Sava certification house, while the ISO certificate was approved by Lloyd`s Register Quality. The General Manager of Si&Si Company, Vojin Djordjevic stated that the two certificates will facilitate the enterprise`s aspirations to enter foreign markets.

07/12/2005 -Tigar
The General Manager of the enterprise “Tigar”, Dragan Nikolic stated that this enterprise manufactured 3.11 million car tires in the first half of the year, or 10.4% more than in the same period of 2004. Mr. Nikolic also stated that the enterprise exported € 45.2 million worth of car tires in the January-June period, recording a 16.8% export growth year-on-year. Car tires make 75% of Tigar`s export portfolio and Tigar`s five factories exported a total of € 54.4 million worth of products in the first six months of the year, up 13% against same period of 2004.

07/12/2005 -Alpha Bank / Jubanka
The Greek “Alpha Bank” has placed a bid to take over the remaining 11.4% stake in “Jubanka” at CSD 13,440 per share. “Alpha Bank” is planning to buy at least another 25,000 shares, or a 2.37% stake. In late January 2005, “Alpha Bank” paid € 152 million to acquire an 88.6% stake in “Jubanka”, or a total of 936,182 shares held by the government and the Serbian bank.

07/11/2005 -Hotel Majestic gets new owner
Atlas Sistem acquires 42.72% of hotel Majestic for EUR 1.9 million, seeks majority ownership. Atlas Sistem now continued its offer for the remaining 17.28% of the shares for a total of 60 % stake. The price paid by Atlas is 17,368 din (209 EUR) per share. The Share Fund still has its stake of 42 % in the hotel. It has not made any anouncement on why it hasn't submitted its shares for sale.

07/11/2005 -Metalac exporting to the US
The best cookware producer in Serbia - Metalac began selling its products in the US market for the first time after a 15-year break. Total sales reached 11.2 mil EUR in the first half of 2005, slightly above last year’s 6 month revenues. CEO Jakovljevic said first 6 month results are consistent with yearly plans which call for revenue growth of 5 % and profit growth of 6%. Metalac occupies 68 percent of the domestic cookware market and imports almost half of its production.

07/07/2005 -"Agrokor" and "Swisslion" want "Vital"
Many investors are showing interest for purchasing a cooking oil factory “Vital” (www.vitalyu.com), from Vrbas, Among others, the corporation “Bunge Ltd.” from New York, in consortium with the company “Midland Resources”, the investment fund “Fokus capital partners a.d. Beograd” “Agrokor” from Zagreb and “Swisslion-Takovo” from Belgrade. Potential buyers have the chance to familiarise themselves with the capacities and possibilities of this factory by July 15th , and the offers are expected by July 20th. The majority owner of the Stock Company “Vital”, are the workers and retirees of this company, who own 60% of the stocks, and 40% is owned by the Share Fund of the Republic of Serbia. Vital showed profits in 2004, worth 51.2 million (650 thousand EUR), or 60 din/stock on revenues of 4 billion din. (47 mil EUR). After the opening of the new facility for ketchup and mayonnaise, this year’s outline of production and sales is to be increased by 14.8%, for the total income of 4.6 billion din (55 mil EUR) and the profit to reach 132m din. (1,5 mil EUR).

07/05/2005 -Share Fund sales on the rise
The Director of the Stock Fund of the Republic of Serbia (www.share-fund.co.yu), Aleksandar Gracanac, said that, in the first six months of this year, the fund realised €57m worth of profit from the sale of minority packages of stocks, in 120 companies. ”In the past week, a record weekly financial result, worth €17m, was realized with the sale of minority packages of stocks in nine companies”, Gracanac said. He pointed out that the Stock Fund’s total financial result, since April 30th, 2002, when the Stock Fund brought its stocks onto the stock market for the first time, currently equals €332m for the sale of minority packages of stocks in 375 companies. (source: vibilia portal)

06/30/2005 -Funds show interest in Energoprojekt
Six investment funds have showed interest in acquiring shares of Energoprojekt Holding in the new issue offering, company officials said. The company has offered shares worth 12 mil EUR in a private placement issue. According to company’s statements 6 funds sent letters of intent to purchase a total of 32 mil EUR, almost three times the value of the offering. The starting price for newly issued shares would be 1106 dinars, some 11 percent higher than the market. However, the decision is pending the General Assembly’s approval, and today’s assembly has not been held due to the lack of quorum. It is unclear when the new assembly will be held. Nevertheless, the market reacted positively to the news of investors’ interest and the price jumped to a 2 month high of 999 dinars.

06/30/2005 -Tigar export rising
The export of products, by Pirot’s “Tigar” has increased in the first three months of this year, compared to the same period of last year, by 18%. “The growth in export is the result of long-term investments into production capacities and the development of the company in recent year. “Tigar” realized a profit of 134m din, the Assistant General Director of “Tigar”, Jelena Petkovic, said. Car tires, worth €74m, were exported, 56% of which was realized on the French market, 23% in England, and the rest on markets in other Western European countries.

06/27/2005 -Tigar
The trading volume of shares of Tigar exceeded € 2 million since the initial offering on May 31, with 12,641 shares, or 12% of the stake held by small stockholders, changing hands. The current price of Tigar stock is CSD 16,465.00 down from CSD 16,727.00 on the first day of trading. Major buyers of Tigar shares are foreign investment funds, which seek to acquire packages of between 2% and 10%, according to Tigar Assistant General Manager Jelena Petkovic. Belgrade Stock Exchange (BSE) Director Gordana Dostanic has recently advised small shareholders “not to rush” with selling their stock because the expected growth in demand may push the price up.

06/27/2005 -Belex
The total turnover for last week was CSD 694.8 million, which was realized through 3,519 transactions, which represent the increase of 22.13% in comparison to last week in trading volume. The shares were participating with 73.27% and the foreign exchange savings bonds with 26.73%. The Belex index increased for 1.30%. The biggest size of turnover had Alfa plam with 1,906 shares and the total turnover of CSD 45.8 million. Soja protein had also successful past week with total turnover of CSD 40.9 million. Trading volume of Energoprojekt was 35,043 shares and the total turnover was CSD 32.2 million.

06/24/2005 -Toza Markovic (TMKI)
The Croatian enterprise “Nasicecement”, member of Nexe grupa, is ready to acquire minimum 25% and maximum 49% of the total number of “Toza Markovic” shares by the price of CSD 2,300.00 per share.

06/24/2005 -Alfa plam (ALFA)
Announced that it will convert undistributed profit into share capital. The enterprise will issue common shares for undistributed profit in the amount of CSD 250,928,400.00 or 37,452 of common shares with individual nominal value of CSD 6,700.00.

06/24/2005 -Soja protein (SJPT)
The enterprise “Soja protein” is issuing new common shares for undistributed profit. The undistributed profit amounts to CSD 206,862,535.39 that equals 89,230 common shares valued at CSD 2,318.30 for single share with a ration of 0.1936541 for each common share of I and II series.

06/23/2005 -Komercijalna banka
President of Komercijalna banka, Predrag Mihajlovic stated that negotiations with European Bank for Reconstruction and Development (EBRD) on the capital increase of this Serbian bank are underway. Mr. Mihajlovic also stated that EBRD should perform capital increase in Komercijalna banka and to form a joint share package, together with the package in the hands of the state. In that case state-owned package would be reduced from 33 to 25% of the shares.

06/23/2005 -US Steel Serbia
Yesterday, the enterprise US Steel Serbia was put into operation the number one blast furnace that had not worked for 18 years. US Steel Serbia repaired that furnace in the framework of the capital project worth USD 33.1 million. The designing of production on that furnace will enable employees to reach a level, in the production of iron, that is necessary for the production of raw steel. The production would be 2.2 million tons/year. Last year, about 1.1 million tons was realized, and the planned production for this year is 1.6 million tons of iron.

06/23/2005 -The Copper Mill Sevojno
The General Manager of the copper mill, Dragan Subotic, stated that Sevojno copper mill Valjaonica bakra hopes to reach an output of 32,000 tons of products by the end of the year, up 16.5% against the year before. The President of East Point, the majority owner of copper mill Sevojno, Zoran Drakulic stated that the enterprise invested € 2.8 million in the mill last year and plans to invest a further € 15.2 million in 2005. The Sevojno copper mill exports 90% of its products whose total value reaches USD 120 million a year and is among Serbia`s top ten exporters. In 2004, € 3.3 million was earmarked.

06/22/2005 -Coca Cola HBC
Coca Cola HBC Zemun has invested more than € 1 million in the construction of system for the processing of waste waters, whose beginning of operations is expected until the end of the year. The area of this venue is 1,600 square meters and currently it represents one of the biggest ecological construction sites in Serbia and Montenegro. System for processing of waste waters is of the capacity of 1,800 square meters daily. All waste waters from the plant of this enterprise would be synchronized with the quality of water prescribed by EU. Coca Cola HBC is among first 15 enterprises in Serbia and Montenegro, which fulfilled all ecological standards ISO 14.001.

06/22/2005 -Knjaz Milos
At assembly meeting the manager of “Knjaz Milos” for corporative relations, Rade Pribicevic stated that this enterprise reported a net loss of CSD 386 million in 2004.

06/20/2005 -Grand kafa / Soko Stark
The General Manager of the enterprise “Grand kafa”, Mitar Jovic, stated that this enterprise is planning to keep all the successful brands of the confectionery producer “Soko Stark” in case of take over. The enterprise “Grand kafa”, has placed a € 56 million takeover bid for “Soko Stark”. Mr Jovic also stated that Stark’s products will be a “supplement” to Grand’s products. “Grand kafa”, which employs 600 people, posted revenues of € 50 million in 2004. “Soko Stark” is the biggest confectionery producer in Serbia and Montenegro, with a 15% market share and 2,400 employees. In 2004, it reported revenues of € 47.5 million.

06/14/2005 -Energoprojekt Holding Capital Increase
Assistant general manager of Serbia's largest construction enterprise Mr. Miodrag Zecevic announced on Monday that the enterprise will issue 900,000 new shares for a capital increase of circa € 12 million. Shares will be offered through a public placement procedure and half of the proceeds will be used for the social program while the other half will be used for the investments in new equipment. Along with that capital increase, another issue of 3,2 million shares will be issued for the swap between the Holding company and the subsidiaries, where the Holding is majority owner. Both issues are subject to approval at the general assembly, which is set for June 30th.

06/10/2005 -Tigar
The enterprise “Tigar” (TIGR) is planning to improve the export of its goods. The value of export, for the first quarter of 2005 was increased for 17.5% in comparison to last year same period, and the total realization was increased for 13%. The total value of export in 2004 was € 100 million.

06/08/2005 -Srpska banka / Jelen do
The trading of two enterprises will start on June 14th on the Belgrade stock exchange. Belgrade – based bank “Srpska banka” (SRBN) is one of the few remaining mojority state owned banks, where Republic of Serbia has 96 percent of the shares. Also, the largest stone and lime producer in Serbia, “Jelen do” (JLND) will start trading. The Croatian construction material "NEXE" group ownes 70 percent of the company.

06/08/2005 -Imlek
The shareholders of Belgrade – based enterprise “Imlek” accepted a decision to merge with “Zemun” dairy and for the dividends pay of in amount of CSD 37.00 per share.

06/07/2005 -Knjaz Milos gains control of high quality mountain spring water source in Zagubica
Arandjelovac – based beverage and mineral water producer “Knjaz Milos” has signed an agreement with the Zagubica municipality for the takeover of the Belosavac 2001 water enterprise, which owns a source of high quality mountain spring water. At the moment, the water is packaged into 20-liter containers and the facility has the capacity to produce 600 million liters of water annually. The representatives of “Knjaz Milos” also hinted at the possibility of moving the entire Aqua Viva production line to Zagubica if the enterprise fails to reach an agreement with local officials for exploiting the water source under Bukulja.

06/07/2005 -Intermarche to invest € 44 million in Serbia by end of 2006
President of the French “Intermarche” Michel Pattou stated that “Intermarche” is planing to invest € 44 million in Serbia by the end of 2006. Mr. Pattou also added that the construction of their Interex outlet in Cacak cost € 4 million, noting that “Intermarche” is planing to open 11 new shopping complexes in the coming period. “Intermarche”, the fifth largest retailer in Europe, reported a turnover of € 38 billion in 2004.

06/06/2005 -Coca Cola / Vlasinka
Today, on June 6, Coca Cola will formally take over the beverage and mineral water manufacturer “Vlasinka”. Coca Cola acquired “Vlasinka” for € 22 million, in April 2005.

06/06/2005 -Salford
During 2003 and 2004 Salford fund became majority owner of five biggest Serbian dairies: “Imlek”, “Novosadska mlekara”, “Mlekara Subotica”, “Impaz – Zajecar” and “Mlekara Zemun”. Procurement of these dairies led to the forming of enterprise “Danube Foods Group”, which is the leader in the dairy industry. Zajecar - based dairy “Impaz” is the only dairy in the Balkans that deals with production of “Impamil”, adapted food for babies during their first year of life. Belgrade - based “Imlek” is the biggest enterprise in the domestic dairy industry. “Imlek” annually process about 235 million liters of milk in its 15 specialized dairies. No matter if it is milk, cheese, yogurt, spread or fruit drink, “Imlek” set the highest quality criteria for all products.

06/03/2005 -Hemofarm
The President of Vrsac – based pharmaceutical enterprise “Hemofarm”, Miodrag Babic stated that this enterprise plans to sign an agreement with the US enterprise “Hospira” for export to the US market. The value of this agreement is between USD 8 to 14 million. Mr. Babic also stated that “Hemofarm” is, at the moment, in a process of acquiring an FDA approval for one of its products.

06/03/2005 -Takovo Soon on Belex
The trading of shares of Gornji Milanovac – based confectionary producer “Takovo” (TKVO) will start on June 10th on Belex. Takovo is one of the leading producers of confectionary products in Serbia, but has had a difficult period of transformation and privatization, through which it has lost significant market share (currently at about 10 percent). Swiss Lion group is the majority owner with a 89 percent stake in Takovo.

06/02/2005 -Metalac
Gornji Milanovac – based cooking wear manufacturer “Metalac” is planning to improve the export of its goods. The value of export, for the first quarter of 2005 was USD 1 million. The representatives of “Metalac” stated that they are planning to enlarge their export on Russian market. “Metalac” is already present in Russia through its enterprise “Metrot” and 70% of the total turnover it realizes in cooperation with three distributors “Spetstorg”, “Pilot” and “Dom komplekt”.

06/02/2005 -Soko Stark / Grand kafa
The representatives of Belgrade – based coffee producer “Grand kafa” stated that this enterprise has offered CSD 900 per share for the takeover of Belgrade – based confectionary producer “Soko Stark”, adding that the amount exceeds the company’s book value by 30%. The representatives also added that they set aside € 36 million for the takeover, specifying that it would also invest a minimum of € 15 million in new technology and provide € 5 million for a social program. The proposed takeover would facilitate Soko Stark’s sales in the EU and Russian markets based on the strategic partnership with Slovenian Droga-Kolinska. “Grand kafa”, which has an annual turnover of € 50 million last year, controls roughly half of the Serbian coffee market, while having an estimated 20% market share in neighboring Bosnia and Herzegovina. On the other hand, Soko Stark remains the largest manufacturer of condiments in Serbia-Montenegro. In 2004, the company had revenues of € 47.5 million and a 15% market share.

06/02/2005 -Sojaprotein
The silo for storing of 10,000 tons of cereals and kiln with capacity of 47 tons per hour would be built in Kikinda - based agricultural enterprise “Kindja”, which majority owner is Becej - based “Sojaprotein”. The construction will cost € 1 million and the money will be provided by “Sojaprotein”.

06/01/2005 -Piraeus Bank / Atlas banka
The Greek “Piraeus Bank” acquired Belgrade – based “Atlas banka”. The Greek bank become the majority owner of “Atlas banka” by purchasing 80% of shares for € 19.5 million.

06/01/2005 -Komercijalna banka
The representatives of Belgrade – based “Komercijalna banka” stated that in the first three months of 2005, this bank realized € 15 million worth of profit, which made it a leader among banks operating in Serbia.

05/31/2005 -Si&Si
The President of Subotica – based enterprise “Si&Si”, Vojin Djordjevic, stated that the beginning of the “Perfect Square” project, in Singapore,, which aims to, through the supply of drinking water to this island country, prepare for the massive arrival of the Serbian industry and the “business conquering” of Southeast Asia. Speaking in front of about 200 representatives of Singapore’s government and business elite, Djordjevic indicated that “Si&Si’s” development plans coincide with Singapore’s needs, which is still lacking in drinking water. Djordjevic pointed out that the enterprise “Si&Si” has already successfully placed about 0.5 million bottles in Singapore, pointing out that new agreements with many supermarkets and hotels are being signed.

05/30/2005 -Societe Generale
“Societe Generale Bank” will continue to invest in Serbia. Last year this bank increased its capital by € 10 million, whereas, according to present situation, the capital of this bank will be soon increased by another € 20 million.

05/30/2005 -Henkel Merima
Krusevac – based chemical industry “Henkel Merima” has increased production and realization during the first five months of this year by 20% in comparison to the same period last year. “Henkel Merima” monthly sells products worth of € 5 million, of which € 2 million are detergents. “Henkel-Merima” has established a successful business connections with the partners in Bosnia and Herzegovina, where it sells € 500,000.00 worth of products monthly. This enterprise, which encompasses profit centers and factories of soap, cosmetics, detergents and household chemistry and building glues, with 700 employees, plans to produce 50,000 tons of goods this year. “Henkel-Merima” points out that the putting of Factory of Industrial and Building Glues significant, especially in Bulgaria, where 2,500 tons of building glues worth € 300,000.00 are sold every month.

05/27/2005 -Simpo Soon on Belex?
The small shareholders of Vranje – based enterprise “Simpo” decided to begin the process of listing on Belex. The starting price will be the book value of CSD 12,000.00. No official announcement has been given by the Belex.

05/27/2005 -Dunav osiguranje
Belgrade – based insurance enterprise “Dunav osiguranje” made a significant growth in all parts of their business. The General assembly of “Dunav osiguranje” made a statement that total income has been increased 7 times (from CSD 18.9 million to CSD 144 million) and the day liquidity has been increased by 3.5 times.

05/27/2005 -Hipo Alpe Adria
“Hypo Alpe Adria” invested over € 700 million into Serbia through direct foreign investments, leasing, and consultant and broker activities. Exceptional results have also been achieved by the leasing enterprise, as well as “Hypo Consultants”, which deals with investments into real estate and its sale. “Hypo Securities” has been active for almost a year, which is continually marking a rise in participation in sales on Belex. The bank’s stock capital is € 62.2 million. By the end of March 2005, the bank’s assets equaled € 430 million, placements were € 340 million, deposits € 83 million and profit € 3.3 million, and share on capital 18%. The orientation to long-term placements is distinctive because the bank has stable financial sources.

05/26/2005 -HVB banka / Eksim banka
The General Manager of “Bank Austria”, for Central and Easter Europe, Helmut Bernkof stated that two Serbian banks – daughters of “Bank Austria Creditanstalt” (BA-CA) – “HVB banka” and “Eksim banka” will merge, in October, into a new bank with a total capital of about € 361 million, 72,000 clients and a market participation of 5%. Mr. Bernkof also stated that the new bank will be called “HVB Banka” after the integration.

05/26/2005 -Coca Cola
The representatives of Coca-Cola stated that this enterprise is in the final stages of setting up and opening its regional production center in Belgrade.

05/25/2005 -Tigar
The trading of shares of Pirot – based enterprise “Tigar” (TIGR) will start on May 31st on Belex. At the same day two additional enterprise will commence with trading: Backa Topola – based enterprise “Aik Backa Topola” (AKBT) and Majdampek – based “Fabrika bakarnih cevi” (FBCM).

05/25/2005 -Deutsche bank
Serbian Deputy Prime Minister Miroljub Labus and Minister of Finance Mladjan Dinkic met at the Annual Meeting of the European Bank for Reconstruction and Development (EBRD) with a delegation of Deutsche bank. They agreed that there is a great potential for attracting fresh investment in Serbia. Labus called on representatives of Deutsche bank to participate more in the Serbian market, having in mind that accelerated economic growth was positively influenced after the country received a better credit rating as well as the positive Feasibility Study. Representatives of Deutsche bank said that the Serbian government should continue with the good economic and monetary policy as it will be a strong basis for the economic development. They also expressed interest in financing infrastructure projects, real estates, energy and telecommunications sector.

05/24/2005 -EBRD
The European Bank for Reconstruction and Development (EBRD) has approved a € 16 million loan to Cypriot East Point Holding for the modernization of the Sevojno copper-rolling mill. EBRD Vice President Noreen Doyle and East Point President Zoran Drakulic signed the loan agreement in a bid to bring copper production at the plant up to European standards. East Point Investments Director Svetozar Petrovic stated that, the agreement will be implemented through 2007, specifying that the loan will span eight years with a one-year grace period. At the same time, EBRD President Jean Lemierre signed a € 73 million loan for the reconstruction of the Belgrade - Novi Sad highway.

05/24/2005 -Credit Agricole / Meridian Banka
French Credit Agricole has signed a agreement to take over a 71% stake in Novi Sad’s Meridian Banka for € 34 million. The former Serbian Minister of Finance Bozidar Djelic has been appointed Credit Agricole Southeast Europe Director.

05/23/2005 -Sojaprotein
Becej – based enterprise “Sojaprotein” is on the road to become one of the leading enterprises in the field of soy bean production and processing. It currently operates the largest processing capacities (950 tons/hour) and it is also a high “profit producer”, which equaled € 6.2 million last year. In September, 2002, at the most exciting auction on Belex, 39% of the public capital in “Sojaprotein” was acquired by “Victoria Group”. Today, “Victoria Group” (VG) owns over half of the total number of “Sojaprotein`s” shares. Executive Director of the Technical-development sector, Veroslav Jankovic stated that after the ownership structure change, the enterprise changed its relationship toward the raw material base, thus the investing into technological equipment was intensified. Mr. Jankovic also stated that during 2004, they had a great investment into the increase of processing capacities, from 720 to 950 t/day of soy bean, so that they are presenting the largest factory in the world for the production of white flakes. The total value of VG’s investments into “Sojaprotein” equals € 40 million, since 2003 to 2007. Today, “Sojaprotein” employs 400 workers and is the leader in soy bean processing, not only on the domestic market, but on Europe’s market as well. VG aims to become one of the leading enterprises in European agro-industry and to complete agricultural production, which will be realized with the development of enterprises that are now the basis of the Group.

05/23/2005 -Carnex / Midland
General Manager of Vrbas – based meat industry “Carnex”, Aidan Hudson stated that this enterprise increased production and disposal of goods by 30% in the past two years, since it was acquired by “Midland”. Mr. Hudson also stated that this year will be especially significant because they are planning to expand the market in Europe and Russia. At the end of this or beginning of next year, they are also expecting to gain HACCP quality certificate.

05/23/2005 -Aleva / Flory Trading
The representatives of “Flory Trading” LLC, USA stated that this enterprise acquired 18,576 shares by the price of CSD 19,000.00 of Novi Knezevac – based enterprise “Aleva” which represent 66.79% of the total number of shares.

05/20/2005 -Novosadska banka / Erste Bank
The representatives of Serbia's Agency for Deposit Insurance, Rehabilitation, Bankruptcy and Liquidation of Banks (BRA) stated that Erste Bank is the first-ranking bidder for the acquisition through privatization of Novosadska banka. “Erste Bank” offered € 73.167 million for 83.28% of the stake, corresponding to 3.3 times the audited IFRS book value of Novosadska banka as of 31 December 2004 (€ 26.4 million). Chief Executive of Erste Bank, Andreas Treichl, stated that Serbia represents an important milestone in their overall growth strategy in Central and Eastern Europe, with its clear orientation towards economic, social and regulatory development. As of 31 December 2004, Novosadska banka had total assets of € 132.3 million. With a market share of 10%, the bank is the second largest player in Vojvodina, one of Serbia's most prospering regions and with the closest economic and cultural ties to Austria and other CE countries. Overall, Novosadska banka commands the market share of 2% in Serbia in terms of total assets. Novosadska banka has 873 employees in 71 branches, serving around 260,000 customers. In order to become a driving force in Serbia's increasing financial intermediation, Erste Bank plans to invest € 35 million into Novosadska banka in the form of capital increases until 2009. The major cornerstones of this focused growth program are the expansion of the distribution network by 70% from the current 71 to 120 branches, the renewal of the IT systems and infrastructure, and marketing and staff training initiatives. As a result of the growth program the market share is projected to increase from current 2% to approximately 10% within 5 years, with a view to creating one of the most prominent retail banking institutions in the country. As with its previous acquisitions, Erste Bank targets an after tax ROE at Novosadska banka of above 20% by 2008. Through this transaction, Novosadska banka is joining an international group that is the leading provider of retail financial services to some 12 million customers in Central Europe. The highly successful transformation of Ceska sporitelna and Slovenska sporitelna as well as the mergers of its subsidiaries in Croatia and recently in Hungary, have given Erste Bank an excellent track record of restructuring retail banks in Central Europe. The signing of the share purchase agreement is expected to take place by end of June 2005. The transaction is subject to regulatory approval in Serbia (National Bank of Serbia) and Austria (Financial Markets Authority and Cartel Court).

05/20/2005 -Meridian banka Soon on Belex
One of the leading Serbian banks “Meridian banka” will start trading on Belex on May 25th . Recently “Meridian banka” was acquired by French “Credit Agricole”.

05/20/2005 -Delta banka
According to the ranking of the Analysts of the London Financial Magazine “Finance Central Europe” and the foreign consulting agencies, “Delta banka” has won three prestigious recognitions for the year 2005. Analyzing the business activities of banks coming from the region of South-East Europe, that includes Turkey, Greece, Bulgaria, Romania, Slovenia, Croatia, Bosnia-Herzegovina, Albania, FYRO Macedonia and Serbia & Montenegro, Delta Banka has been rated as follows: the best Medium Size Bank in South East Europe, the best Bank in Serbia & Montenegro, and the Director General of Delta Banka, Mrs. Draginja Ðuriæ has been declared the Banker of the Year in Serbia & Montenegro. Three years running Delta Banka receives recognitions of this magazine. This year's recognitions confirm the leading position and excellent business results of the Bank in the observed region. In February, 2005, “Delta banka” was acquired by Italian “Banca Intesa”.

05/20/2005 -Serbia Gets BB - Rating from Fitch Ratings
Serbia has received a BB – rating yesterday on its long term debt. This increase is one step above the rating that Serbia had until now. The rating covers two issues: the long term bonds issued by the Republic of Serbia denominated in USD and maturing in 2024 and the EUR nominated bonds issued as Foreign Exchange Savings bonds maturing in 2016. At the same time Fitch rated Serbia's short term debt a B.

05/19/2005 -Oil Rafineries in Pancevo and Novi Sad in Sight
Serbian Minister of Finance Mladjan Dinkic stated that a tender for selecting privatization advisors in the sale of oil refineries in Pancevo and Novi Sad will be called by the end of July, with plans to announce a privatization tender in early 2006. Minister Dinkic also stated that the two refineries must modernize their production facilities, noting that such an undertaking requires financing of between USD 600 million and USD 700 million. Many foreign enterprises, including Austrian OMV, Hungarian MOL, Russian Lukoil, Slovenian Petrol, Greek Hellenic Petroleum, and the Shell-Kellogg Brown & Root consortium, have expressed interest in the takeover so far.

05/19/2005 -Putnik / US Uniworld / United Entertainment Partners (UEP)
“Putnik” General Manager Branko Kresojevic stated that US Uniworld is currently negotiating the transfer of travel agency “Putnik” ownership rights with several potential investors, adding that Irish United Entertainment Partners (UEP) appears to be the likely successor. US Uniworld also offered an out-of-court settlement with the Privatization Agency in an effort to resolve their ongoing dispute before the Arbitration Court in Paris. Uniworld acquired “Putnik” for USD 5.2 million in May 2003, promising additional investments of USD 44.3 million by the end of June 2008. However, a Privatization Agency’s review of “Putnik” activities revealed that the new owner invested less than initially agreed in the first year following the takeover, while failing to furnish the second banking guarantee worth USD 7.3 million within the prescribed deadline.

05/18/2005 -“Celarevo” Brewery
The regional manager of sales of the brewery “Celarevo”, which was acquired by “Carlsberg Group” in April 2004, Dragan Novakovic stated that “Celarevo” brewery produced and sold a record number of 89,000 hecto - liters of beer last month. Mr. Novakovic also stated that production and sales during the last month was three quarters higher than in April 2004. “Celarevo” brewery is the absolute champion of the 72nd International Agricultural Fair in the beer producing competition, thanks to “Carlsberg’s” investments in the improvement of the quality and the training of employees. Mr. Novakovic also added that “Carlsberg” is planning to invest over € 47 million into the production, distribution, sale, marketing and training of employees, during the next few years.

05/18/2005 -Vital / Midland
The investment fund “Midland” which acquired Vrbas – based meat industry “Carnex”, is planning to purchase the leading producer of cooking oil, Vrbas – based enterprise “Vital”.

05/18/2005 -Belex
Three additional enterprises, Gornji Milanovac – based enterprise “Fad” (FADG), Arandjelovac – based enterprise “Kolektiv” (KLTV) and Subotica – based enterprise “Vojput” (VOJP) will start trading on May 25th.

05/17/2005 -Belex
Three additional enterprises, Belgrade – based enterprise “Masinokomerc” (MASK), Banja Koviljaca – based enterprise “Novi dom” (NDOM, NDOMM) and Novi Pazar – based enterprise “Sandzaktrans Autoremont servis” (STRA) will start trading on May 24th.

05/16/2005 -Novosadska mlekara
The representatives of Novi Sad – based dairy “Novosadska mlekara” stated that during the first four months of 2005, “Novosadska mlekara” whose majority owner is the British fund “Salford”, purchased and processed 21 million liters of milk, which is 17% more than during the same period last year. In 2005, “Novosadska mlekara” is planning to invest € 3 million in construction and equipping of trade center on the grounds of the enterprise and modernization of the milk-processing unit. The additional € 1.4 million will be provided for procurement of 700 heifers, as well as milk cooling pools and cow milking devices intended for manufacturers.

05/13/2005 -NIS / Bateman
The representatives of the international oil investment enterprise “Bateman” stated that they are planning to invest over USD 700 million into Serbia this year. The planned investments are intended for joint venture with “Naftna industrija Srbije” (NIS), for the modernization of oil refineries in Novi Sad and Pancevo and the privatization of petrol-chemical complexes in Pancevo. The enterprise “Bateman” is prepared to offer Serbia and NIS the top expertise in managing, the most modern equipment and the best social program. “Bateman” is prepared to participate in the government tender, through which, the best strategic partner for NIS would be chosen, and in that aim, it has already started consultations with the authorized ministries in the Government of Serbia and NIS management.

05/12/2005 -Tigar Pirot Soon on Belex
At the shareholder assembly held in Pirot, President of the assembly Ljubisa Mitic said that shares will be floated very soon, however no specific date has been declared yet. Total number of shares at year end 2004 is 156,224 out of which employees own 101,458, the Pension fund owns 13,635 shares, the state Share fund 36,870, and shares in payment amount to 4,261 shares. Shareholders were informed that the corrected book value of 1 share comes out to CSD 16,727 (€ 204.00), which will be the starting price at the first auction.

05/12/2005 -Siemens
Last year, “Siemens” Belgrade had projects worth in excess of € 130 million. It was pointed to the fact that "Siemens" Belgrade was active in all fields, including energy management, industry, telecommunications, medicine. “Siemens” Belgrade has over 200 employees, as well as another 1,000 people in the network consisting of over 30 partner enterprises. At the Technology Fair, which was held in Belgrade, “Siemens” Belgrade represented its latest products and solutions, mainly from two fields - industrial electrical equipment and energetic. Managing Director of the Group for Industrial Electrical Equipment, Vladimir Duboka stated that they have wide range of about 100,000 products, and that “Siemens” Group for Energetic is the leading enterprise on the Serbian market, because the scope of the businesses in 2005 amounted to about € 50 million. The reason is participation in construction of three big substations - in Belgrade, Sombor, Jagodina and Sremska Mitrovica, as well as repair of block 5 in Steam Power Plant “Nikola Tesla”. The works on substations are continued in 2005.

05/11/2005 -C Market Takeover Bids Legalized
The Appellate Court in Belgrade has rejected the appeal from CEO Slobodan Radulovic and the management to block the decision made by the Central Registry to allow the takeover bids to be placed for C Market, the largest food retailer in the country. This decision means that in the coming months C Market will be floated on the Belgrade Stock exchange. C Market is estimated to be worth between 100 and 200 million EUR.

05/11/2005 -Lafarge/Titan/Holcim
The Serbian cement producers have founded an association, made up of the French “Lafarge”, the Greek “Titan” and the Swiss “Holcim”. The President of the Administrative Committee of the Association and General Manager of the cement factory “Novi Popovac”, Darko Krizan, stated that the aims of that association are, above all, the conquering of the market and the utilization of alternative fuels in production. Mr. Krizan also stated that the Association will attempt a fast entrance of foreign capital into Serbia.

05/11/2005 -Delta M/Emisio Broker/Preduzece za puteve Nis
The consortium comprising “Emisio Broker”, “Delta M”, and road construction enterprise “Preduzece za puteve Nis” has won a tender for the purchase of road construction enterprise “Preduzece za puteve Beograd”. The consortium offered € 18.8 million for the enterprise together with € 13.1 million in additional investments and an amended social program. “Preduzece za puteve Beograd” employs a staff of 684 and operates without losses, with the Road Directorate owing 10 million EUR to the enterprise for previously performed work.

05/10/2005 -NIS/SHELL-KBR
Following strategic partnership talks with Russian Lukoil, Slovenian Petrol, Hungarian MOL, and Greek Hellenic Petroleum, state oil producer Naftna Industrija Srbije (NIS) has received an offer from the Shell-Kellogg Brown & Root (KBR) consortium for launching a joint venture. The world’s oil leader proposed full modernization of Serbian refineries that requires more than USD 700 million according to the latest estimates. In addition to the necessary capital, the foreign partner would also provide the requisite technology for production upgrades.

05/09/2005 -Belex
Six additional enterprises will start to trade by prevailing method on Belex. Kucura – based enterprise IMP “Backa”, Pancevo – based enterprise “Liveks”, Cacak – based enterprise “Morava Vodoprivredno”, Svilajnac – based enterprise “Napredak”, Bajina Basta – based enterprise “Razvoj” and Petrovaradin – based enterprise IGM “Sloga” will commence with prevailing method on May 11th.

04/28/2005 -Hemofarm
The Managing Director of Vrsac – based pharmaceutical enterprise “Hemofarm”, Miodrag Babic, was reelected at the shareholder assembly. Additionally, Mr. Babic is reelected for the position of Chairman of the Board of Directors of this leading domestic drug producer, which has 45% of the local market of 8 million people. The past year was above expectations for “Hemofarm”. Sales on the local market was 14% higher, and export were 17% higher. Of the total exported goods, worth USD 67 million, 60% of “Hemofarm’s” products was exported into Russian market. “Hemofarm’s” position in Russia is expected to grow further due to the completion of the production factory in Obninsk, 80 km from Moscow. However, even though the enterprise marked a 17% higher income in 2004, the “financial effect”, according to the management team in “Hemofarm”, “still is not proportional to the growth of production and sales”. In 2004, “Hemofarm” made € 35 million worth of investments of which € 10.5 million went into “Zorka Pharma”. The representatives of “Hemofarm” stated that the planned income for this year is over € 200 million, with tripled sales on the local market and export worth a total of USD 72 million. Thus, in the first quarter of this year, sales on the domestic market have already increased by 20%, and export is worth USD 12 million. In March was a record in monthly production with 16 million packages of drugs produced, as well as a total export worth more than € 6 million.

04/28/2005 -Sojaprotein
The past year was very successful for Becej – based enterprise for soybean production “Sojaprotein”. This enterprise had export worth of over € 20 million in 2004. They are exporting in 15 EU countries and are doing business based on EU standards – Certificate of Identity Preservation Non GMO Soybean.

04/28/2005 -Zajecarska pivara/Efes
The representatives of the international brewery “Efes”, stated that, they invested € 2 million into Zajecar’s brewery since the acquisition. The most significant innovation was the installation of the German equipment for the processing of raw beer material, valued at € 700,000.00, whose complete installation was supervised by the expert team of the German supplier. “Efes” brewery, part of the European “Efes Group”, has invested another € 400,000.00 into the facility for the propagation of yeast that directly affects the taste of beer. Including the automation of facilities for fermentation, the new unit for carbonization was installed, which directly affects the beer’s flow factor, and today, Zajecar’s brewery possesses the most modern line for packaging beer, of the “Krones” brand. “Efes Beverage Group” (EBG) is one of the leading beer groups on the territory of Turkey, Russia, the former Soviet Republics and SE Europe, and it is among the 10 largest beer producers in Europe.

04/26/2005 -Aleva
The Managing Director of Novi Knezevac – based food industry enterprise “Aleva”, Mile Klepic, stated that Hristivoje Milosevic, the owner of enterprise “Flory Trading” will most likely become the owner of 71% of “Aleva”. The enterprise “Flory Trading” is already the owner of 21% of “Aleva” shares. The total value of share package that will be acquired by “Flory Trading” is € 4.5 million.

04/25/2005 -Meridian banka / Credit Agricole
The representatives of “Credit Agricole” stated that they are conducting exclusive negotiations with “Meridian banka”, for strategic partnership for expansion into the Serbia financial market. All conditions are expected to be made public by mid May, and after the procurement of all the necessary licenses and permits, “Credit Agricole” will acquire 71% of the ownership in “Meridian Banka”. The representatives of Novi Sad – based “Meridian banka”, believe that it will, through partnership with “Credit Agricole”, become the leading enterprise in the field of financial services on the local market.

04/25/2005 -Mobilkom Eyeing Serbia
The Austrian cellular telephony operator, “Mobilkom” is showing interest for Serbia’s second mobile operateor “Mobtel”, according to Vienna’s economic newspaper the “Wirtschaftsblatt”.

04/25/2005 -Apatinska pivara
The leading world brewery “InBev” signed exclusive contract with the “Apatinska pivara” on approval of license for production and distribution of the best-selling German beer in the world – “Beck's” . “InBev”, of which headquarters is in Belgium-based City of Leuven, chose the Apatin - based brewery because it has high production standards and qualities necessary for production of this beer that is going to be the first German premium brand produced in Serbia according to original German recipe with the respect to German Act on Purity from 1516, which means that it will be made of top-quality hops, barley malt, yeast and water without any additives. “InBev” is leading world producer of beer. It produces over 200 brands, among which are “Stella Artois”, “Brahma”, “Beck's”, “Skol” - the third best-selling beer in the world, then there are “Leffe”, “Hoegaardend”, “Staropramen” and “Bass”. Last year this enterprise realized turnover of € 8.57 billion.

04/22/2005 -Meridian banka / Credit Agricole
The representatives of French bank “Credit Agricole” and Novi Sad - based “Meridian banka” started final negotiations in Paris on strategic partnership. The aim of the negotiations, which shall end in May, is that one of the biggest international banks is going to acquire up to 71% of shares of Novi Sad based bank.

04/21/2005 -Vlasinka
Greek Coca-Cola Hellenic Bottling Co. and US Coca-Cola Co. have completed their joint acquisition of Serbian mineral water bottler “Vlasinka”. The takeover includes 100% of “Vlasinka” along with production facilities in Surdulica and mineral water brand “Rosa”.

04/21/2005 -Putnik
The Irish enterprise “United Entertainment Partners Ltd.” should soon take on the ownership of the tourist enterprise “Putnik” from US “Uniworld”. The Director of the Privatization Agency, Miodrag Djordjevic, stated that the negotiations about the taking over of the oldest Serbian tourist enterprise, between “Uniworld” and the Irish enterprise, should be concluded within a week. This would be the first case of giving up a sales contract during a privatization process. If an agreement is reached, with the Agency’s consent, the American “Uniworld” would withdraw the suit that it had recently brought to the arbitration proceedings. The owner of “Uniworld” Srba Ilic denies the Privatization Agency’s accusation that he has not invested the intended means during the first year and that he was unjustifiably charged with the banking guarantee. Two years ago, “Uniworld” acquired 70% of “Putnik’s” capital for USD 5.2 million, and became bound by the agreement to invest further USD 44.5 million by 2008. The Irish “United Entertainment Partners Ltd.” that recently acquired the hotel “Fjord”, in Kotor, as well as some other enterprises in Montenegro.

04/20/2005 -SITO Inc.
The representatives of Austrian enterprise “S&T” stated that they acquired 100% of Serbian IT-services enterprise “SITO” with sales of roughly € 10 million and 46 staff for an undisclosed amount from private investors (49%) and the founders (51%). “SITO” was said to be highly profitable and would assume the price to be in a range of € 3.5 - 5.0 million. There was no indication of the possibility of a capital increase which is rising following the two large acquisitions of Computacenter Austria and T-Systems DSS Austria only in January this year and plans to do more (eg in Hungary and Russia. “S&T” has authorized capital to issue up to 1.8 million new shares.) Gearing was 30% at YE 2004 and assuming ICF of € 8 million we expect it to rise to 43% at YE 2005. The acquisition will be effective as of 2Q/2005. We will update our model on the occasion of 1Q/2005 results due next week on April 26. We continue to regard “S&T” as a hot growth story in the IT-services industry in CEE and reiterate our Accumulate rating with a price target of € 31.00.

04/20/2005 -Duvanska industrija Vranje (DIV)
The technical director of Vranje – based tobacco factory “Duvanska industrija Vranje” (DIV), Gradimir Milic, stated that by the end of the summer, “British American Tobacco” (BAT) will invest € 24 million in production of this tobacco factory. Mr. Milic also stated that following the acquisition of Vranje’s tobacco factory, in October 2003, BAT obligated itself to invest € 24 million in the following five years. That obligation will be fulfilled in less than two years. In 2003, BAT paid about € 50 million for the majority package of DIV’s shares and about € 11 million for the minority, and that privatization was evaluated to be one of the most successful in Serbia. Since then, production has increased by more than 20% and, since recently, Vranje is producing cigarette brands such as “Pall Mall” and “Lucky Strike”.

04/20/2005 -The Copper Mill “Sevojno”
The Copper Mill “Sevojno”, whose majority owner is enterprise “East Point”, produced 28,000 tons of copper last year, which is 31.4% more than in 2003. The owner of “East Point”, Zoran Drakulic, stated that the copper mill “Sevojno” had placed 90% of production onto the most attractive markets in Europe and America. Mr. Drakulic also stated that they are planning a production of 32,500 tons and exports worth of USD 100 million. Most important of all is that, this year, they will receive 70% of our copper from Bor. The General Manager of the copper mill, Dragan Subotic, stated that the investment program, being an ingredient of the sales agreement, implies three-year investments worth € 21 million. Mr. Subotic also stated that they are planning investments worth € 11.5 million this year, primarily in the modernization of equipment and gasification.

04/20/2005 -Delta Holding
The first flights of “Delta’s” discount airline enterprise, “Air Maxi”, are expected in mid June. The company “Air Maxi” will operate according to the “low cost” principle that will enable popular destinations to most European cities and ticket purchase via internet.

04/19/2005 -Planum
Belgrade – based construction enterprise “Planum” is currently buying back its shares at the value of CSD 4,000.00. Planum is buying back twenty eight thousand shares representing almost 7% of the enterprise.

04/18/2005 -Belex
Five additional enterprises have been added to the auction trading on Belex. Belgrade – based enterprise “Rimeks”, Ruma – based enterprise “Zitopromet Ruma”, Sid – based enterprise “Imos”, Mladenovac – based enterprise “Kvarc” and Horgos – based enterprise “Higlo hladnjaca” will commence trading on April 19th.

04/18/2005 -Galenika
Belgrade - based pharmaceutical enterprise “Galenika”, realized a net profit of CSD 1.350 billion last year, which is 440% more than in 2003. Products worth CSD 4.34 billion were placed on the domestic market, and CSD 400 million worth on the international market. The costs of materials amounted to somewhat more than CSD 2 billion, while CSD 1.46 billion was spent on employees’ salaries.

04/14/2005 -ComTrade
Belgrade - based CT Computers, part of ComTrade Group, has unveiled its own computer brand that is scheduled to hit the stores on May 1. CT Computers recently won the ISO 9001 quality certificate, enabling the company to market its new computer brand across the EU as well. The latest ComTrade offering will provide direct competition to similar products manufactured by Hewlett Packard, IBM, Dell, and Siemens, since it will cost 30% less on average. Personal and business versions of new ComTrade desktop computers have a price tag between € 250.00 and € 850.00, while offering a three-year warranty and servicing within 48 hours of the breakdown.

04/14/2005 -US Harris
US telecommunications provider Harris plans to enter the Serbian market and establish a regional hub in Belgrade. US Harris signed a cooperation agreement with Belgrade TeleGroup. Harris currently employs over 12,000 workers in more than 150 countries with worldwide revenues of approximately USD 2.6 billion.

04/13/2005 -Belex
Five additional enterprises will start to trade by prevailing method on Belex. Belgrade – based pharmaceutical enterprise “Srbolek”, Kovacica – based enterprise “Jednota”, Novi Sad – based enterprise “Progresbiro”, Belgrade – based enterprise “Mikromotor” and Sevojno – based enterprise “Jedinstvo metalogradnja” will commence with prevailing method on April 14th.

04/12/2005 -Serbian Bonds Start Trading at Luxemburg SE
The Serbian Ministry of Finance announced that for the first time in history, the Republic of Serbia’s bonds are listed on Luxemburg’s stock market. Bonds at Luxemburg SE used to cost 86¢. Since investors are very interested in them, a gradual price increase is expected. The interest rate on new euro-bonds, issued in the exchange process, is 3.75%/year, for a period of one to five years, and 6.75%/year from six to 20 years.

04/12/2005 -NIS Jugopetrol
The Managing Director of Naftna industrija Srbije (NIS) “Jugopetrol”, Dusan Pavlovic stated that NIS “Jugopetrol” ended last season with a positive financial result of CSD 429 million. With the aim of empowering the competitive capabilities on the market, 31 gas stations, including 12 large ones, were reconstructed last year. Pavlovic said that last year, on the territory of Sirakov, “Jugopetrol’s” business organization “Jugopetrol nafta” produced 13 000 tons of raw oil.

04/11/2005 -“Putevi” Uzice
Uzice – based construction enterprise “Putevi” was entrusted with the construction of the bypass near Ovcar Banja, which is financed by the EBRD with CSD 479 million. On the tender for the construction of the bypass, Uzice’s enterprise offered the best project solution to the problem of traffic through Ovcar Banja, which was, until now, a problematic spot on a very active main road from Belgrade towards the Adriatic. In the scope of the bypass, the total length of 1.2 km, will be a 440 m long tunnel and 136 m long bridge, while the supporting structure will be 140 m long. The construction will start on June 1st and “Putevi” is bound to finish the bypass within 20 months.

04/07/2005 -Hemofarm
Vrsac – based pharmaceutical enterprise “Hemofarm” had, in March, the biggest monthly export, worth € 6 million, since its foundation,. The representatives from Hemofarm stated that USD 4.3 million worth pharmaceutical remedies were delivered only in the Commonwealth of Independent States market. It was also announced that remedy export to Iraq constantly grows. Another record was achieved by Hemofarm's production that produced 16 million drug packages of different shape or pharmacology groups.

04/07/2005 -Henkel Merima
Krusevac – based producer of chemicals and household products “Henkel Merima” realized revenues of € 46 million last year, a 24% improvement over the year before. Austrian Henkel aquired “Merima” in November 2002, subsequently investing € 9.3 million in company revitalization. Out of the total, € 3 million was invested in new production facilities, € 1.5 million in social program implementation, housing loans, and retraining programs, and € 500,000.00 in information technology, while the rest was channeled towards business development and marketing.

04/06/2005 -Oil Refineries
The Serbian Minister of International Economic Relations, Milan Parivodic, stated that the Israeli oil and mining enterprise “Bejtmen” is prepared to invest USD 600 million into Novi Sad’s and Pancevo’s refinery as well as “Petrohemija”. “Bejtmen” is also interested in concessions of the gold and copper mine on Crni Vrh.

04/05/2005 -Planum
One of the Serbian largest constructors, “Planum” has publicly announced an offer to buy back 6,5 percent of its shares outstanding for a price of 4,000.00 CSD, a premium of approximately 10 percent to market. The offer is valid until May 5th. The market price is expected to match the offer price in the short period.

04/05/2005 -The Oil Refinery “Pancevo”
The Managing Director of the largest Serbian petroleum derivative producer oil refinery “Pancevo”, Kosta Ilic, stated that this refinery has many offers from the most famous oil companies in Europe, such as Russian “Lukoil”, British “Shell”, Slovenian “Petrol”, Austrian OMV and Hungarian “Mol”, for investing capital into the modernization of capacities. By the end of April, the refinery should adopt a base project for the modernization of capacities, and a more detailed one by the end of September 2005. The long-term development plan, implies that the construction of new facilities, worth € 350 million, begin in 2006.

04/05/2005 -Knjaz Milos
The investment Fund “Salford”, the strategic partner of "FPP Balkan Ltd.”, bought the third monthly installment of the government package in “Knjaz Milos”, on Belex, that is, 2.5% of that package, with which it finalized its purchase of stocks that had belonged to the Pension Disability Insurance (PIO) Fund. The price was the same as for the previous two installments – CSD 18,000.00 per share. The total sum received from the sale is close to € 2 million and the PIO Fund got about € 8 million from “Knjaz Milos’s” shares: four in the beginning of February with the sale of half of its package, two in the end of February with the sale of one fourth and now another two with the sale of the other fourth of the package. There remains 31.28% of the shares in “Knjaz Milos’s” Stock Fund, meaning 114,304 shares that, for the price of CSD 18,000.00 per share, add up to a sum of € 25.7 million. That purchase is on until June. The Privatization Agency accepted that pace and the fact that “Salford” is showing up as the buyer of the stocks, instead of “FPP Balkan Ltd.”, doesn’t concern anyone other than those two firms. An interesting detail is the fact that the firm Fabiana Piketea (FPP), left the Cayman firm “FPP Balkan Ltd.”, so that “Knjaz’s” owner is only left with the Balkan name.

04/04/2005 -Agrohem
Novi Sad – based enterprise “Agrohem”, the producer of mixed and mineral fertilizers, will produce 140,000 tons of mineral fertilizers in 2005 for the needs of the domestic agriculture. Last year, “Agrohem” delivered 135,000 tons of mineral fertilizer to the local market.

04/04/2005 -Planum
The authorized PR agency “Pragma” stated that workers of Belgrade-based “Mostogradnja” were engaged in assembling of another two tanks, 50,000 cubic meters each, in the City of Primorsk near Sankt Petersburg. In cooperation with Belgrade – based construction enterprise “Planum”, “Mostogradnja” soon starts construction of motorway section Casablanca-Marrakech in Morocco. “Mostogradnja” will conduct works on 44 viaducts, underpasses and passages, 60 km long. Deadline for completion of works is the end of 2006.

04/01/2005 -Hemofarm
Hemofarm opened a new plant for production of liquid pesticides. The capacity is 500 tons per season.

03/31/2005 -The Novi Sad Commodity Exchange (NSCE)
According to representatives of NSCE had sales of 580 tons of products worth CSD 6.57 million last week, rolling back increases from one week ago when it registered sales of 783 tons of products valued at CSD 9.24 million. The contracts to sell 50 tons of last year’s JUS quality mercantile wheat at CSD 9.50 per kilogram and 175 tons of artificially dried corn from 2004 for CSD 8.03 per kilogram were agreed this week at the exchange. Additionally, 45 tons of crushed sunflower seeds with 33% protein level were sold at CSD 6.80 per kilogram along with 25 tons of soy seeds with 44% protein for CSD 21.6 per kilogram and 150 tons of KAN mineral fertilizer at prices ranging from CSD 12.1 to CSD 12.4 per kilogram.

03/31/2005 -BK Trade
The Serbian Minister for Capital Investments, Velimir Ilic stated that a meeting with Prime Minister Vojislav Kostunica confirmed that Moscow - based BK Trade has been sold to Russian Alfa Group and that exact stakes of Serbian postal services provider PTT Srbija and BK Trade in mobile provider Mobtel have yet to be determined. Furthermore, the government called an international tender to select a financial advisor in efforts to resolve the Mobtel ownership dispute. Ilic also specified that PTT Srbija would sell its Mobtel stake through a public tender, because EU standards prohibit the government from owning shares in more than one mobile operator.

03/31/2005 -Actavis Group
The office’s director, Milan Todorovic stated that Icelandic generic drug enterprise Actavis Group will open its regional representative office in Belgrade on April 1. Mr. Todorovic also stated that Actavis will try to introduce its products on the markets of six Balkan countries with population of 45 million, including Serbia-Montenegro, Bosnia-Herzegovina, Macedonia, Romania, Albania, and Croatia and added that the enterprise will put efforts into developing Leskovac-based drug manufacturer “Zdravlje”, which operates as part of Actavis Group. Apart from the Leskovac plant, Actavis Group has production facilities in Iceland, Malta, Turkey, and Bulgaria and sells its products in 28 countries.

03/31/2005 -Vlasinka
The mineral water beverage manufacturer “Vlasinka” exports 7.1 million bottles in 2004. The plan is to increase exports 30% and reach annual output of 100 million bottles. “Vlasinka”, the producer of Water “Rosa” was acquired by Coca Cola recently.

03/30/2005 -Interdrvo
Kragujevac – based enterprise “Interdrvo” signed an annual agreement with the Swedish enterprise “Ikea” for the delivery of furniture, worth over € 1 million. The Managing Director of “Interdrvo”, Dragan Stojic, stated that kitchen components and furniture for dining rooms, produced by “Interdrvo”, will be directly delivered to “Ikea’s” stores. Mr. Stojic also stated that the first shipment of furniture from Kragujevac will leave on April 15, and it is intended for “Ikea’s” stores in France. Mr. Stojic added that “Made in Serbia” will be printed on the furniture produced in Kragujevac. According to Mr. Stojic, the Swedish partner chose 12 pieces of furniture for 2005, but requested of “Interdrvo” to expand the assortment of products two times, for a value of € 2 million. This Kragujevac - based enterprise changed its name from “Kosutnjak” to “Interdrvo”, for the sake of a more effective appearance on the world market, following the signing of the cooperation contract.

03/29/2005 -Naftna industrija Srbije (NIS)
The representatives of Naftna industrija Srbije (NIS) announced that they agreed, with Russian enterprise “Gazprom”, for the commencement of the procedure for the preparation of a long-term agreement for the delivery of gas, which is expected in the coming months. During NIS delegation’s visit to Moscow’s enterprise, the forming of a mutual work group was agreed, which will define the possible forms of the future cooperation into which “Gazprom” would invest USD 50 million for NIS’ remaining debt. NIS’ delegation introduced the Russian side with the previous activities in the construction of the underground gas warehouse, “Banatski Dvor”, which “Gazprom” is interested in realizing.

03/28/2005 -Belex
After reaching higher levels of volume in daily trading, four additional enterprises will start to trade by continuous method. Belgrade – based enterprise for production and trading of technical gas “Tehnogas” (TGAS), Becej – based enterprise “Soja protein” (SJPT), Novi Sad – based dairy “Novosadska mlekara” (MLNS) and Belgrade – based enterprise for production of milk and milk products “Imlek” (IMLK) will commence with continuous method on April 4th.

03/25/2005 -Delta Holding / Aviogenex
The joint venture of two Belgrade – based enterprises, “Delta Holding” and “Aviogenex”, for starting the new regional airline “Air Maxi” will operate by the system of “low cost carrier”. The first flights are schedule for the Summer.

03/25/2005 -Heba
Bujanovac – based mineral water and beverages producer “Heba”, started marketing campaign “Water is Life” at the World Waters Day. According to General Manager, Perica Jovic, goal of the campaign is to produce healthy water and beverages for local and world market. The enterprise “Heba” is the second large local producer of water and beverages with production of 60 million liters. Last year, “Heba” had production worth CSD 894 million and profit of CSD 17 million. “Heba” also has certificate “Frezenfijus” which is recognized across Europe and it will enable increase of this year’s production for 70 million liters. Mr. Jovic stated that privatization of this enterprise is expected until the end of this year.

03/24/2005 -Delta Holding / Aviogenex
Two Belgrade – based enterprises, “Delta Holding” and “Aviogenex”, are in the negotiation process for joint venture of starting the new regional airline.

03/24/2005 -NIS
The annual net profit from import and processing of petroleum and sale of derivatives amounts to about USD 40 million. This is the result of analysis of final account of operations of NIS in 2004. NIS takes part in the filling of the budget of Serbia with 22% (CSD 58 billion), and provides 58.5% of all needs of the state for energy. NIS started to make profit at the end of 2000 and in 2001 it had profit of CSD 179 billion. This result was exceeded in 2003 when it earned CSD 193 billion. Acting director of director general of NIS, Zeljko Popovic, stated that the net profit, i.e. profit, of NIS in 2002 amounted to CSD 6.1 billion, the following year it reached 6.6, whereas in 2004 it amounted to CSD 2.4 billion.

03/24/2005 -NIS - Naftagas
Novi Sad based NIS – “Naftagas” produced 47,658.6 tons of raw oil, 0.7% more than planned. Production in February was 1,348.7 tons of liquid oil gas, 4.7% more than planned, 8,986,726 cubic meters of dissolved gas, 17.3% above plan and 15,220,961 cubic meters of free gas, 17.8% more than planned. Production of carbon-dioxide was 1,843,000 cubic meters, 3% less than planned and 123,495 cubic meters of geothermal water, 95.2% of planned quantity.

03/23/2005 -IMT / John Deer
Cooperation of multinational giant “John Deere” and Belgrade - based “IMT” started by production of four types of tractors. Project is realized with the assistance of Novi Sad - based company “Res Trade”, authorized distributor of American tractors. By the end of this month, first small models will be produced. The Managing Director of IMT, Vidan Djokovic, stated that it is about mounting “John Deere” engines of 33 kW into model 549 as well engines of 39 kW into 2050. Models 2070 and 2090 are being prepared and totally 330 tractors should be produced.

03/23/2005 -Meridian banka
Novi Sad – based “Meridian banka” is planning to increase initial capital to € 40 million and active assets to € 150 million this year. This financial institution also plans to serve 25,000 legal entities and 75,000 citizens. The Managing Director of “Meridian banka”, Zlatica Nikacevic, stated that installation of 200 ATMs and 5,000 POS terminals is planned, as well as issuing of 200,000 DinaCard, VISA and MasterCard debit cards. “Meridian banka” expects to obtain strategic partner on tender before the end of this month. This should enable it cover 10% of banking market in Serbia.

03/21/2005 -“Dunav osiguranje”
The share price of insurance enterprise “Dunav osiguranje” increased by more than 100% in the past week. The representatives of the enterprise stated that the price of a single share was CSD 2,300.00 and now is CSD 5,500.00. The first increase occurred on March 10. Demand of shares was 387 and offer was only 5 shares.

03/21/2005 -“Petrobart AVIA”
The President of oil trade enterprise “Petrobart AVIA”, Zoran Obradovic, stated that his enterprise is interested to invest in modernization and reconstruction of oil refineries in Novi Sad and Pancevo, because AVIA is a partner of Naftna industrija Srbije (NIS) for many years. “Petrobart AVIA” owns more than hundred gas stations in Serbia and Montenegro.

03/18/2005 -Brewery “Efes”
The Managing Director of Zajecar-based brewery “Efes”, Dusan Ninic, stated that they will invest € 2 million in technical equipping, employees training and marketing this year. Mr. Ninic explained that money would be invested in systems for yeast processing, carbon-dioxide and complete computerization of the brewery and automation of production. Mr. Ninic also announced that investments of € 20 million were planned to be realized within next three years.

03/18/2005 -“Swisslion-Takovo”
President of enterprise “Swisslion-Takovo”, Rodoljub Draskovic, signed an agreement with Mayor of Kragujevac, Veroljub Stevanovic, for renting 10 hectares of land where this enterprise will build production – trade facility worth € 130 million. The enterprise “Swisslion-Takovo” will construct fruit and vegetables processing lines which will include diary plant for production of fruit yoghurt and meals ready-to-eat factory.

03/17/2005 -“Sevojno”
Uzice – based aluminum roll-mill “Sevojno” (“Impol Seval”) started this year with record monthly production of 3,500 tons. It is explained as a result of successful privatization and investments in the previous two years. Management board of the mill, whose major owner is Slovenian enterprise “Impol”, established the fact that last year’s production increased for 25% and that more than 90% of it, worth € 60 million, was exported which resulted with profit of € 1.3 million. In last two years, “Impol” invested about USD 12 million in roll-mill and it is certain that obligation of investing USD 14.6 million will be exceeded already this year. Management board adopted decision on construction of foundry with capacity of 50,000 tons which will, together with investment of USD 10 million, double up production and usage of facilities.

03/16/2005 -Bambi
The General Manager of Pozarevac - based enterprise “Bambi”, Miroslav Miletic, announced the possibility of “Bambi`s” joint venture with Vrsac – based enterprise “Banat” and Belgade – based enterprise “Soko Stark”. These three enterprises represent the leading manufacturers in confectionery industry in Serbia. The enterprise “Bambi” as one of the most successful, had in last two years, the export worth of € 7 million. Its total income, for 2003, was € 33 million and the revenue was € 3 million. Mr. Miletic stated that they are entering the new investment cycle with three times bigger share price on Belex regarding the share price in the beginning of trading at the end of 2003.

03/16/2005 -Elektroprivreda Srbije (EPS)
The CEZ Group, the leading enterprise in Czech Republic offered the strategic partnership to EPS, on their yesterday presentation in Chamber of Commerce of the Republic of Serbia. The President of CEZ Group, Mr. Martin Roman, stated that CEZ Group has a intention to become a leading enterprise in electricity market in Central and South East Europe. The representatives of CEZ Group came to Serbia as a candidate for investors in electricity field.

03/15/2005 -Brewery “Celarevo”
The owner of brewery “Celarevo”, Danish “Carlsberg”, launches the production of “Tuborg Green” beer in Celarevo. The world leader of the production of beer “Carlsberg” is planning to invest € 47 million in brewery “Celarevo” by 2010.

03/15/2005 -“Petrohemija”
Elemir – based manufacturer of synthetic rubber, part of Pancevo - based “Petrohemija”, finished 2004 very successfully. This factory near Zrenjanin produced 30,000 tons of rubber last year and exported 75 % of its production. The rubber quality is excellent which is proved by fact that 99.36 % of rubber met requirements of the first class. The Managing Director, Milovan Eremic, stated that the largest production was reached in the forth quarter of last year and that means that facilities were fully operating. Successful production and achievement of plan was reached by continuous supply of materials and planned work of “Petrohemija”, as well as successful annual overhaul. In January 2005, factory operated with full capacity and produced 3,800 tons of synthetic rubber. Until the end of the year production should reach 36,000 tons. Factory works under ISO 9002 standard since 1997. Beside the improvement of quality, a lot was done on research of market of material and chemicals that are used in production in order to improve quality and decrease expenses.

03/11/2005 -“Alfa plam”
Vranje-based enterprise “Alfa plam” realized profit of almost CSD 570 million last year which is double more than in 2003. Total unallocated profit increased to CSD 1.1 billion. If “Alfa plam” assembly confirms Management Board's decisions next month, CSD 134 million will be paid to shareholders, double more that last year, CSD 1,350 per share. Precisely, every worker will obtain about € 1,000.00. Financial Director of the enterprise, Vene Zdravkovic, stated that the shareholders will be paid in two installments, in April and September, because amount is not small. Workers of “Alfa plam” had very good results last year and earned 13th salary, CSD 20,000.00 in average. According to law, CSD 200 from the profit will be used for acquirement of shares on the market and CSD 250 million will be used for emission of 37,500 new shares. Quantity of “Alfa plam” shares will increase by 40 % thereby. Reason for share capital increase, according to Zdravkovic, is last-year investments in new equipment and buildings, worth more than CSD 200 million. “Alfa plam” shareholders will obtain more shares that way. Part of the Metal industry, about CSD 250 million, will remain unallocated. Mr. Zdravkovic thinks, considering all aforementioned, that value of “Alfa plam” shares will continue to grow. According to the latest market reports, share capital of the company will be increased by Hypo-Alpe-Adria Bank. Among the first ten buyers of “Alfa” shares is domestic A-banka.

03/09/2005 -Bambi's Increased Profits
Pozarevac-based enterprise “Bambi” emphasized that 2004 was very successful and that production amounted to 22,000 tons of goods, 6% more than previous year, and export had been worth € 7 million. The entire turnover of CSD 2.5 billion and profit of CSD 186 million. Shareholders of the company have chosen concept of capital value increase and accepted offer by “Salford” in the amount of € 12 million. Market value of “Bambi” is increased two an a half times.

03/09/2005 -Naftagas
“Naftagas” results were better in January for about 20 % than forecasted. In the previous month, 52.7 thousand tons of oil was obtained, as well as 1,56 thousand tons of liquid oil gas, 10.28 million cubic meters of dissolved gas, 16.87 million cubic meters of free gas, 22.33 million cubic meters of Carbon dioxide and 123.37 thousand cubic meters of geo-thermal water.

03/09/2005 -Telecom Montenegro
Representatives of Montenegrin Government and Hungarian MATAV adjusted share purchase agreement of “Telekom Crne Gore” so that MATAV, owned by “Deutsche Telekom” could offered € 181.3 million for state-owned share and additional € 51 million for 49% of minority share. It is expected that Tender Commission will accept adjusted agreement and that Government of Montenegro will make decision on its signing.

03/08/2005 -“Fidelinka”
The Swiss agricultural enterprise “Mineko” acquired 56.65% of shares of Subotica-based pasta, confectionery, bread and pastry enterprise “Fidelinka” at the price of € 10.672 million and became majority owner of this enterprise. The enterprise “Fidelinka” has very good rating at Belex. The share price of “Fidelinka” is CSD 1,200 per share. “Fidelinka" is among the most successful enterprises in this branch in Serbia. It was organized as stock company with fixed assets worth € 13.13 million and 61.60 % of shareholders capital. Its property are mills and silos in Subotica, Bajmok and Cantavir, dough factory, starch factory and factory of bread and pastry, as well as 4,000 hectares of agricultural land. Production of wheat and crops takes place on about 12,000 hectares by individual producers and 4,000 hectares of own production within “Ratarstvo” unit. Since 1994, “Fidelinka” provides seeds, mineral fertilizers, diesel fuel and mechanization to its cooperatives. During 2002, “Fidelinka” expanded its agricultural fields by acquiring 4,100 hectares of land from Banatsko Arandjelovo-based enterprise “Milivoj Lazin”. “Fidelinka” has offices in almost all big cities such as Belgrade, Nis, Bor, Novi Pazar, Bijelo Polje and Podgorica.

03/08/2005 -“Delta Holding”
Belgrade-based enterprise “Delta Holding” acquired 15,000 shares from minority shareholders of Banatsko Veliko Selo-based enterprise “Kozara”, the leading producer of food in Kikinda municipality, at the price of CSD 10,860 per share. “Delta Holding” now owns 73 % shares of minority shareholders, which is 45 % of total shares. “Kozara” owns 1,900 hectares of land, pig farm with capacity of 25,000 pigs per year, silo of 2,000 wagons and the latest agricultural mechanization. Farmers from Veliko Selo are recorders in herb production in this part of Banat.

03/08/2005 -“Termoelektro”
The Serbian enterprise “Termoelektro” and Russian enterprise “Silovie Masini” have signed a 6-year agreement on the repair of all 6 generators in the hydro power plant “Djerdap I”, worth USD 7.5 million. The Director of that power plant, Dragan Stankovic, stated that the beginning of repairs depended on the signing of the contract, by SCG and Russia, on the settling of the clearing debt of the former Soviet Union and the former Yugoslavia, which should be done during the next few months. Mr. Stankovic added that the carrying out of this project should begin in June or July of 2005.

03/07/2005 -“Si & Si Company”
The leading beverage and water bottle enterprise “Si & Si Company”, introduced its new product, bottled water “Voda Voda” on 10th International food, catering and equipment fair, “Gulfood” in Dubai. The presentation was very prominent even though among 2,000 exhibitors were world famous water producers such as “San Pellegrino” and “Evian”, as well as producer of “Masafi” water which is very popular in Mid-East. Supreme quality of water “Voda Voda” together with sophisticated bottle design attracted numerous representatives of regional and local distributors interested in selling “Voda Voda” across Arab subcontinent, in Dubai, Saudi Arabia, Kuwait, Quatar and Oman. Equal interest was shown by owners of hotels and restaurants from Mid-East, North Africa, India and South-East Asia.

03/04/2005 -Serbia, with USD 14.99 Billion, in Medium Category of Debt
The Serbian Institute of Market Research, IZIT, announced that Serbia’s foreign debt had reached USD 14.99 billion. Its share in the domestic gross product was 63%, which meant that Serbia was in the medium category of countries in debt. Researcher Sasa Djogovic pointed out that USD 1.279 billion, of the total debt, was spent on Kosovo and Metohija. Most is owed to IMF and WB, and it amounts to 36.1% of the total debt, while 8.2% of the debt is owed to the London Creditors Club. The participation in middle-term and long-term credits is 21%, the participation in short-term credits is 7.1% and clearing credits is 1.3%, while the government’s and its agencies’ part in the total debt is 26.2%. Djogovic evaluated this year as crucial one, as far as the height of the debt goes, because everything depends on whether the foreign trade deficit can be decreased. According to Djogovic, this can be achieved by passing an act on foreign trade, which will provide out of customs mechanisms of protection for the domestic economy, and direct, foreign investments, of at least USD 2 billion per year, are also necessary.

03/03/2005 -Industrial Production Higher
The Serbian Republic Statistics Institute announced that, in January, industrial production in Serbia was 0.5% higher than during the same month, last year, and 16% lower than the average in 2004. In January, in comparison to last year’s average, a 27.9% increase was achieved in production and distribution of electricity, gas and water, and there was a 27.5% decrease in the processing industry, while in the field of removing ore and rock, production remained at the same level.

03/03/2005 -US Steel Serbia
The new Managing Director of Smederevo-based enterprise “US Steel Serbia” is Michael Fedorenko who was vice president of technology sector in “US Steel Kosice” in Slovakia. The ex Managing Director of “US Steel Serbia” Thomas Kelly is returning to US after an impressive track record in Serbia.

03/03/2005 -Knjaz Milos
The investment fund “Salford” bought, on Belex, 9136 shares of the Arandjelovac-based mineral water producer “Knjaz Milos”, which were owned by the government, for the price of CSD 18,000.00 per share. All offered shares were sold, and the government earned about € 2 million. This was the second package sold at stock market of “Knjaz Milos” shares, owned by the government.

03/02/2005 -Univerzal banka
Belgrade-based “Univerzal banka” announced that total bank capital has increased by 25% in the past year while turnover increased by 45 %, this means that plan for 2004 was exceeded by 30%. “Univerzal banka” continued expansion by opening new branches in Nova Pazova, Kula, Subotica, Valjevo, Vrsac and Belgrade.

03/02/2005 -Pancevacka rafinerija
The oil refinery in Pancevo is expecting increased profit from last year’s business operations, worth CSD 2.7 billion, but due to the consolidation of internal demand (writing off of large part of internal debts of the NIS), the refinery is enduring problems with securing resources for its own repair.

03/02/2005 -“Michelin” Acquires “Tigar”
The General Manager of Pirot-based enterprise “Tigar”, Dragan Nikolic, the representative of the French “Michelin”, Kristijan Son and the chief of Belgrade’s office of the World Bank, Roberto Albaceto, signed an agreement on long-term cooperation. According to this agreement, “Michelin” will, by 2007, take over 50.6% of “Tigar’s” shares and, in the second phase, by 2010, small stockholders will own 30% and “Michelin” will own 70% of “Tigar MH’s” shares.

03/02/2005 -Galenika
Belgrade-based pharmaceutical enterprise “Galenika” willduring 2005, increase production by 28%, export by 94%, and sale on the domestic market by 15%. This year, “Galenika” will sell drugs in the amount of USD 15 million onto the foreign market this year, and most exports will be made to Russia. For Russia’s health care needs, “Galenika” will produce drugs worth USD 7 million, and part of the pharmaceutical program of this factory will be available in drugstores in Libya, Nigeria, Albania and the Republic of Srpska. “Galenika” now produces drugs from 16 pharmaceutical groups, which is the amount produced in Serbia, and it is the leader in 8 of them. This factory in Zemun is the largest supplier, to the domestic market, of antibiotics, vitamins, drugs for blood illnesses, neuroleptics for psychiatric patients, cardiology treatments, treatments for dermatitis, treatments for the bone-muscular system and medications against blood clots.

03/01/2005 - “Hypo-Alpe-Adria Bank” Interested in Buying “Putnik”
The President of the Association of stockholders of “Putnik”, Aleksandar Vukanovic, announced that the Austrian “Hypo-Alpe-Adria Bank” is interested in taking over “Putnik”, from its present owner, the American enterprise “Uniworld”. Mr Vukanovic stated that “Putnik’s” stockholders would be pleased to see that enterprise get a new owner, such as “Hipo-Alpe-Adria Bank, which owns 25 hotels. Representatives of “Hypo-Alpe-Adria Bank”, in Belgrade, didn’t want to confirm information about their interest in taking over “Putnik” from “Uniworld”, but they didn’t deny it, either. “Putnik” was sold to “Uniworld” in May 2003, for USD 5.2 million. The investor was obliged to invest USD 44.3 million by the end of June 2008. During the previous controls, the Privatization Agency of Republic of Serbia established that the owner of “Putnik” was, during the first year, invested less than the contracted amount, and that he didn’t submit the second bank guaranty on time, which was worth USD 7.3 million. Therefore, the Privatization Agency believes that it is more profitable to renounce the contract than to cancel it, because, in that case, international arbitration is authorized. Following the privatization of “Putnik”, 231, of a total of 840, workers left the company voluntarily.

03/01/2005 -Price of Serbian Drugs 8% Higher
The Serbian Minister of Health Tomica Milosavljevic stated that the price of domestic, Serbian, drugs will, on average, increase by 8%. The Minister explained that a Regulation was adopted at parliament conference, on the changes and supplements to the Regulation on criteria for determining drug prices, which comes from an analysis of about 50,000 data, which was presented by medicine producers from last October, when the Regulation was adopted. In October of last year, the regulation established a principle of, so-called, international-domestic prices, according to which medication prices are established in parity with prices in Slovenia, Croatia and Italy.

02/28/2005 -Joint Venture of Grand prom, Droga and Kolinska
The leading manufacturer of coffee in Serbia and Montenegro, Belgrade - based enterprise “Grand prom” will establish strategic partnership with Slovenian enterprises “Droga” and “Kolinska”. The Managing Director of “Grand prom”, Slobodan Vucicevic, stated that uniting of these three large enterprises will enable establishment of new giant in food industry in South-East Europe. He emphasized that management of “Grand prom” would conduct activities for South-East Europe and that newly established group would be the largest food producer in Balkan region. The enterprises “Grand prom”, “Droga” and “Kolinska” will preserve existing trade marks and develop new ones.

02/23/2005 -Piraeus Bank Acquires Atlas Bank
“Piraeus Bank” officials stated on Friday that they agreed to take over 80% of share capital of “Atlas Bank” as part of a strategy to expand in the Balkans region. The Greek bank did not disclose details of the deal, which it said will be completed after approval from the Greek and Serbian authorities. “Piraeus Bank” will focus on retail banking, where it will introduce long-term housing loans and mid-term consumer lending, “Atlas Bank” said in a statement, adding that the Greek bank also plans to open a leasing company to finance car purchases. “Piraeus Bank”, which already operates in Bulgaria, Romania and Albania, has a credit portfolio of € 11.9 billion, € 10.7 billion in deposits, and € 1.2 billion in capital. “Atlas Bank” has a network of nine branches, which “Piraeus Bank” plans to expand to 13. According the statement from the Greek bank, in 2004, “Atlas Bank” had a net profit of € 1.6 million, € 63 million in total assets, customer deposits of € 44 million, and € 13.5 million in share capital. “Piraeus Bank” also hopes to boost “Atlas”' current market share of 1%.

02/22/2005 -Coca Cola Acquired “Rosa” Water
Coca-Cola acquired “Vlasinka” the mineral water beverage manufacturer. “Rosa” water, the product of “Vlasinka”, was owned by “Simpo” (the leading Serbian furniture manufacturer). The deal to acquire 100% of “Vlasinka” from “Simpo”, for € 21.5 million, was signed by Coca-Cola representatives from Atlanta and from the company’s branch in Athens. “Simpo” chairman Dragan Tomic stated that the deal would give “Vlasinka” the opportunity to position its flagship “Rosa” mineral water on the international market. Coca Cola plans to invest close to € 100 million over the next five years.

02/22/2005 -Oil Refineries in Novi Sad and Pancevo
Oil refineries in Novi Sad and Pancevo will be merged into single enterprise that will result in further enhancement of production through modernization, efficient business and export of derivatives as well as compliance with environmental standards. Based on the estimate of experts from “Shell” and “Kellogg” expressed during the discussion at Executive Council of Vojvodina. The revitalization of Oil Industry of Serbia (NIS) would enable larger production of electric power, steam for industry and hot water for household heating with an overall increase from 40 to 80%.

02/21/2005 -Belex
Last Friday, Belex, became an associate member of the Federation of European Securities Exchanges (FESE).

02/21/2005 -Soja protein
The Management of Becej – based enterprise “Soja protein” made a decision to raise the redemption price of soy beans. The aim of such decision is to encourage the individual producers of soy beans. The enterprise “Soja protein” wants to increase the contracted areas which are implanted with soy bean, from last years 120,000 hectares to 150,000 hectares, which was planed for this year.

02/21/2005 -“NIS” and “Shell” and “Kellogg” Do Business
The Serbian Minister of Mining and Energy, Radomir Naumov, spoke with the representatives of multinational oil companies “Shell” and “Kellogg” on cooperation with Oil Industry of Serbia (NIS) through projects for modernization of refineries, development of research activities and strategic partnership. Additionally Minister Radomir Naumov met with the President of the Board of Directors of Greek company “Hellenic Petroleum”, E.N. Christodoulou. On this occasion, Minister Radomir Naumov and Mr. E.N. Christodoulou agreed to further develop market relations in oil economy sector in Serbia, as well as the interest of Greek company in expansion of its selling network in Serbia.

02/18/2005 -Oil Pipeline Project through Serbia
“Hill International” completed technical and financial study for construction of Romanian part of Konstanca-Pancevo-Omisalj-Trieste oil pipeline. The completion of this study includes the construction of oil pipeline through Serbia for oil from Caspian region. The projected length of oil pipeline from the Caspian Sea to European market is 1,360 km. Up to 112 million tons of crude oil on annual basis could be transported this way.

02/18/2005 -Road Construction in Serbia
The project of renovation and construction of European railroad and road corridors and the Danube corridors through Serbia, worth around USD 2 billion, was discussed at the meeting of High Task Force for Transportation of European Commission. This project includes construction and expansion of strategic European 'multimodal' junctions are related to road-railroad corridor 10 and navigation road on the Danube through Serbia, on the route of corridor 7. The final decision is expected this March. The 'multimodal' junctions is a system of networks of connected railroad, road, port and airport up-to-date routes and cloverleaves.

02/17/2005 -Assets of PIK
Majority package of 56% of stocks of factory for processing and canning of potato PIK "Cacak" was sold on Belex, whereas the remainder of 44% of assets will be privatized by auction method. Majority package was owned by 216 workers totaling 14,480 shares that was sold twenty days ago on Belex at starting price of CSD 10,200.00 per share. According to official data, the majority of shares of PIK Cacak (6,288), was acquire by Slavisa Puric from Belgrade. His company "Intereksport" purchased additional 3,487 shares, whereas citizens of Belgrade Milos and Rados Zimonjic became owners of 4,325 shares. Factory points out that no one became majority owner of the company and that forthcoming auction sale of public assets will decide the majority owner.

02/16/2005 -Belgrade Stock Exchange
The total turnover for last week was CSD 507.2 million and was realized through 2,193 transactions. Last week also marked trading on Belgrade Stock Exchange the uneven growth of prices of shares. The shares, which are in continuous trading, were participating with 41.68 % in total turnover of shareholders papers.

02/16/2005 -Sweets Producer Soko Stark Looking for Strategic Partner
Serbia’s major confectionery maker Soko Stark will attempt to find a strategic partner over the next 15 days, general manager Danilo Ivanovic has told Politika. Ivanovic said that talks are underway with several investment funds and one foreign investor, but he declined to reveal any names. Commenting on achievements in 2004, Ivanovic said that Soko Stark’s profit doubled, hitting more than € 1.5 million, while production reached 16,600 tons, up 600 tons against a year earlier. More than € 2.5 million was invested in the confectionary maker last year and new chocolate making equipment will be installed shortly. Salaries of the 2,350 workers in Soko Stark have also gone up and the average monthly income currently stands at € 300.

02/16/2005 -Delta System to Invest in Food Chains Across the Balkans
Following the sale of 75% of Delta Bank, the management of the Delta Holding system announced that it plans to invest the proceeds of close to € 280 million in expanding its striving supermarket chain business. Delta revealed plans to open retail chains similar to Maksi diskont in neighboring Croatia and Slovenia, and later the process will include Bosnia, Macedonia and Montenegro.

02/15/2005 -Intesa Bought Delta Banka
Delta Banka shareholders signed an agreement with Banca Intesa, the largest Italian bank, to sell a majority stake. Politika announced today that the purchase price for 75% stake in Delta Banka was 277.5 million EUR. Delta Banka operates in 140 towns across Serbia and employs some 2,000 workers. It is one of the leading banks in Serbia both in terms of assets (around EUR 700 million) and customer deposits (around EUR 600 million). Intesa is the biggest Italian bank, with more than 50,000 employees. It is expanding in the Eastern European markets; currently operates in Croatia, Czech Republic, Russia and Slovakia.

02/14/2005 -Sweets Producer Soko Stark Looking For Strategic Partner
Serbia’s major confectionery maker Soko Stark will attempt to find a strategic partner over the next 15 days, general manager Danilo Ivanovic has told Politika. Ivanovic said that talks are underway with several investment funds and one foreign companies, but he declined to reveal any names. Commenting on achievements in 2004, Ivanovic said that Soko Stark’s profit doubled, hitting more than EUR 1.5 million, while production reached 16,600 tons, up 600 tons against a year earlier. More than EUR 2.5 million was invested in the confectionary maker last year and new chocolate making equipment will to inst alled soon. Salaries of the 2,350 workers in Soko Stark have also gone up and the average monthly income currently stands at EUR 300.

02/11/2005 -Delta Holding to Expand
The Serbian most successful enterprise, “Delta Holding”, is planning to expand its business in neighboring markets, mainly concentrating on Slovenia and Croatia, after the selling of “Delta Banka” to Italian “Banca Intesa”. The management of “Delta Holding” announced that they are considering purchasing Slovenian “Fructal”, which majority owner is brewery “Lasko”. The main products of “Fructal” are soft drinks and fruit products such as jam and baby food. Second Slovenian enterprise of interest is “Perutnina Ptuj”. This is one of the leading enterprises in food industry, famous for its poultry products, as well as Croatian enterprise “Podravka” which is also attractive to management of “Delta Holding”.

02/11/2005 -Greece Bullish on Serbia
Greece is one of leading investors in Serbia. After a short break, a new wave of investments started at the beginning of this year. “Alpha Bank” acquired Belgrade - based “Jubanka” for € 152 million. Volume of Greek direct investments in Serbia reaches € 800 million in the last five years. With investment of Greek enterprise “OTE” in the largest Serbian telecom operator “Telekom Srbija”, it is valued more than € 1 billion and with indirect investments it makes € 1.3 billion. The enterprises with Greek assets employ about 18,000 workers. Advantage of these investments is that they are present in all sectors, especially in industry and banking, as in cement industry (“Titan”), soft drinks (“Coca Cola”), ice cream (“Delta”) and telecommunications.

02/11/2005 -Telekom Srbija/Ericsson
The largest Serbian telecom operator “Telekom Srbija” and the world`s leading telecom supplier “Ericsson” have signed a USD 39 million agreement to expand and enhance Telekom Srbija`s GSM network. Under the agreement, Ericsson will provide state-of-the-art hardware, software and telecom services. The network expansion will be completed within twelve months and will allow “Telekom Srbija” to offer its customers the latest, most advanced GSM services in addition to the increase of network capacity.

02/11/2005 -Energoprojekt Constructs in Montenegro
“Energoprojekt” is in final stages of completion of construction of sports center that includes the sports hall, hotel, outdoor tennis, basketball courts and other sport and leisure facilities in Montenegrin town of Igalo. “Energorpojekt” additionally constructs resort in Savina with the total value of projects of € 20 million.

02/11/2005 -State Action Fund
The Ministry of Economy of the Republic of Serbia announced the changes in the Privatization Act, which will allow the Action Fund (State owned fund that owns government stakes in over 600 companies) to sell its share of the respected companies without restraints. Another major change calls for the Action Fund to obtain the right to vote, and therefore take part in managing the companies where it owns stakes. The President of the Action Fund, Mr. Gracanac, said that the Action Fund will put up for sale the government stakes in more then 200 companies in year 2005. Sales will be conducted through the Belgrade Stock Exchange. However, from the past experiences the larger portions of the ownership usually increase the price, as the buyers are willing to pay premium on fair price for higher stakes. No schedule as of yet is made for which companies will hit the Belgrade Stock Exchange first.

02/11/2005 -Market Capitalization of Belex
The Market Capitalization of Belgrade Stock Exchange on 31st January was CSD 370.4 billion (€ 4.6 billion) which represents, regarding the amount of Market Capitalization in December 2004, increase of 7.3%.

02/11/2005 -2004 Belex Turnover
Turnover in 2004 at the Belgrade Stock Exchange was CSD 40.6 billion, with the biggest contribution of the privatization shares, approximately € 520 million. The largest part of over 60% was in shares traded at Belgrade Stock Exchange.

02/11/2005 -Belex Facing American Investors
Belgrade Stock Exchange and Serbian financial market were represented in New York to the US investment banks and brokerage companies. The representatives of Belgrade Stock Exchange, met with representatives of New York Stock Exchange among others, took part in the conference venue organized by “Financial Market World” together with one hundred most important world investment companies. The presentation was attended by American Investment Bank and "State Street” and “Standard & Poor’s", from which Serbia recently received credit rating “B+”. The aim of the meeting was presenting Serbian investment opportunities and Belgrade Stock Exchange and presenting Serbia itself to the financial global institutions, as well as introducing of US financial community to Serbia. Additionally the new Index of Belgrade Stock Exchange was represented.

02/11/2005 -National Bank of Serbia
National Bank of Serbia announced that it has organized for the first time repo auction where it sold bonds of the state of Serbia with a nominal value of CSD 88.9 million, obliging itself to buy them off in 14 days. In the announcement it is stated, that the bonds were sold for CSD 88.9 million in repo auction where nine banks took part and it is added that they will be bought by the price of CSD 90.49 million in the course of two weeks. Repo auction is selling of paper notes by using “repo operation” method which implies that the seller of the bonds, i.e. Central Bank, buys off the same bonds from the buyer by the price specifically done in the auction until the certain date. As it was announced, the National Bank has, by selling of state notes, applied practice that Central Banks in developed countries use as a way of fine liquidity regulation of Bank system.

02/11/2005 -EUR 15 Million Profits NIS
President of the managing board of oil company Naftna Industrija Srbije (NIS) Milos Tomic said that the company posted a total of around EUR 15 million in profits last year, which makes it Serbia’s most profitable company. NIS is a state owned company, which will undergo limited restructuring and privatization starting in 2006.

02/11/2005 -Macro-Financial Aid by European Commission - € 70 Million
Minister of International economic relationships of SCG, Predrag Ivanovic, Serbian Minister of Finance, Mladjan Dinkic, governor of NBS, Radovan Jelasic and President of Council of Montenegrin central bank, Ljubisa Krgovic, talked to delegation of European Commission about realization of € 70 million worth of macro-financial aid by European Commission to SCG. Serbia will get 90% of total amount, while Montenegro will receive 10%. European Commission assigned these finances to SCG in December 2003 as additional support to balance of payment and foreign exchange reserves. This money should be used until June 30, 2006. Of total amount, € 45 million is donation and € 25 million is loan that should be pay off in two installments.

02/11/2005 -World Banks’ Writes Off Bor Mines Debt
The general restructuring plan for the Bor Mines, a complex of copper mines and refining facilities is accepted by the World Bank and the Ministry of economy of Serbia. The plan includes the write off of USD 360 million of debt to the state owned institutions, which accounts for 76% of overall debts of the Bor Mines Holding. The plan also calls for the sale of non-core assets and the reduction of work force by some 2000 employees. These steps will make Bor a lot more attractive for foreign investments.

02/11/2005 -Record of the Serbian Export and Import of Food Industry
The results of foreign trade achieved by Serbian agriculture and food industry in the past year were the highest both in export and import. The export of agricultural products was worth USD 822.6 million, which is 40.9% more than in 2003 when it amounted to USD 583.9 million. Agriculture industry participates with 22.2% in Serbian export that totals in value of USD 3.7 billion in 2004. At the same time, the import results were also at peak of USD 865.9 million, which is 32.4% above the results from 2003 when it amounted to USD 654.1 million.

02/11/2005 -Investment Fund for Southeast Europe - Strategic Partner of Edible Oil Industry "Dijamant"
Having purchased €11,550,000 worth of stocks, Southeast Europe Investment Fund had become strategic partner of Zrenjanin-based Edible Oil Industry “Dijamant”. General director of that stock company, Savo Knezevic said that after intensive negotiations between management of “Dijamant” with several investment funds and companies that deal with food production in the world, the stockholders’ assembly decided to accept contract on additional capitalization with Southeast Europe Investment Fund, behind which is “HVB bank”. He pointed out that it was decided that way because that partner had accepted development strategy of "Dijamant" and had obliged to invest another € 17m in development in next three years. In that way, Zrenjanin-based oil factory, which now participates with 35% in total production in Serbia, will three times increase capabilities of sunflower processing into edible oil and other products. Investment Fund accepted partnership on the condition that the present general director of “Dijamant” remain on that post for next three years.

02/11/2005 -Sojaprotein
Becej – based enterprise “Sojaprotein” purchased in public auction Sid – based cooking oil factory “Mladost” for CSD 603,457,000.00 (€ 7.5 million). “Sojaprotein” is a Serbian well known enterprise for refining of soy beans.

02/11/2005 -SI & SI Company
The leading beverage and water bottle enterprise “Si & Si Company”, introduced its new product, bottled water "Voda Voda", on 23rd international fair “Water, Health, Healing Springs and Wave-Therapy” in Paris. French chains of perfume shops, drugstores and supermarket showed remarkable interest in this product from Serbia. This Serbian manufacturer that produces a wide range of non-alcoholic beverages “Sinalco”, alcoholic beverages “Gorki list” and including vodka, as well as other fruit based food products, plans ambitious breakthrough to world’s market by exporting its products to Europe and Asia. The Managing Director of Subotica – based enterprise “Si & Si Company”, Vojin Djordjevic, said that they are planning to enter Asian market through Dubai and Singapore, as well as European market through France. This enterprise will sponsor this year’s European Basketball Championship in Serbia and Montenegro.

02/11/2005 -“Rosa” Water for Sale
The buyer will be known in two weeks. Among the interested investors are “Nestle”, “Coca Cola” and “Danone”. “Rosa” is owned by “Simpo” (the largest Serbian furniture manufacturer). Representatives of “Simpo” said that they are currently in negotiation process with these investors, as well as investors from Slovenia, Croatia and Serbia. The deciding factor will be an offer in general in terms of price and investments. The “Simpo” company has 8.700 shareholders.

02/11/2005 -Wool from Pester in English Sweaters
In Bradford, town near Liverpool, processing of wool from Pester has started recently. The wool is exported to England by Agricultural Cooperative “Sjenicka ovca” from Trijebinje near Sjenica, with the help of World Program, FAO. According to Edip Rahic, acting director of “Pesterska ovca”, the first shipment of 15 tons of raw wool contented buyers so that the new and larger quantities were ordered. Mr. Rahic also stated that they have agreement for 150 tons and that they are working towards the permanent basis cooperation. The Prester region in south Serbia, is famous for its growing of sheep and its wool products (including carpets) that has long standing history of export.

02/11/2005 -“Zdravlje” Plans Export of € 5 Million
Leskovac - based pharmaceutical company “Zdravlje”, which is, after privatization process, part of Iceland-based “Actavis” company, plans export value of over € 5 million this year. Export of medicines to Russia, the Balkan countries and other foreign markets is planned. Value of € 7 milllion was invested in development programs in 2004 and the investment cycle will be continued in next seven years. Company that acquired "Zdravlje" is obliged to invest total of € 20 million.

02/11/2005 -Duga Holding
Slovenian Holding enterprise “Belinka” purchased 24.21% of shares of Belgrade – based enterprise “Duga Holding”. “Duga Holding”, as the greatest manufacturer of paints and lacquers in Serbia and Montenegro, exports its products to European countries, Russia, China, India and other countries. The chemical group “Belinka” comprises of “Belinka Holding” and its subsidiaries “Belinka Perkemija”, wood polisher factory “Belinka Belles”, chemical factory “Belinka KTM” and an unit for glue production “Belinka Kemostik”.

04/18/2004 -Belex
According to representatives of the Belgrade Stock Exchange, during the first three months of this year, CSD 13.7 billion worth of shares and foreign exchange savings bonds have changed hands. Monthly volumes mark a consistent rise, and the average monthly rise from January to March, amount to CSD 1.1 billion. The total sales are made up by shares with 83.6%, and foreign exchange savings bonds with 16.4%. In addition, by March 31, 2005, there were 493 different shares of enterprises and banks on Belgrade’s free stock market. The capitalization of these shares amounts to CSD 281.1 billion. (€ 3,46 billion). Shares of 271 enterprises were traded in the first three months. The largest individual bulk of sales was achieved in the sale of Subotica - based enterprise “Fidelinka”– CSD 968.8 million.