KROSNO. Krosno District 61.3% % PLN % % PLN

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KROSNO One of the most important and fast developing economic centres in south-eastern Poland, in the Sub-Carpathian Province (województwo podkarpackie). Its major assets: human resources highly qualified personnel for many innovative branches of industry and services, high level of vocational education and labour culture, tax-exempt developed investment areas, with links to utilities mains, exceptional conditions for aviation industry development investment areas with direct access to an airfield undergoing modernization, competitive costs of running business, the highest level of support for investments in the European Union (public aid limit) 70% forsmall companies, for medium and large enterprises 60% and 50% respectively, attractive and safe place to live and develop. 46 775 Population 112 117 61.3% 5 639 56 5.9% PLN 3 266.12 Population of economically productive age Number of business entities Business entities with foreign capital Unemployment rate Average gross monthly remuneration 62.4% 7 616 17 13.8% PLN 3 021.31 GUS (Central Statistical Office), data for 2015 2 3 City of Krosno Krosno District

INDUSTRY Krosno is a major centre of industry and services with a great variety of branches. Our city is ranked high among business-friendly cities and regularly gets the highest marks in investment attractiveness reports prepared for the Polish Information and Foreign Investment Agency. The local economy is based on the main manufacturing sectors with rich traditions and ready to implement innovations. Automotive industry Manufacture of automotive subassemblies. Aviation industry Manufacture of ultra-light planes and aircraft subassemblies. Plastics processing Manufacture of plastic technical items, cleaning equipment, garden accessories. Furniture industry Manufacture of furniture, office chairs, stadium and auditorium seats. Oil industry Manufacture of upstream and midstream petroleum industry facilities: equipment, structures and units for oil and gas production,both on-shore and off-shore. Glassmaking industry Manufacture of glassware, architectonic interior design glass elements, unique art glass items and glass fibre. 4 5

INVESTMENT OFFER Krosno Airport Investment Zone GPS: 49 40 38,3 N 21 44 18,6 E Area: 32 ha within the Special Economic Zone EURO PARK Mielec, 3.1 ha outside the special economic zone. Purpose: complexes I, V innovative production and service activity, complexes II IV with direct access to the airport aviation industry operations and related businesses, complexes VI, VII industrial manufacturing, services. Available infrastructure: electricity, gas, water supply, sanitary sewage system and rain drain system, wideband network. A part of the area has direct access to the paved surface runway (1100 m x 30 m). There is a new road which connects the areas with national road no. 28. The areas are prepared for investments, included in the local zoning (development) plan. 6 7

HUMAN RESOURCES The high level of education in Krosno is evidenced by very good results of post-secondary examinations relative to the nationwide average. Perfect teachers, state-of-the-art educational facilities, well-equipped laboratories and workshops provide the highest quality education which is confirmed by all-poland rankings of schools. The education in engineering vocations is of great importance. Krosno educates and gives specialist training in many industries, including aviation, automotive, machining, electronic, IT and petroleum sectors. SUPPORT FOR INVESTORS THE BEST CONDITIONS Exemptions from income tax in the EURO PARK Mielec Special Economic Zone for investors who will have incurred capital outlays of the value of at least Euro 100,000. Krosno has the highest possible public aid limits in the European Union. Investors can receive much higher tax exemptions here than in the central and western regions of Poland. The Regional Centre for Vocational Education and Modern Technologies - equipped with state-of-the-art, newest generation facilities, machinery and devices, laboratories and engineering educational centres and training workshops, among other things: CNC machining units, the CAD/CAM designing techniques, materials science and technology, aircraft designs, constructions and assemblies testing, machinery and apparatus diagnostics/testing, construction and operation of aircraft, ground servicing and aircraft repairs and others. The equipment is used to train Krosno s post-secondary schools students and to improve skills and qualifications of the enterprises employees. Haas Technical Education Centre practical training of technicians for CNC machining industry. Higher vocational education Secondary school graduates start work or continue their education in higher education schools in Krosno or in other academic centres. Krosno State College The main faculties on the engineer level: mechanics and machinery design and construction (including aircraft assemblies designs), information technology, building industry, power engineering, environmental engineering, mining and upstream and midstream petroleum engineering, geology, materials technology and others. Katowice Silesian University of Technology Kraków Warszawa Warsaw University of Technology 245 km Cracow University of Technology 170 km AGH University of Science and Technology 350 km Rzeszów Rzeszów University of Technology 60 km Krosno Krosno State College Example: Enterprise size: small Capital investment outlays: PLN 4 000 000 (including land, buildings, machinery and devices / units, intangible and legal assets etc.) Public aid limit: 70% 8 9

Immovable property tax exemption in return for employment creation Example: Investment in aviation industry: - land: 2.5 ha - usable area of a building: 11 500 m 2 - newly-created jobs for graduates: 50 Tax rates: - on lands: PLN 0.82 / m 2 - on buildings: PLN 20.80 / m 2 Other forms of support: European Union funds, Labour Fund (including refurbishment of a work-station furnishing costs, refund of social security contributions, training given to employees), comprehensive aid from the Municipal Office of Krosno in expeditious processing of the investment procedures; post-investment assistance. 10 11

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