Overview and update to the shareholders of

Example SRL

1 half, 2012

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The purpose of this document is to give a general overview and update. No warranties of any kind are given by Merlot and/or its' administrators, with respect of the information contained herein which doesn't refer directly and explicitly to the company's affairs, including but not limited to the accuracy or completeness of the information, or the information being error-free. Merlot disclaims all responsibility for any and all faults, errors, and/or inaccuracies in the information contained herein. Further, Merlot disclaims all liability for loss or damage (direct or indirect), which may result form the use of information herein.

Overview and update to the shareholders of Example SRL

Table of contents:
Example SRL..............................................................................................3 Tunari .......................................................................................................4 Romania - various indicators .......................................................................6 The real estate market - various remarks ..................................................9

Overview and update to the shareholders of Example SRL

Example SRL
1. There were no signs of improvement in the Romanian land market in the reviewed period. The market is still rather stagnant with limited number of transactions. Due to the situation, we've made no attempt to market the company's property.

Overview and update to the shareholders of Example SRL

Tunari
There were no major developments in the locality of Tunari during the reviewed period.

Tunari - infrastructure related news

1. Pipera flyover in North Bucharest opens for traffic

May 1, 2012 9:46 am

The Pipera flyover in the North of the Romanian capital Bucharest was opened on Monday (April 30 ), in time for the higher expected traffic after the official holiday May 1 and just before the local elections, and one year and a half after construction work started.

The flyover, which was initially supposed to be finalized last year, has a length of 500 meters and including the wider Pipera Street, is 1.5 kilometres long. The Municipality invested some EUR 33 million in the flyover and expects 48,000 cars to pass on it every day, exiting Soseaua Pipera and going back to the city, freeing the Barbu Vacarescu Boulevard and Calea Floreasca from traffic jams. The flyover will provide access from the A3 highway to the city. Soseaua Pipera currently has six lanes, from the previous two. The area is one of Bucharests office hubs, which hosts the headquarters of companies such as Renault Technologie Roumanie, Oracle, DHL, Volksbank, RBS, Huawei. The future Raiffeisen Bank headquarters, in the 36-floored Sky Tower project, will soon be adjoining the flyover. A shopping mall is also in cards there, Promenada mall, which should be ready in 2013.
http://www.romania-insider.com/pipera-flyover-in-north-bucharest-opened-for-traffic/56396/#

Overview and update to the shareholders of Example SRL

2. Metrorex to put up EUR 1 billion to link Otopeni with city subway

June 2012 - From the Print Edition Underground operator Metrorex is planning to organize an auction to assign the works on the subway segment that will link Bucharest with Otopeni Airport, a EUR 1 billion investment, according to the company. The segment is 14 km long and the number of underground stations is estimated at 12. The work contract is due for completion within 60 months from the start. The financing for the investment will be supported through a foreign loan guaranteed by the state and also money from the state budget.
http://www.thediplomat.ro/articol.php?id=3461

Overview and update to the shareholders of Example SRL

Romania - various indicators

Highlighted figures:
As of 30/6/2012 National monetary policy rate Euro/RON exchange rate The 12 month inflation rate Unemployment rate
(1) (1)

As of 30/6/2011
6.25 % 4.2341 7.93 % 4.78 %

As of 31/12/2011
6.00% 4.3197 3.34% 5.12%

5.25% 4.4494 1.79% 4.6%

(2)

(2)

As of Friday - 29/6/2012;

(2)

May 2012

Main Sources: The National Bank of Romania (BNR), the National Institute of Statistics (INS), The National Employment Agency (ANOFM)

1. Romania Political Bickering May Delay IMF-Agreed Stake Sales

By Andra Timu - Jun 22, 2012

(Highlights) Romania will probably fail to meet some deadlines for selling stakes in stateowned companies as political wrangling between nations two top political leaders impedes progress, Prime Minister Victor Ponta said. The Balkan nation, which pledged to the International Monetary Fund to sell a 15 percent stake in its natural-gas grid operator Transgaz SA (TGN) by the end of June, will probably delay the sale by a short time period, Ponta said during a meeting with foreign reporters in Bucharest today. I want to express my personal bitterness that when we meet for a government meeting, we allocate 75 percent of our time discussing about how to protect ourselves from political attacks, he said. We progressed very much with preparing the Transgaz share sale, but we probably wont be able to do it by the end of June. Romania, which has changed governments three times this year, is facing increased political turmoil ahead of general elections after Ponta was accused of plagiarism over his doctoral thesis. He blamed President Traian Basescu for instigating the accusations. The two are also arguing over who should represent Romania at the next meeting of European Union leaders.

Overview and update to the shareholders of Example SRL

General elections may be held around Nov. 1 or on Dec. 2, depending on a political agreement between Pontas coalition of Social Democrats and the Liberals and the Democrat-Liberals, once headed by Basescu and who are now in the opposition.
http://www.bloomberg.com/news/2012-06-22/romania-may-delay-sales-of-state-stakes-on-politicalconflict.html

2. Deloitte: Frequent changes in legislation, the reason for tax uncertainty in Hungary, Poland, Romania

2012-06-29 13:38:03

The first Deloittes EMEA edition of survey Tax Certainty A Survey about the Relationship between companies and the Tax Authorities, shows that overall companies or organizations have a good relationship with their local tax authorities 65 percent of the respondents described this relationship as good and 27 percent rated it as being very good. However, in Austria, Italy, Nigeria, Poland, Romania and Russia more than 15 percent of the respondents consider their relationship to be bad or very bad. Taxpayers around EMEA indicate that the quality of their companys relationship with the local tax authorities depends on the particular department at the local Tax Authorities they need to deal with. This especially applies to the department dealing with corporate income taxes more than 21 percent of respondents have experienced difficulties with this department, followed by the VAT department with almost 20 percent. Throughout EMEA, half of respondents feel that the tax uncertainty in their country impacts or even damages their business operations. This feeling of uncertainty is especially apparent in Hungary, Kenya, Poland, Portugal and Romania. The main reason for uncertainty is the frequently changing legislation, which was indicated by almost one third of respondents. Next in line is the excessive length of tax disputes (12.4 percent) followed by the weaknesses and reversals in the tax authorities doctrine and in publicly available guidance (12.1 percent). The Swiss are the most confident about the tax certainty in their country and 80 percent even believes no other country in the EMEA region would have a higher certainty level. On the other hand, in Hungary, Poland, Romania and Russia, over 55 percent of respondents believe tax uncertainty is greater in comparison to other EMEA countries.
http://www.thediplomat.ro/articol.php?id=3579

Overview and update to the shareholders of Example SRL

3. Romanian Economy Shrinks 0.1% in First Quarter, Enters Recession

By Irina Savu - Jun 6, 2012

Romanias economy posted its second quarterly contraction in the first three months of the year, re- entering a recession as the European sovereign-debt crisis and a cold snap slowed growth in exports and industrial output. Gross domestic product contracted a seasonally adjusted 0.1 percent from the previous quarter, after shrinking 0.2 percent in the fourth quarter, matching a preliminary report on May 15, the National Statistics Office in Bucharest said today in an e- mail. GDP grew a seasonally unadjusted 0.3 percent from a year earlier. The eastern European countrys economy has slipped into its second recession in four years after exiting its worst decline on record last year, as European spending cuts slowed exports including Dacia SA cars. Freezing temperatures and heavy snowfall in the first quarter also disrupted transportation and supply chains. Romanias output growth will probably slow this year to 1.5 percent from 2.5 percent in 2011 as European austerity measures hamper export growth, according to International Monetary Fund forecasts.
http://www.bloomberg.com/news/2012-06-06/romanian-economy-shrinks-0-1-in-first-quarter-entersrecession.html

Overview and update to the shareholders of Example SRL

The real estate market - various remarks

1. Bucharest apartment prices drop 4 percent in H1 says imobiliare.ro

Simona Bazavan June 26, 2012

The average per square price for new apartments in Bucharest was EUR 1,295 this June, down 8 percent y-o-y and 6 percent against December 2011, according to imobiliare.ro which analyzed the evolution of asking prices. Studios and one-bedroom apartments dropped 8.6 percent while two-bedroom apartments decreased by 3 percent. For old apartments prices averaged EUR 1,064 per sq m this June, down 3.2 percent y-o-y. Overall, the asking price of apartments in Bucharest has decreased in the first semester by 4 percent, reaching an average of EUR 1,134 per sqm. The capital was no exception, average apartment prices dropping in all the first six largest cities in Romania by up to 4.5 percent a level reported in Ploiesti. Timisoara saw the lowest price reduction of only 0.5 percent. The highest decrease on the new apartments segment was reported in Cluj-Napoca where new apartments decreased by as much as 6.7 percent in June compared with the beginning of the year, averaging EUR 803 per sqm, according to imobiliare.ro.
http://business-review.ro/bucharest-apartment-prices-drop-4-percent-in-h1-says-imobiliare-ro/

2. Over 50% of romanian homes overcrowded, highest level in EU

Jun 12, 2012 More than half of Romanian homes are overcrowded, the highest level in the European Union, Alpha Bank president Sergiu Oprescu said Tuesday, adding that the country also has the highest number of dwellings occupied by their owners.
http://www.romaniapress.com/news-10024619.html