INTERCITY BROKER JSC WEEKLY REPORT BROKER-DEALER COMPANY Member of Stock Exchange t h t h Member of Central Securities Depository and Clearing house J u l y 6 – J u l y 1 0 2 0 0 9 52 Maksima Gorkog St., Belgrade, Tel: +381 (11) 3083-100, 3087-862; Fax: +381 (11) 3083-150 e-mail: [email protected]; www.icbbg.rs Shares Keep Falling In Thin Volumes This week on the BSE some of the smallest daily turnovers were recorded and the weekly turnover was only EUR Fluctuation of Stock Exchange Indices 1.9m. The blue-chip index BELEX15 lost 3.16% while the (%) in the Region (1-m Change) composite index BELEXline fell 2.41%. The summer 5 lethargy is seen every year but now the phenomenon is more powerful due to the global downturn. 0 First payments to road construction companies that have 10-Jun 16-Jun 22-Jun 28-Jun 4-Jul 10-Jul accepted Government debt restructuring plan of remaining RSD 8.5 billion have been discharged. Centroproizvod -5 company has invested EUR 1m in reconstruction and construction of modern warehouses, raw materials, -10 packaging and finished products warehouse and announced additional employment. French Veolia Transport is interested to buy Severtrans. Serbia's C-bank -15 lowered key repo rate to 12%. Grah Automotive invests in Svilajnac. New auction for PKB fruit -20 plantations. Cable Industry from Jagodina signed export contracts worth EUR 20m. Serbia, Bosnia’s Serb Republic need partner to BELEX 15 CROBEX SBI 20 launch hydropower plants project. Housing projects on IMT’s land. BIRS NEX 20 CEFTA trade surplus USD 500m. Loans from China as of September. Valentino and Versace in Majdanpek - ambitious plans of largest manufacturer of jewelry in Serbia. SEELight project Source: Official Websites agreement worth EUR 6.1m signed. Public auction for rental of construction land in Block 58 in New Belgrade on July 23rd.

Belex15 Belexline

650 1,300

1,250 600 1,200

550 1,150

1,100 500 1,050

450 1,000 10-Jun 16-Jun 22-Jun 28-Jun 4-Jul 10-Jul 10-Jun 16-Jun 22-Jun 28-Jun 4-Jul 10-Jul

C O N T I N U O U S T R A D I N G M E T H O D

Most Active Stocks of the Week Top Gainers/Losers of the Week

Traded Value Change Change Issuer Symbol Issuer Issuer (in RSD) (%) (%) Južni banat a.d. Bela JUZB 18,886,872 Jubmes banka 9.32% Politika a.d. -12.14% Crkva a.d. Beograd Beograd

Putevi a.d. BIP a.d. AIK banka a.d. Niš AIKB 13,830,832 Užice 5.63% Beograd -11.69%

Progres a.d. Lasta a.d. Topola a.d. Bačka Topola TPLA 6,426,000 Beograd 5.32% Beograd -9.96%

Energomontaž Simpo a.d. Tamiš a.d. Pančevo TAMI 5,367,000 a a.d. Beograd 3.45% Vranje -9.09% Čačanska Galenika Hotel Narvik a.d. Kikinda HNRV 5,248,320 banka a.d. 1.50% Fitofarmacija -8.98% Čačak a.d. Zemun Business News of the Week News from the (BSE)

The World Bank Approves USD 388m For Corridor 10 ► Montinvest a.d. Beograd (MOIN) - Excerpt from 2008 annual report The World Bank approved Serbia USD 388m worth loan, on 20-year ► Tigar a.d. Pirot (TIGR) – Management Board Decision on conditions period with grace period of 8 years, for the construction of three for delineation of treasury shares sections of the Corridor 10. It is the biggest loan the World Bank has ever granted to Serbia. The project is consisted of the following: ► a.d. Beograd (DNOS) - Excerpt from consolidated construction of two sections of the M1 highway to Macedonia, from 2008 annual report Grabovnica to Grdelica (5.6 km long) and from Vladicin Han to Donji ► Bambi Banat a.d. Beograd (BMBI) - Report on Shareholders meeting Neredovci (26.4 km long); construction of the section of the M1 highway to Bulgaria from Nis to Dimitrovgrad and the 8.67 km long ► Jubmes banka a.d. Beograd (JMBN) - Offer regarding sale of the sections around Dimitrovgrad. (Source: Beta) treasury shares

SAMRS Approves First Tranche of EUR 1.6m Aid To Serbia Foreign Investors Participation in Total Turnover Slovak Agency for International Development Cooperation (SAMRS) approved EUR 700,000 for 5 infrastructure projects that emphasize on 100% protecting the environment, new business activities and the development of economic opportunities in the process of integration to 80% the EU, State Secretary of Slovakia's Foreign Ministry Olga Algajerova said. She added that SAMRS aims to aid countries which Slovakia 60% considers a priority. Slovakia allocated the total of EUR 7.5 million for help to developing countries, of which 3 have the priority: Afghanistan, since it is NATO’s priority; Kenya, the priority of the EU; and Serbia, 40% since the Balkans is the target of Slovak foreign policy. (Source: B92) 20% PM Cvetkovic: No VAT increase Serbian government will take effort in negotiations with the IMF and 0% arrange for no VAT increase and no cuts in pensions and salaries, Serbian PM Cvetkovic said. According to him, the IMF is satisfied with 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul Serbian efforts in maintaining financial stability and protecting the dinar rate. Cvetkovic points out that Serbia managed to prevent economic collapse, with minimum damage to the citizens. Furthermore, Serbia Total FIS b-FIS s-FIS FIB maintained the dinar stability and provided for the realization of vital infrastructure projects. (Source: Beta) Source: Belgrade Stock Exchange Belgrade Captured Tigar On The Road To Vienna Foreign investor’s participation in turnover of shares (FIS) on the buy-side (b-FIS) hit the highest point on July 10 (25.97%) and their Pirot-based Tigar was the first company listed on the BSE and now it trading in government bonds (FIB) on July 9 (20.02%). On weekly meets all the conditions for quotation on the Vienna bourse comprised level, foreign investors participated in total b-FIS 17.63% and in mostly of mid-sized companies. After selling the factory for the production of auto tiers to French Michelin, Tigar successfully total s-FIS 20.97%. reoriented its production towards rubber footwear, flooring and other Republic of Serbia Bonds (Yield) products made of recycled rubber. Now, in order to achieve ambitious development projects the company needs to increase the liquidity of shares and attract new investors. The factory has no intention to leave Series 26-June-09 10-July-09 % change the BSE, but wish for so-called dual listing which is not possible at the A2010 94.67 94.82 +0.26% moment, due to legal obstacles and composition of the domestic capital market. (Source: Politika) A2011 89.33 89.56 +0.07% A2012 84.40 84.60 +0.12% Natural Gas-Fuelled Buses A2013 79.62 79.82 -0.19% The green low-floor buses are made by Vulovic Transport in its plants A2014 75.35 75.72 -0.98% in Kragujevac and will be used to transport the participants of Universiade held in Belgrade. The buses are produced in cooperation A2015 71.37 71.30 -1.34% with Byelorussian MAZ. Serbia, Croatia, Kazakhstan and Byelorussia Source: Belgrade Stock Exchange have shown great interest in the buses so far. (Source: Tanjug)

Middle Exchange Rate E U R / R S D Republic of Serbia T-Bills

(RSD) At the auction of 3-month T-Bills held on July 7, 2009 the entire 94.5 issuance worth RSD 3bln (EUR 32m) was sold at the interest rate of 13.98% p.a. 94.0 At the auction of 6-month T-Bills held on July 9, 2009 the entire 93.5 issuance worth RSD 3bln (EUR 32m) was sold at the interest rate of 13.96% p.a. 93.0 Achieved discount rates of 13.98% and 13.96% p.a. while the key 92.5 policy rate was lowered as of today to 12% indicates the good yield of these securities. 92.0 The next auction of 3-month government securities will be held on 10-Jun 16-Jun 22-Jun 28-Jun 4-Jul 10-Jul July 14, 2009 and the next auction of 6-month T-Bills is scheduled for July 16, 2009. Source: National Bank of Serbia DISCLAIMER: The information and any opinions, estimates and forecasts have been obtained from sources believed by City broker to be reliable but without representation or warranty express or implied is made by us as to their accuracy or completeness. This report is provided only for information purposes. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. The information, opinions, estimates and forecasts may well be affected by subsequent changes in market conditions. This document may not be reproduced in whole or in part or published for any purpose.