INTERCITY BROKER JSC WEEKLY REPORT BROKER-DEALER COMPANY Member of t h t h Member of Central Securities Depository and Clearing house J u l y 2 0 – J u l y 2 4 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 Mounting In Thin Turnover On weekly level, BSE indices recorded growth, blue-chip BELEX15 3.02% and composite BELEXline 1.44%. Overall Fluctuation of Stock Exchange Indices turnover was around EUR 3:08m, which is a little higher than (%) in the Region (1-m Change) the previous week. The largest transaction was a block trading 6 of shares Autobanat from Zrenjanin, worth more than EUR 1m. This week ended bid regarding the takeover of remaining Sojaprotein shares by its majority shareholder . 3 According to the latest information, their stake in Sojaprotein Co will increase from 58.66% to approximately 62.9%. 0 Regional cooperation agreement regarding the wellness tourism 24-Jun 30-Jun 6-Jul 12-Jul 18-Jul 24-Jul signed between Serbia, Hungary and Romania. Serbia, Macedonia -3 to enhance business activities. Government to decide on Belgrade Fair sale by August 3. Finance minister: Economy to shrink by up to 5% this year. Serbian Govt to pay off EUR 235m of debt to -6 private road construction Co Putevi. National Bank of Serbia: 27 banks fulfilled conditions for participation in the Financial Stability -9 Support Program. NBS governor: Crisis offers opportunity to achieve sustainable GDP growth in CEE. Government repays EUR 183m in H1 2009 to holders of frozen foreign-currency savings -12 bonds. Norwegian telecoms group Telenor's Serbian unit H1 operating profit rises six times Y/Y. The authorities of Vojvodina BELEX 15 CROBEX SBI 20 province have become majority shareholder (61.9%) of Metals BIRS NEX 20 banka after investing RSD 3.5 bln. Slovenian company Viator&Vektor to present plans for construction of bus factory in Kragujevac until end of July worth over EUR 10m. Iveco, part of Source: Official Websites Fiat group, also intends to establish bus production in Kragujevac.

Belex15 Belexline

590 1,180 1,170 580 1,160 570 1,150 560 1,140 550 1,130 1,120 540 1,110 530 1,100 24-Jun 30-Jun 6-Jul 12-Jul 18-Jul 24-Jul 24-Jun 30-Jun 6-Jul 12-Jul 18-Jul 24-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) (%) (%) Pupin Telefonija a.d. Telecom a.d. AIK banka a.d. Niš AIKB 32,069,563 Beograd +20.78% -13.79% Zemun Univerzal Credy banka Soja protein a.d. Bečej SJPT 19,459,918 banka a.d. +10.24% a.d. -8.88% Beograd Kragujevac Bambi Banat Putevi a.d. Agrocoop a.d. a.d. PTSMT 13,130,000 Novi Sad +8.57% -7.37% Sremska Mitrovica Požarevac Energoprojekt Velefarm a.d. holding a.d. ENHL 13,026,591 +6.56% Beograd -7.00% a.d. Beograd Beograd Agrobanka BIP a.d. Progres a.d. AGBN 10,563,062 +5.80% -4.44% a.d. Beograd Beograd Beograd Business News of the Week News from the Belgrade Stock Exchange (BSE)

Macedonia’s drug maker Alkaloid plans to start production in Serbia ► Šumadijalek a.d. Čačak (SMLK) – Report On Compulsory Sale Of Shares Skopje-based pharmaceuticals producer Alkaloid plans to start drug production in Serbia in cooperation with Zemun-based Infarm. The head of ► Tigar a.d. Pirot (TIGR) – Offer For The Sale (Disposal) Of the Alkaloid’s branch office in Belgrade Igor Petrov says the company plans Treasury Shares (Pro-Rata) to invest EUR 4 million and create at least 25 jobs in the first operating stage. In the second stage, the company plans to produce 19 types of drugs, ► Metals banka a.d. Novi Sad (MTBN) - Report On Important according to Petrov. Petrov also informs that there is a possibility of export of Event – Capital Increase Via Private Placement Serbia-made drugs to Russia and other countries. (Source: Beta) ► Soja protein a.d. Bečej (SJPT) – Preliminary Data For H1 2009 Italian Government Provide EUR 30m Credit Line to Serbian SME’s and ► Extraordinary BELEX15 index revision due to changes in the infrastructure projects number of shares issued by Metals bank (MTBN) The tenor is 13 years, with a five-year grace period and a 0.35% annual Foreign Investors Participation in Total Turnover interest. Loans will be extended via Banca Intesa, UniCredit, Komercijalna and Privredna banks, and interest will be fixed at 4.25% a year. SME’s will 100% be able to get from EUR 50,000 to EUR 1m loan. There are more than 200 Italian companies in Serbia that employ 20,000 people. (Source: Danas) 80% Central Bank To Lift Temporary Administration In Metals Banka The National Bank of Serbia (NBS) stated that all conditions for ending 60% receivership in Metals Bank have been met after successful share capital increase worth RSD 3.8 bn. In this way, the NBS will formally end 40% receivership in Metals Bank once new management has been appointed. (Source: NBS) 20% Austrian Company Ventuarel To Build Windmills On Zlatibor 0% The representatives of the Austrian company Ventuarel, which is engaged in the construction of wind-parks and wind-generators, visited Cajetina since 20-Jul 21-Jul 22-Jul 23-Jul 24-Jul there’s a possibility for them to build windmills that would produce electricity on Zlatibor mountain. Preliminary research is completed, and they soon expect the issuance of permits and building the first wind-generators. Total FIS b-FIS s-FIS FIB (Source: Danas) Source: Belgrade Stock Exchange Finance Minister Expects IMF To Approve Widening Of Fiscal Gap Foreign investor’s participation in turnover of shares (FIS) on Finance Minister Diana Dragutinovic expressed her confidence that the the buy-side (b-FIS) hit the highest point on July 21 (56.79%) Serbian government will manage to reach an agreement with the as well as their trading in government bonds (FIB) (20.02%). International Monetary Fund (IMF) to increase the 2009 budget deficit from 3 On weekly level, foreign investors participated in total b-FIS to 4.5% of GDP, while the Government of Serbia will propose “credible 21.68% and in total s-FIS 19.6%. measures” in order to lower deficit. I think that the following agreement will be reached – that they will definitely Republic of Serbia Bonds (Yield) concede to the deficit increase, but in return we’ll have to propose credible measures aimed at lowering deficit – Dragutinovic said. The Minister of Series 17-July-09 24-July-09 % change Finance also said that Serbia met nearly all requirements stipulated by the IMF arrangement regarding fiscal deficit. She pointed out that dismissing A2010 94.71 95.00 +0.31% manpower surplus in the public sector as a way to lower public consumption A2011 89.52 89.60 +0.09% takes time, so as to avoid repetition of previous experience: to pay social A2012 85.15 84.86 -0.34% program to the dismissed and then employ new people in the public administration. (Source: Biznis) A2013 80.03 80.26 +0.29% A2014 75.63 75.67 +0.05% A2015 71.88 72.00 +0.17%

Source: Belgrade Stock Exchange 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 21, 2009 the entire issuance worth RSD 3bln (EUR 32m) was sold at the 94.5 interest rate of 12.59% p.a. 94.0 At the auction of 6-month T-Bills held on July 23, 2009 the entire issuance worth RSD 3bln (EUR 32m) was sold at the 93.5 interest rate of 12.49% p.a. 93.0 Achieved discount rates of 12.59% and 12.49% p.a. while 92.5 the key policy rate is set at 12% indicate the good yield of these securities. 92.0 The next auction of 3-month government securities will be 24-Jun 30-Jun 6-Jul 12-Jul 18-Jul 24-Jul held on July 28, 2009 and the next auction of 6-month T-Bills is scheduled for July 30, 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.