Armen by Айвазян Арташ

Silicon Valley Armenian IT Road Show 2008

CORPOR ATE MARKETING PL AN

Copyright ÂŠ 2008. INTESYS Group CJSC. All rights reserved. This document represents proprietary research on the part of INTESYS Group CJSC or otherwise referred entities. This information is provided under a strict non-disclosure agreement. Distribution and duplication are strictly forbidden.

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Contents 1. Executive Summary 2. Review of the IT environment in Armenia 2.

Forecast Analysis

3. Company Profile 3.

Value Proposition

Technology Target

Target Service Offerings

Key Competitive Advantages

12.

Company Productivity and Cost Structure

13.

Proven Success – Selected Customers

15.

SWOT Analysis

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Executive Summary INTESYS Group is a service provider company. Unlike product development companies, we are positioning our service expertise, knowledge and cost-effectiveness. That may sound intangible in comparison to product offerings. However our business model time and again delivers value to our customers â&#x20AC;&#x201C; a value that is perfectly tangible. And we do believe that our business success and competitive advantages will arrive at their niche in dynamic US market. After all, there is always a market niche for a company that delivers business value with shortest time to market and highest quality standards. Our corporate vision at INTESYS Group for US Market is that outsourcing (and offshoring) is here to stay. Outsourcing IT services will dramatically accelerate in the years to come. Outsourcing leads to opportunities and benefits in terms of productivity, prices, profits and wages for various stakeholders. Outsourcing is a natural evolution of how the global marketplace operates today and follows successful waves of economic transformation in the past. INTESYS Group is in a dynamic process of expansion and continuously widening its customer base worldwide. This year a special focus and strategic priority is placed on entering the US market. Although, the barriers of market entry are high and competitive environment both very fragmented and highly competitive, we believe that with our costeffective and value-added business model and key competitive differentiators, we have chances in targeting and delivering substantial value to our potential US customers.

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Review of the IT environment in Armenia

Armenian information technology industry with its software and services segment has been one of the most dynamic and promising sectors of the economy in the last decade. Before the collapse of the Soviet Union, Armenia was considered a leading IT and electronics center with more than a dozen of large R&D institutes and manufacturing companies as of 1985. After the break up of the USSR by the end of the 1980s, the sector witnessed significant crisis, which, however, has been overcome as new companies evolved in the mid-1990s. Starting from around 1997, the industry received a new impulse for growth when a number of start-ups emerged in the local market and several western companies established development centers in Armenia. By 2006, the number of operating IT companies has reached around 150 which represent nearly 20% growth during 1998-2006. In 2000, the Government of Armenia declared development of information and communication technologies as one of the priorities for the Armenian economy, which followed by the creation of the ICT Master Strategy and ICT development implementation plan to establish Armenia as a regional ICT hub. Armenia has been chosen as an offshore development destination by the foreign companies partly because of its inexpensive and highly productive labor. However, due to low supply of qualified specialists and appreciation of the local currency (35% in 2003-2006), salary costs have increased sharply over the last 3 years. Total salary costs per one employee have increased from $4,500 to $7,600 or around 70%. Armenia is still can be considered as a low cost outsourcing destination, where salaries are competitive compared to those of most of the major IT outsourcing countries like India, Russia, Israel, Ireland, and China. Nevertheless, economic forces behind the appreciation of Armenian Dram and poor capacity of educational institutions may have considerable negative impact on the cost effectiveness of Armenian software firms and overall competitiveness of the sector.

Forecast Analysis Armenian IT industry has been growing at 30% CAGR from 1998 to 2006. If this trend continuous further, the industry will reach around $250 million in total revenues by 2010. However, during the last three years sector growth was greatly influenced by the appreciation of Armenian Dram. The majority of the companies, for example foreign branches, operate as cost centers or cost-based outsourcers / customized developers. Consequently, company revenues are considerably affected by operating expenses, which are incurred primarily in local currency. While nominal growth of the industry in 2003-2006 was 30%, Armenian Dram appreciated at approximately 12% CAGR. Thus, actual growth considering fluctuations in exchange rate would be presumably somewhere around 20%, which corresponds to $170 million in sector revenues by 2010. Two growth scenarios are identified: pessimistic and optimistic. Pessimistic scenario assumes that 2003-2006 growth in workforce (12%) and 1: This market research is implemented and copyrighted by EIF (Enterprise Incubator Foundation).

GROUP MARKETING PLAN productivity (exchange rate adjusted 9%) will stay intact. By 2010, workforce will reach around 6,500 specialists and industry will generate nearly $180 million in revenues. At the same time, increased shortage in qualified specialists, negative comparative productivity growth rates, and increased operating costs will make Armenia less attractive for foreign companies in terms of starting new IT businesses, thus contributing to a further decline in industry growth rates. Optimistic scenario assumes that workforce will grew at a higher rate (20%), and average productivity growth rate will be around 12%. In this case, by 2010, workforce will reach around 9,000 specialists and industry will generate nearly $260 million in revenues.

Company Profile INTESYS Group, established in 2006 and headquartered in Yerevan, Armenia, is a global provider of software and offshore IT services. Company offers a full-life cycle services such as architecture, design, development and deployment of large, enterprise-level solutions that enable our customers solve complex, missioncritical business problems. INTESYS Group also provides a full range of consulting services in the area of e-government, business process re-engineering, process optimization, project management, and organizational development. Company through its unique, internal process structure, shared knowledge and open communication patterns have proved to be successful in delivering projects within specified budget, predefined time-frames and uncompromising quality standards. We, at INTESYS Group, truly believe that the biggest asset of the company our team of highly experienced individuals that value and share company's four core principles open communication, mutual trust, knowledge sharing and collaboration; along with proven expertise in project management, process management, complex enterprise-level application development, deployment and technical support.

Value Proposition Our value proposition is a result driven, process oriented and cost effective custom software development services delivered with high degree of specialization and quality. For US Market we will offer value added, cost effective services such as business process analysis and optimization, offshore system design and architecture development (SOA) and outsourced product development services (OPD). Therefore, our primary differentiators in the US market will be a combination of highest value-added services (analysis and solutions development, NPD, R&D) together with cost-effective framework that successfully competes with majority of Indian and Chinese companies on the basis of expertise/cost ratio and with Russian, Ukrainian companies on the basis of cost.

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Technology Target °

° ° ° °

Custom Web and Window based Application Development Platforms Microsoft ASP/ASP.NET, C#, J#, VB/VB.NET, XML, Java Java EE (SOA, Web & Desktop Applications), JSP, J2EE, C++, Oracle Developer 2000, PHP, Cold Fusion. Distributed Objects and Middleware Technologies - ISAPI,COM/COM+, DCOM, CORBA, RMI, Java Beans, EJB. Databases and Programming - Oracle 8i/9i, Microsoft SQL, Microsoft Access, IBM DB2, Informix, MySQL. Operating Environments - Microsoft Windows 95/98/Me/NT/2000/XP, Microsoft CE/Pocket PC, Linux Red Hat, Unix, Solaris Application Development Technologies and Servers – Microsoft Exchange Server, Microsoft Site Server, Microsoft BizTalk (XML) Server, Microsoft SharePoint Server, Microsoft Project Server, Microsoft Dynamics CRM 3.0 BEA Weblogic, IBM WebSphere Application Server, Microsoft Small Business Server, Sun ONE Web Server, Sun ONE Portal Server, Oracle9i Application Server

Target Technology Architecture Our target will be enterprise-level data and application integration based on service oriented architecture (SOA). We strongly believe that services oriented architecture is the foundation for higher-level capabilities such as business process management and business activity monitoring. It enables the assembly of composite applications that combine functionality from existing applications to more effectively address the needs of business users. Company recognizes the fact that major benefit of these changes is that software comes closer to meeting the agility demands of business environments, in case in-depth analysis and throughout architecture are successfully executed and maintained – both the core competencies of INTESYS Group.

Target Service Offerings We are not a product development company that positions and promotes its family line products for different customer needs and segments. We are service provider. We position ourselves as an offshore high-level custom software development services provider. Below is our positioning market segment.

GROUP MARKETING PLAN Target Verticals ° Financial: Effective financial data forecasting, monitoring and reporting systems that enable companies to track financial data productively. ° Tourism: Flexible, robust, multi-lingual systems that makes management of huge data content and geographically dispersed client base easy and effective. ° Logistics: Fast, productive systems that manage the complex process of logistics with substantial increase in productivity, speed and performance. The key strategic verticals expertise details and horizontal target service offerings:

Finance -

INTESYS Group offers customized financial services solutions that enable clients to make optimum use of the available financial resources, reduce costs, and reduce risks. US Finance customers' trends: ° Quality is becoming more important than price in financial services firms' evaluations of their IT offshoring practices. While most respondents said their outsourcing arrangements met or exceeded expectations in cost savings, quality, supplier flexibility and transparency, 28% of the financial service companies would select a higher quality vendor—even if more expensive—should they get the chance (Forester Research). ° The outsourcing of core applications and systems is set to grow. Financial services firms most actively outsource secondary systems such as human resources and marketing applications, but they also indicated a greater level of comfort in entrusting core systems to the outsourcing process: 35% of US mid-to-large level financial service companies said they will increase the outsourcing of "strategic/primary" applications (IDC). ° Outsourcing strategies are evolving toward a multi-vendor approach. There will be a steady shift to "multi-sourcing" as firms not only outsource more activities, but use offshore providers more frequently to complement their domestic outsourcing arrangements. Our services for financial customer segment include: ° Custom Financial Application Development ° Re-Engineering and Maintenance ° Solution integration ° Global Deployment and Technical Consulting These services are provided with expertise in areas such as: ° Front end Technology ° Internet Technology – SOA ° CRM, ERP, Enterprise Knowledge Management ° Middleware Technology and EAI

GROUP MARKETING PLAN Our BFSI experience spans solutions such as: ° Risk management ° Data Management and Content Management ° Core Systems Business Process Management Enterprise Solutions The focus will be placed on the following customer priorities: ° Redesigning batch-orientated processes to operate in real-time ° Automating processes which require manual intervention by using automated workflow management ° Integrating systems across all tiers to obtain a single, consistent view of transaction status at any one time ° Achieving flexibility through deploying business rules engines and middleware ° Complying with emerging market standards

Travel and Tourism

– INTESYS Group carries strong expertise in development of software portals for travel industry based on the latest technological standards (AJAX, Google API, Yahoo Widgets). This expertise is further strengthened by the business relationships and experience with our Germany based partner that carries one of the most promising large-scale tourism portals in Europe. Expertise in: ° Complete CRM application for travel agents and tour operators ° Complete accounting package for maintaining daily transactions. ° Integrating and interfacing of applications. ° Conversion of Legacy applications into .Net and J2EE. ° INTESYS Group efficiently assisted its clients define innovative product features and functionalities to meet the evolving market demands, ahead of their competition while reducing their market and technology risks.

Logistics – INTESYS Group understands the unique challenges associated with the logistics industry. We help retailers and consumer goods companies develop innovative approaches to everything from Web site architecture and pricing to order management and fulfillment services, product innovation, and globalization. Expertise in: ° eBusiness for Retail - We build systems that cover multiple channels from Web sites to POS to call centers and sales force. ° CRM for Retail - We develop industry-specific CRM solutions that allow Retailers and Consumer Products companies to understand their customers, support their sales and drive their business forward. ° Content Services - We work with leading exchanges to deliver enhanced content through the full content lifecycle from extraction of non-digitized data to full support and syndication of digital content across multiple platforms.

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Key Competitive Advantages We are proud that possess a number of major competitive advantages that enable us to continuously expand our service coverage, optimize and adapt our existing business model to dynamics of the global markets and strengthen the existing trust and efficiency with our customers. We would like to stress the fact that our list of competitive advantages, considered altogether, differentiates us significantly among local offshore service providers. Our competitive advantages: 1. Technology Expertise in Portal an Enterprise Level Solutions 2. Proprietary Process Methodology that provides proven level of transparency, efficiency and productivity 3. Different Geographical Locations that enable to manage customer issues highly proactive 4. Trusted network of highly specialized partners 5. Internal R&D infrastructure with world-class scientific resources 6. High-profile (Government Level) and multinational clients Expertise Technological expertise and dedicated development teams are one of our key differentiators in Armenian and global market. We structure the company in a way that every our geographical unit has its own core expertise and focus of specialization, verified and proved in a numerous customer projects. Currently, we specialize in the enterprise level software development based on IBM WebSphere, BEA WebLogic and Microsoft SharePoint Portal platforms. This model enables us to solve complex and critical business problems for our customers worldwide and we gradually move to more value-added segments in software development where ability to solve complex problems and comprehensive technology specialization are the only keys to succeed. Geographical Locations We consider our broad geographical presence to be an imperative differentiator for alike-size software development companies in Armenia. Dispersed geographical presence enables us to work with our customers almost 24 hours a day, taking into account different customer locations and time zones. Every geographical unit has its own specialization and technology focus, but all the geographical units are standardized with unified, cohesive software development process methodology, making the value of all the units more than the sum of each part. Currently we have the following geographical units/specializations: Ăş INTESYS Group Armenia (Headquarter) Location: Yerevan, Armenia, (GMT+04:00) Managing Director: Artyom V. Shamtsyan (Co-founder) Business Focus: Software Development, R&D, Testing Technology Focus: J2EE (EJB, JSP, SOA, Web & Desktop Applications),

GROUP MARKETING PLAN PHP/AJAX, Oracle/MySQL/Informix, ErLang Platform Focus: IBM WebSphere Family Number of Resources: 10 full-time, 5 part time ú INTESYS Group Russia Location: Moscow, Russia, (GMT+03:00) Managing Director: Vagan Martirosyan (Co-founder) Business Focus: Sales and Marketing, e-Government and Project Management Consulting, Business Analysis, Partner Network Management Number of Resources: 5 full-time, 2 part time ú INTESYS Group Ukraine (open in May-June through partner company acquisition) Location: Kiev, Ukraine, (GMT+02:00) Managing Director: Alex Pshenichniy Business Focus: Software Development, Large-scale Software Systems Audit, Testing Technology Focus: J2EE (EJB, JSP, SOA, Web & Desktop Applications), Oracle 8i/9i, MySQL Platform Focus: BEA WebLogic Family Number of Resources: 7 full-time ú INTESYS Group Europe Location: Belgrade, Serbia, (GMT+02:00) Managing Director: Mladen Perkovic Business Focus: Software Development, Testing Technology Focus: .NET Platform (C#, C++, Visual C++, VB, VB.NET), MS SQL Platform Focus: Microsoft SharePoint Family Number of Resources: 6 full-time

Process and Product Development Lifecycle Methodology The efficiency and productivity of our corporate software development process is established by internal, standardized and geographically unified process methodology. Our proprietary, practically-proven process methodology INDePT (INTESYS Development Process Technique) is a vital attribute for interaction with mid-large international companies especially under formal SLA, and is a vital differentiator among other Armenian offshore software development companies.

Metrics Features Features Sets Fanctionality Questions Costumer Problems

GROUP MARKETING PLAN INDePT methodology is a proprietarily designed process structure that is based on best-practices and process framework standards currently available in software industry (FDD, XP, Scrum, RUP). The objective of INDePT methodology is to standardize and formalize the whole process of product life cycle development at INTESYS, so that company easily adapts to changing behavior of requirements in technological projects, as well as provides additional flexibility and efficiency to its customers worldwide. INDePT methodology is agile, incremental and highly iterative. Besides qualitative techniques (iterations, reviews), methodology incorporates also quantitative metrics and procedures (rankings, number of defects, number of features) that enable to evaluate the factual progress of the invested efforts and resources. The overall process, as depicted on above picture, represents a series of spiral circles (process attributes) where each attribute is refined in appropriate iteration. There are six major attributes in the process: Customer Problems, Questions, Functionality, Feature Sets, Features and Metrics. There are five major iterations in a process: Customer Problem Domain Analysis, System Functionality and Objects Analysis, System Design, Prototyping and Object Architecture, Features Partition and Coding and Rollout iterations. As already noted, process attributes are strictly associated with their appropriate iterations.

Overall, methodology consists of four generic phases Analysis, Design, Development and Rollout. Each phase represents a number of iterations with numerous inspections. The main principle of the process is timely communication, visible progress and monitored productivity and efficiency.

GROUP MARKETING PLAN The complete visibility and control over project development and progress tracking is available online through our internal (customized system based on OS issue and defect tracking system) iCoRe (INTESYS Collaboration Repository) system. Updated Progress and Project Plans, together with latest documentation, concept papers, presentations, issues and defects are available in iCoRe 24/7. Online iCore repository:

Partners The other substantial differentiator for the company that discerns us in local market, and enables entering global markets, is the trusted partnership network of technology and business partners in different geographical locations. This close collaboration enables us to execute the knowledge sharing and expertise transfer process effectively and efficiently, and as to the outcome, we deliver more to our customers. We have officially signed agreements on resource sharing and expertise transfer with the following partners: Institute of the Information Society, Moscow, Russia, www.iis.ru Business Focus: E-Government Consulting and Monitoring, Program Assessment and Evaluation SPD Ukraine, Kiev, Ukraine, www.spd-ukraine.com Business Focus: Software Development, Testing (BEA WebLogic, J2EE) MCT Lab, Moscow, Russia, www.mctlab.ru Business Focus: Software Audit and Business Analysis NIT (National Information Technologies), Astana, Kazakhstan, www.nit.kz Business Focus: Software Development, Business Analysis

Technology partners

GROUP MARKETING PLAN R&D Another competitive advantage that noticeably differentiates us among other local IT players is constant focus on innovation management and continuous research. INTESYS Group Armenia, established its own R&D lab INTESYS iLab (innovation lab) in 2007, in partnership with the Yerevan University of Management and Information Technologies (www.yumit.am). Today, INTESYS iLab consists of 3 fulltime and 4 project-based scientists and mathematicians, managed by Dr. Edward Karslyan, PhD. Current Research Focus: ° Investment Analysis and Forecasting under Uncertainty ° Theory of Real Options and Games Theory ° Social Networks INTESYS iLab Profile ° Substantial scientific expertise and professional research experience in theory of systems analysis, management theory, sustainable development, financial mathematics and strategic and corporate financial analysis and forecasting ° More than 30+ professional publications, articles, books and study guides ° Research collaboration with leading international universities and research centers (University of Maryland, Real Options Group) Currently, we are at the stage of active discussions with venture capitalist investors in Russia and Kazakhstan, on development of enterprise level investment analysis system based on real-options algorithms that we possess and deployment of specialized social networking services for Russian market. Our scientific expertise in Theory of Real-Options, Games Theory and Macroeconomic analysis, together with engineering research in social-network sphere, may be a serious investments attractor for US venture capital companies. Business plans for all our R&D projects will be presented upon request on the Road Show. The R&D projects include: ° Investment Management Analytical Platform (based on Real Options Theory) ° Decision Making System (based on Games Theory and Macroeconomic Analysis) ° Social-Networking Platform (eDNA proprietary concepts/algorithms)

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Company Productivity and Cost Structure INTESYS Group competitive advantages and competencies enabled the company to move to the higher level of cost-efficiency, more optimal cost-structure, higher profits and increased customer value.

Moving towards efficiency and productivity through standardized and effective processes, wide-range of cost-effective partners and high degree of specialization, enabled the company to decrease the development costs almost twice (4-6 highly qualified resources are 3-4 times more productive than 10-12 average-qualification resources, therefore, with higher invested cost, few highly qualified resources provide much higher productivity, and thus, decrease the overall production costs). Similarly, by decreasing costs, we increased our profit margin P-C to 40-55% from 25-30%). Through constantly growing successfully completed projects record and positive customer feedback, we are able to charge price premium in already established niche, and decrease the price (through lowered development costs) upon entering new niche, where cost sensitivity is high or competition is highly fragmented with no major differentiator rather than the cost. Through high degree of technological expertise, different geographical locations that made possible to support our customers more productively and timely, we managed to bring higher degree of customer surplus (V-P) and position the company as an efficient value provider (V-C) in the market segments that we entered. Our business model in combination with our business and operational level strategies is presented below:

GROUP MARKETING PLAN Through our experienced and qualified resources and expertise in different industry verticals we form our competitive advantage in the market. Having well established and strictly controlled operational objectives such as Efficiency, Quality, Innovation and Customer responsiveness, we continuously create extra value to our clients worldwide, and successfully maintain long-term and trusted relationship with all of them. Through differentiation on service and technology levels, together with competitive cost structure, we create surplus value to our company shareholders. This is the way we do business. We may change our industry focus, we may transform into other technology standards, we may probe new technological instruments and trends, but we will never change the way we do business. That is our key competitive advantage in the market.

Proven Success â&#x20AC;&#x201C; Selected Customers We deeply value our customers. Throughout the life cycle of product development we do our best in delivering a real value tangible efficiency improvements and productivity gains to our customers. We seek value in everything we do for our customers. And that approach already became the motto of the company. For us, their business efficiency and success, attained with the help of our technical vision and concepts, is the best recognition of our mission, it is the best appraisal for our invested efforts and resources. For us their success is our biggest achievement. For us working with our customers means a unique opportunity for continuous learning, knowledge formation and collaboration. The list and level of our customers speaks for itself. This is strong differentiator among all the local offshore companies.

Project Description: Official contractor for scalable, large-scale, high performance and customizable educational portal for Agency of Informatization and Communication and Ministry of Education of Republic of Kazakhstan. Business Case: Government Program for IT Development and Decrease in Digital Divide Industry Vertical: Education, Government Technical Platform: J2EE/JSP/EJB, IBM Web Sphere Portal

Project Description: Official consultant on Software Project Management, Process Optimization, Team Productivity Management. Highest level focus and specialization with largest state owned technological companies, government agencies and private companies in Republic of Kazakhstan

GROUP MARKETING PLAN Business Case: Software Project and Process Management Industry Vertical: IT Consulting Methodologies: Rational Unified Process (RUP), Feature Driven Development (FDD), UML

Project Description: Successful reengineering of existing financial reporting legacy system. Design, development and migration of new product - fully automated, modular, enterprise-level financial reporting system. The resulted process reengineering and new product development initiative almost tripled the performance and productivity of the financial planning division Business Case: Division Financial Reporting Automation Industry Vertical: Finance Technical Platform: .NET Web Services, MS SQL 2000, Business Objects XI

Project Description: Efficient implementation of company's major sales forecasting and reporting enterprise-level system. The system centralized a large number of scattered subsidiaries and distribution centers under one, unified framework providing smooth and fast transactions, reporting and tracking mechanisms. Business Case: Supply Chain (Key Products) Automation and Forecasting Industry Vertical: Logistics Technical Platform: J2EE, Oracle 8i, Oracle Application Server

Project Description: Fully customizable, large-scale (Europe, Asia, US), extensively robust solution for tourism market. The solution includes complex Content Management System, robust User Management system, highly scalable front-end and back-end modules and support of more than 8 languages. Business Case: Innovative new product development based on Web 2.0 Industry Vertical: Tourism and Hospitality Technical Platform: PHP 5.0, MySQL, AJAX, Google API

Project Description: A highly flexible, platform independent financial trading solution that provides interactive, real-time financial transaction processing, visualization and monitoring capabilities. Final system provides high degree of customization and adaptability to different markets (stock market, future and options market and etc.).

GROUP MARKETING PLAN Business Case: Financial Data Automation and Real-Time Monitoring Industry Vertical: Finance Technical Platform: J2EE/JSP, Oracle 8i, JBoss

Project Description: Development of a complex, feature rich, company-wide logistics system that became the major logistic power of the company in monitoring and managing all Moscow and nearby based regional units and warehouses. The final system provided unprecedented visibility and capability in managing the complex in-company logistics process. Business Case: Supply Chain, Ordering Process Automation and Tracking Industry Vertical: Logistics Technical Platform: .NET Web Services, MS SQL 2000, Crystal Reports 10

SWOT Analysis Strengths ° Highly specialized focus in technologies and platforms ° Different geographical locations serving customers in different time-zones ° Standardized corporate-wide agile software development process that provides highest level of productivity and efficiency ° Transparent project management and progress visibility framework for the customers ° Wide and efficient partnership network in different market segments, technology profiles and industry verticals ° Own R&D infrastructure that provides continuous research and development of the market and technology trends ° Continuous training and professional programs for employees expertise development ° Extensively experienced and educated senior management staff (PhDs, MBAs in US schools) ° Effective niche focus strategy for small/middle level companies that seek cost-effective and dedicated software development skills ° Official government contractor for 2008-2011 e-Government Program of Republic of Kazakhstan Weaknesses ° Negligible presence in US market ° Poor contacts and networking with US Armenian Diaspora ° Major focus on offshore service providing rather than NPD

GROUP MARKETING PLAN Opportunities ° High growth of IT market (30-60%) in Russia (especially in NPD segment of social network, online community web-based systems) ° Based on Forester Research there is an evident trend in US outsourcing market that buyers expectations are moving away from low-cost solutions, meaning that the company's business model (high degree of expertise/cost ratio) will be better suited for US market ° Overall high-growth of IT segment (15-20%) worldwide including US ° Major achievements in R&D on real options and game theory algorithms development for large-scale investment and risk analysis system to be developed. Threats ° Substantially increasing competition in mid-level companies niche with Russian, Ukrainian, and Indian companies ° Insignificant government support (legal, taxation, subsidies) for IT development in Armenia ° Fluctuation with currency exchange rates (dollar/euro/dram) ° Potential political instability after coming elections ° Poor telecommunication infrastructure in Armenia compared to Russia and Ukraine ° Highly limited pool of qualified resources in Armenia

INTESYS Group Headquarters - Armenia 23/8 Khachatryan Street Yerevan, Armenia 375033 (37410) 25-26-92 info@intesysgroup.com www.intesysgroup.com INTESYS - Russia 30/245 Olimpyiskiy Prospect Moscow, 129272 Russian Federation (495) 6562374 INTESYS - Europe 8/7 Kneza Milosa Bijeljina, 76300 Bosnia Herzegovina (38765) 241 997