40 percent constitutes exports of knitwear 15.5 percent represents exports of woven garments

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1 Nicaragua s apparel exports represent roughly 52 percent of the country s overall exports to the U.S.A. (by value), according to the US International Trade Commission. 40 percent constitutes exports of knitwear 15.5 percent represents exports of woven garments In 2011, Nicaragua became the 11th largest worldwide apparel supplier to the US, by volume. Record-high apparel exports surpassed US$1 billion, an increase of 33% versus By volume, the country grew by 13% over 2010, exporting million SMEs. The United States and South Korea represent the largest sources of investments in the apparel manufacturing industry. In July 2010, Nicaragua became the first country in Latin America to adopt the Better Work Program in its Free Zones sector. Over 65,000 qualified workers in the industry. Sources: Office of Textiles and Apparel (OTEXA), U.S. Department of Commerce & National Free Zones Commission of Nicaragua (CNZF) Apparel Manufacturing Denim and twill bottoms Shapewear, girdles Knit tops and bottoms Workwear Fleece jackets Sport uniforms and activewear Textile Production Twill Speed to Market and competitive labor costs make Nicaragua an ideal export platform to the largest markets. Exports reach the Port of Miami within 4-5 days. Minimum by Law - Expressed in US$ Exchange Rates for July Monthly Wages Monthly, Including Fringe Benefits (46%) Hourly wage, Including Fringe Benefits (46%) Nicaragua launching its renewed cotton industry. In order to ensure the apparel industry s sustainable competitiveness and growth in time, the Nicaraguan Government has launched a pilot project to reactivate cotton plantations. Thus, raw material will be locally sourced. Approximately 1,200 hectares in Northwest Nicaragua and Managua. Private-sector producers. 15

2 Investment Opportunities Fabric production: Knit fabrics (cotton and man-made fiber). Twill and other cotton woven fabrics. Attractive DR-CAFTA provisions for apparel production: Denim & twill garments. Organized team sports uniforms & activewear. Boxers, brassieres, jackets, woven pajamas, woven shirts, babywear, etc., all benefit from Single Transformation. Medical apparel, uniforms, imagewear. Manufacturing of leather footwear and related accessories. Flexibility of sourcing raw materials from any country, assemble in Nicaragua and still enjoying duty-free status when accessing the US. Trims production: labels, bottons, zippers, pocket bags, elastic bands Success Story: SCA Footwear Nicaragua Schmidt Irmãos Calçados, Ltda. irmaos.com.br/ I Origin: Brazil US$15 Million + Start of Operations: July, 2010 Employees: Nearly 4,000 Industrial Space: 26,000 m 2 Products: Leather shoes for ladies. Markets: USA and Europe. Processes: Injection molding, hides finishing, cut, assembly. Location: Department of Managua Nicaragua s high safety levels, competitive labor costs, competent and abundant labor force, generous incentives, and PRONicaragua s facilitation services were determinant in Schmidt Irmãos decision to invest in Nicaragua. Great potential to invest in manufacturing and distribution of footwear-related accessories. 16

Light Manufacturing & Assembly The manufacturing industry in 2010: Accounted for 19.9% of Nicaragua s GDP Over 11,000 qualified workers in the industry 51.

3 Light Manufacturing & Assembly The manufacturing industry in 2010: Accounted for 19.9% of Nicaragua s GDP Over 11,000 qualified workers in the industry 51.3% of country exports (excluding Free Zones exports) Free Zones main manufacturing sectors: Apparel, Automotive, and Medical devicesapproximately 85% of FZ exports, over 67 thousand employees. Auto Wire Harness Exports: 81.4% growth in 2010 vs US$ Millones 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 313,1 270,3 268,1 200,2 172,6 145,1 71,8 38,3 2, Source: National Free Zones Commission 17

4 Investment Opportunities Automotive Industry Auto wire harnesses Aftermarket products Medical Manufacturing Disposable medical devices Orthopedic devices Medical apparel Nicaragua is an ideal platform for export-oriented manufacturing and assembly operations looking to gain a competitive edge in today s global market: Speed to market & Preferential Access Competitive Labor Costs Investment Incentives Success Story: ARNECOM ARNECOM Origin: Japan/ Mexico US$15 Million + Start of Operations: 2002 Employees: Over 8,000 Industrial Space: Over 60,000 m 2 Products: Auto wire harness, cables Location: Department of Leon and Chinandega "We chose this country considering the cost of land, abundant labor and competitive wages, although there were other locations that had higher scores on important issues such as road infrastructure and the provision of electricity Jose Zaldívar, Operations Manager Arnecom Nicaragua 18

Energy and Infrastructure The energy and infrastructure sector is key for Nicaragua,

Specifically, in the infrastructure sector it has been defined as a priority to reinforce

Likewise, there is a need to build houses that are affordable to low income population

In the energy sector, the Government of Nicaragua has set as a priority to change the

5 Energy and Infrastructure The energy and infrastructure sector is key for Nicaragua, since it will boost most of the productive sectors in the country. Specifically, in the infrastructure sector it has been defined as a priority to reinforce the port and airport system. Likewise, there is a need to build houses that are affordable to low income population sectors. In the energy sector, the Government of Nicaragua has set as a priority to change the current energy generation matrix towards renewable sources: Energy Generation Matrix 2012 Energy Generation Matrix (Potential) % 14% 4% 4% 14% Hydroelectric Geothermal 13% 42% Hydroelectric Geothermal Wind Wind 49% 12% Thermal Biomass 37% Biomass Thermal 19

Renewable Energy Projects currently developing Name of the Project Type of Energy Estimated Capacity (MW) Origin of Developing Company Tumarin Hydroelectric 250 Brazil / Italy / Nicaragua Brito

6 Renewable Energy Projects currently developing Name of the Project Type of Energy Estimated Capacity (MW) Origin of Developing Company Tumarin Hydroelectric 250 Brazil / Italy / Nicaragua Brito Hydroelectric 250 Brazil Piedra Puntuda Hydroelectric 15 Canada Larreynaga Hydroelectric 17 Nicaragua Salto Y Y Hydroelectric 25 Nicaragua EOLO Wind 37.5 USA Blue Power and Energy Wind 39.6 USA San Jacinto Tizate Geothermal 72 Canada El Hoyo Monte Galan y Geothermal 40 Italy / El Salvador Managua Chiltepe Geothermal 40 Italy / El Salvador Total of MW Source: Ministry of Energy and Mines Investment Opportunities Total Renewable Energy Production Potential: Development of Mines: 4,500 MW Metallic Mines Geothermal: 1,500 MW Non Metallic Mines Hydroelectric: 2,000 MW Wind Power: 800 MW Biomass: 200 MW Development of Port Projects Construction of Solid Bulk Terminal in Corinto Development of Airport Projects: Development of Panchito Airport Expansion of the International Airport Augusto Cesar Sandino Development of Social Housing Projects Construction of Social Houses 20

7 Success Story: Ram Power - Polaris Polaris Energy Nicaragua, S.A (Subsidiary of Ram Power Corporation) Origin: Canadian US$160 Million + Start of Operations: July 2011 (Second Phase) Employees: Nearly 900 Capacity: 72 MW This project is divided into two phases; first the delivery of 10 MW in July 2005 and second is the expected delivery of an additional 36 MW in the second quarter of 2011, with which the first phase will be completed. In November 2010, the company announced plansto investup to US$160 million to start the second phase of its San Jacinto Tizate project, whose goal is to expand generation capacity to 72 MW by the end of Business Services Outsourcing 21

LOCATION CHOLOMA AREA

LOCATION CHOLOMA AREA ELCATEX MILL Located in Honduras with 1,500 employees, producing 1.7 million pounds per week, expanding to 2.5 million pounds a week. Vertically Integrated OUR CUSTOMERS SAN JUAN