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26 March 2004.

REACHING PROJECT NO 500

Investments worth DKK 50bn and 85,000 new jobs in developing countries

The Industrialisation Fund for Developing Countries (IFU) has just invested in project no 500 – a steel factory in India.

Since 1967 the Fund has promoted development in the poorest parts of the world through private, direct investments in cooperation with Danish companies. Through financial support and qualified advice from the Fund’s advisers in 18 different countries, IFU has helped about 300 Danish companies to establish projects in 72 different developing countries over the years.

As can be seen from IFU’s Annual Report, published on 25 March, the project companies cover all sectors. IFU has been involved in the production of everything from software to cement: paper, clothes, airplanes, furniture, agriculture, plastic, wood, medicine, telephones, refrigerators, shoes, posters, chewing gum, water energy, buttons, windows, cartoons, fish, milk, ship design, fruit compounds, pumps and much more.

Through the years IFU has participated with DKK 5.6bn in 500 projects, in which total investments of more than DKK 53bn have been made. The 500 projects have created about 85,000 new, local jobs.

The Fund’s activities have increased considerably through the years. Last year IFU invested in 24 new projects and contributed with additional financing in 14 existing projects. IFU’s total investments in 2003 amounted to DKK 465m and were distributed on 21 different countries. The 24 new projects in 2003 alone have created about 6,120 local jobs.

Last year IFU’s accounts showed a record profit of DKK 96.9m against a profit of DKK 18.9m in 2002. The good result is primarily due to profit from a number of large share sales and to positive value adjustments on IFU’s project portfolio, partly as a consequence of the switch to new accounting principles.

The profit will – as always – be reinvested, even though IFU’s activities will be subject to a number of limitations in the years to come as a consequence of the Danish government’s decision that the Fund must repay DKK 750m of its equity to the Danish State. IFU was established by the Danish State, and since the beginning it has received capital injections of a total of DKK 1,055m, of which DKK 750m was injected in the second half of the 1990s.

For further information, please contact:

Sven Riskær, Managing Director, tel +45 33 63 75 00.

Copenhagen, 26 March 2004