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15 March 2001.

SERVICE AND COMMERCIAL ACTIVITIES GAIN GROUND IN DANISH INVESTMENTS IN EASTERN EUROPE

In 2000, IØ participated in 47 investments in Central and Eastern Europe. IØ’s investments amounted to DKK 381 million, of which approx half was invested in new projects. Including the investments made by private companies and other financial institutions, a total of approx DKK 1,500 million were invested in these projects. IØ’s statement shows that the investments will result in 3,200 new jobs in Central and Eastern Europe.

The above information can be found in the annual report from the Investment Fund for Central and Eastern Europe, IØ. The Fund participates with share capital and loans in most of the investments made by Danish companies in Central and Eastern Europe.

Wide Spectrum
Of IØ’s 26 investments in new projects in Central and Eastern Europe in 2000, 10 investments were made in commercial and service activities. This allocation contrasts the first years after the fall of the wall, when Danish investors were primarily concerned about establishing production facilities in Central and Eastern Europe.

The first investments in service activities were e.g. in the banking industry, in accountancy firms and telecommunication. These businesses are still represented. But the spectrum has widened. New investments are made in consulting firms, laundries, insurance companies, and within transportation, hotels and the wholesale and retail trades.

The investments contribute to make the markets in these countries more efficient, and they increase the countries’ ability to attract further foreign investments and thus to affect the trend positively.

Positive Economic Result
In 2000, IØ experienced a profit of DKK 15 million. The equity capital is DKK 1,700 million to which should be added provisions for losses of DKK 570 million.

For further information please contact:

Sven Riskær, Managing Director, telephone: 0045 33 63 75 00