Egretta Ltd, established in 1994, is a leading brokerage firm on the Czech market.
By 1996 we had a turnover of 950 m CZK, providing a fast-track tailor-made service for Czech and international investors.

Egretta Ltd has a licence from the Czech Ministry of Finance and is a member of the Prague Stock Exchange. We aim to make it possible to invest in securities at minimum risk. Our management has excellent local knowledge and an extensive network of offices,unique in the Czech Republic. We have regional centres in Prague, Plzen, Hradec Kralove, Brno. Our professional team continuously monitors and evaluates the foreign and domestic financial, political and social trends which influence the Czech capital market.

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We offer the following services:

• on-line acces to the Prague Stock Exchange and the RM-System Prague
• dealing in securities, options, futures
• continuous assesment of the most important Czech companies in the market
• portfolio management

We can provide you with an introduction to the Czech capital market including coupon privatization, and give you information and advice on the structure of funds.

In this competitive and difficult market we are able both to serve our clients and to prosper ourselves, providing high quality financial advice covering:

• extensive research and analysis of Czech companies
• investment analysis and portfolio selection
• identification of potential acquisition targets
• local laws and regulations
• investment bid structuring
• negotiations with local government and ministries
• negotiations with the managements of acquisition targets
• structuring finances for investment nn new legislation in trade with derivatives, futures and option dealing planned for 1997

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We donít want to confine our activities to one kind of enterprise.

Egretta BMI (previous Bemoair) is a new joint stock company in the Central European market. In the spring of 1997 we will begin charter airline services for travel agencies and will utilize both our own as well as leased aircraft. We are secured by own airplane stock as well as the capital reserves available to us as a major shareholder of Egretta Portfolio. Our subsidiary Egretta Kolinska dopravni (previous CSAD Kolin) enables us to offer both passenger and cargo handling, thanks to its large rolling stock specialized for these domains. It is important to note that our partner East Bohemian Airport manages the international airport in Pardubice here in the Czech Republic. Beginning in December, 1996, Egretta BMI will provide business class air taxi service, targeted to those who know both the value of their time and that Egretta offers the most competitive rates.And, of course, combines high comfort with top prestige.

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Egretta Ltd has grown strongly, like the securities industry as a whole, from uncertain beginnings in 1994 to the end of 1996. We became a client of RM-S in May 1995, dealing profitably on both our own and our client account. We joined the Prague Stock Exchange in March 1996 and also take part in auctions. We had a very good year in 1995 dealing with securities, mergers and acquisition business, and expect this to continue in 1996.

The economies of emerging markets in central Europe attract international investors partly because of privatization but also because of economic growth. Real GDP is expected reach 5,3% in 1997 and to average 5,9% through to the year 2000.

Foreign firms last year invested 12,8 billion US dollars in the East European market - of which 8,5 billion US dollars went to the Czech Republic, Poland and Hungary. These investments represent 3,8% of a record 315 billion US dollars of world-wide direct investment. The transportation and communication industry accounted for 53% of this, the automotive industry 12%, chemical industry 3,5%, food industry 4,7%.

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Statement of Financial Conditions (in thousands)

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Review of operations Brokerage Company Egretta (1.1.1996 -30.6.1996)

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List of branch offices in the Czech Republic

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In this emerging market Czechs have a better understanding of the structure of local companies and this has led to intense competition between Czech brokers in offering their services to foreign investors. We are one of the first to offer a high quality service. Our network of offices covering the whole country gives us a considerable advantage. We have sophisticated fax and modem communication between them to provide up to the minute data. Also 'BBS' links to the Information Centre in Brno, where transfers are processed from the Securities Centre and client account to the account of Egretta Ltd, and vice versa. The network of offices is provided through the Egretta subsidiaries.®

In the last quarter of 1996 we plan to renovate the rolling stock of Egretta Kolinska dopravni, to invest in equipment for Egretta BMI.

Foreign investors can participate in the economic transformation of the Czech Republic, with the probable privatization of the power industry and banks.There are excellent opportunities throughout virtually all areas of industry, many with very high potential. Egretta Ltd offers its clients a high quality service in this competitive emerging market..

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Egretta Ltd, Brokerage Company, a member of the Egretta Group
Pakomerick? 5, CZ-182 00 Prague 8, Czech Republic
phone: 42 2 688 03 27, 688 85 70, fax: 42 2 688 82 39, e-mail: info@egretta.cz