SOURCE: CzechInvest

October 25, 2006 10:58 ET

Czech Republic's Technology and Manufacturing Acumen Snare $11 Billion in Foreign Direct Investment

Czech Republic Earns Slot in the Top 20 Nations; Beats Out India

PRAGUE, CZECH REPUBLIC -- (MARKET WIRE) -- October 25, 2006 -- CzechInvest announces that according to the recently released United Nations Conference on Trade and Development's (UNCTD) annual World Investment Report, the Czech Republic received $11 billion in foreign direct investment (FDI) in 2005.

The UNCTD estimates worldwide FDI reached $916 billion in 2005; the United Kingdom, United States and China were ranked as the top three recipients of FDI in 2005.

Outpacing India, the Czech Republic ranked 20th in the receipt of worldwide FDI funds. The Czech Republic was the overall leader in attracting foreign investment among the ten new European Union nations in 2005. Cumulatively, the ten new EU members attracted $34 billion.

"The Czech Republic has excelled in attracting high-quality foreign direct investment because of its educated population and focus on innovation-driven industries," said Tomas Hruda, CEO, CzechInvest. "As an economy, we're expanding and growing with a strategic vision for international collaboration and innovation."

New foreign investment projects and expansions announced in 2006 include the following:

--  IPS Alpha, a strategic alliance between Hitachi, Panasonic and
    Toshiba, opened a liquid crystal display production facility.
    
--  Hewlett-Packard established a computer technology supply chain
    headquarters to serve Europe, the Middle East and Africa.
    
--  Honeywell International established an automation and aerospace Global
    Design Center.
    
--  Sun Microsystems opened a new state-of-the-art development and
    technology center.
    

International companies have opened more than 40 development, technology and distribution centers in the Czech Republic in the past two years. Overall, the Czech economy continues to expand. According to the International Monetary Fund's (IMF) 2006 forecast, the Czech economy is positioned as one of the fastest-growing in Europe and expects gross domestic product growth at 6 percent through 2006.

About CzechInvest

CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic. The agency is the sole organization that may submit applications for investment incentives, manage incentives and coordinate investment support in the Czech Republic. CzechInvest promotes the country abroad and acts as an intermediary between the European Union and small and medium-sized enterprises in implementing EU structural funds in the Czech Republic. Please visit www.czechinvest.org.

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