AUSTRIA MARKET SIZE POPULATION TOTAL POPULATION: (2004) Spanish Institute of Foreign Trade-Country Cards 2004 POLICY

FRAMEWORK (November 2004) FORM OF GOVERNMENT: FEDERAL DEMOCRATIC REPUBLIC. 8104878 Population density: (2004) HEAD OF STATE: 96 hab./km2 CZECH REPUBLIC The President of the Republic, elected every six years with one re-election. Fro m the July 8, 2004, HEINZ FISCHER. GROWTH RATE: (2003) 0.31% URBAN POPULATION: (Census 2001) 66.8% ROAD NETWORK PARLIAMENT: The Parliament consists of two chambers, the Chamber of Deputies (Nationalrat) a nd the Upper House (Bundesrat). The Chamber of Deputies has 183 members directly elected by proportional representation every four years. The Nationalrat prepar ed, discussed and sanctions laws. Your vote of confidence may result in the dism issal of the Federal Government or any of its members. The upper house (Bundesra t) consists of 63 deputies of the provinces (autonomous regions), elected every four years according to the principle of proportional representation. In general , federal bills passed by the House of Representatives are to be subject to appr oval by the Upper House, whose powers are merely advisory. The next legislative elections will take place in autumn 2006. DISTRIBUTION BY GENDER: (2004) MALE: FEMALE: Age distribution: (2004) 48.5% 51.5% PEOPLE MAIN CITIES: (Thousands of inhabitants. 2001 census)

RAILWAYS RIVERS DA NU BIO VIENNA: (Capital) 1563 226 186 145 114 MAIN SHOPPING AREAS 0 50 100 km LINZ WELS ST. PÖLTEN VIENNA GRAZ: LINZ: GERMANY SALZBURG BREGENZ WIENER STEYR NEUSTADT 0-14: 15-64: 65 +: 16.2% 67.9% 15.9% SALZBURG: INNSBRUCK: SLOVAKIA Leoben IN N PRIME MINISTER: The Federal Chancellor Wolfgang Schüssel (ÖVP). GRAZ INNSBRUCK LIECHTENSTEIN GOVERNING PARTY: The Austrian People's Party (ÖVP) (79 deputies) in coalition with the Liberal Pa rty of Austria (FPÖ) (18 deputies), the latter right-wing party with nationalist tendencies. The ÖVP has assumed, under the chairmanship of Chancellor Schüssel, liberal economic programs, replacing cristianoconservadora orientation that has characterized it for decades. The main opposition parties are the Social Democr atic Party of Austria (SPÖ) (69 deputies) and the Greens (Grüne) (17 deputies). HUNGARY MUR INCOME Gross Domestic Product GDP by expenditure components: Current prices (EUR million, 2003) VALUE% SWITZERLAND KLAGENFURT VILLACH ITALY SLOVENIA CROATIA

127,725 42,005 51,603 -481 116,162 -112,744 224,270 57.0 18.7 23.0 -0.2 51.8 -50 .3 100.0 Private consumption Public consumption Gross fixed capital formation Changes in inventories Exports of goods and services Imports of goods and services GDP at m arket prices TERRITORIAL ORGANIZATION OF THE STATE: The Federal Republic of Austria comprises nine autonomous regions (Länder), each with a parliament (Landtag) and representation in the upper house of federal pa rliament. GEOGRAPHIC FEATURES The Republic of Austria (83 859 km2, of which 42% are farmland and forest land 3 8%), is located in South Central Europe. Bordered by Germany to the northwest, n ortheast Czech Republic and Slovakia, Hungary to the east, southeast Slovenia, I taly to the west and Switzerland and Liechtenstein to the west. Two major geogra phic elements characterizing Austria: the Alps and the Danube. The country is ma inly mountainous relief: the natural region of the Eastern Alps occupies about 5 3,000 km2, ie 63% of the national area. However, the capital, Vienna, the provin ce of Lower Austria and Burgenland region are flat. The highest peak is the Gros sglockner at 3,797 m altitude. The Danube runs about 350 km from Austrian territ ory in the north. Broadly speaking we can distinguish three climatic regions. Th e east has a continental climate, dry and cold winters in the Alps region, rich in rainfall, has short summers and long winters. The rest of Austria has a humid climate, typical of central European regions. AVERAGE TEMPERATURES (Vienna) JANUARY: -1 º C July: 20 º C SOCIAL INTEREST DATA COMPOSITION OF THE POPULATION: There Slovenian minority groups in the region of Carinthia and Croats in the reg ion of Burgenland. 10% of the resident population is not of Austrian nationality , two thirds of these citizens come from the former Yugoslavia and Turkey. (2003) (Prev 2004) REAL GROWTH OF GDP: (Base 1995) 0.7% 1.9% RELIGION: 74% Roman Catholic, Protestant 5%, 4% Muslim, 12% without confession. GDP PER CAPITA: Current prices (EUR 2003) 27 761 OFFICIAL LANGUAGES: GERMAN. NATURE OF THE ECONOMY ECONOMIC ACTIVITY EMPLOYED POPULATION BY SECTOR:

(2003) TRANSPORT INFRASTRUCTURE GROSS VALUE ADDED BY BRANCH OF ACTIVITY Constant 1995 prices (billions of euros, 2003) VALUE% AGRICULTURE, FORESTRY: Industry (including construction): SERVICES: UNEMPLOYMENT RATE: (2003) 5.7% 28.8% 65.5% 4.1% Agriculture, forestry Industry, Mining, Energy Construction Wholesale and retail trade, hotels Transport, storage and communication Financial intermediation Rea l estate, renting and business activities Public administration Other services g ross value added 4.46 46.71 13.87 32.68 14.65 13.45 30.03 10.74 25.85 192.44 2.3 24.3 7.2 17.0 7.6 7.0 15.6 5.6 13.4 100.0 ROADS: The road network has a total area of 106 360 miles of freeways and highwa ys that cover approximately 1,900 km (1.8%). The Transportation Plan in force pr ovides for the expansion and improvement of existing connections to the Czech Re public and Slovakia. The improvement of highways and expressways are financed pr imarily through a toll for trucks and buses, introduced in January 2004, which c omplements the existing general tolling passenger vehicles. RAIL: The railway ne twork covers an area of 6,200 kilometers. The current Transportation Plan provid es for the extension of the route Vienna-Linz-Wels, the lines of the River Valle y Inn-project includes the construction of the Brenner tunnel under the Tyrolean Alps will absorb much of the commercial transportation and transit- the realiza tion of a new railway line between Graz and Klagenfurt. Waterways: The transport infrastructure is limited to the Danube river, which ha s in Austria with 16 ports of importance among them the ports of Linz, Enns, Kre ms and Vienna. AIRPORTS: Austria has six major airports: Vienna, Graz, Salzburg, Linz, Innsbruck and Klagenfurt. The Austrian national airline is part of the St ar Alliance partnership. Within the group Austrian, Lauda Air specializes in cha rter flights and regional flights Austrian Arrows. PRICES: (Variation 2003 / 2002) WHOLESALE PRICES: CONSUMER PRICES: GOVERNMENT DEFICIT: (2003) 1.7% 1.3% 1.3% GDP MAIN FEATURES OF THE PRODUCTIVE SECTORS BUSINESS AND BANKING SERVICES The main agricultural areas of Austria are located north of the Alps and both ba nks of the Danube plains stretching to the border with Hungary. In these areas d ominated by cereal crops, fruit trees and vineyards. In western areas, the most important activities are livestock breeding and forestry. The main agricultural productions are Austrian beef, pork and poultry, milk, fresh fruit, wine, grain, barley, corn and potatoes. Currently the agricultural sector tries to specializ e in "niche" market, p. eg. biological products. The Austrian industrial sector is characterized, more so than in other European economies, by the weight of tra ditional industries such as iron and steel, machinery and chemical products in A ustria industries that generate high added value and continue to occupy importan t positions in international markets. The petrochemical industry is dominated by

the OMV company, mainly produces textile fibers, pesticides and pharmaceuticals , polypropylene, plastics and fuel. In the automotive industry has developed a s pecialized product offering and an important industry of auto parts and accessor ies, the major companies are Voestalpine, General Motors, Magna and AVL List. In recent years, production has also directed to sectors with greater technologica l content and surface treatment, automation, microelectronics and information te chnology, biotechnology and medical equipment. Export sectors are the most repre sentative of machinery, railway systems (produced by Voestalpine, an Austrian in dustrial group most internationally), and paper and cardboard. Moreover, after t he privatization of some thirty major state enterprises, the state has withdrawn , among others, the petroleum, snuff, steel, printing and telecommunications. It has also been privatized Vienna airport. The tertiary sector is very diversifie d and contributes approximately 67% of GDP. Trade shows a concentration greater than usual in other European countries, 90% of the food market is dominated by f ive chains. An important part of the big chains are owned by foreign groups, mos tly of German origin. Tourism generates nearly a third of services revenue balan ce of payments.€Through a series of environmental standards and a commitment to non-exploitation of nuclear energy, Austria has established an image of unspoilt country, which annually attracts about 18 million foreign tourists. MARKETING In Austria the import channel most common is the purchase through wholesalers, m any of which are dedicated both to imports and exports. Some Austrian importers buy worldwide, while others have specialized in certain countries or regions. A number of importing companies selling on an exclusive basis and consider additio nal offers only when they are complementary to its business line. In many sector s, and given the small size of domestic demand, the import is done through inter mediaries located in other countries, p. eg. Germany. Furthermore, aside from go ing to the national fairs, and given the importance and proximity of Italy and G ermany, many Austrians are buyers also visit trade fairs in these countries to m eet their supply sector. Publicity is well developed. The most important ways to advertise are the newspapers and magazines, followed by television and radio. I n Austria, the competition has generated discerning buyers: the quality, present ation and image of a product are analyzed critically. Austrian Buyers assume the provision of timely and in accordance with samples and fluid distribution of sp are parts and smooth running of the technical services. In general, technical an d quality requirements are high. On the other hand, competition is often rigorou s in terms of price. Normally, the introduction of a new supplier in the market leads to the displacement of an existing one. BALANCE OF PAYMENTS (Millions of euros, 2003) Trade balance Exports (FOB) Imports (FOB) Transfer Revenue Services Current Acco unt Capital Account Direct investment Portfolio investment Other investment Rese rve Account Derivatives Financial Errors and omissions 1,654 78,798 -77,144 824 -2,458 -2,065 -2,045 -100 -203 4,999 -2,795 -691 1,795 3,105 -961 BANKS The Austrian banking system is controlled by the Austrian National Bank (Österre ichische Nationalbank), central bank, in which the State contributes 50% of its capital. Austrian Financial institutions are grouped into five categories: banks , savings banks, Raiffeisen institutions, credit unions and mortgage banks. Bank s represent a diverse sector, covering both universal banks and regional trade, as banks with specialized functions. The major Austrian bank is the Bank Austria Creditanstalt (BA-CA) that was acquired in July 2000 by the HypoVereinsbank (HVB ), second largest bank in Bavaria, resulting in a major European banks. In the a rea of savings banks, which perform banking functions, the most important entity

is the Erste Bank, the Postal Savings Bank is majority owned by the Union of Au stria. For its part, Raiffeisen institutes, agricultural credit cooperatives whi ch are part of the agricultural organization of the same name, have shifted to g eneral banking functions. In turn, popular banks (Volksbanken) serve mainly smal l and medium enterprises, as well as mortgage banks, the latter generally are in volved in implantation in the regions of origin. The main issue facing the Austr ian banking is the excessive density of its network of subsidiaries, according t o a study by the OECD, Austria has the densest banking network in Europe, yet wi th lower profit per branch. Currently, no Spanish bank has operational or repres entative offices in Austria. EXTERNAL DEBT (Millions of euros at the end of period, 2003) Total external debt External debt service external debt / GDP external debt serv ice / exports of goods and services 6.2% 13 129 2099 1.8% MARKET OPENNESS AND ACCESSIBILITY MARKET OPENING DEGREE (Goods, 2003) MARKET ACCESS 71.3% 36.1% TOTAL IMPORT / EXPORT GLOBAL TOTAL IMPORT / EXPORT GLOBAL 1.28% 1.25 % FOREIGN TRADE (IMPORT Export.ar +.) / GDP Imports / GDP TRADE REGIME STRUCTURE OF FOREIGN TRADE GEOGRAPHIC DISTRIBUTION OF FOREIGN TRADE OF AUSTRIA (Percent structure, 2003) IMPORTS EU-15 65.2% 18.2% OTHER WORLD EXPORTS EU-15 59.8% 20.7% OTHER WORLD The introduction of goods from other member countries of the EU or from third co untries which are in free circulation in those Member States€is not subject to q uantitative restrictions or import licenses. Despite the total liberalization of receipts and payments abroad, the Austrian Central Bank requested information o n transfer payments and capital for statistical purposes. If these transactions are made through a bank, this is responsible for communicating the central bank. In the case of transactions without bank intermediation as transit operations, securities and deposits TARIFFS opening accounts abroad, is the client who has an obligation to inform the Centr al Bank. In Austria, the most widely used means of payment is the SWIFT transfer for both domestic and international operations. It is advisable for Spanish exp orters in the bills include a penalty clause for late payment, which implies an interest rate of time-bound and not respected. It is also common to apply for Au strian enterprises favorable conditions for the prompt payment discount by the a mounts due.

GERMANY 41.0% JAPAN 2.2% CZECH REPUBLIC 3.2% HUNGARY 3.2% U.S. 3.9% SWITZERLAND 4.1% ITALY SPA IN FRANCE UNITED OTHER EU COUNTRIES 6.3% 7.0% 3.9% 1.7% NETHERLANDS KINGDOM 3.0% 2.3% SLOVENIA 31.8% GERMANY 2.0% CZECH REPUBLIC 3.1% HUNGARY 4.0% SWITZERLAND 5.2% IT ALY SPAIN FRANCE UNITED OTHER EU COUNTRIES U.S. KINGDOM 4.4% 9.0% 2.6% NETHERLAN DS 5.5% 5.2% 4.4% 2.1% AUSTRIA'S FOREIGN TRADE BY PRODUCTS Tariff chapters of the Combined Nomenclature of the EU (million, 2003) VALUE% CHANGE 03/02 HISPANO-AUSTRIAN BILATERAL TRADE Tariff chapters of the EU's Combined Nomenclature (thousands of euros, 2003) VALUE% CHANGE 03/02 The introduction of goods from other EU Member States is exempt from payment of fees. The import of goods from third countries are subject to the rights of the Common Customs Tariff of the EU. MEMBERSHIP ORGANIZATIONS COMMERCIAL AND ECONOMIC EUROPEAN UNION (EU) ECONOMIC AND MONETARY UNION (EMU) International Monetary Fun d (IMF) World Bank (WB) WORLD TRADE ORGANIZATION (WTO) ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD) UNITED NATIONS CONFERENCE ON TRADE AND DEVEL OPMENT (UNCTAD) IMPORTS (CIF) 84. Nuclear reactors, boilers, machinery 87. Motor vehicles, tract ors 85. 27 Electrical machinery and apparatus. Mineral fuels and oils 39. Plasti cs and articles thereof 30. Pharmaceuticals 90. Optical instruments and apparatu s 94. Furniture 48. Paper and cardboard 62. Articles of apparel and clothing acc essories, knitted Remaining Imports Exports (FOB) 84. Nuclear reactors, boilers, machinery 87. Motor vehicles, tractors 48. Paper and cardboard 39. Plastics and articles thereof 44. Wood 29. 72 Organic chemicals. Iron and steel 73. Articles of iron or steel 27. Mineral fuels and oils 94. Remaining furniture exports 80,993 11,933 9,382 8,981 6,454 3,293 2,326 2,229 1,982 1,711 1,620 31,082 78,90 3 14,127 7,853 3,606 3,102 2,864 2,721 2,616 2,345 2,013 1,970 35,686 12.6 5.0 6.1 6.5 1.3 6.2 1.3 3.3 3.9 0.2 4.9 -1.3 -0.6 1.9 1.7 -0, 9 2.4 5.7 -2. 3 13.2 3.1 9.4 2.5 1.7 SPANISH EXPORTS (FOB) 87. Motor vehicles, tractors 29. 85 Organic chemicals. 84 Electrical machinery and apparatus. Nuclear reactors, boilers, machinery 08. 07 edible fruit. Vegetables 39. Plastics and articles thereof 47. Pulp of wood or o f other fibrous cellulosic material 40. Rubber and articles thereof 30. Remainin g exports pharmaceuticals SPANISH IMPORTS (CIF) 84. Nuclear reactors, boilers, m achinery 87. Motor vehicles, tractors 85. 48 Electrical machinery and apparatus. Paper and cardboard 39. Plastics and articles thereof 29. Organic chemicals 30. Pharmaceuticals 90. Optical instruments and apparatus 44. Wood and articles the reof 73. Articles of iron or steel imports Remaining 1,260,576 338,370 140,269 114,788 87,408 56,242 47,864 46,954 44,858 32,482 31,5 40 319,801 1,819,074 444,825 342,891 294,257 94,314 64,252 60,569 42,516 38,312 33,230 30,222 373,686 3.6 20.8 -8.2 3.4 10.2 -0.4 0.8 -18.7 3.1 80.7 -16.8 -3.6 -2.6 -27.7 - 6.5 60.7 9.7 14.8 6.8 -13.7 -4.8 65.4 -8.1 3.6

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) African Development Bank (AfDB) Asian Development Bank (ADB) INTER-AMERICAN DEVELOPMENT BANK (IDB) LEGAL FRAMEWORK FISCAL SYSTEM There are two categories of tax rates on value added tax (VAT): The overall 20% and 10% reduced. The general rate of taxation of corporate income tax is 34%. Fr om January 2005, be reduced to 25%.€Spain has signed an agreement with Austria t o avoid double taxation with respect to taxes on income and wealth, in force sin ce 01.01.1967 (BOE 01.06.1968). In February 1995, signed an Additional Protocol to the Convention. PRACTICAL INFORMATION CURRENCY The currency is the euro as in Spain. LINKS FROM SPAIN AIRWAY: IBERIA, Spain and AUSTRIAN, Austrian national airline, offering direct flights. LOCAL TIME The same as in Spain: GMT plus one hour in winter and two in summer. LAND: Madrid 2444 km distant by road from Vienna and Barcelona 1840 km. The road trip can be shortened to 660 km using a rail service that runs smoothly autoexpress b etween Vienna and Feldkirch, on the Swiss border. The major highways are the Vie nna-Linz-Salzburg (West Highway), which then communicates with Munich and Innsbr uck, and Vienna-Graz-Klagenfurt (Autopista del Sur). WORK SCHEDULE BANKS IN GENERAL, MONDAY TO FRIDAY HOURS OF 8:00 OR 8:30 to 15:00; THURSDAY OPEN UNTIL 17:30. SOME close for lunch between 12:30 and 13:30. STANDARDIZATION AND CERTIFICATION OF PRODUCTS The institution responsible for coordinating and standardizing the Austrian Stan dards Institute (Österreichisches Normungsinstitutwww.on-ON-norm.at). The Austri an standards (ÖNORM), in addition to international standards, can be examined an d learned from this institute. Austrian Standardisation applies the European EN standards and directives and regulations of the EU technical regulation. On the other hand, there are systems certification, though voluntary, are considered an important factor of competitiveness of the company. These include the growing i mportance of ISO 9000 quality standards. PUBLIC ADMINISTRATION MONDAY TO FRIDAY 8:00 to 16:00. USEFUL ADDRESSES IN AUSTRIA EMBASSY OF SPAIN IN VIENNA Argentinierstrasse Chancery and Consular Section, 34 A 1040 Wien Tel.: 00 (43) 1 -505 5788, fax 505 5789 Chancery: 00 (43) 1-504 2076 Consular Section fax: 00 (4 3) 1-505 5788 ce: embespat @ mail.mae.es USEFUL ADDRESSES IN SPAIN EMBASSY OF AUSTRIA IN MADRID CHANCELLOR Paseo de la Castellana, 91 28046 Madrid tel.: 91 556 5315 fax: 91 597 3579 ce: madrid-ob@bmaa.gv.at SHOPS

SUPERMARKETS: Monday to Wednesday from 8:00 to 19:00, Thursday from 7:30 to 19:3 0, Saturday from 7:30 to 17:00. STORES: Monday to Wednesday from 10:00 to 19:00, Thursday and Friday from 10:00 to 20:00 Saturday from 09:30 to 18:00. VACATIONS AND HOLIDAYS Yearly holidays: 25 working days. With older than 25 years, 30 days per year. ECONOMIC AND TRADE OFFICE OF THE EMBASSY OF SPAIN IN VIENNA Stubenring, 16 A 1011 Wien Tel.: 00 (43) 1-513 3933 / 34 Fax: 00 (43) 1-513 8147 ce: viena@mcx.es SALES OF AUSTRIA IN MADRID Orense, 11 28020 Madrid tel.: 91 556 4358 fax: 91 556 9991 www.austriantrade.org / madrid PROTECTION OF PATENTS AND TRADEMARKS Austria is a member of the Paris Convention for the Protection of Industrial Pro perty and the Convention Establishing the World Intellectual Property Organizati on (WIPO). Patent, Austria is a signatory of the Munich Convention and the Europ ean Patent Cooperation Treaty (PCT) and the Strasbourg Agreement on Internationa l Patent Classification. Within specific brands, has signed the Law Treaty (TLT) and is part of the Madrid Agreement Concerning the International Registration o f Marks. European patents can be registered in the Austrian Patent Office. Peopl e without permanent residence in Austria who wish to apply for a patent must be represented by counsel. For smaller-scale technological innovations, it is recom mended to register a utility model that guarantees the user the right to exclusi ve use for three years with possible extension of eight years. HOLIDAYS: January 1 (New Year), January 6 (Epiphany), Good Friday, Easter Monday, 1 May (L abour Day), Ascension, Whit Monday, Corpus Christi, August 15 (Assumption), 26 O ctober (National Holiday), November 1 (All Saints), December 8 (Immaculate Conce ption), December 25 (Christmas), 26 December (Boxing Day). SPANISH TOURIST OFFICE IN VIENNA Walfischgasse 8 1010 Wien Tel.: 00 (43) 1-512 9580 fax: 00 (43) 1-512 9581 ce: v iena@tourspain.es AUSTRIA COMMERCIAL OFFICE IN BARCELONA Balmes, 200 08006 Barcelona tel.: 93 292 2378 fax: 93 237 7621 www.austriantrade .org / barcelona HEALTH PRECAUTIONS None in particular. FEDERAL MINISTRY OF ECONOMY AND LABOUR (Bundesministerium für Wirtschaft und Arbeit) Stubenring 1 A-1011 Wien Tel.: 00 (43) 1-711 00-0 Fax: 00 (43) 1-713 7995 www.bmwa.gv.at SECRETARY OF STATE FOR TOURISM AND TRADE. MINISTRY OF INDUSTRY TOURISM AND TRADE Paseo de la Castellana, 162 28046 Madrid tel.: 91 349 4000 fax: 91 583 0020 cc: @ secyt.sscc.mcx.es www.mcx.es buzon.oficial POWER Voltage: 220 V, single phase, 380 three phase. Frequency: 50 Hz ENTRY FORMALITIES OF ROAD TRANSPORT Spanish carriers wanting access to Austria at the border must present a Communit y license in force. Can freely enter the carriage of private and public services

in light vehicles (www.mfom.es). For European Union nationals national identity card or passport. CHAMBER OF COMMERCE AND INDUSTRY OF AUSTRIA (Wirtschaftskammer Österreich) Wiedner Hauptstrasse 63 A 1045 Wien Tel.: 00 (43) 1-501 05-0 Fax: 00 (43) 1-501 05 250 www.wko.at SPANISH INSTITUTE OF FOREIGN TRADE (ICEX) Paseo de la Castellana, 14-16 28046 Madrid tel.: 91 349 6100 fax: 91 431 6128 ww w.icex.es SOURCES: Economic and Commercial Office Embassy of Spain in Vienna, Databases IC EX, Bank of Spain, Central Bureau of Statistics Austria (ÖSTAT), Institute of Ec onomic Research, Austria (WIFO), Österreichische Nationalbank, WTO, WIPO, The Ec onomist Intelligence Unit NOVEMBER, 2004 Legal Deposit: M-NIPO 00000-2004: 381-04-003-1 ISBN: 84-7811-5498