unds

erseas 

vate 

estment 

rporation
1

Investment Funds Program

The Overseas Private Investment Corporation (OPIC) Investment Funds Program isdesigned to support the creation and capitalization of long-term, private equity fundsin emerging markets. The funds are structured as limited partnerships or limited liability companies. They are managed by private sector fund managers and, like allOPIC programs, are self-sustaining. OPIC receives compensation for its support,calibrated to reflect the risk and reward represented by its investment. These OPIC-supported funds invest in the development, expansion, or privatizationof businesses and meet the sizable unmet demand for risk capital. OPIC is one ofthe largest providers of emerging market private equity. Since the inception of theinvestment funds program in 1987, OPIC has committed over $2 billion to 35 privateequity funds. These funds have invested in more than 350 new, expanding, or privatizing businesses -- approximately 90 percent of which are small- and medium-sizedenterprises. For many of the investors in these funds, OPIC's unique role in using itsguaranty authority to support capitalization was a key criterion in their investmentdecision. As a result, OPIC's participation has mobilized substantial capital and skillsfor investment in emerging markets.The Investment Funds Program helps to fulfill OPIC's mission to mobilize and facilitate the participation of U.S. private capital and skills in the economic and socialgrowth of less developed countries. Specifically, the funds program: By supporting economic development, OPIC's investment funds program is alsoenhancing the quality of life in host countries. Companies in which OPIC's fundshave invested are providing significant employment and training opportunities.Investment by OPIC's funds provides a catalyst for further economic growth anddevelopment in the local community and region. Funds projects are providing essential services such as the distribution of potable water, the processing of basic foodsupplies, or the accelerated introduction of new technology, which is helping to

·Brings to the countries in which it invests modern business practices, improved corporate governance, improvements to the local regulatory and legal environments,and improved property and shareholder rights.·Fosters the development of capital and financial markets in emerging markets.·Helps achieve U.S. foreign policy objectives, such as promoting political and economic stability in emerging democracies through the development of the privatesector and privatization of state-owned businesses, and promoting best practices incorporate governance, the environment, and worker rights.·Encourages the development of new markets and opportunities for American companies, facilitating early access to new consumers and improving competitivenessin the developing world.·Strengthens economic growth at home through connections that may be established between U.S. companies and the businesses supported overseas, such asjoint ventures, franchising, supply or distribution arrangements.
Serbia Broadband (SBB) is an investment of the Southeast Europe Equity Fund,

Ltd. (SEEF), managed by SEEF Management, LLC. The investment in this start-upcable-TV and broadband company brought a new product with a superior infrastructure to the Serbian marketplace. The success of SBB, its fast growth from almost2,000 subscribers to over 200,000 within two years, has created tremendous valuefor Serbian businesses and consumers, which until recently lacked developedtelecommunications and media connections with the rest of the world.SBB is helping the people of Serbia connect with cultures from around the world andbecome more globally informed by providing access to international cable channelssuch as CNN, BBC World, EuroNews, TV 5, MTV1 and the Discovery Channel.SBB is also helping community-based efforts by providing free Internet connectionsfor public schools in Belgrade. While the project is still in the early stages of implementation, SBB intends to educate students on educational and creative uses of theInternet and provide students with personal email addresses that will allow them tocommunicate easily and economically with people around the globe.A final and very important element of SBB's activities has been the emphasis on customer care--a relatively new concept in this former communist society. SBB hasopened a modern call center in Belgrade, launched a new Info Channel, which provides servicing and programming information to its customers, and publishes a freemonthly magazine for all of its subscribers.SBB appears to be on the right track to achieving its long-term goal: Serving as thenumber one cable television and data communications provider in Serbia.

3

a positive impact on the

ssia, Emerging Europe,

ents in environmentally

r returns, OPIC can pro

erest capitalized until the

a partial principal protec

st is significantly greater

uity creates a "multiplier

recent study performed

 generated an additional

ement of the investment

er. To identify and retain

or proposals that is high

und proposals and make

and experience of highly

due diligence review. 

nd. OPIC also monitors

. economic and environ

Bridging the Digital Divide

Mining

0.02%

Oil/Gas

0.00%

Infrastructure

18.40%

Manufacturing

8.77%

ss 

Construction 0.00%

Financial Services

8.40%

by Sector
Fostering the Development of Capital 

Carulla Vivero is a leading retailer in Columbia invested in by Newbridge AndeanPartners, L.P., a fund managed by ACON Investments (an affiliate of Texas PacificGroup). In 1998, Newbridge invested in Vivero, a chain of supercenters in northern Columbiathat sells clothing and other consumer products to middle and upper-income consumers. One year later, Newbridge invested in Carulla, a grocery store that catersto middle and upper-income shoppers and is the largest supermarket in Bogota. InFebruary 2000, Newbridge proposed a merger of the two companies to form CarullaVivero, S.A., making it the second largest retailer in Columbia. Samuel Azout, theCEO of Vivero, took over as CEO, and with the help of Newbridge, recruited a newmanagement team to energize and create value for the company through an aggressive marketing strategy, improved store layout and design, modern merchandisingtechniques and an efficient balance sheet structure. With the benefit of the capital contributed by Newbridge, Carulla Vivero grew from90 stores in 2000 to over 130 stores in 2004. As a result of its scale and increasedprofitability, Carulla Vivero was able to issue bonds in the local capital markets in2001, making it one of the first private sector companies in Colombia to issue debtin the public markets.

5

ance
Enhancing Environmental Standards 

Jain Irrigation Systems Limited (JISL) is an investment of the Aqua InternationalPartners Fund. The fund invests in water projects and companies in developingcountries such as India, where OPIC and Aqua have invested in Jain Irrigation. Jain Irrigation is the leading manufacturer of micro-irrigation systems (specificallydrip irrigation and sprinkler irrigation systems), piping systems, water filters, andgreen houses, and has also developed world-class food processing facilities. JainIrrigation's unique business plan is committed to total customer satisfaction and market leadership, while also protecting the environment with R&D focused on soil erosion prevention and water management techniques.As the largest employer in the city of Jalgoan with 3,000 employees receiving healthbenefits and wages far beyond local standards, Jain Irrigation is also actively investing in its employees. The company operates an agricultural campus and farm whereover 50,000 Indian farmers have attended workshops on new farming techniquesand uses of innovative technologies in agricultural production.Jain Irrigation established the Jain Foundation in 1982, to foster support for education, medical services, environmental and rural development, R&D, sports andhealth, and other fields committed to the general welfare of Indian society.In that time, Jain has established a primary school, a junior college and a kindergarten, as well as medical camps and outdoor hospitals. The foundation has furnished its employees and community with a modern gymnasium, exercise facilities,and a coaching staff, and has made it an objective to support artistic activities suchas theater, dancing, and singing.The employees, customers, and communities touched by Jain Irrigation Systemshave experienced first hand the company's mission, established by its founderBhavarlal Jain in 1963,"Leave this world better than you found it."

7
Developing New Markets

ces

The Russia Partners Fund, managed by Siguler Guff and Company, made an investment in MTV Russia that has helped to establish a music-focused television cable

network in Russia, which broadcasts Russian and English language music programming to over 71 million viewers in 386 cities in the Russian Federation, Kazakhstanand Kyrgyzstan. The investment has helped lay the groundwork for the network, obtaining the necessary licenses and permits, promoting the network's launch, and determining thebest schedules for programs. The network is working collaboratively with MTVNetworks in New York to develop a look and brand image similar to other MTV affiliates.Although the majority of MTV Russia's programming is purchased from Viacom, thestation has served as a vehicle to enhance the visibility of local musicians withinRussia. The network has also integrated a significant amount of social awarenessadvertising into its operations. In conjunction with the New York offices, the networkhas been participating in global campaigns on AIDS awareness, and MTV Russiahas adopted a local version of MTV's "Rock the Vote" campaign in an effort toencourage young people to participate in the country's nascent democratic electionprocess.MTV Russia's employees are compensated at a level exceeding local Russian standards, often more than double the average Russian salary. Further, the network collaborates closely with MTV in New York and Europe to foster creative thinkingamong all employees--an international partnership that would have been unthinkable under the Soviet Union.

9
11

"Secure financial transactions-any time, any place."Euronet, an independent operator of automatic teller machine networks locatedthroughout Central Europe and the world's leading provider of top-up services forprepaid products, such as mobile airtime, long distance and debit cards, is aninvestment of the Poland Partners fund. The fund is managed by Innova Capital,one of the first private equity funds to be established in Central Europe, which hasa primary focus on EU accession countries (particularly Poland, Hungary and theCzech Republic). Euronet's mission --"To bring electronic financial payment convenience to millions ofpeople who have not had it before"-- has become a reality by operating the onlyindependent, non-bank owned ATM network in Central Europe. Euronet's coreobjective is to process ATM transactions, for which it receives fees from local banksand international card organizations that issue cards such as Visa, Plus,MasterCard, Europay, Cirrus, American Express, and Diners Club International.Euronet installs the ATM machines, and then links the machines via satellite toEuronet's main AS400 computer located in Budapest. The transaction information istransmitted electronically to the processing center of the cardholder's financial institution, while Euronet manages the monitoring, cash dispensing and maintenancetasks required to operate the network.In addition, with Euronet's prepaid solutions, consumers can top-up their prepaid

accounts, including prepaid mobilephone airtime and prepaid long distance, at their favorite retail location. These electronic transactionshelp mobile operators increasetheir customer reach and at thesame time provide a cost-effectiveelectronic distribution channel forparticipating retailers and POS andATM owners.Euronet has hired local architects,installation engineers, and maintenance engineers to create the infrastructure, and has contracts withfour small local businesses to provide security services for the transfer of cash to the banks. Euronet islisted on the NASDAQ exchange inNew York.

Promoting Economic Stability

s 
egion

nt States (NIS) and Baltics

countries

countries

countries

ca (excluding S. Africa)

Kazakhstan,Georgia, Romania, 

va, Estonia, Lithuania, and Latvia

countries

ern Europe: Poland, 

 Luxembourg, Romania, 

altic republics: Czech Republic, 

omania

Korea, Thailand, Singapore and 

countries

& Herzegovina, Bulgaria,

acedonia, Montenegro, 

nia, Turkey, and, should

gible, Serbia and Kosovo

Chile, Colombia and 

-covered NIS states

uela, Argentina, Brazil and 

esh, India and Sri Lanka

ntries in Asia

Baltics

regional SADC countries