IBM Business Report Recognizes Improved Investment Environment in Germany

BERLIN, January 14 - Germany is continuously improving in international business
location rankings, according to a new country report by IBM Global Business
Services. The "Global Location Trends" study marks a considerable increase in
foreign direct investment for Germany. Reasons cited included moderate wage
growth rates in recent years, tax reductions and the general improvement of
economic conditions. The report names the solar energy industry in Eastern
Germany as an example of Germany's clear quality advantage.

Germany managed to considerably improve its competitive
position in 2008 despite the significant decrease in investments worldwide.
The country also benefitted from the tendency of companies to increasingly
seek stable and reliable investment locations. According to the study, 26,700
jobs were created in 2008 through 709 foreign investment projects. Compared
to the previous year, this represents an increase of approximately 8,000 jobs
and more than 200 projects in 2008. The industries Machinery & Equipment,
Business Services, and Information and Communications Technology (ICT)
profited from Germany's competitive international investment position.

"The results by IBM Global Business Services concur with our
findings. Germany as a business location has gained further recognition. Now
more than ever, investors value the excellent and reliable quality the
country offers - and this especially in a globally unstable environment,"
says Michael Pfeiffer, Chief Executive of Germany Trade & Invest, the foreign
trade and inward investment agency of the Federal Republic of Germany.
Germany Trade & Invest has recorded a considerable increase in investor
interest by the emerging economies of Asia. Foreign direct investment (FDI)
from China and India has more than doubled in recent years. Currently, FDI
figures stand at EUR 242 billion for India and EUR 355 billion for China.

US Companies Create Jobs in Germany

Despite this growth, industrialized countries continue to be
the most important investors in Germany. These countries account for almost
90 percent of the jobs created through FDI projects. Every third job leads
back to the USA. Thereafter, Japan and Germany's European neighbors were also
important to job creation with their investments. IBM Global Business
Services attributed the large labor effect to the industries Industrial
Machinery and Equipment with an increase of ca. 300 percent, Information and
Communications Technology (an increase of roughly 100 percent) as well as
Business Services (an increase of ca. 40 percent).

The study highlights the high level of quality of Germany as a
business location based on two industry examples: the Solar Industry and the
Shared Service Center sector of Business Services. The American company Sitel
is named as an example of an investor in the contact center segment, which
opened an office in Berlin in 2008 and has in the meantime created around
1,000 jobs. While the solar industry has been shaken by the global recession,
Germany has also secured its position in this industry with its competitive
advantage based on quality. Factors cited for this level of success include
relevant experienced staff, an established industry, market proximity and
attractive operating costs. Here the Eastern German federal states are
primarily highlighted.

Germany Trade & Invest is the foreign trade and inward
investment promotion agency of the Federal Republic of Germany. The
organization advises foreign companies looking to expand their business
activities in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.

    Eva Henkel
    Phone: +49-(0)30-200-099-173
    Fax: +49-(0)30-200-099-111
    Email: Eva.Henkel@gtai.com

Eva Henkel, Phone: +49-(0)30-200-099-173, Fax: +49-(0)30-200-099-111, Email: Eva.Henkel at gtai.com