RRG July 2008 ***

Investment Themes in Global Emerging Markets : 

Investment Themes in Global Emerging Markets July 2008 www.riedelresearch.com

ASIAInflation: Risks and Opportunities : 

2 ASIAInflation: Risks and Opportunities Inflation risks developing into a spiral across Asia Hard Asset companies, providers of raw material inputs and price setters are investments of choice in this environment Beijing Airport is set to benefit from growth in China air travel Infosys is oversold and positioned to benefit from rupee depreciation For more details: sales@riedelresearch.com or +1 (201) 995-9005

ASIA ChinaBEIJING AIRPORT– New Runway & Terminal – BUY : 

3 ASIA ChinaBEIJING AIRPORT– New Runway & Terminal – BUY Beijing Airport ranks 9th in the world in terms of passenger throughput. Third runway and T3 doubled passenger and airline capacity New Civil Airport Charge Policy lowers revenues from airlines Capacity expansion will offset the new charge policy; revenue will grow by 16% in 2008 and 2009 Beijing Airport charges every departure passenger an airport fee, controversial but unlikely to change.   P/E comparison suggests potential upside of 20%+ BUY. 0694.HK Price: HKD 6.30 (7/2/08) Target: HKD 7.60 For more details: sales@riedelresearch.com or +1 (201) 995-9005

ASIA IndiaINFOSYS TECHNOLOGIES LIMITED – IT Services; 95% Revenues from Exports – BUY : 

4 ASIA IndiaINFOSYS TECHNOLOGIES LIMITED – IT Services; 95% Revenues from Exports – BUY Second largest Indian IT services company Slowdown in US puts short-term pressure on IT spending, especially in the financial and automotive sector Pressure on the fiscal position of the government, and on current account = rupee weakness Indian IT services companies derive more than 80% of their revenue from exports ICT derives 95%+ of its revenues from exports; providing a hedge against depreciating rupee and rising inflation in India INFO.IN Price: INR 1,747.8 (7/3/08) Target: INR 2,096 For more details: sales@riedelresearch.com or +1 (201) 995-9005

Emerging EuropeAlternative Energy : 

5 Emerging EuropeAlternative Energy Global solar-power market growth dampened by shortage of polysilicone may grow as much as 40% Global wind installations are predicted to rise to at least 240GW by 2012 (from 100 GW currently) i.e. a 40% growth Polish Energy Partners’ vision is to become one of the leading renewable energy companies in Poland through wind energy. Good wind conditions (Poland ranked 17th in the world) RusHydro, with 24 GWt, is the second largest hydro power generator in the world Russia (like China and India) realizes just 20% of the country’s hydro potential Current price for RusHydro is close to $0.06/share; due to a change in capital structure, total shares now stand at 250 bn, and free float is 40% Polish Energy Partners (BUY) currently under coverage; research on RusHydro is pending World Wide Energy Total Installed and Predicted Capacity 1997 – 2010 (MW) Through its 20 20 20 by 2020 package, the EU is committed to reduce CO2 emissions by 20% below 1990 levels by 2020, increase to 20% by 2020 the renewable energy share of the energy mix and improve energy efficiency by 20% by 2020. Source: EU Wind Energy Association For more details: sales@riedelresearch.com or +1 (201) 995-9005

EMERGING EUROPE PolandPOLISH ENERGY PARTNERS – Development with the Wind – BUY : 

6 EMERGING EUROPE PolandPOLISH ENERGY PARTNERS – Development with the Wind – BUY Provider of industrial energy outsourcing services and a green energy producer Wind farm development: 709 MW production capacity until 2013 EU regulations support the development of renewable energy production Good wind conditions and immense potential Experienced management and healthy value drivers Potential upside in biomass segment 12-month target price of PLN36.54 based on DCF valuation; 30%+ upside potential PEP.WA Price: PLN 27.60 (6/3/08) Target: PLN 36.5 For more details: sales@riedelresearch.com or +1 (201) 995-9005

Slide 7: 

7 HYDR.RTS Price: US 0.086 (6/18/08) Target: N/A Largest listed renewable electricity generating company in the world 4GWt of installed Hydro capacity 49 hydro electricity generating stations across Russia. 40% eventual free float Plans to list GDRs by the end of July 2008 Ambitious US$14bn expansion and modernization program We recently met with management Emerging Europe RussiaRUSHYDRO – Projected to Become Russian Blue Chip For more details: sales@riedelresearch.com or +1 (201) 995-9005

Slide 8: 

8 Emerging Europe Other Potential Renewable Energy Investment Ideas To request a report on any of the following ideas (or others) please contact Chuck Hanabergh cah@riedelresearch.com Currently these additional ideas are not under RRG coverage, but initiations are all planned by 9/08 For more details: sales@riedelresearch.com or +1 (201) 995-9005

LATIN AMERICAInvesting in a Commodity-driven Global Inflationary Environment : 

9 LATIN AMERICAInvesting in a Commodity-driven Global Inflationary Environment Finding ways to protect investments on an inflationary environment has become more relevant on a global scale and Latin America has a long experience to share on the matter. Current prices of soft and hard commodities are based on the imbalance between sharply increased global demand and current global supply (which is also growing but at a far lower pace) Commodity prices (particularly food and energy) are spreading a base inflation in the economies of most countries. Central Banks that have set domestic inflation targets are in turn triggering restrictive monetary decisions that might eventually diminish current growth rates. Latin American economies are normally net exporters of these commodities (either agricultural, metals or oil and gas) and are consequently experiencing a sharp appreciation of their currency vs. the dollar (unless restricted by their Central Banks). We present Cresud (CRESY) and Usiminas (USIM5.SA) as great plays to benefit from current global trends as well as investments protected from inflationary pressures For more details: sales@riedelresearch.com or +1 (201) 995-9005

Slide 10: 

10 CRESY Price (07/08/2008): $14.04 Target: $22 Agribusiness leader Most important hidden values lie in the rural real estate market business CRESY’s farms portfolio is currently registered at a book value of $110 mn, while its actual market value is $670 mn. Unique in its exposure to the strong positive trend in soft commodities and in the inflationary protection from diversified real estate investments Our target price for CRESY is $22 per ADR, with a 56% upside potential LATIN AMERICA ArgentinaCRESUD SA (CRESY) – Play on Soft Commodities Trend; Significant Hidden Value – BUY For more details: sales@riedelresearch.com or +1 (201) 995-9005

Slide 11: 

11 USIM5.SA Price (07/03/2008): R$ 68 Target: R$ 93 First flat steel producer in Latin America; third lower cost producer worldwide Outlook for local steel industry positive, with Automotive industry +22%, Heavy Machinery +20% and Construction +24% YOY Usiminas enjoys 48% share of domestic flat steel market Integrated steel company that will be totally hedged against iron ore price fluctuations by 2009 Target price R$93/share, BUY LATIN AMERICA BrazilUSINAS SIDERURGICAS DE MINAS GERAIS S.A. – Strategically Exposed to Steel Demand Growth – BUY For more details: sales@riedelresearch.com or +1 (201) 995-9005