American Chamber of Commerce

in Bulgaria

BOARD OF DIRECTORS • ANNUAL REPORT • FOR THE YEAR 2006

January, 2007 • Sofia • Bulgaria

3

DEARREADER:

It is a great pleasure for me to present to you a copy ofAmCham Bulgaria Annual Report for 2006.

This year activities of the Chamber have come under its10th anniversary celebration. They have generated greatinterest from the business and political elite and sub-stantial attention from the public in general. And it hascome to be quite natural – over the years AmCham hasgrown steadily in size and strength to become the voiceof international business community in the country.

In future the Chamber will certainly continue to play amajor role in the U.S. – Bulgarian commercial rela-tions and in the development of a strong bilateral busi-ness network. In the eve of Bulgaria’s joining theEuropean Union we shall develop our services to com-panies, entrepreneurs and government institutions forexpertise and assistance how to operate in this remark-able international market and complex business envi-ronment.

As the key to our positive results is the strong commit-ment and leadership of the members we look forward towork together in 2006 and make it more successfulthan ever.

My very best wishes for a continuous success,

Valentin Georgiev

Executive Director

4

SOFIA, JANUARY, 2007

TABLE OF CONTENTS

Report of the Board of Directors page 5

Organizational Structure – Board of Directors and AmCham Team page 8

Membership 2005 page 9

Events 2005 page 15

Committees page 25

Lobbying page 36

Our speakers page 38

International Cooperation page 40

Financial Report page 42

Publications page 43

AmCham Bulgaria in the Media page 44

Acknowledgments page 46

Audit Report for 2004 (excerpts) page 48

Contents

5

REPORT OF THEBOARD OF DIRECTORSFOR THE YEAR 2006

DEAR MEMBERS:

On behalf of the AmCham Board of Directors, I am pleased topresent you with our annual report for 2005. The past yearmarked the 10th anniversary of the founding of the Chamber. Inthose 10 years, we have grown from a dozen founding membersto nearly 230 members by the end of 2005.

As an organization, we have evolved from a social/networkinggroup to a strong, respected, and influential business organiza-tion that offers tangible value-added to its members. The invita-tion from President Parvanov to join his delegation during his tripto the U.S. in October underlines that evolution in our statureas an organization. Just a couple of years ago, such an invitationwould not have been conceivable.

The present Annual Report reviews our added value for 2005 indetail. As you will see, it was a very busy year. Below we havesummarized our key performance indicators for the year.

ECACC SURVEY CRITERIA RANKS

Based on European Council ofAmerican Chambers of Commerce(ECACC) Survey Criteria for 2005AmCham Bulgaria ranks with allAmChams in Europe as follows:

• 3rd least dependent on membership

fees as income

• 3rd highest number of unique visitors

to website per month

• 4th highest increase in membership

• 5th highest net profit per member

• 6th highest profit ratio

Report of the Board of Directors

6

Report of the Board of Directors

AMCHAM KEY PERFORMANCE INDICATORS 2006

ActivityNumber

DescriptionPlan/ActualMEMBERSHIP 243 / 248

EVENTSConference “US-Bulgaria Training Facilities: Commercial Opportunities and Business Partnerships”- 26-28.06.2006

Conferences & Seminars 5 / 4 Training Seminars – Yambol 11-12.09.2006, Sofia 14-15.09.2006Seminar in Blagoevgrad-EU Affairs Committee – 19.04.2006Seminar in Plovdiv-Mediation Center

BL-US Congressional Delegation - 10.01.2006 GA - HE John Beyrle - 24.01.2006

Business Luncheons, BL - Stoyan Stalev - 28.03.2006 General Assemblies, 10 / 8 BB - Roumen Petkov - 09.05.2006 Business Breakfasts GA - Meglena Kuneva - 20.06.2006

BL - Paul Dyck - 29.09.2006BL - Stanton Chase - 05.10.2006 BL - Joichi Ito - 26.10.2006

Independence Day - 08.07.2006 Fun and Ski Tournament - 25.02.2006 other events 6 / 5 Tennis Tournament - 10-11.06.2006

Thanksgiving Day Dinner - 16.11.2006X-mas Party - 12.12.2005

Symix Bulgaria - 19.04.2006 BFK and Winkhaus - 30.05.2006

BAH and Cocktails 4 / 5 VISA International - 19.09.2006Berlitz - 28.11.2006DTT Cocktail - 4.12

Others 1 / 1 Opening of Commercial Mediation Center-16.02.2006

Visits 6 / 5 ECACC February visit, ECACC May visit, ECACC November visit, Bucharest April visit, Slovenia Training - August 2006

International Cooperation 1 / 1 Economist Conference - March, 22-23

Local Cooperation 1 / 3 Bulgarian Economic Forum-Plovdiv, NATO Defense College-Sliven, Bulgarian Land Forces ASS-Plovdiv

PUBLICATIONS

Magazine 9 issues, 52 pages Year Book 500 copies Brochure Annual Report 300 copies

COMMITTEES

4/4 Public Affairs 6/6 EU Affairs 3/0 Business Development 6/11 Real Estate & Construction 3/6 Healthcare 4/2 Corporate Social Responsibility 4/1 Mediation

LOBBYING

Government Double Tax Treaty, Constitutional Amendment-Judical Reform, Commercial Register, Condominium Law, Packaging & WasteManagement, Patent Act

Advocacy Dundee Precious Metals

Regular Monthly Toastmaster Club Meetings Member-to-Member Program

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Report of the Board of Directors

HIGHLIGHTS OF 2006The table above shows what a broad range of activities we under-took as a chamber. Without belittling any of these achievements,there are a number of highlights worthy of particular mention:

• As noted above, the opportunity to travel with PresidentParvanov’s delegation to the U.S. demonstrated our statureas an organization.

• Our major event in 2005 was the AmCham 10th anniversaryconference, which gathered together our friends and partnersfrom the business community and diplomatic circles to discussUS-Bulgarian economic relations in the context of EU accession.

• Our multi-year effort to re-launch double-tax treaty negotia-tions between Bulgaria and the U.S. paid off in 2005, as thetwo sides agreed to start talks on the treaty.

• The AmCham magazine developed into one of the mostrespected English-language publications in Bulgaria. Thatdevelopment was not only a journalistic achievement, it wasalso a financial achievement, as the magazine reached a self-sustaining level of advertising revenues.

• We revitalized our committees with much greater attendanceand activity, launching the EU Affairs Committee and theCorporate Social Responsibility Committee, and re-launchingthe Public Affairs Committee and the Toastmasters club. TheReal Estate & Construction Committee merits special mentionfor its active agenda and committed membership.

• In cooperation with the Commercial Law Reform Program, weset up the AmCham Commercial Mediation Center, which isnow available to members as a confidential, low-cost venuefor alternative dispute resolution.

The Board is grateful to all of our members for your strong sup-port for the Chamber. That support is essential for our continuedsuccess as an organization. We owe our thanks also to theAmCham staff for its commitment, enthusiasm, and professional-ism. The combination of the team’s great execution and your sup-port as members is the core of what makes us effective.

We are also grateful for our good fortune to have such an effec-tive cooperation with the US Embassy under both outgoingAmbassador Pardew and his successor, John Beyrle. Both ambas-sadors are tremendous supporters of the Chamber, as is theEmbassy’s Senior Commercial Officer, James Rigassio, with whomit is a true pleasure to work on a daily basis.

We look forward to another successful year of serving our mem-bers in 2006.

Yours sincerely,

Kenneth M. LefkowitzPresident of the Board of Directors

8

AMERICAN CHAMBER

OF COMMERCE IN BULGARIA

BOARD OF DIRECTORS

Organizational structure

President .................................................... Borislav Boyanov Borislav Boyanov & Co.

Vice President ...................................... Mr. Stefan Dimitrov Allied Pickfords Bulgaria

Treasurer ............................................ Mr. Anthony Hassiotis Bulgarian PostBank

Members .................................................. Ms. Olga Borisova Elieff Center for Education and Culture, AUBG

Mr. Kenneth M. Lefkowitz New Europe Corporate Advisory

Mr. Nick Davies Ernst & Young

Mr. David Hampson Grenville Financial

Ms. Tanya Kosseva-Boshova Landmark Properties

Mr. Friedrich Niemann Hilton Sofia

Mr. Georgi Randelov IBM Bulgaria

Ms. Elitsa Tsaneva Ideal Standard Bulgaria

Ms. Maria Vranovska Eli Lilly and Company

Ex-Officio Member .................................. Mr. James Rigassio US Commercial Attache

AMCHAM TEAMExecutive Director ...................................... Valentin Georgiev valgeorg@amcham.bg

Event Manager .......................................... Tzonka Atanasova tzonka@amcham.bg

Chief Accountant .......................................... Bilyana Petrova bilyana@amcham.bg

PR and Publications Manager ..........................Irina Bacheva irina@amcham.bg

Business Development Manager.............. Nadejda Vakareeva nadia@amcham.bg

Office Manager.......................................... Milena Milenkova milena@amcham.bg

IT Manager .................................................. Jordan Hlebarov jd@amcham.bg

9

AMCHAM

MEMBERSHIP 2006

MEMBERSHIP 2006

AMCHAM MEMBERSHIP POLICY

In several strategy meetings the Board of Directors of theChamber agreed to strengthen the AmCham membership policystressing on the US/international origin or active engagementin business with the US. The good corporate reputation andadherence to responsible business conduct principles haveremained one of the most important criteria for membershipacceptance. All members should be committed to the aims andprinciples of the Chamber.

At the same time the Chamber had also become stricter on itscollection policy and maintaining the policy of expelling non-pay-ing members. A row of late payers were expelled during 2006.

GROWTH IN MEMBERSHIP

The AmCham Bulgaria membership continued growing through-out 2006, from 228 members as of December 31, 2005 to 248members as of December 31, 2006, registering 9% increase. 42new members joined the Chamber but at the same time 22companies left due to closing of offices, tightening of compa-nies budgets and late payments of the membership fees.

GOOD CORPORATEREPUTATION

Good corporate reputation andadherence to responsible businessconduct principles have remainedone of the most important criteriafor membership acceptance. Bydecision of the AmCham Board ofDirectors, membership applicationsare supported by two references, ofwhich at least one is provided by acurrent AmCham member.

10

MEMBERSHIP 2006

Membership Structure by Membership Type,as of December 31, 2006

Membership Structure by Field of Business,as of December 31, 2006

11

MEMBERSHIP 2006

NEW MEMBERS

Forty two new members joined the American Chamber of Commerce in Bulgaria in 2006.

Member Start Date Membership Type Field of Business

JANUARY

Cook Communications 01.01.2006 Multinational company Marketing and Advertising

Dobrev, Kinkin &

Lyutskanov Law Firm 01.01.2006 Local company Law and Consultancy

FEBRUARY

Forton International JSCo 10.02.2006 Local company Construction and

Real Estate

MARCH

Diamed Ltd. 01.03.2006 Local company Pharmaceutical and Medical

MARTERN EOOD 01.03.2006 Multinational company Industrial Equipment and

Energy

Mmd, Corporate, Public Affairs &

Public Relations Consultants 01.03.2006 Multinational company Marketing and Advertising

Yavlena Ltd. 01.03.2006 Local company Construction and

Real Estate

APRIL

VIP Security Ltd. 01.04.2006 Local company Services

MAY

Association Integra-BDS 01.05.2006 Individual / NGO Non-for profit

Nu Image Bulgaria 01.05.2006 Multinational company Entertainment

Parsons E&C Bulgaria 01.05.2006 Multinational company Industrial Equipment and

Energy

PostPath 01.05.2006 Multinational company High-Tech, Telecom,

and Office Equipment

Symix Bulgaria OOD 01.05.2006 Local company High-Tech, Telecom,

and Office Equipment

JUNE

Philip Morris Bulgaria EOOD 01.06.2006 Multinational company Consumer Goods

JULY

American Resarch Center in Sofia 01.07.2006 Individual / NGO Educational

Carlsberg Bulgaria AD 01.07.2006 Multinational company Food and Beverages

Industrial Holding Bulgaria 01.07.2006 Local company Industrial Equipment and

Energy

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MEMBERSHIP 2006

Member Start Date Membership Type Field of Business

AUGUST

CENTURY 21 Bulgaria 01.08.2006 Multinational company Construction and

Real Estate

Epsilon Interactive International 01.08.2006 Multinational company Marketing and Advertising

Moody International Ltd. 01.08.2006 Multinational company Financial and Insurance

PANDA - IP Ltd. 01.08.2006 Local company Food and Beverages

Reader's Digest EOOD 01.08.2006 Multinational company Media

Schenker EOOD 01.08.2006 Multinational company Logistics and Transportation

United Medical Communications 01.08.2006 Local company Pharmaceutical and Medical

World Courier Bulgaria 01.08.2006 Multinational company Couriers

NOVEMBER

Abbott Laboratories S.A. 01.11.2006 Multinational company Pharmaceutical and Medical

Alcoa Packaging Bulgaria 01.11.2006 Multinational company Industrial Equipment and

Energy

Alfred C.Toepfer International 01.11.2006 Multinational company Agriculture

Astra Zeneca UK Ltd. 01.11.2006 Multinational company Pharmaceutical and Medical

Balkan Accession Fund 01.11.2006 Multinational company Financial and Insurance

CallCenterBulgaria 01.11.2006 Local company Services

Colgate-Palmolive Adria 01.11.2006 Multinational company Consumer Goods

Global Benefits Group

GBGI CEE LLC

Representrative Office 01.11.2006 Multinational company Financial and Insurance

Mathnasium Rossimat 01.11.2006 Multinational company Educational

Stanton Chase

International Bulgaria 01.11.2006 Multinational company Human Resource

Stoeva, Kuyumdjieva

& Vitliemov Law Firm 01.11.2006 Local company Law and Consultancy

Totema Engineering 01.11.2006 Local company Industrial Equipment and

Energy

TravelStoreMaker.com 01.11.2006 Multinational company High-Tech, Telecom, and

Office Equipment

Welcome to Bulgaria 01.11.2006 Multinational company Travel and Tourism

DECEMBER

DLA Piper Weiss-Tessbach

Branch Sofia 01.12.2006 Multinational company Law and Consultancy

Enemona SA 01.12.2006 Local company Industrial Equipment and

Energy

Johnson Controls 01.12.2006 Multinational company High-Tech, Telecom,

Electronics Bulgaria and Office Equipment

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AMCHAM MEMBER COMPANIES15 JANUARY 2007

MEMBERSHIP 2006

3M (East) AG

AA KRES EOOD

ABB Bulgaria Ltd.

Abbott Laboratories S.A.

AbCRO - Bulgaria

Accor Services Bulgaria

ACSIOR

ADIS Ltd.

Advance International Transport(Balkan) EAD

AES Corporation

AFA OOD

AGS Bulgaria Ltd.

AIG Bulgaria Insurance &Reinsurance Company EAD

AIG Life Bulgaria

AIMS Human Capital

Alcoa Packaging Bulgaria

Alexandrov Group Corporation

Alfred C. Toepfer International

Alliance One Tobacco Bulgaria

Allied Pickfords Bulgaria

Alter Ego Company OOD

American College of Sofia

American English Academy

American Resarch Center in Sofia

American University in Bulgaria(AUBG)

Anglo-American School of Sofia

Anton Preslavski, Liebert Hiross

APIS - Bulgaria Ltd.

APOLO Ltd.

Argento Human Resource Solutions

Aries Commerce

Association Integra-BDS

Association of BulgarianBroadcasters - ABBRO

Astra Zeneca UK Ltd.

AT Engineering 2000 Ltd.

Auditing Company Versi andPartners Ltd.

Avendi Ltd.

AVON Cosmetics Bulgaria Ltd.

Balkan Accession Fund

Balkan News Corporation Plc.

Balkan Star

Baxter AG

Bayer Bulgaria EOOD

BC Serdon

BearingPoint, Inc.

BG Radio

BMG Ltd.

Bodyguard-Fire-K Ltd.

Borislav Boyanov & Co.

Braykov's Legal Office

Bristol-Myers Squibb

Brown Forman Beverages WorldwideSofia Branch LLC

BULBANK

Bulgarian American Enterprise Fund

Bulgarian Charities Aid Foundation(BCAF)

Bulgarian PostBank

Bulgarian TelecommunicationsCompany EAD

Business Media Group

Business Park Sofia EOOD

CallCenterBulgaria

Car Rental Bulgaria Ltd.

Carlsberg Bulgaria AD

Cefin Bulgaria EOOD (IVECO dealer)

Center for the Study of Democracy

Central Hali AD

CENTURY 21 Bulgaria

Chelopech Mining EAD

Cisco Systems Bulgaria

Citibank N.A.- Sofia Branch

City University

Clockwork Ltd.

CMS Cameron McKenna EOOD

Coca-Cola Bulgaria EOOD

Coca-Cola HBC Bulgaria SA

Colgate-Palmolive Adria

COLLIERS International

ConsulTeam Recruitment andSelection Ltd.

Cook Communications

Corstjens Worlwide Movers Group

CPM International Ltd.

Curtis / Balkan Ltd.

DeConi M&A

Deloitte Bulgaria EOOD

DHL Express Bulgaria Ltd.

Diageo Bulgaria Ltd

Diamed Ltd.

Dimitrov, Petrov & Co.

Djingov, Gouginski, Kyutchukov, &Velichkov

DLA Piper Weiss-Tessbach BranchSofia

Dobrev, Kinkin & Lyutskanov LawFirm

Domaine Boyar AD

Dr. Emil Benatov & Partners

Dr. I.S. Greenberg Medical Center,Ellen Ruth Greenberg

DynCorp International LLC

Effekten Und Finanz - Sofia AD

Ekotoi - Service Ltd.

Electron Progress AD

Eli Lilly and Company

Elido (Lamel Ltd.)

Elmec Sport Bulgaria Ltd.

Elta consult AD associated partnerof CB Richard Ellis for Bulgaria

Emerson Process Management AG

Encouragement Bank AD

Enemona SA

Engineeringservice Sofia Ltd.

Epsilon Interactive International

Equest EAD

Erato Holding PLC

Ernst & Young Bulgaria

European Bank for Reconstructionand Development (EBRD)

Expo Team Ltd.

Flying Cargo Bulgaria Ltd. - Licenseeof FedEx

Force Delta Ltd.

Forem Consulting Bulgaria

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MEMBERSHIP 2006

Forton International JSCo

G4S Security Services Bulgaria JSC

General Electric International

Genmark Automation Bulgaria

GiTy Bulgaria ltd.

GlaxoSmithKline

Global Benefits Group GBGI CEELLC Representrative Office

Goodyear Dunlop Tires Romania

Grand Hotel Sofia

Grenville

Grey Worldwide Bulgaria EOOD

Hewlett-Packard Bulgaria Ltd.

Hilton Sofia

Holiday Inn Sofia

Honeywell EOOD

Horizon

HVB Bank Biochim AD and HEBROSBank AD

IBM Bulgaria

IBS Bulgaria Ltd.

Ideal Standard Bulgaria

In Time Ltd.

Industrial Holding Bulgaria

Infoguard - Stefan Nedkov

ING Bank Sofia Branch

Interbrands Marketing &Distribution Inc. OOD

Interdean

Investbank Plc.

IP Consulting Ltd.

ISI Emerging Markets (InternetSecurities, Inc.)

Johnson & Johnson Doo.

Johnson Controls ElectronicsBulgaria

Junior Achievement Bulgaria

Kaliakra AD

Kamenitza AD

Kamor Auto Ltd.

Kempinski Hotel Grand ArenaBansko

Kolbis International TransferCorporation

KPMG Bulgaria

Kraft Foods Bulgaria

LANDMARK Property Bulgaria

Lexim Sofia Ltd.

Lindner Bulgaria OOD

Lirex BG Ltd.

Lowe Swing Communications

M & M Air Cargo Service BG OOD

M3 Communications Group, Inc.

Maersk Bulgaria Ltd.

Magnetic Head Technologies

Maritza East III Power Company AD

Marsh EOOD

MARTERN EOOD

Mathnasium Rossimat

McDonald's Bulgaria Ltd.

Merck Sharp & Dohme IDEA Inc.

Microsoft Bulgaria

Miltech Ltd.

Mmd, Corporate, Public Affairs &Public Relations Consultants

Mobiltel EAD

Monbat Plc.

Moody International Ltd.

Moten Sport

Moto Pfohe Ltd.

Motorola Bulgaria EAD

National DISTRIBUTORS

NATO Defense College Anciens'Association

NDT Equipment Supplies LTD

Net Is Ltd.

Neterra Communications

Neumann International AG

New Europe Corporate Advisory Ltd.

New Europe Directories Bulgaria

Nexcom Bulgaria EAD

Nu Image Bulgaria

Opet Aygaz Bulgaria EAD

Oracle East Central Europe Limited- Branch Bulgaria

Orbit Ltd.

Orkikem Ltd.

OSG Records Management

PANDA - IP Ltd.

Parsons E&C Bulgaria

Penev & Partners Law Offices

Pfizer H.C.P. Corporation,Representation Office Bulgaria

Philip Morris Bulgaria EOOD

Pioneer Semena Bulgaria EOOD

Popov Legal Office

PostPath

Pratt & Whitney

PricewaterhouseCoopers

Procter & Gamble Bulgaria

ProSoft

PSG Payroll Services Ltd.

Radisson SAS Grand Hotel

Reader's Digest EOOD

Rising Force Co., Ltd.

Rockwell/Intelpack

S&T Bulgaria

Sante International OOD

Schenker EOOD

Schering - Plough Central East -Bulgaria

SEAF Management Bulgaria EOOD

Sheraton Sofia Hotel Balkan

Sherita M Ltd.

Sienit Ltd.

SigmaBleyzer Investment Group LLC- Representative Office

Soravia Bulgaria Ltd.

Stanton Chase International Bulgaria

Stefan Dimitrov, NormanManagement Co. Ltd.

Stoeva, Kuyumdjieva & VitliemovLaw Firm

Symix Bulgaria OOD

TechnoLogica EOOD

TeleLink AD

The Atlantic Club of Bulgaria

The Executive Centre

Tishman Management Company Ltd.

Tissue Bank Osteocenter BulgariaEAD

TM Auto Ltd.

TMF

Totema Engineering

TravelStoreMaker.com

Tumbleweed Communications EOOD

Unimasters Logistics Group AD

Unisys Bulgaria Branch

United Consulting Ltd.

United Medical Communications

Urban 2000 Ltd.

Vaptsarov Joint Stock Company

Vector Management Bulgaria EOOD

Videolux Holding / Technopolis

VIP Security Ltd.

VISA International Service Association

VSK Kentavar Ltd.

Welcome to Bulgaria

Westinghouse Energy SystemsBulgaria Branch

World Courier Bulgaria

Wrigley Bulgaria EOOD

Xerox Bulgaria Ltd.

Yavlena Ltd.

Zlati Dinev Studio

15

AMCHAM EVENTS2006

EVENTS 2006

JANUARY

AMCHAM MEETS WITHUS CONGRESSIONAL DELEGATION

January 10th • Grand Hotel Sofia

AmCham members has a business lunch with US CongressionalDelegation, headed by Bob Goodlate, Chairman of AgriculturalCommittee. Six visiting members of US Congress discussed U.S.-Bulgaria business partnership and U.S. investments in Bulgaria.

AMCHAM GENERAL ASSEMBLY WITHUS AMBASSADOR JOHN BEYRLE

January 24th • Radisson SAS Grand Hotel

The General Assembly meeting in January elected ChrisThompson, /Bearing Point, CLRP Project Manager/, andEvgenia Stoichkova, /Coca-Cola Bulgaria, Market ManagerBulgaria/. Special guest speaker at the Assembly was U.S.Ambassador to Bulgaria John Beyrle, elaborating on the USEmbassy Mission Priorities for 2006.

FEBRUARY

AMCHAM COMMERCIAL MEDIATION CENTER

February 16 • Grand Hotel Sofia

The Commercial Mediation Center of the American Chamber ofCommerce in Bulgaria has been launched on February 16 witha program featuring mediation procedure. Guest speakers wereMichael Fritz, USAID Mission Director and Sabria Sapundjieva,Deputy Minister of Justice. The Center has relied upon the sup-port and cooperation of the Commercial Law Reform Program(CLRP) funded by the United States Agency for InternationalDevelopment (USAID).

16

EVENTS 2006

AMCHAM SKI TOURNAMENT

February 25th • Vitosha Mountain, Aleko

AmCham organized its traditional Ski Tournament for membersand friends. With great enthusiasm and high spirits 45 compa-nies and individual racers run for the AmCham cup. For the firsttime media representatives took part in the event as well.

MARCH

SIXTH BUSINESS ROUNDTABLE WITH THEGOVERNMENT OF BULGARIA

March 22-23 • Sheraton

AmCham partnered the Economic Conferences in the SixthBusiness Roundtable with the Government of Bulgaria. HowShould Bulgaria Position itself as a Location for ForeignInvestments in the Balkan Region was the topic of the presen-tation of Anthony Hassiotis, AmCham Bulgaria Treasurer andPostbank CEO at the conference.

BUSINESS LUNCH WITH STOYAN STALEV,PRESIDENT OF INVESTBULGARIA AGENCY

March 28th • Grand Hotel Sofia

Some 80 members of the American Chamber of Commerce inBulgaria attended the business luncheon with Stoyan Stalev,President of InvestBulgaria Agency. He spoke on the near futureplans of the Agency to improve the business climate in thecountry. At the lunch US Ambassador John Beyrle presented theSecretary of State Corporate Excellence Awar to Vice Presidentof American Standard David Modi.

APRIL

BORISLAV BOYANOV ELECTED ASPRESIDENT OF AMCHAM

April • Amcham Office

At its monthly meeting the AmCham Bulgaria board of direc-tors gathered to elect a president of the Chamber after Mr.Kenneth Lefkowitz decided to step down. With a quorum of

17

EVENTS 2006

eleven members presented the board of directors unanimouslyapproved Mr. Borislav Boyanov.

BUSINESS AFTER HOURS WITH SYMIX

April, 2007

The tradition of having of business after hours cocktails was car-ried on with an awarding ceremony in April where Symix Bulgariapresented itself as an APICS International Associate and in fact thefirst certification center of APICS in Eastern Europe located inSofia. At the ceremony nine Bulgarian managers received certifi-cates of APICS: Certified in Production and Inventory Management(CPIM) and Certified in Integrated Resource Management (CIRM),which are recognized worldwide as the standard of professionalcompetence in production and inventory control, supply chainmanagement, and enterprise operations management.

MAY

BUSINESS BREAKFAST WITH ROUMEN PETKOV,MINISTER OF INTERIOR

May 9th • Hilton Hotel

The business breakfast with the Minister of Interior RoumenPetkov was held in a busy manner with some 70 AmCham mem-bers and guests. The minister elaborated on the Ministry of Interiorinitiatives to improve the business climate in Bulgaria. Meetingswith NGO-s, organizations that unite structures having a strongimpact onto the social and business climate in the country, are veryimportant, the minister said to the businesses. He further assuredthat the partnership between the Ministry of Interior and the busi-ness organizations is very important for the government.

BUSINESS AFTER HOURS WITH WINKHAUSAND BODYGUARD FIRE-K LTD.

May 30 • Grand Hotel Sofia

The German company Winkhaus in cooperation with Bodyguard-Fire-K Ltd., presented in the end of May a new generationtechnology BlueChip of locking systems. Winkhaus is aiming atBulgarian market with innovative products focused on window,door and automation securing technologies.

18

EVENTS 2006

JUNE

AMCHAM TENNIS TOURNAMENT

June 10-11 • Gloria Palace Club, Gorna Bania

For the fourth time the Chamber has organized in June its ten-nis tournament and besides weather surprises, it was held suc-cessfully at the Gorna Banya tennis courts. Twelve teams doingtheir best for the AmCham cup, team and individual prizesawarded. Winner this year was the teams of Gloria Palace Club,second places was the team of Citigroup Bulgaria. AmChamBulgaria is grateful to all sponsors who made the race possible,mostly Thorn Spring and Sport Shops Chain SLS. Awards wereprovided by Radisson SAS Grand Hotel, Grand Hotel Sofia andSport Shops Chain SLS.

AMCHAM GENERAL ASSEMBLY WITH MEGLENAKUNEVA, MINISTER OF EUROPEAN AFFAIRS

June 20 • Sheraton Sofia Hotel Balkan

Minister of EU Affairs Meglena Kuneva was a special guestspeaker at the AmCham General Assembly on June 20th. Theevent was marked by great interest from the businesses with100 guests presented, among them six US representatives ofthe Marshall Memorial Fellowship Program, and a lot of media.Minister Kuneva spoke on the main points of the Bulgariangovernment Action plan: measures against corruption andorganized crime, money laundering and judicial system reform.

AMCHAM CONFERENCE “US-BG JOINTTRAINING FACILITIES: COMMERCIALOPPORTUNITIES AND BUSINESS PARTNERSHIPS”

June 26-28 • National Palace of Culture

Experts from the U.S. Army Contracting Command - Europe(USACCE) together with Bulgarian high military officials as well asBulgarian ministers, MPs, mayors and regional governors, and USdiplomats helped to create a clearer vision of trade and businessopportunities arising from the joint training facilities. TheConference entitled U.S.-Bulgaria Joint Training Facilities:Commercial Opportunities and Business Partnerships was designedto teach contracting procedures to foreign and Bulgarian firmsinterested in upcoming business opportunities in Bulgaria.

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EVENTS 2006

Mr. Georgi Parvanov, President of the Republic of Bulgariamade a speech by opening of the conference. Among the mainspeakers were Ivaylo Kalfin, Deputy Prime Minister andMinister of Foreign Affairs, Vesselin Bliznakov, Minister ofDefense, General Zlatan Stoykov, Chief of General Staff of theBulgarian Army, H.E. John Beyrle, US Ambassador to Bulgaria.

AmCham kindly thanks all companies – sponsors which madethe forum possible: Raytheon, Motorola, Ernst&Young, ATEngineering, Boeing, Citigroup, Bulbank, Coca Cola, Marsh,Schenker, Washington Group International, Electron Progress,Force Delta, Red Devil Catering, Right Rental, Liberty FoodServices, Technopolis.

JULY

INDEPENDENCE DAY CELEBRATION

July 8th • Lozenetz Residence

AmCham members and families, U.S. embassy employees, U.S.citizens in Bulgaria and many other guests enjoyed the tradi-tional Independence Day Community party celebration. The eventgathered more than 1,800 guests, among them many children,in the Lozenetz residence, Sofia. The participants enjoyed lots offun, life-music, delicious meals and beer.

A special guest at the AmCham celebration was H.E. John Beyrle,US Ambassador to Bulgaria. He welcomed in Bulgarian languageall the guests and friends at the spot. “July Fourth is not onlyan American holiday but a one for every nation that treasuresthe ideal of freedom, democracy and responsibility”, the USenvoy said. For the first time this year the American andBulgarian anthems were performed live by “Georgi Robev” ChoirSociety, that earlier sang in for the guests still at the gates ofLozenetz Residence. The event finished with glorious fire workand fantastic cake.

The American style traditional family party this year was gener-ously supported by Bulgarian Telecommunications Company,Vivatel, Dodge, Chrysler, Jeep, Fender, Jack Daniels, DundeePrecious Metals, 3M, Ideal Standard, Ernst&Young, Citigroup,MacDonald, Hilton, Coca Cola, Kamenitza, Tuborg, Zagorka,Shumensko, Amstel Beer, Pain D’or, Pop Weaver.

20

EVENTS 2006

SEPTEMBER

US-BULGARIA JOINT TRAINING FACILITIES:TRAINING SEMINARS ON US CONTRACTINGPROCEDURES

September 11,12 • Yambol, National Science HallSeptember 14,15 • Sofia, “Arena Center”, Mladost

With over 50 participating companies in Yambol and 160 com-panies in Sofia the training seminars on US contracting proce-dures turned out to be the ideal venue for business opportu-nities in Bulgaria created by the establishment of US-Bulgariatraining facilities. The training was organized by the AmericanChamber of Commerce in Bulgaria and the US CommercialService in Sofia with the of the US Defense AcquisitionUniversity team, leaded by Mark Lumer, U.S. Army SMDC. Theprofessors Bruno Wengrowski and David Lewis from theUniversity, and Marcia Coleman, US Army ContractingCommand, Europe and Dan Salter played critical role in makingthis training a huge success.

BUSINESS AFTER HOURS WITHVISA INTERNATIONAL

September 19 • Hilton Hotel

At the cocktail in Hilton Hotel, Mr. Catalin Cretu, VicePresident for Rumania and Bulgaria introduced the new pay-ment solutions of VISA International to support business com-petitiveness in key sectors such as procurement, travel & enter-tainment, small and medium sized enterprises and government.

BUSINESS LUNCHEON WITH PAUL DYCKQDEPUTY ASSISTANT SECRETARY FOR EUROPE,INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE

September 29 • Hilton Hotel

Paul Dyck congratulated the Bulgarian government with theprogress made in economic reforms and expressed his hopes forfinding new exciting opportunities for the bilateral relationshipsin regard with the Bulgaria’s EU accession. Better trade rela-tionships would affect both American and Bulgarian govern-ment, and the businesses, the guest added.

21

EVENTS 2006

Sixty AmCham members, guest companies, and media represen-tatives, were presented at the Business Luncheon. AtanasPaparizov, Chair of the Parliamentary Committee for EU inte-gration was among the guests at the event. Prior to lunch PaulDyck participated in a media discussion with representatives ofReuters, Dnevnik, Capital, Europe TV, Sega Daily.

OCTOBER

BUSINESS LUNCHEON WITH STANTON CHASE

Guest speakers: Gert Herold, Vice President EMEA Region, Peter de Jong, Global Chairman Practice Groups

October 5 • Sheraton Sofia Hotel Balkan

On October 5th visiting Gert Herold, Vice President EMEARegion, Stanton Chase International and Peter de Jong, GlobalChairman Practice Groups, Stanton Chase International present-ed the activities of Stanton Chase, a US company specialized inexecutive search and consultancy. Many AmCham members andguests attended the business lunch. The company started in1990, built from 6 existing executive search firms /some goingback to 1975/. Now it has 55 offices in 36 countries and isnumber 7 in global ranking of international executive firms.

BUSINESS LUNCHEON WITH JOICHI ITO,MEMBER OF THE BOARD OF DIRECTORS OFINTERNET CORPORATION FOR ASSIGNEDNAMES AND NUMBERS (ICANN) ANDTHE OPEN SOURCE INITIATIVE (OSI)

October 26 • Radisson SAS Hotel, Alexander Ballroom

Japan IT investor Joichi Ito, ICANN board member and memberof the CyberElite and one of the Internet pioneers in the devel-opment of blogs, spoke about the new culture and new oppor-tunities, about planning the future of Information technologiesand Internet.

The main topic of his presentation was “Impact of open net-works and sharing economy on the entrepreneurship and inno-vations”. He informed AmCham audience about the multiple busi-ness-oriented applications, and the effect of using IT in differ-ent branches of the economy.

22

EVENTS 2006

NOVEMBER

THANKSGIVING COMMUNITY PARTY

November 16 • Sheraton Sofia Hotel Balkan

For a fourth year in a row, AmCham Bulgaria has joined theAmerican spirit of charity and generosity organizing itsThanksgiving community dinner on November 16th at theSheraton Sofia Hotel Balkan. The Chamber’s fundraising forcharity purposes succeeded to collect 10 500 BGN.

Some 200 highly designated guests came to the charity event.AmCham thank Eli Lilly and Company, Abbot Laboratories S.A.,Pfizer H.C.P. Corporation, and ABB Bulgaria for the mainsponsorship of the event.

Distinguished AmCham members contributed with specialprizes for the fundraising in favor of “We Exist” Association –Sofia, “Future for children with disabilities” Association –Kasanlak and “Equality” Association – Teteven.

AmCham appreciated financial support from all generous con-tributors and bidders who kindly provided their help for thethree Associations: Iva Petkova, Rusalka Holidays, S&BIndustrial Minerals, Andrei Vassilescu, Philip Morris, TeodorMilev, Microsoft, Rumen Mihailov, 3M, Technologica, Abbot,Mathnasium Rossimat, NECA, Bearing Point, Grenvill Bulgaria,Deloitte, Rising Force, Moten, Vivatel, Balkan Star, AUBG,Johnson Controls, American College, etc. Among the contrib-utors for the fundraising was Rising Force Company, withdonation of White Fender Stratocaster which was auto-graphed by dignitary guests of the 4th of July 2006Celebration.

As special guest at the dinner, U.S. Ambassador to BulgariaJohn Beyrle welcomed audience in Bulgarian language.“Thanksgiving time is about family values and generosity andit is very important that we have friends and partners toshare these values with”, he said.

BUSINESS AFTER HOURS WITH BERLITZ

November 28 • Berlitz House

On a cocktail party in the Berlitz house AmCham guestslearned from Stefan Nedkov, Infoguard, Franchiser of Berlitz,Slava Varbanova Director Berlitz Bulgaria, and MariaKaraivanova, language instructor about Berlitz method pio-

23

EVENTS 2006

neered 125 years ago and innovating today in learning foreignlanguages.

Except for this program, Berlitz has private language instruc-tion, corporate group instruction, group courses and culturalconsulting.

DECEMBER

AMCHAM CHRISTMAS PARTY

December 12 • Hilton Hotel

AmCham Christmas party attracted some 400 guests andfriends of the Chamber from business and political elite. HiltonHotel turned out to be the ideal setting for the performanceof choir Georgi Robev that created a special Christmas atmos-phere with Stille Nacht, Heilige Nacht, Joy to the Worls, AveMaria, Viva la Musika, Jingle Bells and piano playing. Addingto the Christmas moods, the guests were welcomed at theentrance with a small gift - a red bell that the AmCham teamgave to every guest.

The fantastic music provided by Georgi Marholev, Amalia andthe “Dirty Purchase” provided the perfect party music and thedances continued till midnight.

AmCham greatly appreciates the kind support of DomaineBoyar and Johnnie Walker who contributed to the party greatatmosphere.

BUSINESS BREAKFAST WITH PARLIAMENTARYLEGAL AFFAIRS COMMITTEE

December 20th • Radisson SAS Hotel, Alexander Hall

AmCham Real Estate Committee organized a business breakfastwith members of parliament from the Parliamentary LegalAffairs Committee to discuss the repeal of the 10-th yearrestriction in lease contracts between commercial companies.

24

25

AMCHAM COMMITTEES

AmCham Committees

PUBLIC AFFAIRS COMMITTEEMission: To develop and implement Chamber’s lobbying strategy for AmCham initiatives

to further improve the business environment in Bulgaria, to work out positionpapers and statements on legislative initiatives and present them to theGovernment; to manage relations with Chamber’s stakeholders, includingGovernment and other state institutions.

Background: Established in 2002 AmCham Public Affairs Committee established provides aneffective medium for the membership to convey its concerns and messages togovernment decision-makers.

Chair of the AmCham Public Affairs Committee is Mr. Kenneth M. Lefkowitz, NECA.

Vice Chairs of the AmCham Public Affairs Committee are Ms. Evgenia Stoichova,Coca-Cola Bulgaria EOOD and Mr. Chris Thompson, BearingPoint, Inc.

Priority Issues 2006: Promotions Act:

• US-Bulgaria Double Tax Treaty• Law on Foreigners/work permits• IPR issues

Activities Performed The past year activities of Public Affairs Committee during its regular monthlyin 2006: meetings centered on understanding better the problems and needs of AmCham

membership. The Committee has defined the key principles and suggestedAmCham Lobbying Strategy 2006.

Tsthe IPRs protection on October 31st. The guest speaker Ms. Ina Kileva,Deputy Minister of Culture.

Lobbying and The Public Affairs Committee in cooperation with the rest of the AmCham Advocacy: committees supported and released statements on the following issues:

• Double Tax Treaty Negotiations

• Trade Register Procedures

• Condominium law

• Packaging & Waste Management

• Patent Act

• Draft Law on Amendments to theObligations and Contracts Act

• Advocacy for the Dundee PreciousMetals.

26

AmCham Committees

EU AFFAIRS COMMITTEE

Mission: • Contribute to the successful accession and integration of Republic of Bulgariato the European Union

• Promote Euro-Atlantic cooperation by becoming

• an active discussion forum

• a source of reliable and practical information

• an active contact point for AmCham members on all issues related to theEuropean Union

General Objectives: • Gather and disseminate EU-related information;

• Organize EU-related events (seminars, workshops);

• Promote Euro-Atlantic relations;

• Define AmCham members’ interests concerning EU issues and identify chan-nels for communication to Bulgarian and EU policy makers;

• Assist the Bulgarian Parliament and Government in EU process by providinginput to the legislative framework and to the strengthening of the adminis-trative capacity of government institutions;

• Provide new AmCham services in the context of Bulgaria’s EU membership;

• Foster dialogue between AmCham and:

• Bulgarian state institutions

• Bulgarian mission to the EU in Brussels;

• EU administration in Brussels;

• AmCham EU;

• AmChams in Europe, especially those in the new EU Member states andaccession countries.

Background: Established on March 10th, 2005 the AmCham EU Affairs Committee continuedits activities focused on providing useful information related to the Bulgarianaccession to EU.

Chair of the AmCham EU Affairs Committee is Olga Borissova, PhD, Director,Ellief Center AUBG and Member of the Board of Directors.

Activities Performed: The first practical seminar from the series of lectures on ABC of EUStructural Funds presented the Operational Programme “Competitiveness -Financial Opportunities and Challenges” on January 31st, 2006. The guest speak-er Mr. Stanimir Barzashki, Executive Director, Bulgarian Small and MediumEnterprises Promotion Agency introduced and discussed with the committeemembers the strategic aspects of developing EU projects and the advantagesand disadvantages of participation in EU Programmes.

The seminar on the role of Ministry of Regional Development and PublicWorks in the current financing programs of ISPA and PHARE and the futureStructural Funds was organized with the cooperation of the AmCham RealEstate Committee and was held on February 27th, 2006. The guest speakerMrs. Iskra Mihailova, Deputy Minister of Regional Development and publicworks presented one of the Operational Programmes “Regional Developmentand its purpose to mobilize the regional resources for the opportunities pro-vided with the structural funding.

27

AmCham Committees

A seminar on the integration of Bulgaria in EU “challenges for the smalland medium enterprises” was held on April 19th, 2006 in Blagoevgrad. Theseminar discussed the possibilities and advantages for the candidate-countriesand the main pre-accession instruments. The guest speakers were:

Mrs. Olga Borissova, Director, Ellief Center, AUBG introducedthe horizontal pregrammes of EU.

Mr. Plamen Gerginov, Head of “European Funds, InternationalProgrammes and Projects” Directorate, Ministry of Labour andSocial Policy presented the Operational programme “HumanResources”

Mr. Georgi Stoev, Expert, “Regional development planning”Directorate, Ministry of Regional Development and Public Workspresented the Operational Programme “Regional Development2007-2013”.

The Operational Programme "Human Resources" part of the series ABC ofEU Structural Funds was presented on June 14th, 2006. The guest speaker Mr.Plamen Gerginov, Head of “European Funds, International Programmes andProjects” Directorate, Ministry of Labour and Social Policy presented the majorEU instruments to maintain the goals of EU social policy.

The seminar on the EU Directive on Environmental Liabilitywas held on September 19th, 2006. The guest speaker Mr.Randy M. Mott, Regional Environmental Coordinator for CECGovernment Relations discussed the key issues related to that EUDirective:

The meeting was organized with the kind cooperation with CECGovernment Relations – Bulgaria.

The seminar on the Indirect taxes challenges of the EU accession was heldon October 3rd, 2006. The guest speakers Ms. Malina Marinova, Manager,PricewaterhouseCoopers and

Mr. Milen Raikov, Senior consultant, PricewaterhouseCooperspresented the key issues

The meeting has been organized with the kind cooperation withPriceWaterhouseCoopers

28

AmCham Committees

The seminar on the IPRs protection was organized in cooperation with theAmCham Public Affairs Committee on October 31st, 2006. The guest speakerMs. Ina Kileva, Deputy Minister of Culture outlined the key issues on IPRs pro-tection in Bulgaria.

The last meeting for 2006 dedicated on Preparation of Bulgaria for futureuse of EU Structural Instruments was held on December 7th, 2006. The guestspeaker Dr. Boriana Pencheva, Director, Management of EU Funds Directorate,Ministry of Finance focused on the main issues:

(1) EU Structural Instruments - financial allocation for Bulgaria.

(2) National Strategic Reference Framework and Operational Programmes. Stateof play. Priorities and fields of intervention.

(3) Challenges towards absorption of EU Structural Instruments.

AMCHAM BULGARIA MEETS AMCHAM EU On February 19th – 21st, 2006 AmCham EU held a briefing session forECACC members to explore current European Union policy issues and discussways in which the AmCham network in Europe can collaborate on policy andlobbying activities. AmCham Bulgaria was represented by Dr. Olga Borissova,board member and chair of the EU Affairs Committee and the ExecutiveDirector, Mr. Valentin Georgiev.

AmCham EU Affairs Committee project on “Commercial Opportunities forU.S. Companies in Bulgaria after the EU Accession”

AmCham EU Affairs Committee in cooperation with the Centre forEuropean Programmes at the American University in Bulgaria won a proj-ect financed by the US Embassy in Bulgaria.

The Topic of the research is “Commercial Opportunities for U.S.Companies in Bulgaria after the EU Accession”.

The research was prepared with the kind support of the US Commercial Serviceto the US Embassy in Bulgaria.

29

AmCham Committees

BUSINESS DEVELOPMENT COMMITTEE

Mission: To develop and implement AmCham events, business projects, marketing andPR strategy.

Background: Chair of the AmCham Public Affairs Committee is Mr. David Hampson, Grenvilleand Member of the Board of Directors.

The structure of Business Development Committee includes:

• Healthcare Committee

• Real Estate & Construction Committee

• Corporate Social Responsibility Committee

• AmCham Commercial Mediation Center

AMCHAM HEALTHCARE COMMITTEE

Our Mission: To encourage collaboration among member companies in the healthcare sectorenabling them to achieve common goals;

To generate ideas and promote solutions of mutual interest in the field ofhealthcare in Bulgaria;

To act as a mediator to build understanding between the Bulgarian healthcareauthorities and the members of the American Chamber of Commerce in Bulgaria;

To increase the popularity of the American Chamber of Commerce in Bulgariaamong the stakeholders in the Bulgarian healthcare system.

General Objectives: • Formulation of National Health Policy and National Drug Policy

• Harmonization of the local legislation and alignment with the Acquis:

• Amendments in the Drug Act and the related regulations

• Procurement Act

• Patent Act

• Medical Devices Act

• Health Insurance Act amendments

• NHIF Reimbursement Regulation

• Access of innovative products to the market

• IPR protection enforcement

• Investment and transparency in healthcare and innovation

• Healthcare reform and the implications for the business

• IT system and e-Health

• Patient empowerment

Background: The AmCham Healthcare Committee was established in March 2006.

Chair of the Healthcare Committee is Dr. Maria Vranovska, AbbottLaboratories S.A.

The Vice-Chairs responsible for the main healthcare divisions are:

Pharmaceutical Division – Mr. Dimitar Stoynov, Pfizer;

Medical Divices Division – Mr. Dimitar Marintchev, Diamed;

Medical Services Division – Mr. Valeri Borissov, IBM;

30

AmCham Committees

Activities Performed: On March 30th, 2006 The AmCham Healthcare Committee revived its activityafter a brief period of Intermission. At the meeting, the committee structureand the key priorities were approved.

During the year the Committee organized regular monthly working meetings.Among the main topics of discussion and lobbying was the transparency of thehealthcare sector in Bulgaria and the:

• Drug Act – The first part of the Drug Act is submitted to the ParliamentaryHealthcare Committee and it is under discussion. The second part related toreimbursements, prices, retail trade is not submitted yet. The Drug Act isexpected to be approved till the end of January 2007.

• Medical Devices Draft Act – The licenses for medical devices are prolongedfor 2007 as the Medical Devices Draft Act is expected to be approved later.

• Draft Act on Patients' Rights – AmCham Healthcare Committee with thestrong support of the US Embassy, the Delegation of the EuropeanCommission to Bulgaria, the EU Commission on Internal Market, ARPharMsuccessfully lobbied to protect the established intellectual property of origi-nal medicines in this country.

• Draft Lobbying Act – The AmCham Public affairs Committee decided to facil-itate lobbying in the correct way preparing a short statement without toexpress support to a certain draft. The statement should suggest principlesto be applied in choosing among the various proposed drafts.

On December 19th, 2006 representatives of the CustomsAgency Ms. Kaya Garabedian, Head of Department“Measurements of Non-Tariff Barriers” and Ms. Tsveta Lukina,State Expert, Customs Regimes and Procedures” Departmentspoke on “Challenges related to the EU accession - Clearing ship-ments after January 1, 2007, customs implications, etc.”.

REAL ESTATE & CONSTRUCTION COMMITTEE

Mission: To improve the regulatory environment for Bulgaria’s Real Estate Market.

General Objectives: The Committee:

• Identifies current issues and initiatives that impact the real estate market inBulgaria.

• Facilitates business government dialogue on these issues.

• Promotes public discussion on these issues.

• Mobilizes support on key initiatives affecting the real estate market.

The Committee’s work is guided by the following core values:

• Free Market Principles

• Competition on a level playing field

31

AmCham Committees

• Transparency and Accountability

• Reasonableness and effectiveness in regulation

• Best international practices

Main Focus in 2006: Term of Leases

The Committee has advocated for removal of the restriction in the law thatlimits the term of real estate leases to a maximum of ten years.

Draft Law on Condominium

The Committee has interacted with the Ministry of Regional Affairs and PublicWorks on draft legislation the Ministry has prepared to regulate management ofmulti-family buildings. The Committee is advocating for the draft to establish aregime emulating western condominium legislation. While the Ministry is respon-sive and open to the Committee, success on this objective has been limited.

Draft Laws on Appraisers (veshti lica) /Architects/ Construction

The regulations in Bulgarian legislation could potentially restrict competition inthe field of the professional organizations of appraisers, design engineers andarchitects. The Committee has suggested the setting of a legal framework andinternal regulations in compliance with the aims of the Protection ofCompetition Act.

Background: The AmCham Real Estate & Construction Committee was established in 2005.

Chair of the AmCham Real Estate & Construction Committee is Tanya Kosseva-Boshova, Executive Director, Landmark Properties Bulgaria Jsc. and Member ofthe Board of Directors of AmCham.

Activities Performed: The committee has organized regular monthly working meetings. Among themain topics of discussion and lobbying were the transparency of the real estatemarket in Bulgaria, Law on Term Leases, Draft of Condominium Law.

A seminar on the role of Ministry of Regional Developmentand Public Works in the current financing programs of ISPA andPHARE and the future Structural Funds was organized with thecooperation of the AmCham EU Affairs Committee and was heldon February 27th. The guest speaker Mrs. Iskra Mihailova, DeputyMinister of Regional Development and public works presented oneof the Operational Programmes “Regional Development and itspurpose to mobilize the regional resources for the opportunitiesprovided with the structural funding.

On December 20th, 2006 a Business Breakfast was held related tothe successful legislative initiative of AmCham Real Estate &Construction Committee. A Draft Law on Amendments to theObligations and Contracts Act was submitted to Parliament onDecember 4th, 2006. The draft law would abolish the 10-year restric-tion in lease contracts between businesses. Among the official guestswere the Parliament members Ms. Kamelia Kassabova, DeputyChairpersons of the 40th National Assembly, Ms. Eleonora Nikolova,Coalition "United Democratic Forces", Ms. Maya Manolova, Coalitionfor Bulgaria, Mr. Ognian Gerdjikov, National Movement Simeon theSecond and Mr. Tani Yanev, National Movement Simeon the Second.

32

AmCham Committees

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

Mission: To encourage and facilitate responsible business practices among AmCham mem-bers and to support them to improve the quality and effectiveness of their CSRprogrammes and actions.

General Objectives: • To start an AmCham Corporate Social Responsibility annual program aimingto structure the CSR activities of the Chamber.

• To encourage and improve communication and the exchange of informationbetween the AmCham members on Corporate Social Responsibility projectsand activities. In order to achieve this, the Committee plans to develop andmaintain a CSR section in the AmCham website, providing information aboutthe AmCham CSR issues and initiatives.

• To create a database of AmCham members’ CSR success stories and, in coop-eration with the U.S. Embassy, recognize the accomplishments.

Background: Established in 2005 the AmCham Corporate Social Responsibility Committee con-centrates its efforts to help the American Chamber of Commerce in Bulgariabecome more structured and focused in its community affairs as an organization.

Chair of the AmCham Corporate Social Responsibility Committee is Ms. ElitzaBarakova, BCAF.

Activities Performed: AmCham Corporate Social Responsibility Programme 2005-2006

At the meeting in May 2006, the Committee decided to start the AmChamCSR program for 2006-07 and the frame of the program was approved by theAmCham Board of Directors in September 2006. This is an entirely voluntaryprogram without interrupting or replacing members’ individual CSR projects.The aim for the next 12 months is to make a difference to the lives of 300children with disabilities living with their parents in Sofia, Bansko, Teteven,Kazanluk and Pleven. Money will be spent for equipment of daycare centers inthese locations, rehabilitation services, art therapy sessions, purchase of mate-rials for the centers.

On November 16th was held the 4th annual AmChamThanksgiving Dinner. This year it was dedicated to supportParents’ Associations of children with mental and physical dis-abilities in 3 centers: Future for Children with disabilitiesAssociation – Kasanlak, Exist Association – Sofia and EqualityAssociation – Teteven. The charity fundraising succeeded to col-lect 10,500 BGN. The money was raised through silent auctionbiding, sponsorship of the event and entrance fees, donation,as well as special contribution from AmCham Independence DayParty in July 2006.

AmCham thanks to the main sponsors of the event: AbbottLaboratories S.A., Eli Lilly and Company, Pfizer H.C.P. Corporationand ABB Bulgaria.

33

AmCham Committees

AMCHAM COMMERCIAL MEDIATION CENTER

Mission: Develop the AmCham Commercial Mediation Center (CMC) as a self-sustainingprovider of high quality mediation services and popularize mediation so it is rec-ognized as the chosen method of alternative dispute resolution.

General Objectives: • Create awareness and promote the concept of mediation among targetgroups

• Offer educational programs including trainings and workshops

• Organize individuals with experience and training in mediation

• Attract cases for mediation

Background: The AmCham Commercial Mediation Center was established in May 2005 as partof the American Chamber of Commerce in Bulgaria. The CMC relied on the sup-port and cooperation of the Commercial Law Reform Program (CLRP), whichwas funded by the United States Agency for International Development (USAID).

The AmCham Commercial Mediation Center held its inaugurationceremony on February 16th, 2006. The USAID Bulgaria MissionDirector Michael Fritz and Deputy Minister of Justice SabrieSapundjieva opened the event.

Activities Performed: Since the establishment of the AmCham Commercial Mediation Center its mediators:

• Finalized internal procedures and documents for administering mediations.

• Developed promotional materials including a brochure and a page onAmCham’s website.

• Conducted 25 informational meetings, introducing mediation to AmChammembers.

• Delivered 13 mediation presentations. The presentations provided AmChammembers with complimentary workshops on using basic mediation techniquesto resolve everyday business conflicts.

• Participated in the making of the educational film on mediation produced byCommercial Law Development Program

• Clients submitted 4 requests for mediation.

• Participated in the “Days of Mediation” held March 27th – April 17th , 2006in Sofia.

• A representative of the AmCham Commercial Mediation Center participatedon a USAID-sponsored Mediation Study Tour from April 16th to April 26th,2006 in Boston, Massachusetts

• Presented the mediation at the Economic Forum Maritza “Markets,Investments,Projects” on April 12 in Plovdiv at the special panel “CommercialMediation: An effective Dispute Resolution Tool for Bulgarian Businesses”.

34

AmCham Committees

TOASTMASTERS CLUB

Our Mission: Bringing together people from varied backgrounds with the desire of enhanc-ing our public speaking, leadership, and communication skills in an encouragingenvironment.

Background: The AmCham Toastmasters Club was established in 1999 and successfully re-launched on June 1st, 2005 under the guidance of Mr. Kenny Volandes.Currently, the club has 30 registered members from various professions includ-ing multinational corporations, non-governmental organizations, diplomatic mis-sions, universities, and local enterprises.

Activities performed: Meetings

The AmCham Toastmasters Club organizes its regular meetings bimonthly – everysecond and forth Wednesday of the month. The club is open for everyone will-ing to improve and develop his/her leadership and communicational skills.

Guest Speakers in 2006

On January 11th , 2006 prof. Bill Truran, Stevens Institute ofTechnology, spoke about development of talent in Bulgaria andthe difference between US and Bulgarian students.

On February 22nd , 2006 US Ambassador John R. Beyrle delivereda speech on effective communication with the media and diplo-matic circles. His Excellency captured the audience with his openattitude and unexpected-for-a-politician readiness to discuss anytopic during the Q&A session.

On March 22nd , 2006 Ms. Stefanie Cohen, a seasoned poet andwriter in Bulgaria, delivered a presentation on the challenges ofbeing a writer and read from her recently published collection ofshort poems.

On June 19th , 2006 UK Ambassador Jeremy Hill shared curiousand humorous rhetoric moments from his experience as a diplo-mat. The ambassador impressed the audience with his down-to-earth attitude and nice sense of humor.

On July 12th , 2006 Ms. Teodora Anguelova, Target Group Ltd.,delivered a speech on the importance of making mistakes on theroad to success and public speaking perfection.

On September 27th , 2006 Ms. Diana Osinski, Bearing Point,demonstrated how to engage an audience, sharing powerfulpresentation techniques she has learned and taught in her longcross-cultural experience as a trainer.

On October 25th , 2006 Ms. Andrea L. Enright, a US Piece CorpsVolunteer, presented the honorable cause of Habitat forHumanity and its endeavors in Bulgaria.

35

AmCham Committees

On November 22nd , 2006 Mr. Kenneth Lefkowitz delivered aspeech on transition and reform that put into strategic perspec-tive a number of events from Bulgaria’s recent history.

Charity event: In the eve of June 1st, the day of the child, AmCham Toastmasters club andAmCham Bulgaria continued their noble initiative to help Saint Sofia orphan-age, by donating several boxes of food and children supplies. The orphanageis home to about 70 children aged up to three years. This was the club’s sec-ond visit to the orphanage.

MEMBERSHIP COMMITTEE

Our Mission: To develop and implement AmCham membership policy.

Background: The Chair of AmCham membership Committee is Ms. Elitsa Tsaneva, IdealStandard. Members of the Committee are Ms. Olga Borissova, PhD, Director,Ellief Center AUBG and Mr. Chris Thompson, Mr. Christopher Thompson,BearingPoint, Inc.

36

LOBBYING

AMCHAM

LOBBYING

37

LOBBYING

38

AMCHAM BULGARIA:

OUR SPEAKERS

Our speakers

Assen Agov, Member of Parliament

Atanas Paparizov, Chair EuropeanIntegration Committee, BulgarianNational Assembly

H.E. Baroness Henriette van Lynden,Ambassador to the Netherlands to Bulgaria and Irina Bokova, MP

Ellaine Crickshanks, Member ofAmCham EU Board of Directors

H.E. James Pardew,US Ambassador to Bulgaria

Jay Burgees, Director for Centraland Eastern Europe, USDepartment of Commerce

Jeffrey Levine, Deputy-Chief ofMission U.S. Embassy Sofia

H.E. Jeremy Hill,HM Ambassador to Bulgaria, British Embassy

H.E. John Beyrle, US Ambassadorto Bulgaria

39

Our speakers

John Fogarassi, Minister Counselor,US Embassy to Germany

Les Nemethy, AmCham HungaryPresident

Linda Conlin, Member of theBoard of Directors of U.S. Export-Import Bank

Milen Velchev, Minister of Financeof Bulgaria

Milko Kovachev, Minister ofEconomy of Bulgaria

Nikolay Vassilev, Deputy PrimeMinister of Bulgaria

Richard Levick, CEO, LevickStrategic Communications

H.E. Rockwell Schnabel,US Ambassador to theEuropean Union

Solomon Passy, Foreign Minister ofBulgaria

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INTERNATIONALCOOPERATION

International Cooperation

EUROPEAN AMCHAM DELEGATION VISITTO AMCHAM EU: BUILDING EFFECTIVENETWORKS IN EUROPE

February 14 – 15 Brussels, Belgium

European AmChams gathered in Brussels at a policy sessionhosted by AmCham EU. AmCham collaboration on EU issues, theupcoming EU agenda and business issues in 2005 as well asenforcement of EU law was among the major topics of discus-sion. The participants shared their experience on the issues oflobbying at national level.

41

International Cooperation

ECCAC ANNUAL MEETING IN WASHINGTON D.C.

The annual meeting of European Council of American Chambersof Commerce (ECACC) took place in Washington D.C. on May23-25. The executive directors of AmChams from most Europeancountries met with Lt. Gen. Daniel Christman, senior vice-presi-dent for international affairs at the U.S. Chamber of Commerce,to discuss the trends of trans-Atlantic business dialogue.AmCham Bulgaria President Kenneth Lefkowitz and ExecutiveDirector Valentin Georgiev also met with Rep. Joe Wilson,founder and co-chair of the Congressional Caucus on Bulgaria.They had also meetings in U.S. Treasury to discuss the devel-opment of US-Bulgaria DTT negotiations.

A REGIONAL REVIEW MEETING IN PRAGUE

The Management of AmChams in Central and Eastern Europehad regional review meeting on August 11-13 in Prague. Thechambers’ policy advocacy, publications, events, public relations,membership and finance structure were discussed by the exec-utive and staff representatives of the AmCham-s in CzechRepublic, Slovakia, Poland, Hungary, Bulgaria, Romania, Ukraine,Slovenia and Germany. The attendees shared best practices fromtheir experience, planned regional co-operative efforts andreceived training of special skills in negotiation and resolvingconflicts.

May 25-26Washington D.C.

August 11–13Prague, Czech Republic

42

FINANCIAL REPORT

FINANCIALREPORT 2006BUDGET 2007

COMPARATIVE ANALYSIS BUDGET 2006–2007

Total Actual 2006 Total Budget (Unaudited) 2007

INCOME

Mem. Fees Current members 369 543 420 000

Mem. Fees - New members 48 065 32 400

Events 330 290 280 000

AmCham Publications 113 105 120 000

Other 10 896 2 000

TOTAL BGN: 871 899 854 400

EXPENSES

Events 210 413 270 000

AmCham Publications 119 330 110 000

Salaries and Bonuses 224 350 255 000

Other administrative costs 213 353 215 000

TOTAL BGN: 767 446 850 000

SURPLUS (DEFICIT) 104 453 4 400

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PUBLICATIONS

PUBLICATIONS

44

AMCHAM BULGARIA

IN THE MEDIA

AMCHAM IN THE MEDIA

American Chamber of Commerce in

Bulgaria has raised its media prof ile

with expanded presence in the print

and electronic media contributing to

enhanced public awareness of

AmCham mission, goals and

accomplishments.

Media reports in

bTV; BNT; Nova TV; BBT; Pari

Daily; Sega Daily; Mediapool;

24 Chasa; Novinar Daily; Dnevnik

Daily; Stroitelstvo i Gradat; Standard

Daily; Rositsa Newspaper; Forum

Medicus; Capital Weekly;

Darik Radio; Sofia Echo

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AMCHAM IN THE MEDIA

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ACKNOWLEDGMENTS:

ACKNOWLEDGMENTS

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ACKNOWLEDGMENTS

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Audit Report for 2005

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Audit Report for 2005

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Audit Report for 2005

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Audit Report for 2005

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Audit Report for 2005

AMERICAN CHAMBEROF COMMERCEIN BULGARIA

Publisher: Valentin Georgiev, AmCham

Published by: The American Chamber of Commerce in Bulgaria, ©2005

Designed by: Vladimir Dimitrov, ColorStudio®

Edited by: Jordan Hlebarov, AmCham

Photos by: Jordan Hlebarov, Irina Bacheva, Kamen Vlahov, Krum Stoev

Printed by: ColorStudio®

American Chamber of Commerce

in Bulgaria

www.amcham.bg

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