Press Release

Wednesday, July 12, 2006

U.S. SMALL BUSINESS USES OPIC LOAN TO FRANCHISE REAL ESTATE BRAND IN RUSSIA

WASHINGTON, D.C. – A U.S. small business will use a loan from the Overseas Private Investment Corporation (OPIC) to franchise the real estate brand Century 21 in Russia, helping to introduce standardized homeownership practices to a country with a lucrative, yet largely unregulated, real estate market, OPIC President and CEO Robert Mosbacher, Jr. announced today.

OPIC will provide a $3.6 million loan to Olard Trading Limited, a small business majority-owned by two U.S. citizens, to establish a network of franchisee-owned Century 21 offices in Russia, focusing first on Moscow and subsequently on other major cities. By creating regulated franchises with standardized services, the project will support the development of Russia’s private sector.

The Russian real estate market is growing rapidly – profits were up nearly 47 percent during the first 11 months of 2005 – and more than 4.5 million families are awaiting housing. However, the industry is largely unregulated and lacks internationally-branded real estate franchises. Most homes are sold on a cash basis, resulting in little or no payment of taxes.

“Russia’s real estate market is becoming an increasingly attractive destination for American investment, as the economy continues its solid growth and levels of disposable income rise. The establishment of Century 21 offices throughout the county will introduce standardized real estate practices to a largely unregulated industry, improving its efficiency and enabling it to serve as an engine of even greater economic growth,” Mosbacher said. “OPIC is pleased to support a U.S. small business in a project with so many developmental benefits.”

If successful in Russia, franchising of the Century 21 brand will be extended to other countries of the Newly Independent States.

OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.

OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $164 billion worth of investments that have helped developing countries to generate more than 732,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also generated $69 billion in U.S. exports and supported more than 264,000 American jobs.