(The following is a list highlighting preferential investment policies afforded to businesses that invest in Baoshan Industrial Zone.)

★  High-tech foreign-invested enterprises and large enterprises investing in the Shanghai Baoshan Industrial Zone will enjoy state and municipal incentive policies.
★  Foreign-invested enterprises that have been operating for more than 10 years will benefit from incentive polices such as the exemption of enterprise income tax in the first two years of profitability, as well as the reduction (of enterprise income tax) by half from the 3rd year to the 5th year of profitability.
★  Foreign-invested product export enterprises have the benefit of a reduction of enterprise income taxes by half when the value of export products for the year reaches over 70% of the total product value of the enterprise.
★  After the income tax deduction and exemption period has expired, if a foreign-invested, advanced technology enterprise's business scope is still of the same nature, the enterprise income tax will be reduced by half for another three years.
★  If foreign investors re-invest the profits into the enterprise or use them to establish new business, foreign investors will enjoy related tax incentive policies.
★  Domestic high-tech enterprises can refer to the above incentive policies if they invest in the zone.

(The following is a chart that highlights the different categories of taxation benefits for enterprises that invest in the park.)