Based on the Law on Privatization, the Decree on the Procedure and Manner of Restructuring Subjects and based on item 8.2.9.3. of the amendments and supplements to the Program for Restructuring the Subject of Privatzation – Zastava Vehicles Group, i.e. item 4, in accordance with the Report on the Categorization of Equipment, Tools and Machines dated 13.11.2008, Zastava Automobili a.d. – in restructuring announces the following:

P U B L I C  T E N D E R

FOR THE SALE OF MOBILE ASSETS BY PUBLIC BIDDING

        The subjects of sale are parts of the assets from Category (b) – individual machines as has been defined by the Report on  the Categorizaton of Equipment, Tools and Machines dated 13.11.2008, as follows.

        Further details about the assets which are the subject of sale based on the this public tender, as well as the conditions and manner of the implementation of sale are included in the sales documents which will be availabe to interested parties in the headquarters of the seller, Zastava Automobili a.d. – in restructuring in Kragujevac, Kosovska 4 and on the online address: www.zastava-automobili.com.

(1.) The above mentioned assests are sold in as seen condition and without any rights to claim (FCA location of equipment).

(2.) Potential buyers can get an insight into the equipment which is subject to sale from the day of announcement of the invitation to the day foreseen for bidding, each working day from 9.00 a.m. until 3.00 p.m. and Saturdays from 9.00 a.m. until 3.00 p.m.

(3.) Parties interested in taking part in the Public Bidding are obliged to submit their applications for public bidding by e-mail, registered mail, fax or personally to the following address:

Zastava Аutomobili  а.d. Kragujevac, Коsovskа  No.4 ,34000 Кragujevac

Contact person: Mr. Mihajlo Lazarević, Technical Director of Maintenance

Telephone number/fax: 034-323-195, mоbile  065-63 22 700

е-mail address: r.rajkovic@automobili.zastava.net

with the following indication: ’’Application for public bidding No. ...... (number of application from table)’’

By submitting the application for public bidding, buyers confirm that they are acquainted with the rules of the implementation of the public bidding and that they accept the conditions given in the sales documents.

(4.) Potential buyers acquire the right to participate in public bidding by paying a deposit in the amount of 10% of the starting price of the subject of sale onto the account number  /RS35166005010023674276, i.e (see instructions: INSTRUKCIJE EUR, INSTRUKCIJE USD). by forwarding a bank guarantee to the above mentioned amount and by registration for public bidding, which will be done at the address where the bidding is to take place.

The registration procedure for participants starts at 8.00 a.m. and ends at 10.00 a.m. before the beginning of the public bidding.

(5.)  Sales purchase agreements are to be signed immediately after the bidding with the most successful participants of the public bidding – buyers. The proclaimed buyers are obliged to pay the remaining amount of the sales purchase price within 7days from the day of the signing of hte sales purchase agreement.

SPECIFICATION OF EQUIPMENT FOR TENDER:

Lathes 49KB

Toothing Machines And Planers 47KB

Milling Machines 47KB

Drill And Bore Machines 48KB

Grinders, Grinding Stones And Sharpening Machines 56KB

Cutting Machines And Saws 50KB

Presses And Bending Machines 44KB

Special Machines And Equipment 45KB

Participation At Public Auction 48KB

Equipment_Sales_Agreement 49KB