FOR IMMEDIATE RELEASE
December 5, 2002

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For further information, contact:
Lawrence Spinelli (202) 336-8690
Timothy Harwood (202) 336-8744

OPIC INSURES TWO U.S. SMALL BUSINESSES FOR PROJECTS IN MOLDOVA

WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) will provide nearly $1 million in political risk insurance to two U.S. small businesses for projects with significant developmental benefits for the telecommunications and agricultural sectors in Moldova, OPIC President and CEO Dr. Peter Watson announced today.

OPIC will provide $300,000 in insurance to International Communications Systems, Inc. (ICS) of Huntington Station, New York, for the purchase of voice/data transit traffic equipment and Internet routing equipment for its Moldovan subsidiary, ICS Moldova. The new equipment will enable ICS Moldova to carry traffic between Moldova and the rest of the world, at the same time improving the existing system both in quality and in volume of traffic available, and providing state-of-the-art routing technology at a reduced cost.

The project will generate more than $1 million in annual revenues for the country’s telecommunications company, Moldtelecom, as well as provide a foundation for further system upgrades.

In the second project, OPIC will provide $675,000 in insurance to Foodpro International, Inc. of San Jose, California, for the purchase of equipment for a walnut and dried fruit processing facility in Soroca, Moldova, which produces for the domestic market and western Europe.

The facility -- the only one in eastern Europe which can mechanically process walnut meats -- exports $600,000 annually to regional markets, generating a positive effect on Moldova's balance of payments.

“Both projects will have important developmental benefits for Moldova,” Dr. Watson said. “Investment in Moldova’s telecommunications sector will contribute to further economic development among companies that rely heavily on communications capability. Similarly, Moldova depends greatly on its agricultural sector, which provides employment for almost half its population and is responsible for about 75 percent of its exports. That we can involve two U.S. small businesses in the development of these two sectors of Moldova’s economy is very satisfying for OPIC.”

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 30-year history, OPIC has supported $142 billion worth of investments that have helped developing countries to generate over $11 billion in host-government revenues and create over 673,000 host-country jobs. OPIC projects have also generated $64 billion in U.S. exports and create more than 253,000 American jobs.