Referring to Portugal, Italy, Greece, Spain and Malta, the project focuses on SMEs involved in art-related sector and the actions will be finalized to: 1. creation and promotion of a stable network between UNESCO sites territories in the Med space and enterprises finalised to have an exchange of experiences and know-how, promotion of economic initiatives, realization of an innovative system of management of cultural enterprises; 2. strengthening entrepreneurial skills of enterprises; 3. creation/support of cultural attractors, different but integrated with traditional ones. Concerning to priorities the project moves in order to improve general condition of employment by supporting entrepreneurial activities, and consistently with the purpose of promoting a competitive and dynamic economy, based on knowledge, where SMEs could implement new strategies for internationalization, based on elements of territorial identity. On the top of that, art related enterprises are based on an eco-sustainable use of natural resource, in this way the project contributes to develop a sustainable strategy in local policies. Project foresees a transnational pilot action, that will interest all partners involved. More over the creation of new enterprises will be encouraged through the creation of infrastructures and business incubators. The elaborated methodology is based on the idea of sustainability of project in the future. Achievements: State of the art of project implementation since the project startThe extension of the project was very important to reinforce the sustainability component of ICE. Some partners are in the process of the physical implementation of the incubator, others that will not set the incubator during ICE, concluded the model to its implementation in a close future. Concerning to the outputs it was created the project Logo, 6 newsletters the project web site the brochure of the project is concluded. In the management component a Manual Procedures was set and 6 PRs and 5 PQs were submitted. In the operative components all 6 Territorial and SWOT analyses were concluded as well as one synthesis document. The databases of cultural SMEs and stakeholders are ready. The Tool's Kit to Support Cultural SMEs and the Creative Business Directory are concluded and edited in printed or digital versions. All partners promoted several communication actions, trough the realization of public sessions, press releases, workshops and thematic meetingsLatest project activities and outputsIn these 2 months no activity took place, only management component had some impact, due to the delay of expenses certification from BIC Attika (presented in October 2012) and FTZ (presented in January 2013). Also CIMAC and S. Basilicata presented some expenses that were delayed in the payment because of legal changes in Portugal (that temporarily blocked the realization of expenses) and cash flow availability in case of Basilicata. All activities were reported in the previous Progress ReportNext key steps for the projectICE integrates an application to Capitalization process in MED, along with other MED and non MED projects.