1 First International Bank of Israel Ltd. - FIBI

2 GDP Rate of Growth (%) * Forecast

3 Rate of Inflation (%), Bank of Israel Interest Rate (%) average * Forecast Bank of Israel interest rate Rate of inflation

4 Exchange Rate ($/NIS) - average * Forecast

5 Foreign Investments in Israel* (US$ Millions) *In the private sector excluding banking In 2006 :1. Capital issue by “Teva” 2. Acquisition of “Iscar” by Berkshire-Hathaway

6 Israeli Investments Abroad* (US$ Millions) *In the private sector excluding banking In 2006 : Acquisition by “Teva”

7 Country Ratings

8 First International Bank of Israel Ltd. - FIBI Overview September 30, 2008

9 Ownership Structure Bino-Liberman Group FIBI Holding Company Ltd. The Public Israel Discount Bank The First International Bank of Israel Ltd. The Public PAGI Poalei Agudat Israel Bank Ltd. Modus-Selective Investments Portfolio Ltd. FIBI Bank (UK) Plc London FIBI Bank (Suisse) Ltd. Zurich Kidma – Provident Funds Management Ltd. E % V % E. Percentage of equity share capital ownership V. Percentage of voting power exercised at any general meeting E % V % E % V % E % V % E % V.68.68% E.50% V. 60% E. 100% V.100% E. 100% V.100% E. 100% V.100% UBank Ltd. (Formerly: Investec Bank (Israel) Ltd.) E. 100% V.100% FIBI Investment House Ltd. E % V. 11.1% E % V. 0% E. 100% V.100% As of Otsar Hahayal E. 68% V.66% Bank Massad The First Int’l & Co. Underwriting and Investments Ltd. E. 75% V. 25% E. 51% V.51%

10 Since: retail/commercial FIBI Retail bank cluster FIBI UK (London) FIBI Switzerland (Zurich) UBank Ltd. (Formerly: Investec Bank (Israel) Ltd.) Otsar Hahayal Bank Massad  Corporate + middle market banking  Private + affluent banking  85 branches PAGI Poalei Agudat Israel Bank Ltd. International Branches:  Capital markets  Trust and custody  Private and affluent banking  6 branches (unique affluent banking branches)  Business banking  Private banking  Private banking Focus: 17 retail/commercial retail Key audience:defense + militaryteachersultra-orthodox First International Bank Group

11 Mr. Zadik Bino has served in several senior positions in the Israeli banking industry in 25 years of activity in this field, among them as CEO of Leumi Bank and CEO as well as Chairman of First International Bank of Israel. He also served for many years as a public representative in the Advisory Committee and the Committee for Banking Matters of the Bank of Israel. In 1989 Mr. Bino founded Bino Holdings Ltd., and devoted himself to his private business affairs. Bino Holdings Ltd. is a private company, fully controlled and owned by Mr. Bino, which engages in the execution, development and nurturing of investments. Bino Holdings main investment, along with FIBI, is in Paz oil company. Since July 2006 Bino acquired, via Paz, Ashdod Refineries. Bino has various other investments in industrial sectors. It should be noted that his investment in FIBI was made from his own resources without requiring bank loans. On 2/2008 Mr. Zadik Bino transferred 47.5% of his holdings in Binohon Ltd., in equal shares and without consideration, to his 3 children. The Liberman family has enjoyed sustained success in both Australia and Israel for over 50 years. Jack Liberman, an astute Australian businessman and entrepreneur, along with his children, built a large and diversified investment company (JGL Investments PTY Ltd.) The family, together with Zadik Bino, in a long-term partnership, hold a controlling interest in both FIBI Holdings and Paz Oil Company Ltd. (“Paz”), Israel’s leading petrol player. Shareholders

12 Universal bank with strong niche position in capital markets, foreign exchange and foreign trade Domestic subsidiaries target focused audiences: affluent banking (UBank), defense sector - retail banking (Otsar Hahayal), ultra-orthodox Jews (PAGI), and teachers (Massad) Foreign subsidiaries in London (commercial banking) and Zurich (private banking) Branches: 178 (including subsidiaries and foreign subsidiaries) Employees: 5,055 Equity: NIS 5.5Billion (US$ 1.6B) 5th largest banking group in Israel First International Bank of Israel - FIBI

13 Bank Ratings

14 CORE CAPABILITIES: Top class reputation in private banking services, especially dealing room, specialized investment advice center and TASE futures and operations index, where FIBI is a market leader Distinctive professional standards in: global capital markets, currency exchange, structured products and foreign trade Strong traditional position in corporate banking CLIENTS: Client-centric vs. product oriented banking Corporate finance: increase penetration of middle market Private banking: extend presence in affluent segment Retail banking: broaden overall footprint (e.g., acquired Bank Otsar Hahayal and Massad) Strategy - Main Focus

15 GROUP CONSOLIDATION: Realize synergies from three bank acquisitions: Implement shared-services model, including IT systems Cross-sell products (mortgages, structured products, advisory services) Create streamlined and effective branch network NEW PRODUCTS: State-of-the-art pension-planning advice offering OTHER: Upgraded scoring model and processes in anticipation of Basel II, including development of advanced credit-scoring models for risk-based pricing Outsourcing: first Israeli bank to outsource its computer infrastructure Large but conservatively-managed foreign proprietary trading book Strategy - Main Focus

16 Pension Advisory Services At the beginning of 2008, the bank launched its pension advisory services, which have the potential to attract new customers and increase the bank’s retail activity. Accumulated sum (NIS) - 1,257,728,765 Number of meetings held – 5,141 Number of applications received – 20,252 As of

17 Retail Banking (Bank only) - as of 11/2008

18 Net Earnings (NIS millions) 6.6% Net ROE 8.1%15.0% 7.0% 4.0%

19 Net Earnings (NIS millions) 13.9% 5.8% Net ROE

20 Adjusted* Net Earnings (NIS millions) 13.9 % 9.3 % Net ROE * Not including the effect of accounting distortions and non-recurring costs

21 Ratio of Provision for Doubtful Debts to Credit to the Public * In II/2008 and III/2008 excluding Massad

22 Ratio of Provision for Doubtful Debts to Earnings from Financing Operations * In II/2008 and III/2008 excluding Massad

23 Ratio of Provision for Doubtful Debts to Credit to the Public

24 4 other major banksFIBI Ratio of Credit to the Public to Total Assets (%)

25 Total Credit Risk in Respect of Problematic Debts (NIS millions) * Securities, financial derivatives, non-utilization of credit lines

26 Total Assets (NIS Millions)

27 Credit to the Public (NIS Millions)

28 Deposits from the Public (NIS Millions)

29 Changes in Shareholders’ Equity (NIS millions)

30 Capital Adequacy 11.7% 10.1% 11.4% Capital Adequacy Ratio (%) Second Tier Capital Ratio First Tier Capital Ratio First Tier Capital Ratio 11.4%

31 Capital Adequacy Ratio

32 Operational and Other Expenses (NIS millions) * Excluding Massad 1022 * * 338 * 484 * 1844 *

33 * Not including the effect of accounting distortions and non-recurring income and wage costs Cost to Income Ratio - Consolidated

34 Composition of Foreign Proprietary Trading Book – Bank only

35 * The influence on the Capital Account of the subsidiaries abroad, UBank, Otsar Hahayal and Massad is not substantial MBS – Mortgage Backed Securities (all) (21) NIS Millions Others (42) NIS Millions MBS – Mortgage Backed Securities (all) (43) NIS Millions Others (105)NIS Millions (105)NIS Millions (63) NIS millions NIS Millions(148) NIS Millions(148) Adjustment to Fair value of Available for Sale Securities – Consolidated* MBS – Mortgage Backed Securities (all) NIS Millions(88) NIS Millions(88)Others NIS Millions (176) NIS Millions (176) After balance sheet (264) NIS millions

36 due to 3 ALT-A MBS 3 ALT-A MBS 80 NIS Millions 99 NIS millions Provisions in III/2008 (Bank only) due to permanent depreciation due to investment in 2 hedge funds 2.7 NIS Millions due to investment in 3 investment in 3 hedge funds in FIBI Suisse portfolio FIBI Suisse portfolio 0.9 NIS Millions Other securities 15 NIS Millions

37 * Includes all segments except “other” 28.9% As of % 10.8% 18.9% 13.6% 27.9% Income by Segments *- Consolidated

38 PAGI PAGI, in which FIBI has a 68% equity holding is a commercial bank with 20 branches, and the majority of its clients belong to the ultra-orthodox and orthodox sectors. PAGI maintains a unique positioning as Israel’s only orthodox oriented bank and its share in its target segment has grown significantly. PAGI’s strategy is to aggressively grow its client base, while focusing on target segments with intensive financial activity in personal, business, and institutional banking. PAGI invested heavily in modernizing its branch network, while maintaining the conservative demeanor that attracts devout Jews.

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40 UBANK FIBI acquired 100% of share capital of Investec Bank (Israel) Ltd. in December Investec Bank specialized primarily in capital markets, foreign currency, private banking and trusteeship. As of March 2005 the name of the bank was changed to UBANK. It is maintained as an independent subsidiary. The acquisition of UBANK significantly bolstered FIBI’s competitive position in private banking, capital markets and foreign currency trading. In 2007 UBANK launched an innovation in Israeli banking – dedicated branches for affluent clients. This premium service (above retail and bellow classic private banking) comprises distinctive branch design and hours of operation, along with many other attractive features. Four of these new branches have already been opened and more are scheduled for the coming years.

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42 Otsar Hahayal FIBI acquired 68% of the share capital of Otsar Hahayal in August, Bank Otsar Hahayal specializes in retail and small to medium-sized businesses (SMEs) and has a high proportion of current and former Defence Industry personnel within its client base. The inclusion of Bank Otsar Hahayal’s operations creates a banking group with a comprehensive and diverse range of activity and earning base. FIBI is currently in the process of integrating Otsar Hahayal’s IT systems and coordinating across headquarters support functions.

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44 Massad FIBI acquired 51% of the share capital of Massad in May Massad, as a sectorial bank, specializes in teaching personnel as its client base. With Massad, FIBI has completed its acquisition of three Israeli banks and has now become a multi-bank group with a wider network in the retail market, thereby enjoying both the privileges of a large banking group, and the advantages of each subsidiary's special field of expertise. FIBI is currently in the process of integrating Massad’s IT System and coordinating across headquarters support functions. Massad's identity as the “teachers' bank” also places it in an advantageous position in the Arab sector, and explains its success in this sector despite rising competition..

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