November 2007

Disclaimer The company's presentation is intended for institutional investors and underwriters only. The presentation does not constitute an offer to purchase the company's securities and was strictly intended to provide information only to institutional investors and underwriters. Any forecast and/or statement regarding the future, which is included in this presentation, are not a matter of fact but rather based on the evaluation of the company's management, at its discretion. At the same time, these forecasts and/or statements are based on the company's expectations at the date of the presentation and inherently hold in store a number of uncertainties and risks that should be considered. Consequently, it should be noted that the actual results may differ substantially from the expectations in those forecasts and/or statements referring to the future, as a result of various factors. In addition, forecasts and/or statements relating to the future are referring to the date of this presentation only and the company is under no obligation to update or alter any forecast and/or statement relating to the future to reflect events or circumstances occurring after the date of this presentation. 1

Market Cap of 21.0 billion NIS – 6 th largest on the TASE 13 Public companies traded in Israel and worldwide Main Shareholders: Lev Leviev – 74.94% Free Float – 25.06% Credit Rating: Maalot (S&P Affiliation): AA Midroog (Moody’s Affiliation): Aa2 Operating Global Conglomerate Europe Russia & CIS AMERICAISRAELAsia 2

Africa Israel Investments Ltd. Residential Real Estate Construction & Infrastructure Energy Related Industries Light Railway Refineries Steel Telecommunication & Media Tourism & leisure Retail Other Business Areas Roads & Bridges Commercial Offices Private Prison Asphalt Ceramics Oil pipelines Hotels Residential Commercial Offices Petrol stations Business Areas Financial Services Fashion Greenhouses 3

The Corporate Value Triangle Entrepreneurship, Innovation, Business Assets Financing capabilities Entrepreneurship, Innovation, Business Assets 4

.. North America USA Canada Latin America Panama Argentina Israel Europe (East & Center) Czech Republic Germany Hungary Bulgaria Romania Latvia Poland Serbia Asia China India Philippines Thailand Global Presence – (2007) Russia &CIS Russia Kazakhstan Ukraine Related Industries Energy Construction & Infrastructure Real Estate Other Business 5

Corporate Strategy Building Blocks The Business Matrix Global Expansion while maintaining a strong and meaningful presence in Israel Focus on large Scale Projects Leveraging core competencies by Active Corporate involvement Build up sustainable net income on a solid basis 6

Revenues Total Assets Gross Profit Operating Profit Net Earnings NIS Millions ,007 38, ,386 Q-3/ ,498 1, ,778 4,876 1,424 1, ,535 4, ,716 3,152 Financial Snapshot 7

Total Assets (NIS Millions) 8

Revenues (NIS Millions) 9

Net Profit (NIS Millions) 10

Share Price Performance Since 2002 Dividends Distributed Million NIS % 103% 352% 253% 1,010%

Market Cap (NIS Millions) AFI Development Africa Israel Hotels Africa Israel Properties Africa Israel Residences Danya Cebus Africa Israel industries AFIL‘S Share Alon Value to AFIL ( ) AFRICA ISRAEL 69.9% 74.9% 74.8% 67.5% 86.1% 26.1% 71.7% Net Debt Public Only 12 17,047 2, , , ,630 (7,549)

Business Areas – Real Estate World Wide Europe Russia & CIS AMERICAISRAEL Asia Hotels Residential Real Estate Offices Commercial

Real Estate- Russia & CIS AFI Development : Public company traded on the LSE 71.70% held by Africa Israel Investments Market Cap of 15.3 billion NIS Since 2001 Portfolio Inc. 27 projects Land Bank of 3.9 million sq m Over 1.2 million sq m currently under construction Focus on mega real estate projects incl. Residential Offices Commercial (Shopping Malls) Hotels Infrastructure 14

Tverskaya Shopping Center 71,000.sq m Tverskaya Zastava Plaza I 63,000.sq m Tverskaya Zastava Plaza II 100,000.sq m Ozerkovskaya Embankment 90,000.sq m Four Winds 41,000.sq m Moscow City Center Core 110,000.sq m Otradnoye (Odinzovo) 490,000.sq m Real Estate - Russia & CIS 15

Moscow City - Shopping Centre Located in the heart of Moscow comprises over 111,000 sq m of retail and leisure space Expected completion by Q Russia & CIS - Moscow City 16

8.1 hectares in the Tverskoy district close to Belorussky station and 3 km from the Kremlin Over 450,000 sq m of gross leasable/sellable area across seven mixed-use commercial and residential developments Expected to be largest underground shopping centre in Moscow Over 190,000 sq m of Class A office space across various buildings located in the proximity of the square Russia & CIS - Tverskaya Zastava 17

Russia & CIS - Tverskaya Zastava 18

America Doing business in North America since 2002 Over 3.0 million sq m under construction US presence: New York, Miami, Los Angeles, South Carolina, Las Vegas Focus on real estate projects incl. Condos and luxury apartments Offices Commercial Hotels 19

Atlantic Court LLC 16,000.sq m New York Times 72,000.sq m North America 85 Adams 12,000.sq m  New York  Miami  Las Vegas  Los Angeles  South Carolina 88 Leonard St. 40,000.sq m 14 Wall St 100,000.sq m Apthorp 42,500.sq m Marquiz 108,000.sq m The clock Tower 26,000.sq m 20 Pine 72,000.sq m 20

North America - New York Times This project is a conversion of a historic office building to a class A office building with a retail corridor on the ground and cellar levels. The Times Building is located in the heart of Times Square, between 43rd and 44th Street off of Broadway Use: Multi-purpose – Commercial office & retail. Size: 777,000 SF. Number of Floors: 15 21

This project is a conversion of a historic office building to a hotel/condo project Located: over Madison Square Park on 24 th Street and Madison Use: Multi-purpose: residential and commercial Size: 275,000 SF. Number of Floors: 41 Status: Planning North America - The Clock Tower 22

This project is a multi-staged conversion of a historic former apartment building Located: in the heart of the Upper Westside, on Broadway, between 78th and 79th Street Use: Multi-purpose – residential and retail Restoration: 445,120 SF. Number of Units: 163 Status: Construction North America - The Apthorp 23

Europe Doing business in Europe since 1998 Over 4 million sq m building rights (total gross ), Over 1.2 million sq m are currently under construction Portfolio now includes 31 projects in 8 countries (Czech Republic, Serbia, Romania, Bulgaria,Germany, Hungary, Poland & Latvia) Focuses on real estate projects incl. Residential ( brand name “Tulipa”) Offices Commercial & Shopping Malls (brand name “Palace”) Hotels Business parks 24

Europe Palace Flora 38,000.sq m Airport City by Belgrade 120,000.sq m Broadway Palace 7,000.sq m Vitosha Gardens – Bulgaria 18,000.sq m Cotroceni Park, Bucharest 194,000.sq m Malina Gardens – Bulgaria 68,000.sq m Czech Republic Pipera Gardens, Bucharest 230,000.sq m Cotroceni Park, Bucharest 194,000.sq m Romania Serbia Bulgaria Korunni Dvur (253 units & 7,000.sq m) 25

Europe Germany Poland Latvia North & west Germany 110,000.sq m Soleville – Riga 2,350 units Berlin 50,000.sq m Metropolia – Riga 550 units Wilanow One Warsaw Osiedle Europeski Krakow 2,400 units 26

Europe - Cotroceni Park, Bucharest Shopping Centre and 5 office buildings 194,000 million sq m 50% held by Africa Israel Investments Total cost: 240 million EURO 27

Europe - Airport City Belgrade 28

Asia-Pacific Doing business in Asia pacific since 2005 Philippines  Strategic partnership with local real estate company, Filinvest Land, Inc. (one of the largest real estate & financial entities in the Philippines)  Focus on real estate projects incl. Residential Offices Commercial Hotels Business parks Business expansion to India and China 29

Asia-Pacific - Timberland - Philippines 30

Africa Israel Properties: Public company traded on the TASE 70% held by Africa Israel Investments Market Cap of 2,064 million NIS Since 1971 More than 270,000.sq m incl. 5 shopping malls 3 high-tech industrial parks 5 office towers Israel - Income Producing Properties 31

Concorde – Bnei Brak 8,000.sq m Park Rehovot 15,000.sq m Ramat Aviv Mall - Tel Aviv 27,500.sq m Savionim Mall – Yehud 11,000.sq m Global Park – Lod 21,000.sq m Government Offices - Tel Aviv 29,000.sq m City Centre – Haifa 10,500.sq m Africa House - Tel Aviv 2,600.sq m Avia – Yehud 2,600.sq m Industrial Offices Shopping Malls Israel - Income Producing Properties 32

Public company traded on the TASE 75% held by Africa Israel Investments Market Cap of 867 million NIS Since 1934 Africa Israel Residences is involved in the innovative development neighborhoods under the prestigious brand name “SAVYONIM” 2007 projects under construction - 23 Land Bank of more than 15,300 units Ranked Israel’s #1 residential development company for last 10 years Israel - Africa Israel Residences 33

Hanevi’im Court, Jerusalem 102 units Savyoney Ramat Aaviv Tel Aviv 400 units Savyon Tower Ramat Gan 151 units Platinum - Ramat Gan 84 units Sea Gate - Rishon Lezion 463 units Israel - Africa Israel Residences Lev Asavyonim – Petach Tikva 1,282 units 34

Construction & Infrastructure Europe Russia & CIS ISRAEL Residential Commercial Infrastructure Industrial BOT & PFI Offices Construction Infrastructure

Public company traded on the TASE 75% held by Africa Israel Investments Market Cap of 818 million NIS Danya Cebus became the Construction and Infrastructure division of the Africa Israel Group The leading construction and engineering company in Israel Danya is active in a diverse range of projects on a global basis The company’s strengths concentrate: Residential Infrastructure – Roads, Bridges Prefabricated Elements Shopping Malls, Office & Commercial Buildings Construction & Infrastructure - Danya Cebus Ltd: 36

 Residence  Commercial & office  Infrastructure  Industrial Road 431 Cross Israel Highway - # 6 Savyoney Givatiim Power Center Jerusalem Africa house- Tel Aviv Keshev -Lod Givat Savion Police Headquarters Tel Aviv Construction & Infrastructure - Danya Cebus Ltd: 37

B.O.T. & P.F.I. Projects Road 431 P.F.I. project –1.6 billion NIS Highway # 6 Road 431 Prisons Dormitories Hebrew University (Jerusalem) Students Dormitories Construction & Servicing Cross-Israel Highway - # 6 Light Railway TEL AVIV 22 km of Transportation routes in the metropolis, TEL AVIV 11 Billion NIS 38

AMERICAISRAEL Offices BOT & PFI Refining Distribution Asphalt Energy

Alon Israel Oil Company Alon USA Dor Alon Energy Assets in 6 states in the USA, incl. 1,700 Fina gas stations, 6 terminals, the Big SpringRefinery, 1,150 miles of fuel pipelines and asphalt factories. Alon USA is the largest 7-Eleven branded licensee with 172 convenience stores Alon Group focused on the energy and retail Sectors. The Goup operate businesses in three segments: (1) USA Energy; (2) Israel Retail; and (3) Israel Energy A nationwide chain of gas stations & convenience stores 40

Related Industries Europe Russia & CIS ISRAEL

Related Industries - AFI Industries Packer Steel Ltd Packer Steel is the leading steel group in Israel The company recently expanded abroad by acquiring a big industrial property in Russia Negev Ceramics Ltd Israel’s leader in design concepts for both the construction industry and interior design 42

Asset Management ISRAEL

Mutual Funds & Asset Management The Company specializes in asset management The Company’s full-service approach enables it to provide its clients with a variety of tailor-made financial packages Assets under management–2.4B NIS (as of Sep. 07) The Company is active in advisory, design, management and capital raising. The Company offers a full-scale of financial solutions including private placement, debt offering and IPO. During 2007 the Company completed 70 underwriting offerings Underwriting 44

Other Business Area

Tadiran Telecom Ltd. Innovative communications solutions Israel Plus Russian speaking TV channel Tourism & Leisure Retail & Fashion Blue Square Israel Ltd One of the largest Israeli supermarket chains (Co-Op) Sea Group Swimwear fashion, designers & manufacturers Africa Israel Hotels Ltd. Manages 10 hotels (2,500 rooms) and 2 recreational sites in Israel and abroad Communications & Media 46

Thank You AFRICA ISRAEL For Further Information :