- 1 - Going Public Abroad 2008 The Tel-Aviv Stock Exchange – The Home Market For Israeli Companies Ronit Harel Ben-Ze'ev, Senior Vice President April 2008

- 2 - The Equity Market - Prices and Volumes (2000 – 2008) US $ terms Daily Trading Volume (US $ millions) TA-25 Index Peak on Dec. 07 1,480 TA-25 Index Shares – 0.6 $ billion (0.5 $ billion in 2007) Bonds – 1.1 $ billion (0.8 $ billion in 2007) Daily Volume

- 3 - The Equity Market– IPO's ( ) 56 new companies raised 2.5 $ billion US $ billions Amount raised 20 IPO' s 24 IPO's (7 hi- tech) 37 IPO's (17 hi- tech) 2 IPO' s 56 IPO's (20 hi-tech) * Including 1.5 $ billion from privatizing Oil Refineries

- 4 - Fixed Income Market – Capital Raised ( ) US $ billions

No. of IPO IPO of Israeli companies ( ) $ millions Total: 137 companie s Total:25 companies Total: 43 companies

- 6 - The Home Market – 2 Alternatives IPO on the TASE Dual Listing on the TASE – After the IPO on U.S. Markets or LSE (official list)

- 7 - IPO on the TASE A spring board to offering abroad Timing – raise when you can (exiting in stages) Low costs and a quick process

- 8 - IPO Costs (1) ($k) USUKISRAEL Fixed costs (2) 1,4751, Variable costs: Underwriting, distribution 3,5002,500 Total4,9753,8652,655 (1) $ 50 mil offering (2) Lawyers, CPA, printing, fees, PR, etc.

- 9 - Annual Costs ($k) US (1) UK (1) ISRAEL General costs (2) 1, D&O insurance Class actions (estimate) Total2,300 ~~ (1) Source: canaccordAsams, June, 2006 (2) Lawyers, CPA, IR, PR, fees, shareholders meetings, payments and options for directors

A spring board to offering abroad Timing – raise when you can (exiting in stages) Low costs and a quick process Special rules for R&D companies IPO on the TASE

Special rules for R&D companies* Post-IPO equity: At least NIS 8 million Minimal distribution of public float: 35 shareholders Public float: The public float (percent) must be at least When the value of the public float is… 10.0From From 50 *R&D company: one that has invested at least NIS 3 million in R&D in the last three years, including money from the Chief Scientist.

Listing Procedures ( excluding R&D companies) Procedure 3Procedure 2Procedure Shareholders' equity after listing Public-float value --12 months Period of activity -- 4Added value in the 12 months preceding listing 80-- Value of issue Value of the company's shares

A spring board to offering abroad Timing – raise when you can (exiting in stages) Low costs and a quick process Special rules for R&D companies TASE indices IPO on the TASE

IndexDescriptionCap. B$ TA highest market cap shares128 TA highest market cap shares163 Mid-Cap highest market cap shares non-TASE 100 shares5 Tel-Tech-1515 highest market cap Hi-Tech sector shares10 Finance-1515 highest market cap finance sector shares23 Real Estate-1515 highest market cap real estate sector shares14 Tel-Div-2020 TA-100 shares with the highest dividend yields34 Maala (SRI) 20 TA-100 companies shares with the highest rankings by the Maala organization for social responsibility 72 Tel-Bond 2020 highest market cap non-government bonds11 Market Indices February 2008

A spring board to offering abroad Timing – raise when you can (exiting in stages) Low costs and a quick process Special rules for R&D companies TASE indices Dual listing law – after listing on U.S and U.K markets IPO on the TASE

Israeli companies have dual listed on the TASE since the dual listing law was enacted 4 companies-Verifone, Partner, Perrigo and Cellcom, are included in the TA-25 Index 11 companies are included in the Tel-Tech 15 Index 14 companies are included in the TA-100 index 11 additional companies are traded both in Tel Aviv and the U.S. Dual Listing

More Israeli investors - institutional and individual. Index products (TA 25, TA 100, Tel-Tech, Real Estate-15 ect). TA-25 companies may benefit from trading in index-options. Raising money on TASE. The home market benefit Blue-chip prominence on the TASE Greater familiarity and exposure 13-hour continuous trading from 10:00 a.m. to 11:00 p.m., local time Options can be exercised by employees easily and at low cost The Benefits of Dual Listing

Some More Figures Market Capitalization (Millions of Shekels) February 29, 2008 Portion of TASE Trading Volume 1-2/2008 Average Daily Trading Volume on TASE – 1-2/2008 (Thousands of Shekels) Partner 7/200112,25080%40,321 Perrigo 3/200511,54418%18,754 Cellcom 7/200711,43759%35,404 Verifone 11/20066,16213%17,930 Given Imaging 3/20041,68135%2,837 Alvarion 7/20011,67532%4,299 Ampal 8/20061,38264%1,247

Thank You Nothing contained in this presentation should be construed as investment advice, either on behalf of particular securities or overall investment strategies, and nothing contained in this presentation shall be deemed to constitute an offer, or solicitation of an offer, to buy or sell any securities. While the information contained in this presentation was obtained from sources believed to be accurate and reliable, the TASE does not represent that such information is accurate or complete, and is not responsible for any errors or omissions.