1. Going Public – Where and When
The Semi-Annual Financial Conference
The Association of Publicly Traded Companies and DC Finance
Going Public – Where and When
Ronit Harel Ben-Ze’ev, Senior Vice President
Tel-Aviv Stock Exchange
November 2006

2. TASE – No. of New Companies (Equity raised in NIS millions)
1-9/2006
2005
2004 13
(355) 7
(349) --
R&D and Hi-Tech companies 8
(259) 5
(179)
Biomed
(Out of the above)
(1,594) 17
(2,021) 20
(1,661)
Other Companies 26
(1,949) 24
(2,370)
Total

3. The Home Market – 2 Alternatives:
IPO on the TASE
Dual Listing on the TASE – Following an IPO on U.S. Markets or LSE (official list).

4. 1. IPO on the TASE A leverage towards an offering abroad.
Timing – raise when you can (exiting in stages)
Low costs and a quick process.

5. IPO Costs(1) ($k) Total 4,975 3,865 2,655 Fixed costs (2) 1,475 1,365
155
Variable costs:
Underwriting, distribution
3,500
2,500
Total
4,975
3,865
2,655
(1) $ 50 mil offering
(2) , Lawyers, CPA, printing, fees, PR, etc.

6. Annual Costs ($k) Total General costs (2) 1,800 822 260 D&O insurance
250
50-60 20
Class actions (estimate) --
Total
2,300 ~
~900
280
(2)
(2)
(1) Source: canaccordAsams, June, 2006
(2) Lawyers, CPA, IR, PR, fees, shareholders meetings, payments and options for directors

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

8. 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…
10.0
From 16
7.5
From 50
R&D company: one that has invested at least NIS 3 million in R&D in the last three years, including funds raised from the Chief Scientist.

9. Listing Procedures (excluding R&D companies)-- 35 25
Shareholders' equity after listing 80 30 20
Public-float value
12 months
Period of activity 4
Added value in the 12 months preceding listing
Value of issue
200
Value of the company's shares

10. 1. IPO on the TASE A jumping board to offering abroad.
Timing – raise when you can (exiting in stages)
Low costs and a quick process.
Special rules for R&D companies.
Tel-Tech Index, Bio-Med (in process) and other TASE indices
Dual listing law – following listing on U.S markets.

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

12. The Benefits of Dual Listing
More Israeli investors - institutional and individual.
Index funds (TA 25, TA 100 and Tel-Tech funds).
TA-25 companies may benefit from trading in index-options.
Raising money on TASE (Partner).
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

13. Some Figures Market Capitalization (Millions of Shekels)
September 30, 2006
Portion of TASE Trading Volume
1-9/2006
Average Daily Trading Volume on TASE – 1-9/2006
(Thousands of Shekels)
Perrigo 3/2005
6,951
29%
7,458
Partner Communication 7/2001
6,567
88%
13,777
Given Imaging 3/2004
2,272
24%
1,922
Blue Square Israel 11/2000
1,982
93%
1,214
Alvarion 7/2001
1,663
16%
2,132
AudioCodes 10/2001
1,643
20%
1,954
Radware 5/2004
1,158
14%
1,174
Aladdin 7/2004
1,072
1,129
Shamir Optical 5/2005
663
41%
250
XTL (London) 7/2005
228
63%
844

14. New Website: www.tase.co.il
Thanks
Ronit Harel Ben-Ze’ev, Senior VP
Listing and Economic Department
Phone: – 03
New Website: