1. ISRAEL GOVERNMENT COINS & MEDALS CORPORATION

2. BACKGROUND
The Israel Government Coins & Medals Corporation (IGCMC) was established in 1961 by David Ben Gurion, the first Prime Minister. The Corporation has remained under the full ownership of the State of Israel.
The corporation is active in several spheres of activity:
coins, medals, ancient coins, judaica and decorative items, jewelry and art items. 2

3. GOALS OF THE CORPORATION
The Goals of the Corporation stated in the Articles of Association are:
To commemorate historic and national events, achievements of the State of Israel, important personalities and leaders, historic sites, meaningful personal and family milestones; to advance Israeli and Jewish art; the purchase and sale of ancient and modern Israeli coins.

4. COMMEMORATIVE COINS AND SPECIAL ISSUES
SPHERES OF ACTIVITY:
COMMEMORATIVE COINS AND SPECIAL ISSUES
Commemorative coins and special coins are
Issued by the Bank of Israel.
The Israel Government Coins and Medals Corporation is the exclusive certified distributor of these coins in Israel and worldwide.
Five coins are generally struck each year, including an Independence Day coin and a set of Hanukka coins. 4

5. COMMEMORATIVE COINS AND SPECIAL ISSUES
SPHERES OF ACTIVITY:
COMMEMORATIVE COINS AND SPECIAL ISSUES
-Continued-
Some of the coins are issued as part of series, for example the
“Biblical Art” series, “Israel Independence Day Coins” series, and “Israeli Nobel Prize Winners” series.
Other coins are issued individually, for example, the “Judo” coin and “Saluting Reserve Soldiers”.
The Corporation markets two sets of circulation coins annually:
Uncirculated Coin Set
Hanukka Mint Set (Contains special coins with the word Hanukka and a tiny Menorah Mint Mark.) 5

6. למדליות ולמטבעות ANCIENT COINS
SPHERES OF ACTIVITY:
ANCIENT COINS
למדליות ולמטבעות
The IGCMC markets authentic ancient coins and other antiquities, such as oil lamps and jewelry set with ancient Roman Glass.
All items are chosen with the assistance of experts. They are
sold under license from the
Antiquities Authority and are accompanied by certification
of authenticity and historical explanations. 6

7. MEDALS למדליות ולמטבעות SPHERES OF ACTIVITY:
למדליות ולמטבעות
The Corporation strikes and markets medals in Gold, Silver,
Bronze, Copper-nickel, and occasionally Platinum. The design,
production, determination of metal content, quantities, and prices
are the responsibility of the IGCMC.
There are three categories of medals:
Official or State Medals
Official Award Medals
Official Award Medals ordered by a specific institution 7

8. SPHERES OF ACTIVITY:
JUDAICA AND GIFT ITEMS
The IGCMC markets gift and decorative items designed by Israeli artists. These products are produced for the IGCMC in limited, numbered editions with the artist’s signature. Many items incorporate in the design medals sold by the Corporation. Most items are sold on consignment.
The Corporation also markets Judaica items such as: Hanukka lamps, Mezuzah cases, Bibles, Passover Haggadot, Kiddush cups, etc. 8

9. SPHERES OF ACTIVITY:
JEWELRY AND WATCHES
The Corporation markets a variety of jewelry items and watches, frequently embellished with a medal. “Adillion”, a registered trademark of the IGCMC, is a coin or medal mounted in a gold or silver frame. Jewelry items are supplied with a Certificate of Authenticity certifying the design, metal content, and quality of the stones. 9

10. Art Lovers club
The IGCMC offers its subscribers art items including lithographs, serigraphs, sculptures, wall rugs, and other art objects.
The art items, chosen with the assistance of the Corporation’s art consultant, include works by artists of world renown such as Chagall, Rubin, Castel, Gutman, and Modigliani, as well as works
by promising Israeli artists. 10

11. MARKETING
The IGCMC has a subscriber base of about 40,000 people in Israel and abroad. Six times annually subscribers receive a brochure describing new products offered by the Corporation. Orders are received at the Corporation’s office in Jerusalem where the products are packed and shipped by mail, within Israel and abroad.
Orders can also be placed via the online shop on the IGCMC website. 11

12. MARKETING The IGCMC has six shops in Israel: -Continued-
Operated directly – in Tel Aviv, Haifa and Ben Gurion Airport
Operated via concession – in Jerusalem, Raanana abd Beersheva 12

13. PRODUCTION
OF COINS
Issuing Commemorative Coins of the State of Israel is the exclusive responsibility of the Bank of Israel.
In certain cases, the IGCMC is authorized by the Bank of Israel to produce the coins that the Corporation markets.
In 2004 the IGCMC set up a mint near Jerusalem.
Recent Commemorative Coins issued by the Bank of Israel were struck by the Corporation at quality levels comparable to those abroad.
final authorization by the Bank of Israel before they are released. 13

14. PRODUCTION
OF MEDALS
The Corporation strikes most gold, silver, and bronze medals up to 50mm (5cm) diameter in the IGCMC mint.
The remaining medals are produced in Israel and abroad (mostly in Europe and the U.S.) 14

15. The Corporation employs 40 people.
PERSONNEL
The Corporation employs 40 people.
15 employees are covered by a collective agreement, and 25 work according to private contracts. 15

16. ORGANIZATION STRUCTURE
BOARD OF DIRECTORS
ORGANIZATION STRUCTURE
ACCOUNTANT
LEGAL COUNSEL
COMPTROLLER
MANAGING DIRECTOR
FINANCE DEPARTMENT
Computer System
DEPUTY MANAGING DIRECTOR
PRODUCTION AND
PROPERTY DEPARTMENT
MARKETING AND
ADVERTISING DEPARTMENT
LOGISTICS AND VAULT
CUSTOMER SERVICE DEPARTMENT
Mailing in Israel and Abroad
IGCMC Mint
BEERSHEVA
SHOP
(concession)
JERUSALEM
SHOP
(concession)
TEL AVIV
SHOP
DUTY-FREE SHOP
TERMINAL 3,
BEN-GURION AIRPORT
RAANANA
SHOP
(concession)
HAIFA
SHOP

17. FINANCIAL INFORMATION
Data from the Financial Report
In thousands of shekels
A. Balance Sheet
Total
Shareholders’ Equity and Liabilities
Shareholders’ Equity
Long Term Liabilities
Current Liabilities
2006
2005
38,387
30,612
26,395
25,811
225
214
11,767
4,587 17

18. FINANCIAL INFORMATION
Data from the Financial Report
In thousands of shekels
2006
ASSETS
1,101
Fixed Assets ,244
2,958
Investments ,034
34,328
Current Assets ,334 18

19. FINANCIAL INFORMATION
Data from the Financial Report
In thousands of shekels
2006
2005
B. Statement of Income
17,571
Annual Revenue ,321
(125)
Profit (loss) from operations
584
Profit (loss) before taxes 19

20. FINANCIAL INFORMATION
Data from the Financial Report
In thousands of shekels
C. Statement of Cash Flow
(1,615)
1,247
Cash Flows from (to) Operating Activities
8,699
(17)
Net Cash Flow from (to) Investing Activities
7,084
1,230
Increase (Decrease) in Cash and Cash Equivalent
2006
2005 20