1. U.S. IPO Market Update Presented by Guy Cohen Executive Director, Head of Israeli Investment Banking, Oppenheimer June 28, 2010

2. Capital Markets Update

3. 3 Market Performance Since 2007 Note: 3/6/09 marked a 17-year intraday low on the S&P 500

4. 4 CBOE Volatility Index (VIX) Since 1/2007  Market volatility has declined but is not stable yet Source: FactSet as of 6/18/10 Volatility

5. 5 Global Economy Market Outlook  The global financial crisis is abating although the recovery is fragile and risks remain  Global GDP contracted by 0.6% in 2009, the first decline in world output since World War II Source: IMF (GDP figures from 2010 – 2011 are estimates) Annual % GDP Growth for Selected Countries, 2008 – 2011

6. 6 US Unemployment  It is our belief that companies cut jobs too deeply and that unemployment in the US will come down as the economic recovery continues  The unemployment rate jumped from 5.7% in July ’08 to 10.2% in October ’09 (the highest level since December 1982 when unemployment reached 10.8%)  Job creation will be a major driver of consumer sentiment and consumption Source: BLS, CME, FactSet, S&P Non-Farm Payrolls

7. IPO Market Overview

8. 8 Equity Issuance Total Equity Issuance (# of Deals) Source: Dealogic Number of Deals

9. 9 Q1 and Q2 2010 vs. Q1 and Q2 2009 Comparison Number of IPOs Source: Dealogic, FactSet as of 6/24/10; Excludes SPACs and IPOs less than $20 million

10. 10 IPO Issuance in Perspective Source: Dealogic, FactSet as of 12/31/09; Excludes SPACs and IPOs less than $20 million Nasdaq vs. 3-Month Rolling Average IPO Issuance

11. 11 2010 YTD IPO Market Score Card

12. 12 IPO Issuance in Perspective Source: Dealogic, FactSet as of 6/24/10; Excludes SPACs and IPOs less than $20 million 2010 Weekly number of IPOs

13. 13 2010 YTD IPO Market Score Card Monthly Price Performance & Issuance of IPOs Source: Dealogic, FactSet as of 6/14/10; Excludes SPACs and IPOs less than $20 million

14. 14 IPO Sizing Analysis Source: Dealogic as of 6/21/10, deal values ≥ $20M and exclude overallotment, excludes SPACs

15. 15 IPO Issuance by Market Capitalization Source: Dealogic, FactSet as of 6/27/10; Excludes SPACs and IPOs less than $20 million

16. 16 Is the US Market Open for Israeli Companies  Historically mostly Israeli IPOs Tech and Healthcare  Average Deal Size $50-75mm  Average Market cap $250-500mm  2010 IPOs in US  Technology – 17 IPOs  Healthcare – 8 IPOs  Foreign Private Issuer advantage

17. 17 Is the US Market Open for Israeli Companies  Various differentiating factors by industry  Revenue, Growth Rate, Profitability, Market Size, IP, Competitive Environment Source: Dealogic as of 6/21/10, deal values ≥ $20M and exclude overallotment, excludes SPACs 20072010 YTD LQ Median Revenue$25.8M$36.2M LQ Median Net-Income$1.1M$2.8M Last Quarter Revenue and Net Income of all IPOs in 2007 and 2010 YTD

18. Exchange Comparison

19. 19 Maturity Exchange/ Investor Type Expansion Growth Initial Sales R&D Concept Venture Capital Private Equity AIM Candidates TSX Candidates NASDAQ Candidates Investor and Exchange Stages PE VC Note: Qualitative graph TASE Candidates

20. 20 US Listing Advantages  Liquidity  Research Coverage  Technology and Healthcare Orientation  Shares as Acquisition Currency  Valuation  Israeli Companies Acceptance  Consideration point: Regulatory Environment

21. Thank You! guy.cohen@opco.com Office: +972 3 5262627