1. First International Bank of Israel Ltd. - FIBI 30.06.2009 1 First International Bank of Israel Ltd. 30.06.20091

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3. GDP Rate of Growth (%) * Yearly Terms ** Forecast *** First International Bank of Israel Ltd. 30.06.20093 3 3

4. Bank of Israel Interest Rate (%) * and the Rate of Inflation (%) Bank of Israel Interest RateRate of Inflation * Bank of Israel Interest rate for the last month of the Year / Period ** Forecast ** 4 First International Bank of Israel Ltd. 30.06.20094

5. Country Ratings 5 5 First International Bank of Israel Ltd. 30.06.20095

6. Foreign Investments in Israel - Private (Non Banking) Sector Only (US$ Millions) Israeli Investments Abroad - Private (Non Banking) Sector Only (US$ Millions) In 2006: Acquisition by “Teva” In 2006: Acquisition of “Iscar” by Berkshire - Hathaway 6 First International Bank of Israel Ltd. 30.06.20096

7. Bino – Liberman Group FIBI Holding Company Ltd. The First International Bank of Israel Ltd. The Public FIBI Investment House Ltd. Israel Discount Bank Otsar Hahayal PAGI-Poaley Agudat Israel Bank Ltd. Bank Massad UBank Ltd. FIBI Bank (UK) Plc. FIBI Bank (Suisse) Ltd. The First Int’l & Co. Underwriting and Investments Ltd. Modus-Selective Investments Management & Advice Ltd. International Leasing Ltd. Israel Credit Cards Ltd. First International Issues Ltd. E – % Share in Equity V – % Voting Right E – 79.07 V – 79.07 E – 54.33 V – 74.9 E – 20.93 V – 20.93 E – 19.22 V – 14.01 E – 26.45 V – 11.09 E – 100 V – 100 E – 0 V – 0 (Stocks Dormant) E – 68 V – 66 E – 68.7 V – 68.7 E – 51 V – 51 E – 100 V – 100 E – 100 V – 100 E – 100 V – 100 E – 100 V – 100 E – 100 V – 100 E – 28.2 V – 21 E – 100 V – 100 E – 75 V – 25 Ownership Structure 7

8. Retail Bank Cluster FIBI Bank (UK) FIBI Bank (Suisse) First International Bank Group International First International Bank Corporate + middle market banking Private + affluent banking Capital & Finance Markets 81 branches Capital, Trust & Custody Markets Private + affluent banking 6 branches Since 2004 Private Banking Since 1984 Business Banking Private Banking Since 1982 Focus: RetailRetail/Commercial Retail/Commercial Branches: 1746 20 Since: 20082006 1977 Key Audience: TeachersMilitary Ultra Orthodox 8

9. First International Bank of Israel Ltd. 30.06.20099 9 The Liberman family has enjoyed sustained success in both Australia and Israel for over 50 years. Jack Liberman, an astute Australian businessman and entrepreneur, along with his children, built a large and diversified investment company (JGL Investments PTY Ltd.) The family, together with the Bino Group, in a long-term partnership, hold a controlling interest in both FIBI Holdings and Paz Oil Company Ltd. (“Paz”), Israel’s leading petrol player. Mr. Zadik Bino is a highly reputable businessman with broad business interests in Israel. In a banking career spanning over 25 years, Mr. Zadik Bino filled senior positions in the local banking sector, which included CEO of Bank Leumi of Israel and Chairman of the Board of Directors and General Manager of The First International Bank of Israel. Mr. Zadik Bino was also a member of the Advisers Committee and the Committee for Banking Matters of the Bank of Israel. Shareholders

10. First International Bank of Israel Ltd. 30.06.200910 Since 1989, Mr. Bino has devoted himself to his family's private business interests in Israel and abroad. Through the years, the Bino Group has engaged in the execution, development and nurturing of various investments. Besides banking, the main investments of the Bino family is in Energy (through a 42.6% holding in Paz oil Company Ltd. – a listed company which is Israel’s largest supplier of refined petroleum products, and which owns the Ashdod Refinery). Since acquiring the controlling interest in FIBI and the Bank in 2003, both Mr.Zadik Bino and his son, Mr. Gil Bino, serve as members of the Board of Directors of FIBI, as well as of the Bank's. The controlling interest in FIBI and in the Bank is held by the Bino Family (Mr. Zadik Bino and his three Children). Shareholders (continued)

11. First International Bank of Israel Ltd. 30.06.200911 Universal bank with strong niche position in capital markets, foreign exchange and foreign trade Domestic subsidiaries target focused audiences: affluent banking (UBank), defense sector - retail banking (Otsar Hahayal), ultra-orthodox Jews (PAGI), and teachers (Massad) Foreign subsidiaries in London (commercial banking) and Zurich (private banking) Branches: 170 in Israel (including subsidiaries) Equity: NIS 5,895 Million (US$ 1,504 Million *) 5th largest banking group in Israel First International Bank of Israel - FIBI * $/NIS = 3.919 as of June 30, 2009

12. First International Bank of Israel Ltd. 30.06.200912 Bank Ratings

13. First International Bank of Israel Ltd. 30.06.200913 Risk Profile Conservative capitalization levels: capital adequacy ratio of 13.95% (industry average: 12.62%); 1st tier adequacy ratio of 9.53% (industry average: 7.97%); deposit/credit ratio of 136.0% (industry average: 115.5%) Improved credit mix: steps taken to diversify portfolio through increased penetration of middle market and more consumer credit Conservatively managed foreign proprietary trading book Upgraded scoring model and processes in anticipation of Basel II, including development of advanced credit-scoring models for risk-based pricing Core Capabilities Top class reputation in private banking services, especially dealing room, specialized investment advice center and TASE futures and operations index, where FIBI is a market leader Distinctive professional standards in: global capital markets, currency exchange, structured products and foreign trade Strong traditional position in corporate banking Strategy - Main Focus

14. First International Bank of Israel Ltd. 30.06.200914 Clients Client-centric vs. product-oriented banking Corporate finance: decrease concentration of credit portfolio, increase penetration of middle market Private banking: increase wallet share through advisory services; extend presence in affluent segment Retail banking: broaden overall footprint (e.g., acquired Bank Otsar Hahayal and Massad) New Products State-of-the-art pension-planning advice offering Other Measures taken to increase group efficiency, including implementation of a shared-services model Decision taken to withdraw from computer infrastructure outsourcing agreement Strategy - Main Focus

15. First International Bank of Israel Ltd. 30.06.200915 Objective: to realize synergies from three bank acquisitions Implement shared-services model, including IT systems (UBank IT systems converted in 2008, Massad and Otsar Hahayal planned for 2009-2010; HQ units unified: logistics, severance pay fund operations, regulatory units and parts of training and human resources operations, process to be accelerated in 2009-2010) Cross-sell products (mortgages, structured products, advisory services, pension planning, trust, factoring) Create streamlined and effective branch network to meet growing competition in retail and private banking markets Oversee management: FIBI executive board members chair the new subsidiaries and serve on their boards Group Consolidation

16. First International Bank of Israel Ltd. 30.06.200916 Net Operating Earnings and ROE – Quarterly NIS Millions 89 7.0% 9.9% 8.0% 8.8% 6.8%

17. First International Bank of Israel Ltd. 30.06.200917 Ratio of Provision for Doubtful Debts to Credit to the Public 4 Other Leading Banks FIBI

18. First International Bank of Israel Ltd. 30.06.200918 Total Credit Risk in Respect of Problematic Debts (NIS millions)

19. First International Bank of Israel Ltd. 30.06.200919 Composition of Total Proprietary Trading Book (NIS Millions) for 30.06.2009 %AmountComposition 62%10,410 Governments bonds & Secured by Governments bonds 20%3,411 Bonds of Commercial Banks 5%827Shares 13%2,122Other 100%16,770Total 53% 62%

20. First International Bank of Israel Ltd. 30.06.200920 Composition of Foreign Currency Proprietary Trading Book (NIS Millions) for 30.06.2009 %AmountComposition 36.8%2,494 Governments bonds & Secured by Governments 14.1%958 Due: State of Israel bonds 8.2%558 Due: Foreign Governments bonds 8.1%546 Due: Secured by Governments bonds 6.4%432 Due: MBS (GNMA+Agencies) 46%3,128 Commercial Banks bonds 4%298MBS (PRIME+ALTA) 1%84Shares 12%771Other 100%6,773Total 37% 46% 14% Single issuer exposure up to 3% of portfolio. Average Duration: 3 years

21. First International Bank of Israel Ltd. 30.06.200921 Operating Commissions – Group (NIS Millions) 1-6/081-6/09 620691Total Operating Commissions 599647Without Massad 1-6/09 Massad 1-6/08 216 254 4039 209 236

22. First International Bank of Israel Ltd. 30.06.200922 457 Operating & Other Expenses (NIS Millions) 1-6/081-6/09 1,2641,328Total Operating & Other Expenses 1,2061,241Without Massad Massad 1-6/08 1-6/09 319 339 218 250 669 652 1,206 1,241

23. First International Bank of Israel Ltd. 30.06.200923 Operating Income and Expenses Adjusted* Operating Income & Expenses Operating Income & Expenses Operating Income Cost/Income Ratio Adjusted Cost/ Income Ratio Operating Expenses * Income excluding dividends, provisions for decline in value of proprietary trading book and severance pay fund gains; expenses excluding severance pay fund effects 50.3% 58.4% 50.8% 52.6% 1-6/091-6/08 1-6/091-6/08

24. First International Bank of Israel Ltd. 30.06.200924 First Tier Capital Adequacy First Tier Second Tier * FIBI 4 Bank Groups Capital Adequacy Ratio Capital Adequacy * 8,779 8,414 7,163

25. First International Bank of Israel Ltd. 30.06.200925 Changes in Assets, Deposits and Credit to the Public (NIS Billions) Deposits from the Public Credit to the Public Total assets * The average deposits/credit ratio in the five leading banking groups (as of June 30 2009) : 115.5% Ratio of Deposits to Credit 136% * Shareholders Equity 100.6

26. % change1-6 / 081-6 / 09 (2.4)18.115.7 5.932.238.1 3.332.535.8 7.612.6 *20.2 4336051,038 FIBI Bank (UK) (GBP K) 1971,7491,946 FIBI Bank (Switzerland) (CHF K) Changes in Net Profit - Subsidiaries * Excluding the Sale Grant 26 First International Bank of Israel Ltd. 30.06.200926

27. First International Bank of Israel Ltd. 30.06.200927 Gov. & Bank Deposits NIS 2.7 M Capital Notes NIS 5.0 B Capital available for Investments** NIS 4.1 B Credit to the Public NIS 58.9 Billion Deposits from the Public NIS 80 Billion Liquid Assets (37.6% Deposits from the Public) Deposits / Credit Ratio 136% Capital Investments 80% of capital available for Investments Bonds – State of Israel NIS 9.4 Billion Bonds-foreign states* NIS 1.52 B Cash/Deposits-Bank of Israel NIS 13.4Billion Deposits in Banks NIS 5.7 B Bonds – Banks NIS 3.4 B 12.6% is secured under liquid Assets (Deposits / State Bonds) NIS Corporate Bonds, NIS 1 B MBS Prime+AltA NIS 299 M Hedge Funds & Stocks NIS 157 M Credit Risks in VAR Terms NIS 130 M Structure Products NIS 204 M FOREX Corporate Bonds NIS 770 M BEZEQ+HOT NIS 670 M * Out of this MBS GNMA & Agencies NIS 431 M and bonds secured by foreign governments NIS 546 M ** Equity less Liquid Assets 27 Capital Adequacy 13.95% First Tier 9.53%

28. First International Bank of Israel Ltd. 30.06.200928 Banking Subsidiaries in Israel PAGI PAGI, in which FIBI has a 68% equity holding is a commercial bank with 20 branches, and the majority of its clients belong to the ultra-orthodox and orthodox sectors. PAGI maintains a unique positioning as Israel’s only orthodox oriented bank and its share in its target segment has grown significantly. PAGI’s strategy is to aggressively grow its client base, while focusing on target segments with intensive financial activity in personal, business, and institutional banking. UBANK UBANK - FIBI acquired 100% of share capital of UBANK (formerly Investec Bank (Israel) Ltd.) in December 2004. It is maintained as an independent subsidiary. The acquisition of UBANK significantly bolstered FIBI’s competitive position in private banking, capital markets and foreign currency trading. In 2007 UBANK launched an innovation in Israeli banking – dedicated branches for affluent clients. This premium service (above retail and bellow classic private banking) comprises distinctive branch design and hours of operation, along with many other attractive features.

29. First International Bank of Israel Ltd. 30.06.200929 OTSAR HAHAYAL OTSAR HAHAYAL - FIBI acquired 68% of the share capital of Otsar Hahayal in August, 2006. Bank Otsar Hahayal specializes in retail and small to medium- sized businesses (SMEs) and has a high proportion of current and former Defence Industry personnel within its client base. The inclusion of Bank Otsar Hahayal’s operations creates a banking group with a comprehensive and diverse range of activity and earning base. FIBI is currently in the process of integrating Otsar Hahayal’s IT systems and coordinating across headquarters support functions. MASSAD MASSAD - FIBI acquired 51% of the share capital of Massad in May 2008.Massad, as a sectorial bank, specializes in teaching personnel as its client base. FIBI is currently in the process of integrating Massad’s IT System and coordinating across headquarter support functions. Massad's identity as the “teachers' bank” also places it in an advantageous position in the Arab sector, and explains its success in this sector despite rising competition.