First International Bank of Israel Ltd. - FIBI

Ownership Structure Bino-Liberman Group FIBI Investment House Ltd. As of 31.12.2008 Bino-Liberman Group FIBI Investment House Ltd. E. 25.95% V. 0% The Public E. 15.505% V. 11.232% E. 58.545% V. 88.768% FIBI Holding Company Ltd. E. 100% V.100% Israel Discount Bank The Public E. 54.33% V. 72.59% The First International Bank of Israel Ltd. E. 19.19% V. 16.31% E. 26.48% V. 11.1% E. 68% V.66% E. 68.68% V.68.68% E. 51% V.51% E. 100% V.100% E. 100% V.100% E. 100% V.100% Otsar Hahayal PAGI Poalei Agudat Israel Bank Ltd. Bank Massad UBank Ltd. FIBI Bank (UK) Plc FIBI Bank (Suisse) Ltd. E. 75% V. 25% E.50% V. 60% E. 100% V.100% The First Int’l & Co. Underwriting and Investments Ltd. Modus-Selective Investments Portfolio Ltd. Kidma – Provident Funds Management Ltd. E. Percentage of equity share capital ownership V. Percentage of voting power exercised at any general meeting

First International Bank Group FIBI Corporate + middle market banking Private + affluent banking 85 branches Retail bank cluster U - Bank International Capital markets Trust and custody Private and affluent banking 6 branches (unique branches) Massad PAGI Otsar Hahayal FIBI Bank (UK) FIBI Bank (Suisse) Focus: retail retail/commercial retail/commercial Business banking Private Private banking Branches: 17 20 47 Since: 2008 1977 2006 Key audience: teachers ultra-orthodox defense + military

First International Bank of Israel - FIBI 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: 175 in Israel (including subsidiaries) Employees: 4,829 Equity: NIS 5,491 Million (US$ 1.419 Million *) 5th largest banking group in Israel * $/NIS = 3.8702

Financial Strength Ratios as of 31.12.2008 The Five Leading Banking Groups by Rank First Tier Capital Adequacy Ratio Capital Adequacy Ratio Deposit to Credit Ratio Problem Debt to Credit Ratio Provisions to Credit Ratio 1 8.71% 12.32% 130.5% 6.6% 0.39% FIBI 2 7.60% 4 11.15% 102.2% 7.3% 0.68% Hapoalim 3 7.51% 11.52% 114.8% 5 10.7% 1.01% Leumi 7.44% 10.27% 119.2% 8.1% 0.67% Discount 6.64% 11.31% 104.2% 8.0% 0.45% MIzrahi 11.6%1 8.5% 0.72% Total

Deposits from the Public (25% Deposits from the Public) Pre - Tax Provisions Credit to the Public NIS 61 Billion Deposits from the Public NIS 79.9 Billion Deposits / Credit Ratio 131% 12.3% is secured under liquid Assets (Deposits / State Bonds) NIS 238 M Liquid Assets (25% Deposits from the Public) Bonds – State of Israel NIS 9.3 Billion Bonds OECD NIS 617 Million Cash/Deposits-Bank of Israel NIS 10 Billion Deposits in Banks NIS 5.2 B Bonds – Banks NIS 4 B Capital Notes NIS 4.5 B NIS 86 M NIS 57 M NIS 173 M NIS 20 M No Provision NIS 42 M Gov. & Bank Deposits NIS 1.9 B NIS Corporate Bonds, NIS 1 B MBS Prime+AltA NIS 282 M Hedge Funds & Stocks NIS 168 M Credit Risks in VAR Terms NIS 125 M Structure Products NIS 259 M FOREX Corporate Bonds NIS 655 M BEZEQ+HOT NIS 536 M Capital Investments 81.7% of capital available for Investments Capital available for Investments* NIS 3.7 B * Shareholder’s Equity less Liquid Assets

Ratio of Provision for Doubtful Debts to Credit to the Public FIBI 4 Other Leading Banks

Total Credit Risk in Respect of Problematic Debts (Consolidated, NIS millions)

Ratio of Deposits to Credit 131%* Changes in Assets, Deposits and Credit to the Public (Consolidated, NIS Billions) 69 . 6 72 7 98 9 92 5 86 58 61 2 79 75 8 44 3 52 55 2008 2007 2006 2005 2004 Ratio of Deposits to Credit 131%* Total assets Credit to the Public Deposits from the Public (*) The average deposits/credit ratio in the five leading banking groups: 112%

Capital Adequacy Ratio - FIBI (%) 8,043 7,828 7,806 7,164 7,163 Capital Adequacy * 12.3% 11.4% 11.6% 11.7% 11.4% 5 , 402 5 , 507 5 , 677 5 , 740 5 , 690 First Tier Capital Adequacy 8.6% 8.9% 8.5% 8.4% 8.7% IV / 07 I / 08 II / 08 III / 08 IV / 08 First Tier Capital Ratio (NIS Millions) Second Tier Capital Ratio (NIS Millions) (*) Realization of the full potential for raising tier 2 capital would bring the capital adequacy ratio to 12.6%; following the report date, the Bank raised an addition NIS 355 million in capital notes

Composition of Proprietary Trading Book (Consolidated, NIS Millions) * Including 456 Million NIS investment in BEZEQ Shares and 80 M NIS in HOT shares both used as collateral for credit granted

Net Operating Earnings and ROE - Consolidated 453 503 161 587 2008 2007 2006 2005 2.9% 12.0% 11.4% 11.5% * Including tax returns on previous years in 2007 and revocation of the Adjustment to Inflation Law and a tax rate reduction in 2008

Income by Customer Segments * SMALL BUSINESS PRIVATE COMMERCIAL CORPORATE HOUSEHOLD * Not including the “Financial Management” & “Other” Segments

Income to Risk Assets 2008 - 2006 (*) Includes Household, private banking and SME segments; segmentation of customers and expense allocations differ from bank to bank

Banking Subsidiaries in Israel 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 - 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. UBank’s IT systems were fully integrated into FIBI’s at end 2008. In 2007 UBANK launched an innovation in Israeli banking – dedicated branches for affluent clients. This premium service comprises distinctive branch design and hours of operation, along with other attractive features.

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 - 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. .

Changes in Net Profit - Subsidiaries Comments % change 2007 2008 Strong growth in income (0.9) 38.0 37.1 Decrease in income from Capital Markets (13.4) 78.7 65.3 Increase in doubtful debts provisions, one-time incomes and earnings in 2007 (62.5) 144.7 52.2 Increase in doubtful debts provisions (13.0) 36.4 23.4 * Provisions for decline in value of securities (2,976) 2,526 (450) FIBI Bank (UK) (GBP K) Proprietary trading book losses (598) 6,286 5,688 FIBI Bank (Switzerland) (CHF K) * Excluding employee grant paid following the sale of the bank in 2008