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

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

-3- The Home Market – 2 Alternatives: 1.IPO on the TASE 2.Dual Listing on the TASE – Following an IPO on U.S. Markets or LSE (official list).

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) Fixed costs (2) 1,4751, Variable costs: Underwriting, distribution 3,5002,500 Total4,9753,8652,655 (1) $ 50 mil offering (2), Lawyers, CPA, printing, fees, PR, etc.

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

-7- 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. 1. IPO on the TASE

-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… 10.0From 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) Procedure 3Procedure 2Procedure Shareholders' equity after listing Public-float value --12 months Period of activity -- 4Added value in the 12 months preceding listing 80-- Value of issue Value of the company's shares

-10- 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. 1. IPO on the TASE

-11-  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. 2. Dual Listing

-12- More Israeli 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 The Benefits of Dual Listing

-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 3/20056,95129%7,458 Partner Communication 7/20016,56788%13,777 Given Imaging 3/20042,27224%1,922 Blue Square Israel 11/20001,98293%1,214 Alvarion 7/20011,66316%2,132 AudioCodes 10/20011,64320%1,954 Radware 5/20041,15814%1,174 Aladdin 7/20041,07220%1,129 Shamir Optical 5/ %250 XTL (London) 7/ %844

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