© 2005 Morrison & Foerster LLP All Rights Reserved LISTING IN LONDON NATALIE DIEP

WHY LONDON?  Prime European financial centre  Main players operate in London  International approach (approx 430 international companies from 55 countries listed and traded in London)  Flexibility – Main Market and AIM  Liquidity (trading systems accessed in real time by 91,000 trading terminals around the world)

ISRAELI COMPANIES LISTED IN LONDON List dateCompanySub sectorCountry of OriginMarket 23/07/1996SelectorEngineering – GeneralIsraelAIM 16/12/1996Pilat Technologies InternationalEducation, Business Training & Employment Agencies IsraelAIM 08/06/1998EmblazeInternetIsraelOverseas Listed 17/02/1997Kidron Industrial HoldingsEngineering – GeneralIsraelOverseas Listed 12/07/1999Batm Advanced Communications Telecommunications EquipmentIsraelOverseas Listed 16/07/1999Bank Hapoalim B.M.BanksIsraelOverseas Listed 02/11/1999Partner Communications CoWireless Telecommunications ServicesIsraelOverseas Listed 04/04/2000DmatekTelecommunications EquipmentIsraelOverseas Listed 26/09/2000XTL BiopharmaceuticalsBiotechnologyIsraelOverseas Listed 16/07/2003Orad Hi Tec SystemsComputer HardwareIsraelAIM 15/04/2004VisonicTelecommunications EquipmentIsraelOverseas Listed 13/10/2004Orca InteractiveSoftwareIsraelAIM 08/02/2005Frutarom IndustriesChemicals – SpecialityIsraelOverseas Listed 21/02/2005AdamindSoftwareIsraelAIM

WHICH MARKET? The Main Market AIM, the global market for growing companies Specialist indices (techmark/techmark mediscience)

CRITERIA Main MarketAIM Minimum 25% shares in public hands 3 year trading record required Minimum market capitalisation (not less than £700K) Sufficient working capital for at least the 12 months following admission Appointment of a sponsor Admission documents prevetted by the UKLA No minimum shares to be in public hands No trading record requirements No minimum market capitalisation Sufficient working capital for at least the 12 months following admission Appointment of a nominated adviser and broker Admission documents not pre-vetted by Exchange or UKLA

ADVANTAGES TO LISTING ON MAIN MARKET A listing gives you: Access to one of the deepest pools of capital in the world A proven and effective way to raise capital and develop your business A robust, real-time market valuation driven by unrivalled liquidity in Europe’s largest market Enhanced profile and credibility with a knowledgeable and experienced professional investment community Inclusion in some of the worlds most popular indices

ADVANTAGES TO LISTING ON AIM An AIM quotation offers: A flexible regulatory regime Access to a unique, globally respected market Currency for acquisitions Eligibility for a range of tax benefits Fast track listing for companies listed on Designated Markets

CONSIDERATION FOR DIRECTORS Statutory liability Civil/criminal liability Corporate governance Continuing obligations

PROSPECTUS DIRECTIVE Changes for listing on Main Market -Effective from 1 July Passport of securities -Choice of home member state Changes for listing on AIM -Exchange Regulated Market