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Going Public Abroad 2008

The Tel-Aviv Stock Exchange – The Home Market For Israeli Companies

Ronit Harel Ben-Ze'ev, Senior Vice President

April 2008

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612505

326223

147805164

1150

100

200

300

400

500

600

700

00 01 02 03 04 05 06 07 1-3/08

0

50

100

150

200

250

300

350

The Equity Market - Prices and Volumes(2000 – 2008) US $ terms

Daily Trading Volume (US $ millions) TA-25 Index

Peak on Dec. 07 1,480

TA-25 Index

Shares – 0.6 $ billion (0.5 $ billion in 2007)Bonds – 1.1 $ billion (0.8 $ billion in 2007)

Daily Volume

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The Equity Market– IPO's(2003-2007)

56 new companies raised 2.5 $ billion

0.03

0.40.5

0.8

2.5

0

0.5

1

1.5

2

2.5

3

2003 2004 2005 2006 2007*

US $ billions

Amount raised

20 IPO's

24 IPO's (7 hi-tech)

37 IPO's

(17 hi-tech)

2 IPO's

56 IPO's (20 hi-tech)

*Including 1.5 $ billion from privatizing Oil Refineries

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Fixed Income Market – Capital Raised (2001-2007)

0

5

10

15

20

25

2001 2002 2003 2004 2005 2006 2007

Public

Institutionals

US $ billions

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0

500

1,000

1,500

2,000

2,500

3,000

TASE US LONDON

2004-2005-2006-2007No. of IPO

20

24

37

46

10

4

20

15

56

5

4

IPO of Israeli companies (2004-2007)

$millionsTotal: 137 companie

s

Total:25 companies

Total: 43companies

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The Home Market – 2 Alternatives

• IPO on the TASE

• Dual Listing on the TASE – After the IPO on U.S. Markets or LSE (official list)

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IPO on the TASE

• A spring board to offering abroad

• Timing – raise when you can (exiting in stages)

• Low costs and a quick process

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IPO Costs(1) ($k)

US UK ISRAEL

Fixed costs (2) 1,475 1,365 155

Variable costs: Underwriting, distribution

3,500 2,500 2,500

Total 4,975 3,865 2,655

(1) $ 50 mil offering(2) Lawyers, CPA, printing, fees, PR, etc.

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Annual Costs ($k)

US(1) UK(1) ISRAEL

General costs (2) 1,800 822 260

D&O insurance 250 50-60 20

Class actions (estimate)

250 -- --

Total 2,300 ~ ~900 280

(1) Source: canaccordAsams, June, 2006(2) Lawyers, CPA, IR, PR, fees, shareholders meetings, payments and options for directors

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• A spring board to offering abroad

• Timing – raise when you can (exiting in stages)

• Low costs and a quick process

• Special rules for R&D companies

IPO on the TASE

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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…

10.0 From 16

7.5 From 50

* R&D company: one that has invested at least NIS 3 million in R&D in the last three years, including money from the Chief Scientist.

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Listing Procedures (excluding R&D companies)

Procedure 1 Procedure 2 Procedure 3

Shareholders' equity after listing

25 35 --

Public-float value 20 30 80

Period of activity 12 months 12 months --

Added value in the 12 months preceding listing

4 -- --

Value of issue -- -- 80

Value of the company's shares

-- -- 200

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• A spring board to offering abroad

• Timing – raise when you can (exiting in stages)

• Low costs and a quick process

• Special rules for R&D companies

• TASE indices

IPO on the TASE

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Index Description Cap. B$

TA-25 25 highest market cap shares 128

TA-100 100 highest market cap shares 163

Mid-Cap-5050 highest market cap shares non-TASE 100 shares 5

Tel-Tech-15 15 highest market cap Hi-Tech sector shares 10

Finance-15 15 highest market cap finance sector shares 23

Real Estate-15 15 highest market cap real estate sector shares 14

Tel-Div-20 20 TA-100 shares with the highest dividend yields 34

Maala (SRI)20 TA-100 companies shares with the highest rankings by the Maala organization for social responsibility

72

Tel-Bond 20 20 highest market cap non-government bonds 11

Market Indices February 2008

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• A spring board to offering abroad

• Timing – raise when you can (exiting in stages)

• Low costs and a quick process

• Special rules for R&D companies

• TASE indices

• Dual listing law – after listing on U.S and U.K markets

IPO on the TASE

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• 45 Israeli companies have dual listed on the TASE since the

dual listing law was enacted

• 4 companies-Verifone, Partner, Perrigo and Cellcom, are included in

the TA-25 Index

• 11 companies are included in the Tel-Tech 15 Index

• 14 companies are included in the TA-100 index

• 11 additional companies are traded both in Tel Aviv and the

U.S.

Dual Listing

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• More Israeli investors - institutional and individual.

• Index products (TA 25, TA 100, Tel-Tech, Real Estate-15 ect).

• TA-25 companies may benefit from trading in index-options.

• Raising money on TASE.

• 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

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Some More Figures

Market Capitalization

(Millions of Shekels)

February 29, 2008

Portion of TASE Trading Volume

1-2/2008

Average Daily Trading Volume on

TASE –

1-2/2008

(Thousands of Shekels)

Partner 7/2001 12,250 80% 40,321

Perrigo 3/2005 11,544 18% 18,754

Cellcom 7/2007 11,437 59% 35,404

Verifone 11/2006 6,162 13% 17,930

Given Imaging 3/2004 1,681 35% 2,837

Alvarion 7/2001 1,675 32% 4,299

Ampal 8/2006 1,382 64% 1,247

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Thank YouThank You

Nothing contained in this presentation should be construed as investment advice, either on behalf of particular securities or overall investment strategies, and nothing contained in this presentation shall be deemed to constitute an offer, or solicitation of an offer, to buy or sell any securities. While the information contained in this presentation was obtained from sources believed to be accurate and reliable, the TASE does not represent that such information is accurate or complete, and is not responsible for any errors or omissions.