Industrial Development Bank of Israel Ltd.

1. Industrial Development Bank of Israel Ltd. Summary of Data The description of the Bank presented below and the data included herein are not exhaustive and should not be construed to be a representation or commitment on the part of the Bank and/or its senior officers, or on the part of the State of Israel and/or the Government Companies Authority. This description and data may contain or be based on assessments of the Bank and/or on forward-looking information which, by its nature, is uncertain and may not be realized or which may prove to be inaccurate.

2. Year and type of incorporation The Bank was incorporated in 1957 as a limited liability company. The Bank is a public company and is defined as a mixed company pursuant to the Government Companies Act. In 1989, the Bank was issued a commercial banking license. On August 1, 2008, the Bank’s license expired and the Bank ceased being a banking entity.

3. Percentage holdings in the rights of the Bank as of December 2008

4. Shares traded on the Tel Aviv Stock Exchange Shares not traded, held by foreign residents and Israeli residents* * These shares are not part of the shares being sold and are supposed to be redeemed by the Bank upon consummation of the sale of the shares to the purchaser.

5. Major developments at the Bank in recent years 8/2002 Receipt of credit line from Bank of Israel – new management at Bank 2003 and thereafter Activation of Run-off Plan and focus on credit collection and redemption of deposits of the public Decision of ministerial committee to privatize the Bank as part of arrangement between Bank and its shareholders 29/4/2008 1/8/2008 Bank’s banking license expired 24/11/2008 Court approval of arrangement plan between Bank and its shareholders State repays to the Bank NIS 857.5 million of the perpetual depositsBank repays Bank of Israel the balance of the credit line – NIS 304.5 million 31/12/2008 2009 Continuation of the collections process

6. Current activities of the Bank • The Bank mainly collects credit from a variety of clients (construction, industry, financial services and private clients) • The Bank has proven experience in debt collection. • The Bank has procedures regulating the granting of credit, management of credit and the required controls. • The Bank has a computerized system for managing credit (amortization tables, payment demands, etc.) developed over a number of years. The system provides for all facets of credit management and the accompanying financial reporting. The system belongs to the Bank and is maintained by an outsourced service. • The Bank has a computerized system for managing collateral.

7. Human Resources • The employees of the Bank have expertise in all areas of credit, including granting credit, setting up contracts, collateral generation, recording and maintenance of bookkeeping records, collections. • The staff of the Bank has experience in accounting (financial statement preparation) and law. • The Bank’s operations are carried out through four departments. Department heads report to the CEO. The Bank has 35 employees. • An agreement was reached with the employees which settles their rights upon privatization. The financial statements include a provision covering the Bank’s liability for this agreement.

8. Balance sheet as of December 31, 2008(NIS Millions) * Not including government-guaranteed credit to the Israel Electric Company and the deposit of the State which was used to provide this loan and which is supposed to be transferred to the State.

9. Statement of income – year ended December 31, 2008 (NIS millions)

10. Classification of credit to the public and off-balance sheet credit risk by size of debtor*as of December 31, 2008 * Not including government-guaranteed credit to the Israel Electric Company that was granted from the State deposit which is supposed to be assigned to another party.

11. Overall credit risk* to the public by industryas of December 31, 2008 (NIS millions) *Not including government-guaranteed credit to the Israel Electric Company.

12. Assets and liabilities, by linkage basesas of December 31, 2008* (NIS millions) * Not including government-guaranteed credit to the Israel Electric Company that was granted from the State deposit which is supposed to be assigned to another party.

13. Balances of credit* to the public in the financial statements: * Not including State-guaranteed credit to the Israel Electric Company to be assigned to another party.

14. Breakdown of credit by classification(NIS millions)

15. Breakdown of credit by classification (cont.) (NIS millions) * Not including State-guaranteed credit to the Israel Electric Company to be assigned to the State.

16. Breakdown of credit by classification (cont.) (NIS millions) * Most of the amount derives from letters of indemnification issued by the Bank in favor of the receiver appointed to realize the assets of debtors in legal proceedings. The letters of indemnification are in respect of receipts that were credited to debtor accounts in the Bank from the proceeds of the realized assets.

17. Allowance for doubtful debtsas of December 31, 2008(NIS Millions)

18. Balance of the credit line from the Bank of Israel(NIS millions)

19. Pro forma balance sheet after completion of the sales processon the basis of the December 31, 2008 financial statements(NIS millions) • Transfer of credit of Electric Company. • Repayment of balance of perpetual deposit and redemption of D and DD preference shares (at rate of NIS 3.802 to the dollar). • Receipt from the State of dividend in arrears in respect of D and DD shares held by the public. • Payment of dividend in arrears on the D and DD shares held by the public. • Cancellation of dividend in arrears in respect of preference shares held by the public and the State as a result of the sale.