Strategic partners:

M&A IN ISRAEL: MORNING BRIEFING

2 March 2011 - Dan Panorama, Tel Aviv, Israel

8:30AM Registration and breakfast

9:00AM Keynote welcome address

9:15AM Panel: Cross-border M&A

10:00AM Presentation: mergermarket’s eye

on the market

10:15AM Networking coffee & refreshments

10:45AM Panel: Domestic M&A

11:30AM Panel: Consumer Sector in Focus

12:15AM Networking lunch

Agenda:

Strategic partners:

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

5

10

15

20

25

30

De

al va

lue

(U

S$

m)

Nu

mb

er

of

dea

ls

Israeli M&A trends

Number of deals Deal value (US$m)

Strategic partners:

Announced

date

Status Target company Target sector Bidder company Bidder

country

Seller company Seller

country

Deal value

(US$m)

Oct-10 P British Israel

Investment Ltd

(70.65% stake)

Real Estate Melisron Ltd; Ofer

Investments

Israel Leo Noe; Pujo Zabludowicz UK 1,998

Oct-10 P 012 Smile Telecom

Ltd

TMT Partner

Communications

Company Ltd

Israel Ampal-American Israel Corporation Israel 415

Aug-10 P Attenti Holdings SA Industrials &

Chemicals

3M Company US Francisco Partners LP; Cavendish

Asset Management; Sequoia

Capital Israel

US 230

Sep-10 P Enter Holdings 1 Ltd

(90.00% stake)

Financial Services Elbit Imaging Ltd Israel 217

Apr-10 C ICQ Ltd TMT Digital Sky

Technologies Ltd

Russia AOL, Inc US 188

Apr-10 C Medingo Ltd Pharma, Medical

& Biotech

Roche Holding Ltd Switzerland Elron Electronic Industries Ltd;

Radius Ventures LLC; Rafael

Development Corporation Ltd

Israel 160

Oct-10 P Shamir Optical

Industry Ltd (50.00%

stake)

Pharma, Medical

& Biotech

Essilor International

SA

France 132

Nov-10 C Tivall (1993) Ltd

(42.00% stake)

Consumer Osem Investment Ltd Israel Kibbutz Lohamei Haghettaot Israel 129

Aug-10 P Derech Eretz

Highways (1997) Ltd

(37.50% stake)

Construction Israel Infrastructure

Fund

Israel Africa Israel Investments Ltd Israel 125

Oct-10 P Shaldieli Ltd Industrials &

Chemicals

Israel Petroleum

Company, LLC

US 114

C = Completed; P = Pending

Top 10 Israeli M&A deals, 2010

Strategic partners:

34%

12%

10%

8%

7%

7%

4%

4%

4%

10%

Sector split by volume, 2010

TMT

Pharma, Medical & Biotech

Industrials & Chemicals

Consumer

Financial Services

Real Estate

Energy, Mining & Utilities

Leisure

Defence

Other

Strategic partners:

40%

21%

9%

7%

6%

5%

3%

3%2%

4%Sector split by value, 2010

Real Estate

TMT

Industrials & Chemicals

Pharma, Medical & Biotech

Consumer

Financial Services

Construction

Defence

Business Services

Other

Strategic partners:

47

48

117

14 918

2213

25

2533

36

43

18

327

12

8

5

8

10

5

5

3

3

3

1

4

43

3

1

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010

Nu

mb

er

of

deals

Israeli M&A deal size splits by volume

>US$500m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

<US$15m

Not disclosed

59

7072

81

56

76

Strategic partners:

-

2,000

4,000

6,000

8,000

10,000

12,000

-

2

4

6

8

10

12

De

al va

lue

(U

S$

m)

Nu

mb

er

of

dea

ls

Outbound M&A trends

Number of deals Deal value (US$m)

Strategic partners:

-

1,000

2,000

3,000

4,000

5,000

6,000

-

2

4

6

8

10

12

14

16

De

al va

lue

(U

S$

m)

Nu

mb

er

of

dea

ls

Inbound M&A trends

Number of deals Deal value (US$m)

Strategic partners:

Sector Israel

TMT 26

Pharma, Medical & Biotech 19

Financial Services 15 Hot Warm Cold

Energy, Mining & Utilities 12 16 10 4

Consumer 9 14 8 2

Business Services 7 12 6 0

Industrials & Chemicals 5

Real Estate 4

Construction 3

Leisure 3

Transportation 2

Defence 1

Government 1

Total 107

The Intelligence Heat Chart is based on ‘Companies for Sale’ tracked by mergermarket in Israel between 1-Jul-10 and 31-Dec-10.

mergermarket Heat Chart