The Investment Promotion Center is the operational branch of the Ministry of
Industry and Trade whose principal function is to encourage foreign investment in
Israel and the cooperation between Israeli and foreign corporations.

As a government body, the Center acts as an ambassador for Israeli industry
without motive for profit.

In order to fulfil its objectives, the Center serves both as a clearinghouse for
information and as a coordinating body. The former involves answering foreign or
Israeli inquiries concerning government investment incentives, costs, referrals to the
appropriate authorities, etc. The latter involves the establishment of direct relations
between Israeli and large foreign corporations, which will hopefully lead to
investments or cooperative relationships.

How does the Center Promote Investment or Cooperative Relationships?

Goals - The Center adopts a pro-active approach to Israeli hi-tech and start-up
companies. This involves meetings with Israeli hi-tech companies in order to become
familiar with this sector. During these meetings, an effort is made, both on a
collective and individual level, to understand their needs and to locate strategic
partners or foreign investors. The next stage involves establishing contacts with
foreign companies through economic representatives abroad and professional
knowledge accumulated at the Center.

Target Companies - The Center identifies large foreign target companies through
the efforts of its staff and economic representatives abroad. The next stage is
contact with the target company and an explanation of the benefits of investing in
Israel. The Center prepares an information brochure for the target company
containing profiles of Israeli companies, which are most suitable for a cooperative
relationship.

Visits to Israel - Once the foreign company is convinced to send a delegation to
Israel, the Center prepares an exact itinerary including meetings with all the
relevant bodies. The goal is a completely professional visit, which will yield results.
The Center's staff accompanies the delegation from the moment it arrives in Israel
until its departure. The Center follows up on the visit and supplies any assistance
or information required.

Visits Abroad - The Center locates areas of interest in countries abroad. If there
are

Israeli companies with an advantage or innovation in these areas, the Center
organizes a delegation of Israeli companies or financial bodies to be sent abroad.
The Center organizes Israeli delegations in a manner similar to that of foreign
delegations coming to Israel. Here again, the goal is to encourage investment or
cooperation between Israeli and foreign companies.

Attracting Financial Institutions - The Center works to attract venture capital
funds, investment banks and pension funds to invest in Israel. The Center organizes
an exact itinerary for such delegations arriving in Israel. The delegations from
financial institutions are dealt with in a manner similar to that of delegations from
target foreign corporations. The Center is assisted by Israeli representatives of
international accounting and law firms in attracting foreign investors to Israel and
deals with the foreign clients of these firms.

Assistance of Jewish Organizations in the Diaspora - The Center seeks out
Jewish business people for assistance in various areas. The Center participates in
the promotion of "Partnership 2000" (a joint project of the Jewish Agency and the
Jewish Diaspora communities). A representative of the Jewish Agency works at the
Center to promote these goals.

Public Relations - The Center is active in public relations with the goal of
promoting investment in Israel among potential investors and foreign companies. The
public relations activities include publications abroad, conventions, interviews in
foreign professional journals, films, etc. In addition, the Center works to promote
favorable coverage in leading financial newspapers by bringing foreign journalists
to Israel and arranging for them to meet the appropriate officials and businessmen.

The Center also assists Israeli companies in technological "incubators". This
assistance includes all of its regular services, from the arrangement of
meetings with foreign delegations in Israel to participation in exhibitions and
delegations abroad.

Investment Promotion Center