Tel Aviv, July 6, 2000

Tel Aviv Stock Exchange Joins FTSE All-World Index
(Communicated by the TASE Spokesman)

The Tel Aviv Stock Exchange announced that 23 of its listed companies were included in the FTSE All-World Index. The new index, launched June 30, includes stocks from 49 exchanges worldwide.

FTSE has classified Israel as an Advanced-Emerging market along with Greece, Brazil, South Korea, Mexico, South Africa and Taiwan. The Israeli stocks weighting in the FTSE All-World Index is 0.07%, similar to the weightings of Austria and New Zealand.

A countrys classification is dependent on the following primary factors: Data quality (availability and timeliness), free flow of foreign exchange, GDP (per capita), market breadth (number of eligible constituents), market depth (number of industrial sectors), reliable price information, stock market capitalisation vs GDP and unrestricted/low restrictions on foreign investment. The list of secondary factors includes: Efficient settlement systems, liquidity (minimum stock market turnover, market maturity, membership of economic group or common currency block and total stock market capitalisation.

FTSE estimates that "overseas investment in the constituent’s stock is likely to increase following Israel’s inclusion in the FTSE All-World Index, with an impact on trading volumes. Now that Israel is a member country in the new index, qualifying companies listed on the TASE are automatically part of other indexes calculated within the FTSE family of indexes."

Prof. Yair Orgler, chairman of the Tel Aviv Stock Exchange, said that the inclusion of the Exchange in the new index would boost international investment on the TASE. "We believe that the continued growth of the Israeli economy will keep fueling the stock market’s expansion", Mr. Orgler said.

The Tel Aviv Stock Exchange, founded in 1953, is owned by its 28 member firms and is regulated by the Israel Securities Authority. The Exchange provides a highly advanced electronic trading system for shares, bonds, Treasury bills and derivatives. All trades are cleared and settled by the TASE Clearing House. The TASE offers international investors a combination of attractive investment opportunities and a full complement of market services, including an elaborate and user-friendly website at http://www.tase.co.il.