ISRAELI FIRMS 1996 – MAJOR INVESTMENTS AND CAPITAL RAISED

LARGEST FOREIGN INVESTMENTS IN ISRAEL IN 1996

(List from "Globes", 01.01.97, p.37, and "Ma’ariv", Business Supp., p.11)

(COMMUNICATED BY GPO ECONOMICS DESK)

Following is a list of the largest foreign investments or acquisitions in 1996.

 BUYER                 DESCRIPTION OF INVESTMENT              AMOUNT                                                            ($million)                              ========== Applied Materials     100% of Opal Technologies                       100% of Orbot Instrumentation           285 Generali               29% of Leumi Insurance (Migdal)        285 Nestle                 39.66% of Osem                         203 U.S. Robotics         100% of Scorpio                          72 Danone                 20% of Strauss Nahariya Dairies         56 Jeffrey Keil            3% of Bank Hapoalim                    52 Kimberly Clark         49.9% of Hogla                          49.9 Northern Telecom       20% Telrad                              45 Bay Networks          100% of Armon Networking                 33 Republic Bank         100% of Mizrachi New York Bank           28 Microsoft              Technology Acquisition from                        Panorama Software Systems               18 Ronald Lauder          80% of Jerusalem Capital Studios        15.6 Praxair                50.01% of Maxima                        12.9 Unilever               60% of Witco                            12.5 NEC                   100% of Edunetics                        12 Schindler              51% of Nechushtan Elevators             10 Volvo                  50% of Merkavim                         10 Henkel                 50% of Soad                             10 Loreal                 35.5% of Interbeauty                     9 

ISRAELI FIRMS WHICH RAISED CAPITAL IN THE UNITED STATES IN 1996

(List by Yonatan Nasi, "Globes", 30.12.96, p.34)

(COMMUNICATED BY GPO ECONOMICS DESK)

ISRAELI FIRMS RAISED $2.3 BILLION ABROAD THIS YEAR (1996). 29 ISRAELI OFFERINGS ON WALL STREET RAISED $1.037 BILLION. AN ADDITIONAL $475 MILLION WAS RAISED BY COMPANIES IN PRIVATE OFFERINGS. IN THE LARGEST OFFERING, THE ISRAELI ELECTRIC CORPORATION RAISED $825 MILLION. THE OFFERINGS’ AVERAGE RETURN ON INVESTMENT WAS 8.5 PERCENT, LESS THAN THE RETURN ON INVESTMENT OF AMERICAN MARKET INDICES.

 DATE      COMPANY          SUM        OPENING    CLOSING     RETURN                            RAISED     PRICE      PRICE       ON                           ($MILLION)   ($)       29.12.96    INVESTMENT                                                   ($)         (%)  1992                         225 1993                         256 1994                         335 1995                         543 24.01.96  Nice               23.0      10.0       17.25      + 72.5 24.01.96  E.S.C.             53.5      10.0       27.75      +177.5 01.02.96  Electric Fuel(*)   24.4       6.5        6.375     -  1.9 27.02.96  Vocaltec           47.5      19.0        5.56      - 70.7 13.03.96  Arzan               7.3       3.125      1.875     - 40% 19.03.96  Logal              15.2       8.0        3.125     - 60.9 20.03.96  Cimatron           14.6       7.5        3.75      - 50 27.03.96  Tadiran Telecom    75.0      15.0       21.625     + 44.1 02.04.96  B.O.S.              8.8       5.5        6.75      + 22.7 18.04.96  D.S.P.C.(*)       104.0      13.0       18.375     + 41.3 18.04.96  Wiztec              8.4       6.0        4.875     - 18.7 13.05.96  Tecnomatix         54.2      18.25      25.43      + 39.3 12.06.96  Matav              50.0      18.5       15.375     - 16.8 26.06.96  I.C.T.S.           14.7       7.0        9.75      + 39.2 28.06.96  Check Point        67.6      14.0       21.625     + 54.4 02.07.96  E.S.C.(*)          94.0      24.75      27.75      + 12.1 04.07.96  E.V.S.             18.0       9.0        8.25      -  8.3 29.07.96  Laser Ind.(*)      14.4      12.5       10.0       - 20 01.08.96  Blue Square        75.9      11.0       14.5       + 31.8 08.08.96  M-Systems(*)       15.3       6.0        4.75      - 20.8 27.09.96  Orchit             52.8      16.0        9.625     - 39 02.10.96  I.C.T.S.(*)        13.6      12.375      9.75      - 21.2 16.10.96  Memco              58.0      15.0       17.625     + 17.5 17.10.96  Summit Design      43.7       9.5        9.5         31.10.96  Zag                31.0      10.0       16.75      + 67.5 22.11.96  Accent(*)          15.3       8.5        6.25      - 26.4 22.11.96  Top Image           6.9       5.0        5.0         04.12.96  T.T.I.             15.6       6.25       5.75      -  8 17.12.96  Level-8(*)         14.0      11.0       14.375     + 30.6                       TOTAL $ 1.036 MILLION      TOTAL RETURN   + 8.5%   (*) denotes secondary offering