June 2007 Private and Confidential This is not a solicitation or offer of securities Jerusalem Technology Park • Building 8, Floor 3 • Jerusalem, Israel Office: +972-2-648-3072 [email_address]

Israel Then

Israel of Today

Israel’s Place in Flat Earth Telecommunications Hub Very Affordable Access To Connectivity Deregulated More and More Super-Turbo Charged Digital Mindset Global from Day One – But Good Local Beta Site Everyone From Everywhere – Connections, Connections, Connections

Telecommunications Hub

Very Affordable Access To Connectivity

Deregulated More and More

Super-Turbo Charged Digital Mindset

Global from Day One – But Good Local Beta Site

Everyone From Everywhere – Connections, Connections, Connections

The Israeli Tech Success Story Israel has more companies listed on the Nasdaq Stock Exchange than any other country except the United States Per capita VC funds raised in 2000: Israel: $600 per capita Europe: $30 per capita The world's highest per capita count of engineers The highest density of high-tech startups Nearly 4,000 in a country of six million people. High-tech now contributes approx 50% of exports, $15B+ in 2005

Israel has more companies listed on the Nasdaq Stock Exchange than any other country except the United States

Per capita VC funds raised in 2000:

Israel: $600 per capita

Europe: $30 per capita

The world's highest per capita count of engineers

The highest density of high-tech startups

Nearly 4,000 in a country of six million people.

High-tech now contributes approx 50% of exports, $15B+ in 2005

Israel is like Silicon Valley or Boston- Compact Geographical entity-2hrs to any deal Informality is a way of life-Bibi, Dudu, Muki, Chemi Risk taking is endemic Pioneering Ethos Immigrants drive the process International networks and experience Everyone questions authority – “every bastard a king” Flat, anti-hierarchical social organization There are no “unknown millionaires”-a real community Building startups has become the national sport; entrepreneurs - the new cultural heroes Why Israel? It’s the Culture

Israel is like Silicon Valley or Boston-

Compact Geographical entity-2hrs to any deal

Informality is a way of life-Bibi, Dudu, Muki, Chemi

Risk taking is endemic

Pioneering Ethos

Immigrants drive the process

International networks and experience

Everyone questions authority – “every bastard a king”

Flat, anti-hierarchical social organization

There are no “unknown millionaires”-a real community

Building startups has become the national sport; entrepreneurs - the new cultural heroes

Startup Models Change From local startups, to global startups We have come a long way from “I won’t invest unless I can ride my bike to all the key employees” Seed round questions are now: “What is your China strategy? Why not build the product in India?” Not having offshore development is seen as a disadvantage Israel companies have inherent advantage since we have always built baby multinationals—the ‘Israeli model’ has gone universal Now we move to three-headed companies and companies with early and primary focus on Asia

We have come a long way from “I won’t invest unless I can ride my bike to all the key employees”

Seed round questions are now: “What is your China strategy? Why not build the product in India?”

Not having offshore development is seen as a disadvantage

Israel companies have inherent advantage since we have always built baby multinationals—the ‘Israeli model’ has gone universal

Now we move to three-headed companies and companies with early and primary focus on Asia

Fund Size Target Portfolio Stage Team Our Fund Overview ~$15 million Technology-Enabled Services (TES) Seed, early stage Proven entrepreneurial, operations & investment experience

Fund Size

Target Portfolio

Stage

Team

The Opportunity Capital gap for TES in Israel Lower valuations Limited Competition Lower risk investment strategy Realizing faster path to liquidity with superior returns Value-Added Proposition Untapped TES opportunity in Israeli R&D center Deal Flow TES: fastest growing tech sector Proven business models, generating revenue Market

Capital gap for TES in Israel

Lower valuations

Lower risk investment strategy

Realizing faster path to liquidity with superior returns

Untapped TES opportunity in Israeli R&D center

TES: fastest growing tech sector

Proven business models, generating revenue

Investment Focus: Technology-Enabled Services Media & Entertainment Business & Consumer Infrastructure Communications

Your Daily Dose of Israeli Technology What time is it? Time for a dose of Israeli Technology

Personal Computers Chip Manufacturing PCB Inspection Notebook-Centrino Desktop-Pentium

Telephony VOIP Voice Mail Call Centers Billing Cordless Phone CellPhone

Consumer Electronics Compression CableTV Satellite TV LCD/Plasma DVD Flash Memory

Portfolio

Good for the Jews?? Think of the Jewish People/State of Israel as a Start-Up What is the Elevator Pitch? What is the Take-Away? Is There an “Exit?”

Think of the Jewish People/State of Israel as a Start-Up

What is the Elevator Pitch?

What is the Take-Away?

Is There an “Exit?”