July 2006

MAALA - Business for Social Responsibility in Israel has released the updated MAALA Index for Social Responsibility 2006. Forty-nine companies participated in the Maala 2006 ranking, representing accumulated revenues of NIS 155 billion and a total of 121,000 employees.

20 Companies Included in the Tel Aviv MAALA Index

Teva Pharmaceutical Industries, Bank Hapoalim, Bank Leumi, Discount Bank, Perrigo Israel Pharmaceuticals (formerly Agis), Partner, Gazit-Globe, Strauss-Elite, Ormat, Clal Insurance Enterprises Holdings, Elbit Systems, Harel Insurance Investments, Osem, Industrial Buildings Corporation, Blue Square - Israel, Alvarion, Eden Springs, Delta Galil Industries, Tower Semiconductor, Baran Group.

The MAALA Index, first introduced in 2003, was launched on the Tel Aviv Stock Exchange in 2005. It rates the largest public and private companies in Israel, and includes companies in the Tel Aviv 100 Index or companies with an annual profit greater than $100 million. Companies in the Index represent a wide range of sectors, including services and trade, industry, construction and infrastructure.

The 2006 Index is based on expanded criteria in four main areas of corporate social responsibility: Business Ethics, Workplace and Human Rights, Community Investment and Environment.

The MAALA committee of experts and public figures, together with McKinsey & Co., has jointly prepared the updated criteria. The ranking process was conducted by the Maalot rating company (a Standard and Poor's strategic partner) and audited by Ernst & Young. Data for the Index were collected through corporate questionnaires and financial statements, and the information reviewed by an environmental analyst.

Updated criteria for the MAALA Index 2006 have been developed to take into account the high level of international standards related to corporate responsibility, as well as the local business market in Israel. They reflect MAALA's view that corporate responsibility means managing a firm with social responsibility not only making financial donations. This includes a responsibility towards employees, suppliers, customers, the community and the environment.

Companies were ranked according to their performance over the past year in the following areas:

• Business Ethics: code of ethics, internal system for implementing code

• Workplace and Human Rights: policies and performance

• Community Investment: financial contributions, donation of services and products, investment policy, employee volunteering

• Environment: policies, management and implementation, performance, reporting

According to Talia Aharoni, Managing Director of MAALA, "The updated MAALA Index is an expression of enormous progress in the area of corporate social responsibility in Israel. Corporate Social Responsibility is a long term investment and process. Companies and investors realize today that CSR measurements are crucial in risk management. The MAALA Index enables investors to invest in a group of leading companies selected not only for their excellent financial performance, but also according to their ethical performance and impact on the environment, their employees and the community. It gives crucial information to investors, consumers, employees, suppliers etc. The Index also enables participating companies to review their performance against a benchmark of their sector colleagues and to introduce management tools and processes that will enable them to perform better in the future.”

MAALA Business for Social Responsibility

Address: 12 Kehilat Venezia St., Tel Aviv 69400

Tel: 972-3-648-2579 Fax: 972-3-649-6829

Internet: www.maala.org.il

Email: info@maala.org.il