Israel economy thread [Archive]

TalB

July 3rd, 2005, 03:15 AM

http://www.globes.co.il/serveen/
Thu: Tel Aviv 25 up 3.4% in January-June

The impending signing of the acquisition agreement for Bezeq helped the company’s share buck today’s negative trend, but the bank shares continued their slide.

Golan Fridenfeld 30 Jun 05 18:32

The Tel Aviv Stock Exchange (TASE) fell today. The Tel Aviv 25 index was down 0.55% at 639.18 points, the Tel Aviv 100 index fell 0.47% to 656.48 points, and the Tel-Tech 15 index rose 0.01% to 407.29 points. Turnover totaled NIS 1.297 billion.

The leading TASE indices continued their volatile ways today. After a positive start most of the leading indices fell below their starting points, and stayed there until the end of trading. Traders I spoke with today said that rumors that a security event had taken place today around noon had pushed the market down, and caused the shekel to depreciate against the dollar.

Bezeq rises against the trend

Bezeq rose strongly today, gaining 3% against the market trend. Predictions are that the agreement for acquisition of the controlling share in the company will be signed in the next two weeks.

Bezeq was very much an exception today on the TASE. The bank shares had a bad day; Bank Hapoalim went down 0.3%, Bank Leumi 0.6%, United Mizrahi Bank 2%, and Israel Discount Bank 2.4%.

These falls, combined with the sharp decline on the TASE over the past month, have lowered the capital multiples of bank shares to 1-1.1, compared with a peak of 1.3 for the major banks.

The Delek Group share gained 0.7% today, after Maalot The Israeli Rating Company upgraded its recommendation for the company’s bonds from AA minus to AA.

Published by Globes [online] - www.globes.co.il - on June 30, 2005

dov

July 3rd, 2005, 02:13 PM

"The Economist": Israeli economy growing at 4.1%

The estimate is higher than the Ministry of Finance projection of 3.9% for 2005 and 2006.

Zeev Klein 3 Jul 05 13:15

Prestigious UK magazine "The Economist" also believes that Israel's economy is now growing at 4.1%, higher than the Ministry of Finance projection of 3.9% for 2005 and 2006. According to the figures, industrial output rose 12.8% between April 2004 and April 2005. At 16.6%, only China had higher growth in industrial output. Industrial output in the other 23 emerging economies covered by "The Economist" was lower than Israel's.
"The Economist" gave the following figures for Israel's economy:

Inflation in May 2004-May 2005 was 0.2%, well below the government inflation target of 1-3%.
Israel's trade deficit reached an annualized $7.2 billion in May.
Israel's current balance of payments surplus for the previous 12 months was $1.9 billion.
Israel's foreign currency reserves have stabilized at over $26.5 billion.
The shekel-dollar exchange rate was NIS 4.57/$ at the end of June, compared with NIS 4.50 a year ago, a cumulative depreciation of 1.6%.
Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

Shohad

July 3rd, 2005, 03:29 PM

vary good news indeed. hope the trend will continue

Monkey

July 3rd, 2005, 03:50 PM

good news!!!!!!

TalB

July 3rd, 2005, 10:40 PM

http://www.globes.co.il/serveen/
June foreign exchange trading at record levels

The economic ministries’ working assumption is that the interest rate will rise by up to 0.5% towards the beginning of 2006.

Zeev Klein 3 Jul 05 14:35

The volume of foreign currency trading shot up 42% in June to $57.8 billion, an all-time record, according to Bank of Israel figures published today.

Foreign currency trading averaged $2.76 billion per day. Foreign financial institutions accounted for $1.33 billion per day, Israeli companies and business customers $980 million, and Israeli banks $450 million.

The representative shekel-dollar exchange rate was set at NIS 4.582/$ on Friday, the highest rate in the past eighteen months. The exchange rate has risen by NIS 0.177/$ since June 9, reflecting a 4% shekel depreciation against the dollar. Since hitting a low of NIS 4.299/$ six months ago, the exchange rate has risen by NIS 0.283/$, reflecting a 6.6% shekel depreciation against the dollar.

The rapid depreciation of the shekel is liable to add 1% to the annual inflation rate, assuming that one third of the depreciation is rolled over into price increases, and that the shekel depreciation against the dollar continues for some time.

The working assumption at economic ministries is that no interest rate hike is likely in the near future, but that this measure is likely towards the end of 2005 or the beginning of 2006. Yields on short-term loans (STLs) recently rose by 0.1%, and currently stand at 3.62% on three-month STLs and 4.11% on one-year STLs. According to STL yields on the capital market, a 0.5% interest rate hike will be sufficient to prevent a renewed outbreak of inflation. Inflation so far this year is only 0.4%; in order to reach 2% for all of 2005, the Consumer Price Index must rise by an average of 0.2-0.3% per month.

Published by Globes [online] - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:41 PM

http://www.globes.co.il/serveen/
Union Bank sees shekel in NIS 4.58-4.59/$ range this week

The market will continue marking time, with an increasing downtrend.

Shira Horesh 3 Jul 05 10:49

“In our opinion, the market will continue marking time, with an increasing tendency towards falling prices, due to the continued presence and strengthening of negative factors,” Union Bank of Israel (TASE: UNON) writes in its economic review published at the end of last week.

Negative factors listed by Union Bank include the worsening of the security situation and concern about events following disengagement, the strengthening of Hamas, great uncertainty as the disengagement date approaches, and concern about early elections.

On the other hand, factors that strengthen the market also exist: postponement of expectations that the Bank of Israel will raise the interest rate above 3.5%, expectations that the diplomatic situation with the Palestinian Authority and other Arab countries will improve, expectations of economic growth next year, and favorable reviews of Israel’s economic situation and Minister of Finance Benjamin Netanyahu’s plan by foreign investment houses.

Union Bank predicts that the shekel-dollar exchange rate will be in the NIS 4.58-4.59/$ range for the coming week. The closest support level is at NIS 4.50/$, and the next highest support level is at NIS 4.45/$. The closest resistance levels are NIS 5/$ and NIS 5.20/$.

Published by Globes [online] - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:43 PM

http://www.globes.co.il/serveen/
Finance Ministry sees 2.1% per capita growth in 2005 and 2006

Growth is expected to slow to 3.9% a year in 2005-06.

Zeev Klein 3 Jul 05 17:07

GDP, business product, and GDP per capita are expected to grow in 2005 and 2006, albeit more slowly than in 2006, say Ministry of Finance director general Dr. Joseph Bachar, budget director Kobi Haber, and chief economist Dr. Michael Sarel in their summary of the economic situation and macroeconomic projections for 2006, submitted to the cabinet today. The summary states that following fairly rapid 4.3% growth in 2004, growth was expected to slow slightly to 3.9% a year in 2005-06. This means that GDP per capita will grow 2.1% a year in this period. Business product, which grew 6.1% in 2004, is expected to grow by 4.5% in 2005 and 4.7% in 2006.

The Ministry of Finance heads emphasize that preserving a low real interest rate and a rise in real wages, together with tax cuts - the main growth engines - are expected to support a 2.7% increase in private consumption in 2005, and a further 4.4% increase in 2006, reflecting an increase of 0.9% in the standard of living in 2005 and 2.6% in 2006.

Continued global growth and expansion of international trade, especially in high tech, will boost Israeli exports by 6.5% in 2005 and 6.4% in 2006. Incoming tourism and tourist revenue are also expected to continue their recovery in 2005-06. Projected rise in domestic consumption are expected to boost imports by 5% in 2005 and 5.6% in 2006.

Further growth and the government's decision to reduce the number of foreign workers and tighten criteria for unemployment benefits and income support will probably boost the number of Israeli workers, thereby reducing the unemployment rate. Participation in the labor force rose to 55% in 2004, and is expected to stay at that level over the next two years. The unemployment rate is also projected to fall over the next two years. From a peak of 10.7% in mid-2003, the unemployment rate fell to 10.4% in 2004, and is expected to fall to 9.1% in mid-2005 and to 8.7% in 2006.

The real average salary in expected to rise by 1.8% in both 2005 and 2006, after rising 2.5% in 2004.

The Ministry of Finance's projections assume that the Bank of Israel will be in no hurry to raise the short-term interest rate, and will keep a low real interest rate in line with economic conditions. Under the projection for 2005, inflation is expected to be 1%, at the lower limit of the government's inflation target. Inflation is projected to rise to 2.6% in 2006, closer to the upper limit of the government's inflation target.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:44 PM

http://www.globes.co.il/serveen/
Vehicle deliveries up 7% in first half

The top-selling brand in June was Hyundai, with 2,345 deliveries.

Dubi Ben Gedalyahu 3 Jul 05 16:18

75,169 vehicles were delivered in the first half of 2005, 7% more than in the first half of 2004, the Israel Motor Vehicles Importers Association states in a report based on reports from importers. 15,200 vehicles were delivered in June alone, 4.7% fewer than in June 2004 and 27% fewer than in May 2005.

The top-selling brand in June was Hyundai, with 2,345 deliveries, followed by Mazda with 2,146, Toyota with 1,887, Ford with 1,561 and Chevrolet with 1,547.

A breakdown of deliveries by dealerships showed that Delek Motors Ltd. was in first place, with 3,707 deliveries in June and 17,425 in the first half - 4.2% fewer than in the first half of last year. Colmobil-Colmotor Ltd. was in second place with 3,137 deliveries in June and 14,497 in the first half, 18% more than in the corresponding period of last year.

The vehicle industry believes that deliveries in June were strongly affected by a large wave of deliveries to leasing companies that begin in May. The industry noted that sales to private customers were still weak.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:46 PM

http://www.globes.co.il/serveen/
780 new private sector homes sold in April

New private sector housing sales in Judea, Samaria and the Gaza Strip are up 36%.

Zeev Klein 3 Jul 05 17:04

780 new private sector homes were sold in April 780, of which 690 were under construction and 90 were completed, the Central Bureau of Statistics reported today. This was the smallest monthly number of new home sales in a long time. Seasonally adjusted new home sales were down 2% in January-April 2005, compared with September-December 2004.

The disengagement plan has had no effect on housing sales in Judea, Samaria and the Gaza Strip - new private sector housing sales shot up 36%. Only two other districts showed an increase in new housing sales: Jerusalem - 70% and Haifa 23.9%. Sales in all other districts were down: south - 5.8%; north - 12.5%; Tel Aviv - 20.9%; and central - 28.1%.

Inventory of private sector housing sales is continuing to shrink, falling by an annualized 12% in April. Housing inventory was 11,601 units at the end of April, of which 10,310 were under construction and 1,290 were completed. At the rate of sales in April, the inventory will last for 13 months. A breakdown by district shows a wide variance. Housing inventory in the Haifa district is sufficient for 22 months, in the southern district for 17 months, central district for 15 months, Tel Aviv for 14 months, northern district for 13 months, and in Jerusalem for ten months.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:48 PM

http://www.globes.co.il/serveen/
$26.2b foreign currency reserves in June

The stability in Israel's foreign currency reserves in the past two months follows a drop of $546 million in January-April 2005.

Zeev Klein 3 Jul 05 14:40

Israel's foreign currency reserves were unchanged at $26.21 billion at the end of June 2005, the same as at the end of May. Bank of Israel figures indicate that the government slightly increased its deposits, thereby offsetting losses from exchange rate differences on investments of foreign currency reserves.

The stability in Israel's foreign currency reserves in the past two months follows a drop of $546 million in January-April, a fall of 2%. Israel's foreign currency reserves have grown by $704 billion, or 2.8%, since January 2004.

Former Ministry of Finance director of wages and United Mizrahi Bank director Ya'acov Danon today took up his post as Bank of Israel director general. He toured the bank's departments this morning, shaking employees' hands. Bank of Israel national workers committee chairman Rafi Lankri later convened all the bank's employees and warmly welcomed Danon. This has opened a new page in the central bank's bitter labor and wage relations, which have continued for five consecutive years. Relations in the past two years were particularly stormy vis-a-vis former governor Dr. David Klein and human resources director Ephraim Gross, who recently left his post and is now on vacation.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:50 PM

http://www.globes.co.il/serveen/
Aternity raises $7.5m in 1st round

Vertex Venture Capital and Genesis Partners led the round, joined by Portview Communications and Clal Industries and Investments.

Batya Feldman 3 Jul 05 16:02

Start-up Aternity today announced that it had closed an expanded first financing round of $7.5 million. Vertex Venture Capital and Genesis Partners led the round. Portview Communications, IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Industries and Investments Ltd. (TASE:CII) and existing investors also participated.

A group of experienced entrepreneurs, including CEO Amnon Yacoby, founded Aternity. Yacoby previously founded Floware, which was floated on Nasdaq and later merged with BreezeCOM to form Alvarion Ltd. (Nasdaq:ALVR; TASE:ALVR). He was also a co-founder of RAD Network Devices, which was later split into three companies: Radwise (sold to Terayon Communication Systems Inc. (Nasdaq: TERN)), Radlan Computer Communications Ltd., and Radware Ltd. (Nasdaq: RDWR; TASE:RDWR). He also currently serves as chairman of Israel Infinity Venture Capital.

Aternity's three other entrepreneurs are Amir Eldad, formerly the CEO of SerCoNet, and VP marketing of NiceCom, acquired by 3Com (Nasdaq:COMS); Eden Shohat and Orit Kapon.

Aternity raised $3 million from Vertex and Portview five months ago. With the entry of Genesis into the company, Aternity has now closed the round.

Aternity develops and markets an innovative solution for improving access to enterprise IT infrastructures, and to monitor the effectiveness of these systems with a view to improving service. Aternity focuses on developing automated solutions that identify complex infrastructure problems, carry out root cause analysis of problems, and quickly respond to them.

Gensis's investment in Aternity is the first investment by the $100 million Genesis III fund, which it completed raising two months ago.

Vertex managing partner Moshe Shahaf said he was convinced that Aternity was focusing on growing markets, and that the company's team would lead it to success.

Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2005

TalB

July 3rd, 2005, 10:52 PM

http://www.globes.co.il/serveen/
Apax Partners raises $5.2b for 6th fund

The fund has not allocated a specific sum for investment in Israel, but at least $500 million will be available for this purpose.

Batya Feldman 3 Jul 05 17:01

International investment fund Apax Partners announced at the end of last week that it had finished raising its €4.3 billion ($5.2 billion) for its sixth fund. The fund is designated for investment in Europe, including Israel. Raising the fund took eleven months. The fund is smaller than its €4.4 billion predecessor, raised in 2001, and less than the €4.5 billion Apax was trying to raise. The current fund will be the first managed by new Apax Partners CEO Dr Martin Halusa. The fund will focus on buyouts, leveraged acquisitions, and venture capital investment, particularly in mature companies. Apax Partners has raised $18 billion since it was founded, including the current fund.

Foreign sources said that Apax had returned €1.3 billion to its investors, invested €1.6 billion over the past year, and already made investments from its sixth fund. These were large buyout deals, one of which was Apax’s victory, as part of the Apax-Saban-Arkin consortium, in the tender to acquire 30% of Bezeq (TASE: BZEQ), for which the consortium paid $972 million.

Apax chairman Sir Ronald Cohen founded the fund in 1972. The fund has operated in Israel since 1994 through a local branch attached to the fund’s European branch. Apax has invested in 40 companies in Israel in software, components and systems, life sciences, medical equipment and services, and media.

Two weeks ago, Apax announced that it planned to change the character of its investments in Israel through its venture capital branch. From now on, the fund will concentrate on venture capital investment in mature companies in large deals of $10-30 million each. The new fund will not allocate a sum for investment in Israel, but at least $500 million will probably be available for various investments here.

Published by Globes [online] - www.globes.co.il - on July 3, 2005

Shohad

July 3rd, 2005, 11:21 PM

Thanks TalB. This is all vary informative and rather optimistic ill say.

dov

July 4th, 2005, 10:44 AM

Carmel Olefins to invest $315m in polypropylene plant

The plant will boost production to 450,000 tons a year from the current 200,000.

Golan Fridenfeld 4 Jul 05 10:44

The board of Israel Petrochemical Enterprises Ltd. (TASE:PTCH) convened yesterday to approve an additional investment in a new polypropylene plant under construction by subsidiary Carmel Olefins Ltd. The final budget approved by the board is $315 million - one of the largest industrial investments in Israel. The original cost of the plant was $245 million, but subsequent restructuring and changes in construction inputs raised costs. The cost of metals shot up, adding $20 million to the original outlay; exchange rates for deals rose; and the company decided to expand production from 200,000 tons a year to 250,000.
The new plant is one of the largest construction projects in Israel, and is expected to employ 1,500 people. Sources inform ''Globes'' that financing for the construction is nearly closed: the company has signed $110-120 million in financing contracts with foreign banks. $150 million in additional financing contracts with Israeli banks are in advanced stages. The financing is backed by Petrochemical Enterprises' commitments to meet covenants set by the banks. Carmel Olefins is planning to raise additional financing through a NIS 660 million bond issue.

The new plant is intended to boost Carmel Olefins' polypropylene production to 450,000 tons a year from the current 200,000. The plant will also make propylene - raw material for polypropylene. It is generally believed that a shortage of propylene is likely in the coming years. Only three plants in the US and Japan, built in recent years, produce propylene. Carmel Olefins' plant will do the same in Israel.

Published by Globes [online], Israel business news - www.globes.co.il - on July 4, 2005

Monkey

July 4th, 2005, 03:06 PM

i found today in my job bags made in Doha(Qatar)
that meaning we has import from Qatar:)

source26

July 4th, 2005, 07:16 PM

The finance ministry calculates Israel looses 4 billion dollars a year from
"businesses and minds" leaving (escaping in hebrew) the country.
The number of academics leaving israel doubled in 2003, and is rising
by 15 percent more in 2004 and with 2005 showng the same.
Also, high tech companies sold to overseas companies generate a one-time sum
which often goes into bank accounts, not generating growth aside from tax.

Israel is estimated to loose anywhere from 20,000 to 30,000 people a year moving overseas "while despirately trying to bring as much immigrants instead of assisting young families to build a future".

"The employment uncertainty is pushing thousands with professional degrees to look
for work in their field overseas - where they are even regarded pay-wise as experts
while Israeli companies prefer temporary employees, offering jobs with little initiative which do not suite their skills"

"A new trend is work-trips. Its risky but Israeli's have connections with Jewish or Israeli-owned companies in Canada, Australia, the U.K and throughout the U.S. - some stay for months, others for years.
Most are illegitimate, but can marry a U.S citizen and start the process of setting up legitimate companies - movers, demolitions, reconstruction, marketing household goods".

Azazel

July 6th, 2005, 11:57 AM

That's very sad. Goddamn brain drain - and the people to blame are our terrible government, not giving more budgets and investing in universities, and making the job market more "flexible".

source26

July 7th, 2005, 03:38 AM

The brain drain is because middle-class people are not poor enough and
uneducated so that they cannot leave anyway, and not rich enough so that they
in times of trouble dont even have to live here to exploit the country.

Anyways, if 2 million israelis in 13,000 flights are vacationing abroad this summer,
Im sure theres enough people doing well in this terrible economy.
Im also sure thousands arent going to vacations but to work abroad legally or illegaly.

TalB

July 8th, 2005, 12:37 AM

http://www.globes.co.il/serveen/
Dagami to get tens of millions of dollars for Union Motors stake

In recent years, Toyota has been one of the top three selling brands in Israel, with double-digit growth in sales every year.

Dubi Ben Gedalyahu 7 Jul 05 16:47

George Horesh is expected to pay his former partner, Ezra Dagami, tens of millions of dollars for the latter’s stake in Toyota importer Union Motors Ltd. Vehicle industry sources believe that Dagami, a partner in the company since it was founded in the early 1990s, owns 15-20% of the company.

In addition to the import agency, Union Motors also owns a number of real estate properties, including Toyota House on Yigal Alon St. in Tel Aviv. Vehicle industry sources estimate the value of the company at $300-400 million. The sources believe that a large part of this value consists of accumulated cash reserves from profits, since the company’s shareholders have steadily avoided taking dividends in recent years.

In recent years, Toyota has been one of the top three selling brands in Israel, with double-digit growth in sales every year.

Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005

TalB

July 8th, 2005, 12:45 AM

http://www.globes.co.il/serveen/
Gov’t to raise $1b on overseas markets

Israel’s budget deficit since the beginning of 2005 is very low, at NIS 1.1 billion.

Zeev Klein 7 Jul 05 18:15

The government will soon raise $1 billion on overseas markets to finance its domestic activities deficit. The money will be raised on the US market. The planned capital raising comes on top of the need to raise money backed by the US loan guarantees and the sale of State of Israel Bonds during 2005.

Israel’s budget deficit since the beginning of 2005 is very low, at NIS 1.1 billion, due to underperformance by ministries. In addition, tax revenues have been NIS 3.5 billion more than projected, due to enforcement campaigns.

Unofficial estimates claim that the revenue surplus could exceed NIS 5 billion, although this is one-time revenue.

At the current rate of spending by ministries, the government’s deficit for 2005 could be 0.5-1% less than the 3% of GDP deficit target, and 3.4% of GDP target including the disengagement plan.

Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005

TalB

July 8th, 2005, 12:47 AM

http://www.globes.co.il/serveen/
Paneth, Tamir each sell $4m of Orckit shares

Orckit Communications president Itzhak Tamir and chairman and CEO Eric Paneth each sold $9.4 million worth of shares in the first half of 2005.

Tali Tsipori 7 Jul 05 18:25

Orckit Communications Ltd.’s (Nasdaq:ORCT; TASE:ORCT) share is continuing to break records, and its founders, president Itzhak Tamir and chairman and CEO Eric Paneth, are also continuing to sell shares. Early this month, Paneth and Tamir each sold 150,000 shares at an average price of $27 per share for a total of $4 million each.

Last Tuesday, Orckit’s share reached $27.80, reflecting a market cap of $360 million, after rising 280% over the past year. Despite the proximity between the sale of shares by Paneth and Tamir and the soaring share price, neither man can control the date of the sale of their shares.

This was the third sale of shares by Paneth and Tamir since the beginning of the year. Each man sold $9.4 million worth of shares in the first half of 2005, and now own about 10% of Orckit, currently worth $36 million.

Another large shareholder in Orckit is Phylon Fund Ltd., with a 7.3% stake.

Most of Orckit’s business is carried out by its subsidiary, Corrigent Systems Inc., which is developing an optical communications product. Orckit lost $20 million on $11.3 million in revenue in 2004, but it expects to post a net profit of $15 million on $90 million in revenue this year.

Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005

TalB

July 8th, 2005, 12:51 AM

http://www.globes.co.il/serveen/
Union Bank: Shekel/dollar rate could reach 4.80

“If the rate reaches NIS 4.70/$, the Bank of Israel may raise the interest rate.”

Dafna Zucker 7 Jul 05 12:27

If the Bank of Israel does not raise the interest rate in a month or two, the creeping depreciation of the shekel could push the shekel-dollar exchange rate up to NIS 4.70/$ or NIS 4.80/$, Union Bank chief economist Amir Hayek believes.

Hayek predicted that if the shekel-dollar exchange rate reaches NIS 4.70/$, the Bank of Israel might raise the interest rate. According to Hayek, Governor of the Bank of Israel Prof. Stanley Fischer believes that Israel’s risk premium should be 1%. The premium is currently at only 0.25%.

Hayek’s opinion is that this narrow interest rate gap, combined with the approach of disengagement, will cause the shekel to continue falling against the dollar, even if the dollar does not continue to strengthen against currencies included in the basket of currencies. He said that only a significant change in the trend of the dollar-euro exchange rate could stop the creeping depreciation of the shekel against the dollar.

Hayek therefore recommends keeping 20% of investment portfolios in foreign currency, mostly in dollars, rather than hurrying to sell dollars even at NIS 4.59/$.

Published by Globes [online] - www.globes.co.il - on July 7, 2005

TalB

July 8th, 2005, 12:53 AM

http://www.globes.co.il/serveen/
Empire Online reports $13m second quarter profit

Revenue for the online gaming services company was up 3.7% in comparison with the first quarter.

Tali Tsipori 7 Jul 05 15:36

A week after the end of the quarter and three weeks after its IPO, Empire Online has released preliminary second quarter results. Empire Online, which provides marketing services to the online gaming industry, reported estimated net gaming revenue of $25.3 million, compared with $13.8 million in the second quarter of 2004, and $24.4 million in the first quarter of 2005. Revenue growth was 83% from the same quarter last year, and 3.7% from the first quarter.

Casino revenue is estimated at $5 million, down from $5.5 million in the second quarter of 2004 and 5.6 million in the first quarter of 2005. The company explained the decrease by an extraordinary series of jackpots won by players in excess of $1 million.

Empire Online made an estimated net profit of $13 million in the second quarter of 2005, compared with $7.8 million in the second quarter of 2004, and $12.4 million in the first quarter of 2005.

The number of average active players per day increased to 17,555, compared with 12,992 in the second quarter last year, and 16,685 in the first quarter of 2005.

Empire Online CEO Noam Lanir said, "We are pleased with our second quarter performance which overcame the natural seasonal market decrease in activity and was in line with our expectations. We are confident that Empire Online will continue to deliver strong performance in line with our strategic goals."

Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005

TalB

July 8th, 2005, 12:55 AM

http://www.globes.co.il/serveen/
Israel climbs to 25th in IMD competitiveness ranking

IMD’s index rates countries according to economic efficiency, administration, business, and infrastructure.

Hadas Manor 7 Jul 05 10:04

The International Institute for Management Development (IMD), a business school located in Switzerland, rates Israel 25th out of 60 countries in its World Competitiveness 2005 Scoreboard, the Federation of Israeli Chambers of Commerce reported. Israel was rated 33rd last year.

IMD’s index rates countries according to parameters collected from various business organizations. The parameters include economic efficiency, government efficiency, business efficiency, and infrastructure.

The top countries in the index were the US, Hong Kong, Singapore, Iceland, and Canada, and the bottom countries were, in reverse order, Venezuela, Indonesia, Argentina, and Poland.

Israel was rated in first place in spending on R&D as a proportion of GDP, second in entrepreneurship and education, and tenth in number of wireless handsets (the number of handsets in Israel did not fall, but it rose in other countries).

On the other hand, Israel was rated 55th in the ratio of labor force to population and the ratio of company tax to profits, and 54th in strikes and labor sanctions.

Among countries with fewer than 20 million people, Israel was rated 18th, two places better than last year.

Israel was rated 38th in performance, thirteen places better than in 2004. Israel was 29th in government efficiency (46th in 2004), 21st in business efficiency (28th), and 19th in infrastructure (19th).

IMD rated Israel 30th in real GDP growth, ahead of Australia, Sweden, France, and Germany. Israel was rated 31st in per capita GDP in dollar terms.

Federation of Israeli Chambers of Commerce chairman Uriel Lynn said that the figures demonstrated Israel’s economic progress. He commented, “Many ministers are busy making personal attacks, instead of promoting the public good and contributing to economic progress.”

Published by Globes [online] - www.globes.co.il - on July 7, 2005

source26

July 8th, 2005, 01:04 AM

On the other hand, Israel was rated 55th in the ratio of labor force to population and the ratio of company tax to profits, and 54th in strikes and labor sanctions.

Yep, our problems are getting worse not better.
Soon 25 percent of Israelis will be arabs with poor labour participation especially women, and another 20 percent orthodox with the same problem...

TalB

July 9th, 2005, 12:28 AM

If you compare them to last years rankings, it is a big improvement.

TalB

July 11th, 2005, 04:06 AM

http://www.globes.co.il/serveen/
Accountant General: Economy grew 4.3% in 2004

The rapid growth reflected great stability, both relatively and in international terms, compared with the mid-1990s.

Zeev Klein 10 Jul 05 17:31

The Ministry of Finance Accountant General’s Office today published its economic summary for 2004, stating that GDP grew by 4.3% and business product by 5.1%. The ministry emphasized that the rapid growth reflected great stability, both relatively and in international terms, compared with the mid-1990s.

The Accountant General’s Office also optimistically portray the performance of the Tel Aviv Stock Exchange (TASE) and the sharp rise in stock prices. The Tel Aviv general index rose 17.6% in 2004, after rising a sharp 55.4% in 2003; the Tel Aviv 100 index rose 19% in 2004, after rising 60.7% in 2003; and the Tel Aviv 25 index 22.6, after rising 51%.

The summary added that the aggregate market cap of securities on December 31, 2004, was $92.1 billion, compared with $70.4 billion at the end of 2003, and $42.6 billion at the end of 2002. Average daily turnover on the TASE rose to $147 million during 2004, from $81 million during 2003 and $51 million during 2002.

The summary on the Israeli economy details the disengagement plan and the cabinet and Knesset decisions on the subject. It also includes an extensive chapter on the political situation in the Knesset.

Published by Globes [online], Israel business news - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:07 AM

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Bezeq privatization to go ahead

The Apax-Saban-Arkin consortium will receive a discount on its options if Bezeq is convicted in the Trojan Horse affair.

Guy Hadass 10 Jul 05 14:54

Minister of Finance Benjamin Netanyahu and Apax Partners chairman Sir Ronald Cohen announced today in London that the parties in the Bezeq (TASE:BZEQ) deal had reached agreement for completing the sale of the controlling interest in the company, while taking the Trojan Horse industrial espionage affair into account.

The state agreed that, in the event of a future verdict against the Bezeq group in the Trojan Horse affair, 30% of the verdict amount plus court costs would be discounted from the strike price of the options given to the buying consortium on a further tranche of Bezeq shares. The percentage is in line with the stake the Apax-Saban-Arkin consortium is buying from the state in the first stage of the process. The state also agreed that, during the first two years of the options exercise period, they would bear no interest. In exchange, the state’s share of any increase in the value of the shares will be raised.

The agreement was reached after five weeks of negotiations between the Government Companies Authority and the Apax-Saban-Arkin consortium, which won the Bezeq privatization tender. The talks between Cohen and other Apax-Saban-Arkin representatives and Netanyahu and Government Companies Authority director Eyal Gabbai climaxed late last week in London. The agreement has paved the way for closing the Bezeq deal immediately after the Ministry of Communications completes procedures for granting control under the Wireless Telegraph Ordinance.

At a press conference in London this morning, Netanyahu said, “We’re pleased to announce this morning that everything is settled. Due to an unexpected problem that came up, and the need to find a responsible solution, the two parties negotiated in a good and businesslike atmosphere. Today, we succeeded in reaching agreement for the completion of the Bezeq deal, which is very important for the Israeli economy. This agreement will signal other investors that their investments in Israel are safe.”

Published by Globes [online], Israel business news - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:09 AM

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Sun: TASE on its way up again

Bezeq gained ground, following a compromise with tender winners. Speculation about a 3.5% share sale gave Leumi a boost, but a revenue warning sent Given Imaging tumbling.

Roy Meltzer 10 Jul 05 18:29

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 1.48% at 644.19 points, the Tel Aviv 100 index rose 1.52% to 661.21 points, and the Tel-Tech 15 index rose 0.39% to 400.69 points. Turnover totaled NIS 616 million.

The TASE trading week got off to a very good start this week, in the wake of quick recovery on global capital markets, following last Thursday’s terrorist attack in London.

Bezeq compromise today, Bank Leumi tomorrow

Bezeq took center stage today, following the emerging agreement between the Ministry of Finance and the Apax-Saban-Arkin consortium, which won the tender for the controlling interest in Bezeq. The compromise concerns compensation for possible damages to Bezeq resulting from the Trojan Horse industrial espionage affair. The Bezeq share responded to the news with a 3.6% jump.

Bank Leumi was also up fairly sharply today, following continued speculation in the market regarding the sale of another block of the bank’s shares. It appeared last week that the Ministry of Finance was feeling its way toward a sale of 3.5% of Bank Leumi’s shares, but market sources predicted that withdrawal of this plan was likely.

Investors responded positively to the new speculations, lifting the Bank Leumi share 2.1%. The atmosphere was also positive in the rest of the banking sector. Bank Hapoalim was up 0.6%, Israel Discount Bank 1.4%, and United Mizrahi Bank 0.7%. Of the other leading shares, Teva benefited from a positive arbitrage gap that pushed the share up 3.9%, while Israel Chemicals (0.9%) and MA (Makhteshim-Agan) Industries (0.3%) had more moderate rises. Africa-Israel Investments gained 2.4%, and the Israel Corp. 1.5%.

Given Imaging also makes warning

At the end of last week, Given Imaging reported that its revenue for the second quarter would be $20.5 million, slightly less than expected. The US market, not known for its tolerance of warnings, had its say on the matter at the end of last week, shoving the share southward by 7%. TASE investors followed the negative arbitrage gap created by lowering the share 5.9%. In Given Imaging’s case, it’s also worth mentioning that parent company Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN) was down 1.7% today.

Published by Globes [online] - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:11 AM

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Alon USA to raise $128m at $650m value

The company plans to use the proceeds to repay $20.3 million in bonds issued to Alon Israel Fuel, and to distribute a $42.2 million dividend.

Tali Tsipori 10 Jul 05 17:16

At the end of last week, two months after submitting its first draft prospectus to the US Securities and Exchange Commission (SEC), Alon USA published the price range at which it plans to raise capital in the US. The company plans to issue 8.5 million shares at $14-16, thereby raising $127.5 million. The company value at the midpoint of the price range will be $653 million. The underwriters for the issue - Credit Suisse First Boston, Deutsche Bank, and Lehman Brothers - will receive an option to buy an additional 1.275 million shares, thereby increasing the size of the issue to $147 million.
After the issue is completed, Alon USA will be listed for trading on the New York Stock Exchange (not Nasdaq), under the ticker symbol ALJ.

Alon USA believes that its net proceeds from the issue will be $116.6 million, or $134.4 million if the underwriters exercise their green shoe option. The company plans to use the proceeds to repay $20.3 million in bonds issued to Alon Israel Fuel, and to distribute a $42.2 million dividend. Alon USA, which has never distributed a dividend to its shareholders, is expected to distribute quarterly dividends amounting to $0.16 per share annually, starting in the first quarter of 2006.

Published by Globes [online] - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:13 AM

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Israeli gov’t to raise €400m

The next government issue will be on the euro market, and not in the Yankee market, as previously reported.

Zeev Klein 10 Jul 05 17:30

The Israeli government’s next independent issue, amounting to $500 million (€400 million at the current exchange rate) will be on the euro market, not the Yankee market, as was reported on July 7. The issue is included in Accountant General Dr. Yaron Zalika’s multiyear work plan.

Zalika says the euro issue was postponed from early 2005 to the end of the year, due to the significant decline in Israel’s need to raise capital. “The postponement of the issue is evidence of the success of the economic policy. We don’t need the money. We’ve reduced the deficit, revenue from privatization has increased, and we’ve streamlined the government’s cash flow,” he said.

The Accountant General’s multiyear work plan states, “One independent issue a year should be held, because it’s impossible to disengage from the market, and it’s important to preserve access to markets.”

Zalika said, “The government held issues on the US market last year, and under the current work plan, issues should be held on the euro market.”

The last issue on the US market was Israel’s second largest issue ever. Held at a record spread, it was a success.

Published by Globes [online], Israel business news - on July 10, 2005

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July 11th, 2005, 04:14 AM

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Netanyahu: British investors interested in Leumi

Minister of Finance Benjamin Netanyahu: All those investing in Israel will benefit from growth here.

Globes’ correspondent 10 Jul 05 11:28

Minister of Finance Benjamin Netanyahu met last Friday with British business people who have expressed interest in acquiring control of Bank Leumi (TASE: LUMI). Netanyahu and the business people agreed to continue discussing the matter.

In a lecture in London for State of Israel bonds (Israel Bonds), Netanyahu said that he regarded the sale of Bank Leumi as very important. He added that all those investing in Israel would benefit from economic growth here.

Netanyahu also invited other investors to bid for the controlling interest in Bank Leumi.

The government wants to sell a 20% controlling interest in Bank Leumi, and has shelved a plan to distribute options on Bank Leumi shares to all citizens. In recent days, the market is waiting for a distribution of 3.5% of Bank Leumi on the Tel Aviv Stock Exchange, after 6.5% was distributed a few months ago. 4.5% of Bank Leumi’s shares have been promised to its workers under an agreement with them.

Published by Globes [online] - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:16 AM

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“The Economist”: Tel Aviv world’s 16th most expensive city

Tokyo is the world’s most expensive city, where the cost of living is 42% higher than in New York.

Zeev Klein 10 Jul 05 15:06

The cost of living is higher in Tel Aviv than in Prague, Johannesburg, Bangkok, and Manila, but lower than in New York, Hong Kong, Geneva, London, and Paris, according to a cost of living index for 27 selected cities around the world compiled by British weekly “The Economist”. The index is based on a more extensive survey by the "The Economist Intelligence Unit" (EIU) that includes 127 cities around the world. Tel Aviv is the only Israeli city included in the prestigious survey, which omits cities like Barcelona and Rome.

”The Economist “ found that Tokyo was the most expensive city in the world, with a cost of living 42% higher than in New York, and 2.8 times that in the Philippine capital of Manila, rated the cheapest in “The Economist’s” survey.

The next most expensive cities after Tokyo are Oslo, Paris, and London, followed by Geneva, Frankfurt, Stockholm, Seoul, Sidney, Hong Kong, and Singapore all of which are more expensive than New York.

Moscow and New York are in a virtual dead heat for twelfth and thirteenth place. The index uses the cost of living in New York as its base figure of 100 points.

Fourteenth to twentieth places are taken by Istanbul, Athens, Tel Aviv, Prague, Warsaw, Mexico City, and Johannesburg. The last seven cities on the index are Jakarta, Kuala Lumpur, Bangkok, Sao Paolo, Cairo, Mumbai, and Manila.

Since the survey was conducted in the spring of 2005, the dollar has greatly strengthened, particularly against the euro.

Published by Globes [online] - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:18 AM

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Friction reduction co FriCSo raises further $600,000 from Aviv Venture Capital

FriCSo - Friction Control Solutions has raised $2 million to date.

Batya Feldman 10 Jul 05 15:28

Start-up FriCSo - Friction Control Solutions Ltd. has raised an additional $600,000 from Aviv Venture Capital in its second financing round. The company has raised $2 million to date. Founded 18 months ago, FriCSo develops technology for minimizing friction between moving parts, thereby extending the lifespan of engines, machinery, transmissions, ball bearings, and other systems. The company’s products are designed for the vehicle and heavy machinery industries. It will begin sales over the coming year.

Prior to the capital raised from Aviv, FriCSo had raised $850,000 from private investors and the LN Innovative Technologies Center in Haifa.

FriCSo CTO Dr. Alexander Ignatovsky and chief scientist Dr. Boris Shamshidov founded the company, which specializes in tribology - the science of friction, lubrication and wear. FriCSo’s technology saves energy and uses it more efficiently, and reduces maintenance and pollution.

The Aviv I fund (formerly Fantine I), manages $25 million for investment in technology companies. Aviv Venture Capital is run by managing partners Dr. Amir Guttman and Yoav Z. Chelouche.

Published by Globes [online], Israel business news - www.globes.co.il - on July 10, 2005

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July 11th, 2005, 04:19 AM

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EZchip Technologies raises an additional $10m

All of current investors participated in the third round of financing. LanOptics continues to be the majority shareholder.

Globes correspondent 10 Jul 05 12:49

Fabless semiconductor company EZchip Technologies Ltd., a subsidiary of LanOptics (Nasdaq: LNOP) announced at the end of last week that it has raised an additional $10 million as part of its Series C funding.

All of EZchip's current investors participated in this round. LanOptics, which will continue to be the majority shareholder of EZchip following this financing round with 60.4% of the company, invested $6.9 million with the balance invested by all other shareholders.

Privately-held EZchip was formed in 1999 as a spin-off of LanOptics. Other investors include Goldman Sachs, IBM, JK&B Capital, BlueRun Ventures (formerly Nokia Venture Partners), Star Ventures, and Tamar Investments.

LanOptics director and EZchip Technologies president and CEO Eli Fruchter said the additional funding "provides EZchip with a very strong financial position to execute on our plan of becoming a leading network processor vendor."

EZchip provides highly integrated 10-gigabit and 5-gigabit network processors.

Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, July 10, 2005

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July 11th, 2005, 04:21 AM

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[b][u]Sales of Jerusalem apartments rise

The Jerusalem District Planning Commission has approved a plan for building 100 housing and tourism units in Ramat Rachel.

Orit Bar-Gil 10 Jul 05 12:44

Figures published recently by the Central Bureau of Statistics showing a rise in sales of privately built apartments in the Jerusalem area are a source of satisfaction for real estate sources in the city. The figures show a 70% increase in apartment sales in Jerusalem, compared with the corresponding period last year.

Some contractors regard the figures as confirmation of their assertion that the limited area of land available for residential construction in the area should be increased. They say that demand is up, and supply should therefore be increased in order to prevent a price rise. Both supporters and opponents of the Safdie plan for construction west of Jerusalem regard the figures as support for their positions. Supporters claim that the stock of available housing should be increased, particularly for young couples. Opponents say that there is no need to continue building in order to increase the supply of housing and attract people to the city, because demand already exists.

Almost everyone agrees that most demand for housing in Jerusalem itself is from Jews living overseas. This demand is mostly for luxury housing, partly for investment purposes. The main site where apartments suitable for young couples are being marketed is in Har Homa. Ministry of Housing and Construction figures show that 84 apartments were sold in Har Homa in January-March 2005, a decrease, compared with 101 apartments sold in the corresponding period last year.

One possible conclusion is that some of the increase in apartment sales consists of luxury apartment sales, and perhaps also projects outside the city limits. The Central Bureau of Statistics notes that the Jerusalem district also includes Beit Shemesh and communities in the Mateh Yehuda Regional Council. Some of the largest projects currently being marketed in Jerusalem are in Ramat Rachel, Ramat Beit Hakerem, Holyland, a few in the city center, Ramat Eshkol, Talbieh, and the YMCA project.

The Jerusalem District Planning Commission has approved for deposit a residential, hotel, and tourist plan in the Ramat Rachel neighborhood. The plan includes five new buildings with 100 housing and units, two hotels, and a tourist services site. A central traffic artery is planned, which continues the Ruth Baram promenade towards the Old City of Jerusalem.

Published by Globes [online] - www.globes.co.il - on July 10, 2005

TalB

July 12th, 2005, 12:39 AM

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Tax reform bill passes first Knesset reading

The vote was 61-25, with one abstention. The prime minister did not respond when asked if he would fire Labor Party ministers opposing the bill.

Zvi Lavi 11 Jul 05 19:21

The Knesset plenum today approved the tax reform bill on its first reading. The Knesset Finance Committee will begin tomorrow to prepare the bill for its second and third readings. The committee will start by hearing Ministry of Finance - Israel Tax Authority director Eitan Rub. The committee is meanwhile postponing the conclusion of its discussions on the Bachar recommendations bill until the return from overseas of Ministry of Finance director general Joseph Bachar, who is slated to lead the cabinet summary before the committee determines its positions and votes on the bill.

The Knesset voted in favor of the bill by 61-25 on a roll call vote, with one abstention.

The Labor Party faction decided to oppose the bill, after its proposal to postpone the vote was rejected. The Likud mustered a majority that included opposition factions Shas, Shinui, and the National Union Party. At the last minute, Labor Party Ministers Matan Vilnai (without portfolio), Isaac Herzog (Housing and Construction), Shimon Peres (Vice Premier), and Haim Ramon (without portfolio) left the Knesset, after learning that the vote constituted a vote of confidence in the government.

The prime minister did not respond when asked whether he would fire the Labor Party ministers for absenting themselves from a vote of confidence in the government.

Minister of Finance Benjamin Netanyahu said before the vote, “Anybody who has not internalized the fact that high taxes increase unemployment and poverty is leading us straight back to the brink. The economy is growing solely because of low taxes.”

Published by Globes [online] - www.globes.co.il - on July 11, 2005

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July 12th, 2005, 12:40 AM

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Mon: TA 25 up 3% in two days

A correction by the shekel and diminished nervousness about disengagement gave stocks another strong day with banks leading the way.

Roy Meltzer 11 Jul 05 19:05

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 1.47% at 653.63 points, the Tel Aviv 100 index rose 1.32% to 669.94 points, and the Tel-Tech 15 index rose 0.03% to 400.82 points. Turnover totaled NIS 916 million.

The TASE had its second good day in a row today, on a higher turnover. The leading indices were up slightly in the morning, and the positive atmosphere persisted and strengthened as the day went on.

The shekel also gained ground against the dollar today for the first time in a long time. This also pushed up the bond market, and shekel bonds are now 0.8% ahead in the past two days.

Some traders I spoke with today said that the market was reverting to its positive trend. “In recent days, we’ve had indications that disengagement is going to be quieter than expected, and economic figures are still positive. In addition, it looks like the economic markets are continuing as usual, despite the terrorist attacks in London,” one trader said today.

This optimism was backed by reports I heard today of lively demand from foreign investors.

Positive bank trend

The stock market continued its climb today with the banks leading the positive trend. Traders said that beyond the positive market trend, it is believed that the banks will get the upper hand on the issue of commission payments, in the context of the Bachar committee recommendations. Traders say that these payments are in important source of potential revenue for the banks. Bank Hapoalim and Bank Leumi did particularly well today, rising 2.6% and 3.8%, respectively.

Besides the banks, the other blue chips, including the chemical industry shares and Bezeq, also stood out. Some traders said today that foreign investors had gone back to buying their usual merchandise, following positive signals from the G8 conference that addressing the Middle East conflict would continue to focus the attention of the US and Europe. Traders explained that these signals were good for the future of the Middle East, particularly Israel.

In any case, Israel Chemicals was up 1.7%, MA (Makhteshim-Agan) Industries rose 0.6%, and Bezeq continued its run with a 1.4% gain. Investors are expressing their approval of transfer of the company to private hands. Africa-Israel Investments shot up 3%, and Koor Industries added a cool 4%, helped out by the recent surges in MA Industries and ECI Telecom, in contrast to the Koor share’s recent setbacks. Teva was down 1.2%.

Among other companies, Israel Salt Industries and Mivtach Shamir attracted attention, following the completion of Mivtach’s Shamir’s purchase of 29% of Salt Industries for $53 million, reflecting a 9% premium on the market price.

Traders said today that the deal was good for both parties. Mivtach Shamir is gaining a new investment with great potential for value enhancement through dividends from Bank Hapoalim and rezoning Salt Industries’ land. For their part, the Dankner family further decreased its debt to Bank Hapoalim, at a pretty fair price for its stake in Salt Industries. The Mivtach Shamir share responded with a 2.7% jump, and Salt Industries moved up 0.5%, continuing several days of rises.

Among the small caps, RSL Electronics climbed 3.4%, after reporting $5.2 million in orders from the Ministry of Defense.

Published by Globes [online] - www.globes.co.il - on July 11, 2005

TalB

July 12th, 2005, 12:42 AM

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Nova Measuring Instruments expects 60% revenue increase for Q2 2005

CEO Dr. Giora Dishon: We resumed growth even though the semiconductor equipment market hasn't yet done so.

Globes correspondent 11 Jul 05 17:53

Nova Measuring Instruments (Nasdaq: NVMI) today announced that its revenues for the second quarter of 2005 are expected to increase by about 60% over those of the previous quarter.

The company had projected in April 2005 that it would resume revenue growth in the second quarter. Nova stated that in the second half of the year it expects to continue the revenue growth trend.

The significant increase in revenues over the previous quarter is as a result of multiple sales of 300mm metrology solutions in Asia Pacific and Japan, and the successful introduction and sales of the new NovaScan 3090 systems for copper CMP and Optical CD applications. Nova stated that repeat orders of these new products are expected in the coming quarters.

Nova president and CEO Dr. Giora Dishon said, "As we had expected, we resumed growth this quarter despite the fact that the semiconductor equipment market has not yet resumed growth. We expect that over the next quarter or two, the market will remain with very poor visibility (last book-to-bill ratio for front-end equipment was 0.85). At the same time, the introduction of our new NovaScan 3090 systems for the different processes, at advanced 90nm, 65nm and below technologies, does provide an engine for growth for the company.

"We are continuing to work with several major process equipment manufacturers to integrate our new systems with their process equipment and provide more advanced process control solutions."

Nova's final results for the second quarter of 2005 will be released on August 4, 2005.

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July 12th, 2005, 12:43 AM

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TTI Telecom expects to report better quarter

Preliminary results show second quarter revenue up 10% on the previous quarter.

Globes correspondent 11 Jul 05 15:14

TTI Team Telecom International (Nasdaq: TTIL), which provides Operations Support Systems (OSS) and Business Support Systems (BSS) to telecommunications operators, has announced preliminary second quarter 2005 financial results.

The company expects revenue for the quarter to be approximately $10.0 million, representing a 10% sequential increase. Bookings in the quarter, a measure of new contracts received in the quarter, stand at $14.4 million, compared with $14 million in the first quarter.

The net loss for the quarter is expected to be approximately $2.5 million, or $0.21 per diluted share, compared with a net loss of $4.9 million, or $0.41 in the first quarter. TTI expects to be cash flow breakeven and to end the quarter with approximately $32.0 million in cash and cash equivalents.

In the second quarter of 2004, TTI lost $6.53 million, (or $0.55 per share) on revenue of $9.27 million.

TTI Telecom chairman and CEO Meir Lipshes said, "Our performance this quarter was driven by ongoing sales momentum, highlighted by a sequentially stronger bookings figure, in conjunction with continued progress in lowering operating expenses.

"We added several new customers in the quarter, including two wireless carriers in North America and APAC, and our restructuring plans remain on track and are already having a positive impact on our financial performance. We believe that, should the trends in our expense structure and sales performance continue, we are on course to achieve operating breakeven results by the fourth quarter." TTI shares closed at $2.45 on Friday, giving the company a market cap of $29 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 11, 2005

TalB

July 12th, 2005, 12:45 AM

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KPMG: Israel Electric Corp. should be privatized

A report submitted to Minister of Finance Benjamin Netanyahu says that the IEC is inefficient in both operations and investment.

Gal Nissim 11 Jul 05 16:03

A reported submitted by the international accounting and consultant firm KPMG to Minister of Finance Benjamin Netanyahu states that the Israel Electric Corporation (IEC) is inefficient in its operations and investment, increases costs unnecessarily, and should be privatized. The report cites excessive salary costs in the company, which is asserts are NIS 800,000 higher than those prevailing internationally.

KPMG found that salary costs at IEC total NIS 3.5 billion per year. The firm believes that inefficiency at the IEC resembles the situation at other unreformed electricity monopolies around the world.

The report states that the planned electricity reserves on which the IEC’s development plans are based are irrational, and should be much lower than 25%. “The reserve should be substantially lower. There is no need for the IEC’s current investment in creating a large reserve. The reserve should be managed more efficiently.” KPMG’s position mirrors that of the Public Utilities Authority (Electricity), which says that IEC is investing unnecessarily in creating unneeded surpluses, which raise costs.

In its recommendations, KPMG writes that in order to avoid electricity crises and rate hikes, competition should be introduced gradually over a number of years through structural reform. KPGM states that not implementing reform will lead to crises that will force a large hike in electricity rates, and require the state to inject money into the IEC.

KPMG recommends dividing electricity production between five companies of similar size. Each company will produce electricity using coal, natural gas, and oil. These companies will compete with each other for electricity production, and will also sell electricity. KPMG also recommends the founding of three distribution companies; a transportation company, which will set up and maintain transportation lines; and a company that will manage the system. According to KPMG’s experts, the proposed structure will facilitate competition between electricity producers, increasing efficiency and transparency in prices.

The report also addresses the IEC’s current NIS 40 billion debt. KPMG finds that if the current situation remains unchanged, the company is liable to encounter a crisis in which it is unable to raise money to finance development plans and repay its debt.

Published by Globes [online] - www.globes.co.il - on July 11, 2005

TalB

July 12th, 2005, 12:47 AM

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Netafim buys 50% interest in Vegtech 2000 of South Africa

Vegtech develops, manufactures, and sets up hothouses that use technology to monitor crops.

Dalia Tal 11 Jul 05 17:14

Netafim has acquired 50% of South African greenhouses company Vegtech 2000 from Packer Steels and Metals (Packer Plada) (TASE: PKER) for an estimated $5 million. Vegtech, which develops, manufactures, and sets up hothouses that use technology to monitor crops, has $10 million in activity this year.

Netafim president and CEO Erez Meltzer said that the acquisition was aimed at increasing his company’s activity in South Africa, which had great agricultural potential.

Meltzer stressed that the current trend in global agriculture was a transition to crops raised under artificial conditions, including hothouses and other crop protection, in order to save land, water, and chemicals. He added that the acquisition of Vegtech had great strategic importance, and would help make Netafim one of the world’s leading greenhouse companies. Meltzer said that Netafim was considering further acquisitions, all linked to the greenhouse sector.

Kibbutz Hatzerim, Kibbutz Magal, and Kibbutz Yiftach own Netafim, which operates in 112 countries around the world. The company’s sales turnover is $300 million. Netafim has 32 subsidiaries, twelve manufacturing plants, and 2,000 employees worldwide.

Published by Globes [online] - www.globes.co.il - on July 11, 2005

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July 12th, 2005, 12:48 AM

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Gov’t to invest $750,000 annually in promoting Israeli wine overseas

Israel’s wine exports currently total only $13 million a year.

Michal Raveh 11 Jul 05 14:42

A joint program to export wine will be launched in September. Vineyards, wineries, and the Ministries of Agriculture and Rural Affairs and Industry, Trade and Labor are jointly managing the program.

Under the program, $1.12 million will be invested a year over a five-year period to promote Israeli wine exports, initially to the US, and later to countries, especially Canada and the UK. Vineyard and winery members of the Israel Wine and Grapes Board will invest $375,000 a year, matched by each of the Ministries of Agriculture and Industry. The vineyards and wineries’ investment will be paid by raising their fees to the Wine and Grapes Board.

Israel’s wine exports currently total only $13 million a year, 5% of production. Mosts exports go to Jewish communities worldwide, and there has been almost no breakout from the kosher wine market segment.

Israel Wine and Grapes Board chairman Hanan Bazak told “Globes” that the export program was intended to improve the image of Israeli wines, which are as good as the wines of other countries.

Published by Globes [online], Israel business news - www.globes.co.il - on July 11, 2005

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July 13th, 2005, 12:39 AM

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Syneron worth $1b

Fidelity Management and Research mutual funds have reached an 11.5% holding in the company.

Tali Tsipori 12 Jul 05 14:37

If you thought that the record levels reached by Syneron Medical Ltd. (Nasdaq:ELOS), a maker of laser medical aesthetic systems for skin treatments, last week would cause shareholders to start selling share, you’d be mistaken, at least for now. Syneron’s share broke another record yesterday, rising 4.3% to $40, reflecting a market cap of $1 billion.

Syneron is now worth three times more than Tadiran Communications Ltd. (TASE:TDCM), which has a turnover of $300 million a year; two times more than Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF), which has a turnover of $1.3 billion a year; and only $100 million less than Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD), which has a turnover of $1 billion a year. Syneron is expected to post $85 million in revenue for 2005.

Apparently, one of the reasons for yesterday’s rise in Syneron’s share price was the fact that Fidelity Management and Research Company mutual funds had reached an 11.5% holding in the company, making the mutual funds the largest shareholders in Syneron. Syneron founder and chairman Dr. Shimon Eckhouse owns 10.7% of the company, and Canadian investment fund Sprott Asset Management Inc. owns 5.6%

Fidelity Management and Research is one of the world’s largest mutual fund management companies. In addition to managing over 300 mutual funds, it offers its customers various financial services, including life insurance and portfolio management. Based in Boston, Fidelity Management and Research is a shareholder in TTI Team Telecom International (Nasdaq: TTIL), Fundtech Ltd. (Nasdaq:FNDT; TASE:FNDT), Ness Technologies Inc. (Nasdaq:NSTC) and other Israeli companies.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:41 AM

http://www.globes.co.il/serveen/
Keryx plans to raise $70m

Keryx Biopharmaceuticals, a company without sales or profits that makes only dreams, is raising money when it has $44.8 million in cash.

Gitit Pincas 12 Jul 05 17:35

Keryx Biopharmaceuticals Inc. (Nasdaq: KERX;) chairman and CEO Michael Weiss has proven that he can do one thing very well: raising money on the capital market. Weiss is now planning to raise at least $70 million for Keryx, and maybe even $81 million, if underwriters exercise their green shoe options.

New York-based Keryx buys, develops, and commercializes novel pharmaceutical products for the treatment of serious, life-threatening diseases, including diabetes and cancer. Once an Israeli company with a development center in Jerusalem, Keryx now only has 29 employees, none of them in Israel. Nevertheless, it still interests Israel’s capital market.

Keryx’s turnaround has been impressive. From a Jerusalem-based company without institutions as investors and little cash, Weiss has turned it into a US company 80% of whose investors are overseas and with $44.8 million in cash. Under its previous management, Keryx raised $52 million in its IPO on Nasdaq in 2000, which it burned in current operations.

Weiss is also chairman of XTL Biopharmaceuticals Ltd. (LSE: XTL; TASE:XTL), which specializes in developing treatments for type B and C hepatitis.

Since taking up his post at Keryx, Weiss carried out a PIPE (private investment in public equity) issue of almost $50 million, even before the current ambitious issue. Unquestionably, we should tip our hats to the man who has taken over management of the company when its share was at a low point of $1.50, and taken it a current price of $13.80, reflecting an unbelievable market cap of $430 million. All this is for a company without sales or a proven success on the ground only a lot of hopes. For investors, it can only be hoped that Keryx is not a dream that will explode.

Keryx’s current issue is based on a shelf prospectus filed in Octobre 2003. Keryx plans to issue five million shares, and underwriters can receive 780,000 more. JP Morgan Chase & Co. (NYSE:JPM) and Bear Stearns & Co. are the chief underwriters. Jeffries & Co., Brean Murray & Co., Oppenheimer & Co., and Punk, Ziegel & Co. are the secondary underwriters. Including options for the underwriters, the current shareholders’ stakes will in Keryx be diluted 18%.

Keryx’s flagship product, KRX-101 (Sulodexide), is an oral treatment for diabetic nephropathy, a kidney disease. Another important drug is KRX-0401 (Perifosine), a prototype oral treatment to prevent the growth of malignant tumors.

Keryx will use the proceeds from the issue to develop KRX-101 and KRX-0401. The company has more drugs in the pipeline, although it prefers not to gamble on early-stage drugs. On the other hand, it would be happy to use the proceeds for licensing or buying drugs from other companies. Keryx has no commercial production, marketing or sales capabilities for any drugs approved, and the proceeds will be used to set up this infrastructure.

Keryx’s shareholders include Maverick Capital (5.2%), SAC Capital (5.8%), Paramount Capital (17.6%), and Michael Weiss (7.3%, including options).

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:42 AM

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Amdocs signs large CRM contract with Acer

Market sources: the contract is worth at least $40-50 million. Acer will deploy Amdocs CRM systems in eight Asian countries and Australia.

Hadass Geyfman 12 Jul 05 13:49

Billing giant Amdocs Ltd. (NYSE:DOX), a provider of software solutions and services for integrated customer management and intentional customer experience, today announced that it had signed a contract with Acer Inc. (Taiwan:253; LSE:AM50), a supplier of PCs and hardware products. Under the contract, Acer will deploy Amdocs CRM systems in eight Asian countries and Australia, where it is already in use.

Market sources estimate the deal will be worth at least $40-50 million. In addition to the revenue, the deal is its great strategic importance for Amdocs, giving it entry into the PC and hardware market, a new market for the company. Market sources believe that Amdocs will also provide consultancy and project management services under the contract. It can be assumed that Amdocs and Acer’s expanded business relationship in the Asia-Pacific region will lead to additional contracts between the companies in Europe as well.

Acer, one of the largest hardware providers in Asia, will install Amdocs CRM as part of its move to integrated customer management, and deliver on its promise of replacing PCs at customers within two hours.

Acer Computer Australia technical services director Neil Roberts said, “When we decided to expand our commitment to enhancing customer service throughout the Asia Pacific region, we naturally chose Amdocs. They have been a trusted partner to Acer for four years and we look forward to continued success working with them.”

In 2001, Acer Australia deployed Amdocs’ customer relationship management (CRM) solution and, with that success, is expanding the deployment to India, Indonesia, Philippines, Japan, Malaysia, and Vietnam. The deployment has already gone live in Singapore and Thailand. The deployment of Amdocs CRM will enable Acer to have a holistic view across all customer touch points, thus improving its business performance while creating and capturing maximum value.

Amdocs CRM products division president Mark de la Vega said, “The adoption of an integrated customer management strategy is a business imperative today, as service providers including those in the high tech industry, realize the value of delivering an intentional experience to their customers. Only Amdocs can help companies around the world on their journey toward that vision. As we continue to demonstrate a strong commitment and growth in Asia and countries of the Pacific Rim, we’re happy to build upon our long-standing relationship with valued partners like Acer. We look forward to continuing to support its efforts to better serve its customers and maintain a distinct competitive advantage.”

Acer ranks among the world’s top five branded PC vendors, designing and marketing easy, dependable IT solutions that empower people to reach their goals and enhance their lives. In 2000, Acer spun-off its manufacturing operation to focus on globally marketing its brand-name products: desktop and mobile PCs, servers and storage, displays, peripherals, and e-business solutions for business, government, education, and home users. Established in 1976, Acer Inc. employs 5,600 people supporting dealers and distributors in more than 100 countries. Revenues in 2004 reached $7 billion.

Amdocs’ expansion in the Asia-Pacific region seems to be moving rapidly lately. In late June, it announced the acquisition of Longshine Information Technology Company Ltd., a privately-held vendor of customer care and billing software in China, for $30 million. This acquisition was designed to enable Amdocs to expand its foothold in the Chinese billing market.

Amdocs also announced an agreement with HP-China for carrying out a joint project to provide integrated billing for Beijing Mobile Communication Corporation (BMCC). BMCC claims to have 10-15 million subscribers. Amdocs did not disclose the size the contract, but on the basis on the number of BMCC subscribers, it probably amounts to at least $10 million for Amdocs.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:44 AM

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Poalim Sahar keeps Given Imaging at "Buy"

The investment house's price target is 75% above market.

Avi Asher 12 Jul 05 14:27

The warning Given Imaging (Nasdaq: GIVN; TASE: GIVN) released on Friday about its second quarter results has failed to unnerve the analysts at Poalim Sahar, who remain optimistic about the company's future.

The investment house retains its "Buy" recommendation for the stock, with a price target unchanged at $37.1. The price target is about 75% above market. Given Imaging shares closed at $21.15 yesterday, giving the company a market cap of $584 million.

Poalim Sahar points out that Given Imaging has 125 salespeople in the US, and that it has several announcements in the pipeline about insurance coverage for use of its PillCam ESO esophageal diagnostic device.

Poalim Sahar's updated forecast for Given Imaging's 2005 results is an operating profit of $10.9 million on revenue of $94.2 million. The revenue estimate is higher than the average of $92.64 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:44 AM

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CIBC: Comverse could report better than expected results

The investment house sees favorable trends at both the Comverse Network Systems and Verint divisions.

Globes correspondent 12 Jul 05 15:01

In a note released in advance of second quarter financials from telecommunications billing and added value services company Comverse Technology (Nasdaq: CMVT), CIBC World Markets says the company could report better than expected results for the quarter and in the second half of the year..

"Our second quarter 2005 checks suggest Comverse Technology (Nasdaq: CMVT) is poised to meet or beat our targets of $278.8 million in sales and $0.13 in EPS (vs. guidance of $278 million and $0.13, respectively). Further, positive trends in the handset market point towards a ramp in next-gen devices and related data services in the second half of 2005.

"We believe Comverse Network Systems is continuing its successful drive to upgrade its large voicemail customer base to InSight, its next-gen platform. The platform accounted for a record 15% of revenue in the first quarter of 2005, and is a major driver for the sale of additional Comverse Network Systems enhanced service solutions.

"Comverse Network Systems' real-time billing solution is seeing strong traction, driven by growing pre-paid activity in the US and an increase in pre-paid, post-paid data-services.

While competition is intensifying, CMVT's proven best-of-breed solution has held its own against billing/CRM solutions providers.

"We are reiterating our Sector Outperform rating and price target of $30, or 35x our full year 2006 estimated EPS of $0.85. We believe that a growing backlog, solid execution, and favorable secular trends at both Comverse Network Systems and Verint Systems (Nasdaq: VRNT) support current 2005 estimates and provide the potential for better than expected results."

Comverse shares closed at $24.55 yesterday, giving the company a market cap of $4.92 billion.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:46 AM

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Manufacturers: More cos to raise capital on TASE

195 companies will raise capital on the TASE in 2005. Industries raised an average NIS 340 million a month in January-May.

Michal Raveh 12 Jul 05 11:59

Manufacturers Association statistics and economic analysis division director Nira Shamir predicts that 195 companies will raise capital on the Tel Aviv Stock Exchange (TASE) in 2005, 5% more than in 2004, despite the edgy market.

Shamir said industrial concerns raised an average of NIS 340 million a month in capital on the TASE in January-May, over 50% more than the monthly average of NIS 220 million raised in 2004. The increase for 2005 as a whole will be more modest, due to falling stock prices and uncertainty about security and political developments after the disengagement plan is carried out.

The Manufacturers Association analyzed the business results of 190 TASE-listed industrial companies with aggregate sales of NIS 138.3 billion. It found that sales by these companies in 2004 were 25% more than in 2003, their gross profit was up 30%, and their operating profit rose by 87%. The analysis also found that the gross profit margin on TASE-listed companies was 31.8% of revenue in 2004, and the operating profit margin was 9.7%.

A breakdown by company size found a positive correlation between company size and operating profit margin. The operating profit margin was 13.9% for the group of very large companies with turnover greater than NIS 3 billion; 3.2% for medium-sized companies, and only 0.2% for small companies with up to NIS 120 million in sales.

A breakdown of companies according to the proportion of exports found that exports accounted for 27% of sales by high-tech companies, and 10% for companies focusing on the domestic market.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:47 AM

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Israel to set up 2 permanent trade centers in China

The Ministry of Industry, Trade and Labor has declared China a preferred export target, alongside India, Mexico, and Brazil.

Zeev Klein 12 Jul 05 17:37

Israel will set up and operate two permanent trade centers in two Chinese provinces. A special steering committee comprising Accountant General Dr. Yaron Zalika and Ministry of Industry, Trade and Labor director general Raanan Dinur will pick the sites. The trade centers will ensure a permanent commercial presence of Israeli companies in China.

The Ministry of Industry has declared China a preferred export target, alongside India, Mexico, and Brazil.

Under the plan, two Chinese trading companies, one in each province, will be chosen by tender by the end of the year. Each company will receive a low flat fee, mostly paid by the Israeli government and the rest by Israeli companies, to cover overhead costs. The Chinese companies’ profits will come from “success commissions” paid by Israeli exporters for new contracts. The model was devised by the steering committee, together with commercial attaches and foreign banks financing export contracts to China.

In addition to the upgrading of a financial protocol with the Chinese government, reciprocal insurance has been expanded, and financial coverage for Israeli export contracts to China has been granted. The estimated boost to Israel’s export potential to China is several hundred million dollars.

By the end of the year, Minister of Finance Benjamin Netanyahu is also expected to sign a financial protocol with India, similar to the one signed with China.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 13th, 2005, 12:48 AM

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1st half trade deficit up 41.5% to $2.69b

The trade deficit in June 2005 was $689 million, compared with $284 million in June 2004.

Zeev Klein 12 Jul 05 18:17

Israel’s trade deficit shot up 41.5% in the first half of 2005. The Central Bureau of Statistics says Israel’s trade deficit grew by $1.08 billion from $2.61 billion in the first half of 2004 to $3.69 billion.

Exports rose by 8.5% to $18.24 billion, $1.43 billion more than in the first half of last year. Imports rose by 12.9% to $21.93 billion.

The trade deficit in June 2005 was $689 million, 2.43 times the $284 million trade deficit in June 2004. On the other hand, the trade deficit in June was $386 million less than the record $1.07 billion deficit in May 2005.

Exports in June totaled $2.96 billion, and imports $3.65 billion.

The average monthly trade deficit in the first half of 2005 was $615 million, amounting to an annualized trade deficit of $7.4 billion.

Diamond exports totaled $5.4 billion in the first half of the year, 12.5% more than the $4.8 billion exported in the first half of 2004.

Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2005

TalB

July 14th, 2005, 01:17 AM

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Demand for high-tech workers up 8% in June

Manpower Israel reports demand for high-tech workers was 8.4% higher in the second quarter, compared with last year.

Michal Raveh 13 Jul 05 14:14

Manpower Israel subsidiary Manpower Information Technology (MIT) reports an 8.1% rise in demand for high-tech workers in June 2005, compared with May, and a 26.9% increase, compared with June 2004.

Second quarter 2005 data also indicate an 8.4% rise in demand, compared with the preceding quarter, and a 34% increase, compared with the corresponding quarter of 2004. The figures are based on surveys of help-wanted ads in Israel's leading daily newspapers.

A comparison of the May and June figures indicates a rise in demand for all types of workers, except for managers and hardware engineers. Compared with other categories of workers, demand for managers has shown no clear signs of growth throughout 2005, as well as in comparison with 2004. Demand for managers was down 9.2% in the second quarter, compared with the first, and was down 14.8%, compared with the second quarter of 2004.

MIT CEO Idit Padan said the figures indicated a clear growth trend in demand for high-tech workers. She warned, however, that the market was still not ready to raise management overhead, and that the growth trend was seen at lower levels.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:19 AM

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Wed: Retail chains rise sharply

Stocks remained steady, despite the Netanya bombing, while the Clubmarket debacle boosted Super-Sol and Blue Square, but damaged anything to do with the Boroviches.

Roy Meltzer 13 Jul 05 18:59

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 0.49% at 658.78 points and the Tel Aviv 100 index rose 0.29% to 673.55 points, but the Tel-Tech 15 index fell 0.59% to 397.92 points. Turnover totaled NIS 662 million.

The TASE responded with indifference today to events in the security arena. Trading was quite stable, with a tendency towards higher prices. The leading indices remained near their starting points for most of the day, moving up a little towards the end. Some interpreted this as a demonstration of strength, given the terrorist attack in Netanya and continued developments surrounding disengagement.

Most traders continued to talk about the effect of Clubmarket Marketing Chain’s collapse on the companies that did business with it. No fewer than twelve public companies reported today to the TASE that Clubmarket owed them money in some form. Rival supermarket chains Super-Sol and Blue Square Israel can be added to this list, as can the other public companies controlled by the Borovich group. Trading in these shares was affected by the affair. This list, of course, does not include the private companies and small suppliers that have been harmed, without getting publicity.

Clubmarket’s travails benefited the shares of Super-Sol, which climbed 3.6%, and Blue Square, up 4.5%. Investors in food manufacturers were not particularly moved. Of Clubmarket’s main creditors, Strauss-Elite jumped 4.1% and Osem Investments (controlled by Nestle) 4%, after yesterday’s falls. Companies controlled by the Borovich group, on the other hand, continued their slide today, which market sources attributed to concern that the banks would try to exert pressure on the family’s companies, should the Clubmarket affair remain unresolved.

El Al Airlines was off 2% today, following reports yesterday of a campaign to boycott the company’s flights because of the allegedly immoral behavior of the Borovich family. Granite Hacarmel dipped 0.7%, bringing its two-day loss to 5%, and Tambour was down 0.3%.

Other than the ramifications of the Clubmarket affair, there wasn’t much new in the market today. Among the major shares, the bank trend was mixed, with Bank Hapoalim down 0.3% and Bank Leumi up 0.3%. The Clubmarket contretemps appears to have had no effect on Bank Leumi, despite the hundreds of millions in bad debts it is likely to cost the bank. Israel Discount Bank lost 0.2%, and United Mizrahi Bank 0.5%.

Among the other blue chips, Teva dropped 0.8% and Bezeq slipped 0.3%. The IDB group had a following wind generated by its controlling shareholder’s continued aggressive acquisitions.

Koor Industries stood out with a 0.6% rise, after Merrill Lynch reiterated its “Buy” recommendation for the share, while slightly reducing its target price to NIS 298, 15% above the market price.

Bank Hapoalim today joined the hallelujah chorus for Ormat Industries with an “Outperform” recommendation at a target price of NIS 27.60. The share kept step with a 0.8% rise.

Published by Globes [online] - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:20 AM

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Oscar Gruss upgrades DSPG to "Buy"

"Our channel checks lead us to believe that there is upside potential to our model this quarter."

Globes correspondent 13 Jul 05 16:47

US investment house Oscar Gruss has raised its recommendation for fabless telecommunications chip company DSP Group (Nasdaq: DSPG) from "Hold" to "Buy", and set a new target price of $29 for the company's stock.

"Our target price is supported by a DCF model and reflects a 2006 PE of 27.4x, a premium to the industry’s average of 23.6x. We believe that this premium is justified given the company’s strong product portfolio and solid balance sheet, with $11 of net cash per share," Oscar Gruss's report says. .

"Furthermore, our channel checks lead us to believe that there is upside potential to our model this quarter and the remainder of 2005.

"In light of the new competition structure in the DECT space in Europe, we think that DSPG is well positioned to make meaningful inroads into this strategically important market this year and, in particular, during 2006."

DSPG will report its second quarter 2005 results on July 20th before the market opens.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:21 AM

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Bloomberg picked as official Israel Bonds auction system

Israel joins the UK, Belgium, Holland, Finland, Iceland, Indonesia, Portugal, South Africa, Czech Republic and Ireland.

13 Jul 05 09:48

Bloomberg, a leading global provider of business and financial news and data, has been chosen as the primary market auction system for the government's shekel bonds. The State of Israel will be inviting applications for primary dealers in its domestic bond market for the first time.

The Bloomberg auction system is available on the Bloomberg Professional service, an all-inclusive desktop solution with 250,000 users worldwide.

The Israeli Ministry Of Finance will join other issuers of sovereign debt using the Bloomberg auction system including government-appointed debt agencies in the UK, Belgium, Holland, Finland, Iceland, Indonesia, Portugal, South Africa, The Czech Republic and The Republic of Ireland.

Bloomberg's primary market auction system automates all elements of the auction process. Dealers enter their bids directly on their Bloomberg screens. The auction system provides allocation algorithms and allows results to be transmitted to dealers and secondary markets worldwide within seconds.

The Bloomberg auction system is available to Bloomberg users at no extra charge. More details are available to Bloomberg users via AUCS < GO > on the Bloomberg terminal.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:22 AM

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Israel has $4.9b in unused US loan guarantees

The special US aid for disengagement will also be mostly in the form of guarantees.

Zeev Klein 13 Jul 05 16:10

Israel has $4.9 billion in unused loan guarantees, according to figures from the Ministry of Finance Accountant General Debt Management Unit. At the request of the White House, in 2003 Congress approved $9 billion in loan guarantees to be used in 2003-05.

In 2005, at the specific request of the Israeli government, the US agreed to extend the loan guarantees program through the end of 2008, because Israel did not need the money at this time, after cutting its budget deficits and projected significantly higher revenue from taxes and privatization.

Yesterday’s leaks about the visit by a delegation of directors general to Washington to discuss the disengagement implied that the $2 billion in aid that the US will give Israel for financing the disengagement plan and for development of the Negev and Galilee would only partly comprise a grant. Most of the grant will be for moving IDF bases from the Gaza Strip to Israel and other defense costs. Most of the aid will be in the form of loan guarantees, which Israel can use to raise money on international capital markets.

This means that the unused loan guarantees, together with an additional $1-1.5 billion in expected new guarantees over the next three-four years, add up to $5.9-6.4 billion through the end of 2009.

Raising money backed by the loan guarantees in 2000-04 increased Israel’s net foreign debt by 13.6%, or $3.7 billion, to $30.9 billion. If the existing and expected loan guarantees are used in full, Israel’s external debt could grow by an additional $6.4 billion, amounting to 6% of GDP.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:23 AM

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First quarter food exports up 8.2%, imports up 11%

Exports to the US rose 35%, compared with the corresponding quarter, reaching $25 million.

Michal Raveh 13 Jul 05 14:25

Food, beverages and tobacco exports rose by 8.2% in first quarter of 2005, compared with the corresponding quarter of 2004, reaching $171 million, said Manufacturers Association's Food Industries Association chairman Ron Kobrovsky.

Most of the increase was in exports to the US, which were up 35%, compared with the corresponding quarter, reaching $25 million. Exports to the EU rose by only 2.6% to $78 million.

Imports rose by 11% to $290 million. Imports from Europe rose by 16%, and imports from the US fell by 12%.

Domestic foods sales were unchanged at NIS 9.7 billion. Food sales, including beverages and tobacco were NIS 10.4 billion. Employment in the food industry was also stable at 57,000 people.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:24 AM

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Mortgages up 26% in May to NIS 2.3b

The number of households in arrears had been fairly stable for over three months at over 80,000.

Dafna Zucker 13 Jul 05 14:52

The amount of mortgages given by the banks rose by 26% to NIS 2.3 billion, according to Credit Data Co. Ltd of the D&B group.

The figures also indicate that the amount of mortgage payment arrears was unchanged in May 2005, and that the number of households in arrears had been fairly stable for over three months. The number of households in arrears rose by 129, compared with April, reaching 80,835. Mortgage arrears totaled NIS 2.08 billion in May.

Credit Data Co. attributed most of the increase in housing loans to the recycling of mortgages, which lower mortgage interest rates had made more worthwhile. D&B (Israel) general manager Reuven Kuvent said implementation of the Credit Data Service Law, which would allow mortgage banks to obtain credit histories of borrowers, would reduce arrears in mortgage payments.

Published by Globes [online], Israel business news - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:25 AM

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Demand for workers up 5.4% in January-June

Requests for employees at Employment Service offices were 5.7% lower in June 2005 than in May.

Zeev Klein 13 Jul 05 13:00

Requests for employees placed at Israel National Employment Service (INES) offices totaled 22,100 in June 2005, 16.4% more than the 19,000 total in June 2004, but 1,300 (5.7%) less than the 23,400 total in May 2005, INES director general Esther Dominicini reported today.

Requests for employees averaged 19,500 a month in January-June 2005, 1,000 (5.4%) more than the 18,500 monthly average in July-December 2004, and 4,200 (27.5%) more than the monthly average in January-June 2004.

Half of all orders for employees in June were for low-aid unskilled workers, and the other half were for skilled workers.

Demand for new workers was particularly high in June for security personnel 1,366, general industrial workers 1,302, and cleaning and maintenance workers 1,233. Demand for cleaning and maintenance worker soared 115% in June, compared with 574 workers in June 2004.

Other categories in which demand for employees was strong included telemarketing 307, welders 282, social sciences and humanities 242, cooks 237, waiters 233, ushers 217, clerks 197, cashiers 165, and kitchen workers 162.

Demand for managers totaled 253 in June, up 114%, compared with June 2004. Demand for higher education graduates rose 60%, compared with the corresponding month last year. Demand for skilled agricultural workers sank from 278 in June 2004 to 136 in June 2005, a 51% drop. The fall in this category may be linked to the disengagement plan and abandonment of Gush Katif communities.

Cities with high demand for workers included Tel Aviv 2,817, Jerusalem 1,810, Netanya 1,072, and Beersheva 918. Demand was also strong in Ashkelon 893, Rishon LeZion 833, Haifa 800, Ashdod 735, and Petah Tikva 711.

Demand for employees was light in the upper Galilee 706, western Negev 710, Eilat 461, and eastern Negev 358.

Published by Globes [online] - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:26 AM

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Bezeq CEO: Let Bezeq inject money into YES

Amnon Dick appealed to the regulators at a "Globes" communications conference.

Guy Hadass 13 Jul 05 16:58

“Whoever said that Bezeq’s holding in YES would harm competition in telephony was wrong. I congratulate the cable companies for what they say is their success in this field. Now I’m telling you leave us alone, and let us inject money into YES,” Bezeq (TASE: BZEQ) CEO Amnon Dick told a "Globes" communications and media conference today.

Dick predicted that revenue from YES and wireless company Pele-Phone would become more and more significant for Bezeq. He pointed out the great importance of content in forming a communications group.

Regarding the privatization of Bezeq, Dick said, “Privatization is unquestionably good for both the economy and the company.” He also commented on post-privatization changes at Bezeq, saying, “Bezeq is a good company today, but it could be excellent more efficient, and with a higher return. Those who bought Bezeq paid full price, and have plans for making back their investment, and turning Bezeq into an topnotch communications group.”

Published by Globes [online] - www.globes.co.il - on July 13, 2005

TalB

July 14th, 2005, 01:29 AM

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$387m in VC capital raised in Q2

IVC Research Center: The average venture capital financing round in the second quarter of 2005 was $3.9 million, up 6% from the previous quarter.

Globes correspondent 13 Jul 05 12:56

The following are the findings of the quarterly survey conducted by the IVC Research Center. This survey, conducted with the cooperation of the Israel Venture Association (IVA), reviews capital raised by private Israeli high-tech companies from Israeli venture capital funds and from other investors. The survey is based on reports from 100 venture investors of which 60 are Israeli management companies and 40 are other mostly foreign investment entities.
In the second quarter of 2005, 98 Israeli high-tech companies raised $387 million from venture investors both local and foreign. The amount was up 11% from the $350 million raised by 102 companies in the previous quarter and was 14% higher than the $338 million raised by 91 companies in the second quarter of 2004. In the first half of 2005, capital raised was $737 million, up 15% from the levels of the first half of 2004.

Chart 1: Capital raised by Israeli high-tech companies by quarter ($m)
http://images.globes.co.il/Images/NewGlobesEng/Specials/IVC_Q2_2005_Chart_1.gif

IVC and Giza Venture Capital chairman Zeev Holtzman, “The 15% increase in capital raised by Israeli high-tech companies in the first half reflects continuousness of the high level of activity in the Israeli high-tech sector. We foresee stability in the second half of 2005 that will bring us to approximately $1.5 billion in capital raised for the full year.”

In the second quarter of 2005, the average company financing round was $3.9 million, an increase of 6% from the previous quarter and 15% from the second quarter of 2004. Sixty-two companies attracted more than $1 million in the second quarter. Of these, 11 companies raised more than $10 million each, and 10 companies raised between $5 million and $10 million each.

Israeli VC fund investment activity

In the second quarter of 2005, Israeli VC funds invested $163 million in Israeli companies, a decrease of 6% from the first half of 2005, but 5% more than in the level of the second quarter of 2004. The share of Israeli VC funds in the total amount invested in Israeli high-tech was 42%. The remainder of capital invested was mainly from foreign sources and also from other Israeli VC investors.

First investments by Israeli VC funds were 40% of their total investments, compared with 50% in the previous quarter and 38% in the second quarter of 2004.

The average first investment by Israeli VC funds in the second quarter of 2005 was $1.9 million, while the average Follow-on investment was $800,000.

In the first half of 2005, the Israeli VC fund share of investments in Israeli high-tech companies was 46% , just below the 48% share in the corresponding period in 2004. First investments by Israeli VC funds were 46% of their total investments, compared to 41% in the first half of 2004.

Israeli VC fund activity in foreign companies

In the second quarter of 2005, Israeli funds invested $30 million in 11 foreign companies, consistent with the $31 million invested in the previous quarter and the $32 million invested in the second quarter of 2004.

Capital raised by sector

The communications sector led the second quarter and the first half of 2005 in fund raising.

Chart 2: Capital raised by Israeli high-tech companies by sector (%)
http://images.globes.co.il/Images/NewGlobesEng/Specials/IVC_Q2_2005_Chart_2.gif

Twenty-four communications companies attracted $136 million, 35% of the total amount raised in the quarter, compared with 34% in the previous quarter and 36% in the second quarter of 2004. In the first half of 2005, communications companies raised $256 million, 35% of the total capital raised in the period.

Life science companies followed the communications sector both in the second quarter and the first half of 2005 with about one-fourth of the total capital raised.

IVC Director of Research Efrat Zakai said, “The software sector, which raised only $32 million in the second quarter, continues to slip from its traditional position as the second most attractive Israeli sector.”

Capital Raised by Stage

Thirteen seed companies raised $22 million (6% of the total raised) in the second quarter of 2005, compared with $32 million (9%) in the first quarter of 2005, and $17 million (55) in the second quarter of 2004. Three semiconductor firms accounted for $10 million of the investment in seed companies, while two software firms raised $6.8 million.

During the first half of 2005, seed companies attracted 7% of the total funds, compared with 4.5% in the first half of 2004.

In the second quarter of 2005, mid-stage companies dominated capital raising as they have for the past three years. Forty-five mid-stage firms raised $197 million, 51% of total capital raised.

The mid-stage share held fairly steady during the first half of 2005 with 51% of the total, compared with 52% in first half of 2004.

Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, July 13, 2005

JuBoy

July 14th, 2005, 04:07 PM

That's very sad. Goddamn brain drain - and the people to blame are our terrible government, not giving more budgets and investing in universities, and making the job market more "flexible".

Nothing to do. Even most developed / wealthiest Western countries like Australia experience a significant brain drain - 1 million Australian citizens / permanent residents (so, 5% of population - not much less than Israeli diaspora!!) have moved overseas (of course, as in Israel's case, this number includes many returnees - people who immigrated to Australia and then returned to countries of origin or other countries).

And you can't blame poor education or your Gov't - Australia enjoys excellent tertiary education that's relatively inexpensive (as compared to the US) - that's not stopping people from leaving. I think Israel's Gov't (the Likud, at least) is doing quite a good job with the economy.

Even your 'national' problems are not uniqe - Australia, whilst not having any enemies or significant military expenditure, is too far away from major world trading centre - and is too geographically dispersed internally, with few major population centres far removed from each other. That adds significant costs to transportation / logisitcs - and ultimately to exports. Plus the labour costs are not cheap.

The point is: Israel's economy is doing as well as can be expected under the circumstances and had enjoyed remarkable (and maybe even miraculous:-) growth since the founding of the State. Provided major parameters hold (or at least don't deteriorate too much) Israel should definitely be in the world's top 15 - 20 most developed / wealthiest countries within the next 10 yrs..

TalB

July 15th, 2005, 02:29 AM

http://www.globes.co.il/serveen/
Medis raising $45-60m

Medis Technologies, which develops fuel cells for mobile electronics, has a market cap of $470 million.

Gitit Pincas 14 Jul 05 13:27

“Are you a private company?” Medis Technologies Ltd. (Nasdaq: MDTL) chairman, CEO and secretary Robert K. Lifton was asked, immediately following his presentation yesterday at the CE Unterberg Towbin Emerging Growth Opportunities Conference in New York. This was a rather odd question, considering that this conference was a meeting between potential investors and 100 public companies; no private ones invited. “We’re traded on Nasdaq,” Lifton replied.

The investor asking the question of Lifton had never heard of Medis, and he wasn’t the only one. It’s hard to believe, but Medis has reached a market cap of $470 million a huge sum driven by investors hoping they have found the deal of the century. A market cap of this size for a company such as Retalix Ltd. (Nasdaq:RTLX; TASE:RTLX), Elbit Medical Imaging (Nasdaq:EMITF; TASE:EMIT), Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE:ELRN), Ness Technologies Inc. (Nasdaq:NSTC), or even AudioCodes Ltd. (Nasdaq: AUDC; TASE:AUDC) would be taken for granted. Historically, Medis many times promised an unprecedented breakthrough to conquer the market; the coming months will clarify whether this time it is marching in the right direction, and succeed for the first time in its history, or at least generate revenue and profit, two things it has never excelled in.

What does Medis do to justify such a market cap? Medis makes miniature liquid fuel cells for various mobile electronic devices, making them independent of external energy sources. Handsets, game consoles, iPODs, palm devices, MP3 players, and various military devices whatever can be imagined can run for scores of hours using Medis’s batteries. The batteries’ uniqueness lies in their reliance on fuel developed by Medis. The company’s product, Power Pack, is designed to provide a handset with 15-20 hours of conversation.

Medis was founded under the name Medicell in 1992 by Lifton and president and treasurer Howard Weingrow as a joint venture with Israel Aircraft Industries Ltd. (IAI). “I want to state at the start that since 1992, I, Howard, our families and friends have provided most of the company’s financing. We don’t manage other people’s money, but our own money. We therefore take our responsibilities seriously,” said Lifton at the conference. He went on to say that Medis was now raising $45-60 million from the public.

Medis has raised about $70 million since its IPO in 1993, in which it raised $8 million. The company had $12.7 million in cash at the end of the first quarter of 2005, and raised another $1 million in a private placement in April, after the period of the financial report. “We need about $15 million to finance our first product line,” said Lifton. “In addition, our cash burn rate is about $5.5 million per quarter.”

Lifton is a former chairman of the American Jewish Congress, a member of Bank Leumi USA’s investment committee, and is involved with various pro-Israeli organizations.

Medis and General Dynamics Corp. (NYSE: GD) have a US Navy contract. On the civilian side, Medis has a number of commercial contracts with wireless companies, and with US distributors and large marketing chains. Under the company’s timetables, in October-November it will have a large laboratory meeting various standards, and a semi-automated production line for making 10,000 units a month. In mid-2006, the production line will be fully automated, able to produce 1.5 million units a month.

”Our work plan calls for the delivery of a number of units to wireless companies, who will take them to their customers and receive feedback about the batteries. On the basis of these indications, we will know the volume of orders for our production line. Our first line will begin to make deliveries to the market by the end of the year,” predicts Lifton.

Medis has not had revenue to date, and it posted a $5 million loss for the first quarter of 2005. Lifton owns 15.7% of the company and Weingrow 12.7%, before the planned issue.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:30 AM

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MI Holdings board approves Leumi privatization

The board also approved the closing down of the headquarters for the distribution of Bank Leumi shares to the public.

Stella Korin-Lieber 14 Jul 05 18:28

State of Israel Properties (MI Holdings) board today approved the preparations for the privatization of 20% of Bank Leumi (TASE:LUMI). The board also appointed a special board committee for the matter, headed by Accountant General Dr. Yaron Zalika.

The board decided that MI Holdings general manager Yitzhak Klein will head a team to work with the Account General’s staff to prepare a tender and timetable for a rapid sale of the bank.

MI Holdings board today approved the closing down of the headquarters for the distribution of Bank Leumi shares to the public. Zalika praised the administrative work, saying that the groundwork was a state asset, and could be used in the future if necessary.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:31 AM

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Thu: Super-Sol, Blue-Square soar on Clubmarket collapse

Israel Chemicals rose strongly, partly thanks to a rise in the price for bromide products. Both Hapoalim and Leumi were off, while Teva fell.

Golan Fridenfeld 14 Jul 05 18:31

The Tel Aviv Stock Exchange (TASE) indices rose today. The Tel Aviv 25 index rose 1.06% to 655.79 points, the Tel Aviv 100 rose 1.01% to 680.35 points, and the Tel-Tech rose 0.9% to 401.5 points. Turnover was NIS 849.5 million.

The positive momentum on the TASE of recent days continued today. Although investors are not rushing to buy back stocks they rushed to sell in June, the market strength demonstrated in face of the latest security incidents cannot be ignored.

Blue Square Israel Ltd. (NYSE:BSI; TASE:BSI) and Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF) continued to climb started with the collapse of their rival Clubmarket Marketing Chains. Blue-Square has risen 9% in the past three days, including 3.3% today, while Super-Sol has risen 6%, including 0.7% today.

Poalim Sahar analyst Perry Shahar said today that she thought Blue-Square and Super-Sol would benefit in both the short and long term from Clubmarket’s collapse.

Today’s most prominent share was Israel Chemicals Ltd. (TASE: CHIM), which added another 3.7% to yesterday’s rise of 1.7%, to reach an all-time high. The company’s market cap is now $4.2 billion. There seems to be no specific business reason for the share’s rise, although some market players told me that foreign investors had spotted the share’s discount, compared with the p/e ratios of comparable foreign companies.

Another reason for the rise in Israel Chemicals’ share is the rise in bromide-based products, which apparently didn’t rise in the previous wave price rises a month ago. Israel Chemicals said it would raise the price for a number of bromide compounds by up to 30%, due to the rise in energy and transportation prices.

Israel Chemicals parent company Israel Corp. (TASE:ILCO) rose 2.8% today, apparently thanks to its subsidiary. Africa-Israel Investments Ltd. (TASE:AFIL) rose 0.1%, while Bank Hapoalim (LSE:BKHD; TASE:POLI) and Bank Leumi (TASE:LUMI) both fell about 0.2%.

Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) fell 0.7%, partly because Clal Finance Batucha believes that Teva will have a weak second quarter.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:32 AM

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Electra Real Estate to hold IPO at NIS 825-925 value

The company will issue 15% of its shares to the public. Electra will make a capital gain of NIS 58-72 million, and Elco Holdings a capital gain of NIS 32-40 million.

Golan Fridenfeld 14 Jul 05 18:27

Electra Real Estate Ltd. controlling shareholder Electra Ltd. (TASE:ELTR) today published official figures for Electra Real Estate’s IPO on the Tel Aviv Stock Exchange (TASE). Electra Real Estate will issue shares at a company value of NIS 825-925 million, before money.

Electra Real Estate will issue 15% of its share capital to the public. It will also issue straight bonds and convertible bonds. If the issue is held at these company values, Electra could make a capital gain of NIS 58-72 million.

Electra’s parent company, Elco Holdings Ltd. (TASE:ELCO), which could make a capital gain of NIS 32-40 million on it stake in the company. This will be Elco’s second capital gain this year. It recently sold its stake in Elco-Brandt SA, making a capital gain of NIS 534 million.

Electra said Maalot The Israel Rating Company rated the bonds A+. Leumi & Co. Investment House Ltd. will be the underwriter for the issue.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:33 AM

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A good week for Meir Shamir

Mivtach Shamir will make a capital gain of NIS 43 million on the sale of its holdings in Atudot Pension Fund to Clal Insurance.

Shai Shalev 14 Jul 05 19:10

Mivtach Shamir Holdings Ltd. (TASE:MISH), controlled by chairman and CEO Meir Shamir has had a very good week. The company today announced that it had signed an agreement to sell its holding in the old Atudot Pension Fund (founded before January 1, 1995), 12% holding in the new Atudot Pension Fund (1996) Ltd. (founded after January 1, 1995), and 50% stake SBH Pension Fund Management Ltd. to Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) for NIS 69 million. Mivtach Shamir will make a net capital gain of NIS 43 million on the sale during the second half of 2005.

Early this week, Mivtach Shamir announced that after intermittent negotiations, which lasted over a year, it had signed an agreement paving the way for its entry into the controlling interest in Bank Hapoalim (LSE:BKHD; TASE:POLI): it acquired 29% of Israel Salt Industries Ltd. (TASE:SALT), which owns 7% of the bank, from members of the Dankner family for $53 million.

Under the deal with Clal Insurance, the company value for the old Atudot Pension Fund is NIS 122 million, and that of the new Atudot Pension Fund at half that amount. Clal Insurance will also buy Bituah Haklai Central Cooperative Society Ltd.’s 12.5% stake in the new Atudot Pension Fund, after already buying Bank Hapoalim’s 20% stake in it. With the Mivtach Shamir deal, Clal Insurance will fully own the new Atudot Pension Fund, half of the old Atudot Pension Fund, and its management company Shevah.

At the same time, Atudot and Clal Insurance signed a shareholders’ agreement arranging relations concerning their holdings in SBH, decision-making mechanisms, the appointment of managers, and so on.

The old Atudot Pension Fund had NIS 2.5 billion in assets as of May 31, and it earned NIS 83 million in contributions in January-May 2005.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:33 AM

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Berger Holdings makes offer to buy for DS Securities

Berger Holdings’ controlling shareholders will invest NIS 70 million in the company for the purpose of the deal.

Shai Shalev 14 Jul 05 19:42

In May 2003, Berger Holdings (1992) Ltd. (TASE:BRGR), then controlled by Amit Berger, acquired 50.01% of DS Securities & Investments ltd. (TASE:DSIN) at NIS 16.45 per share, reflecting a company value of NIS 100 million 60% above its market cap. DS Securities’ market cap is now over NIS 300 million. Berger Holdings’ market cap is NIS 281 million.

Today, Berger Holdings and DS Securities announced a joint move designed to turn the latter into a private company and to increase the former’s liquidity, apparently in order to make new investments. Berger Holdings published an offer to buy DS Securities outstanding shares from the public (about 12% of the company) at NIS 35.10, 10% less than the market price (after it a rise of 120% since the beginning of the year), but more than double the price it paid to buy the controlling interest, and more than quadruple DS Securities’ shareholders’ equity.

Altogether, Berger Holdings is expected to pay NIS 32 million if the offer to purchase is successful. This sum comes on top of a NIS 27 million purchase of 10% of DS Securities in an off-floor transaction at a similar share price last month.

Berger Holdings will finance the offer to purchase by a NIS 70 million private placement to parties at interest in the company. They are the National Workers Organization (Histadrut Ha’Ovdim Haleumit) (43.1%) and three new controlling shareholders from the past year: Moshe (Mozi) Wertheim (15%); Gazit-Globe Ltd. (TASE:GLOB) chairman Chaim Katzman (15%); and Alony Hetz Property and Investments Ltd. (TASE: ALHE) president Natan Hetz (10%).

Shares will be allocated to the controlling shareholders at NIS 14.50 per share, in accordance with their stakes in Berger Holdings. This is also less than 10% of Berger Holdings’ current share price, but more than double the price at which Hetz, Katzman and Wertheim paid last year for their shares.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:35 AM

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Gazit Globe sells Mishkenot Clal stake to Azorim Properties for NIS 90m

Mishkenot Clal Mediterranean Towers owns four assisted living facilities, and plans to build more. It posted a profit of NIS 3.7 million on NIS 56 million in revenue in 2004.

Guy Yamin 14 Jul 05 17:38

Sources inform ''Globes'' that Azorim Properties Ltd., owned by Leo Noe, will buy Gazit-Globe Ltd.’s (TASE:GLOB) stake in Mishkenot Clal Mediterranean Towers for NIS 90 million.

Azorim Properties and Gazit-Globe jointly own Mishkenot Clal in equal shares. Gazit-Globe bought its stake in the company from Azorim Properties in 2000 for $16.5 million. Leo Noe acquired Azorim Properties from Ganden controlling shareholder Nochi Dankner in late 2003 for NIS 400 million.

Mishkenot Clal manages assisted living facilities, including Mediterranean Towers in Bat Yam, with 318 units and a nursing ward; Mishkenot Clal Kfar Saba, with 204 units; and Mediterranean Tower Nordia, with 173 units. The company also owns 50% of Pisgot Haifa and Linetrek, which design and develop housing centers for the elderly in Haifa and Kibbutz Alonim.

Mishkenot Clal owns a 7.3-dunam (1.825-acre) lot on the Carmel in Haifa, zoned for a 100-unit assisted living facility and large nursing ward. The company posted a profit of NIS 3.7 million on NIS 56 million in revenue in 2004, compared with a profit of NIS 3.2 million on NIS 30 million in revenue in 2003. Its shareholders’ equity is NIS 66 million, amounting to 11.7% of its balance sheet total.

Mishkenot Clal CEO Yoram Ben-Porat is negotiating with separate parties to buy two lots for the construction of 500 apartments. One lot is in Herzliya; the second in another city. He declined to disclosure more details.

Mishkenot Clal recently bought from Resido - C. Miloumor Ltd., owned by Freddy Robinson, an assisted living facility at the Saviyon intersection for $27 million. The 26,000-sq.m. building has 200 independent units and 150 nursing beds. The building is scheduled to be occupied toward the end of 2006.

Gazit-Globe yesterday offered $28.7 million for Hatzlahat Yehezkel Darom Yehuda, and also recently bought a number of small income-producing properties.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:36 AM

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Netanya bombing boosted forex spot trades to over $2b on Tuesday

Israeli firms and businesspeople made $1.05 billion in foreign currency spot trades, a new record for the year.

Zeev Klein 14 Jul 05 14:25

Tuesday’s suicide bombing in Netanya boosted that day’s foreign currency spots trades to $2.03 billion, 79% above the daily average during the first half of June.

Banks led the activity on Israel’s foreign currency market. Foreign financial institutions carried out $667 million in trades last Tuesday, 2.43 times the daily average during the first half of June, and a four-year high. Foreign currency spot trades by Israeli banks totaled $371 million, 71% above the daily average since June 1.

Israeli firms and businesspeople made $1.05 billion in foreign currency spot trades, a new record for the year, and 155% above the daily average since June 1.

Total foreign currency trading last Tuesday, including swap deals, was $3.89 billion, $1.52 billion more than the daily average since June 1.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:38 AM

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0.2% rise expected for June CPI

The Consumer Price Index for June will be published Friday. Inflation is projected to be 1.8% in 2005, in the middle of the government's target range.

Zeev Klein 14 Jul 05 13:00

Bank and ministry forecasters predict a rise of 0.2% for the June Consumer Price Index (CPI), to be published tomorrow. This will mean that the CPI rose 0.6% in the first half of 2005. The projected modest price rise is due to falling prices for fruits and vegetables, and sales by marketing chains.

The June CPI tends to show a large variance: the June 2004 CPI was zero, June 2003 minus 0.6%, and June 2002 it was 1.3%.

The CPIs for July and August are expected to be higher, at around 0.5%, due to rapid depreciation of the shekel against the dollar and rising fuel prices, overseas travel, and recreation and vacations in Israel.

Inflation is projected to be 1.8% in 2005, in the middle of the inflation target. However, higher inflation is expected over the next 12 months, through June 2006.

Capital market inflation expectations for the next 12 months are now 2.2%. Nevertheless, the Bank of Israel is not expected to raise the interest rate at the end of the month, for the seventh consecutive month, because the shekel depreciation has slowed in recent days. The Bank of Israel interest rate is 3.5%.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:39 AM

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Tax Authority director: Growth in April-June was 3.8-3.9%

Eitan Rub’s upgraded estimated is based on imports of tractors and trucks, which shot up in the first half of 2005.

Zeev Klein 14 Jul 05 14:56

Ministry of Finance - Israel Tax Authority director Eitan Rub believes that the economy returned to annualized 3.8-3.9% growth in the second quarter of 2005. His evaluation matches the 3.9% per year growth forecast for 2005-2006 that the Ministry of Finance presented to the cabinet.

Renewed high growth in the second quarter follows slower annualized growth of 3.3% in the first quarter.

Eitan Rub’s upgraded estimate is based on imports of tractors and trucks, which shot up in the first half of 2005 at a higher rate than in the first half of 2004. “People buy tractors and trucks when there’s work,” Rub said.

Rub’s optimistic evaluation is also based on the following figures, which he says indicate a return to rapid growth:

VAT refunds rose 8% in June, reflected increased exports and investment.

VAT refunds were up 6.5% in the first half of 2005, compared with the first half of 2004.

Tax receipts from self-employed people grew 20% in the January-June 2005, compared with the corresponding period last year.

Rub said that the rise in government tax revenues, particularly from self-employed people and companies, were due to an increased deterrent capability, as a direct consequence of the Tax Authority’s enforcement campaign. He noted that another factor was better communication between the Tax Authority and taxpayers and their representatives.

Published by Globes [online] - www.globes.co.il - on July 14, 2005

TalB

July 15th, 2005, 02:41 AM

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Finance, Industry Ministries expand insurance for political risk in foreign trade

Insurance for political risk in foreign trade was recently expanded to cover Guatemala, Macedonia, Mongolia, Serbia, Sierra Leone, and Ukraine.

Zeev Klein 14 Jul 05 11:37

A joint Ministries of Finance and Industry, Trade and Labor steering committee is working on extending political risks in foreign trade to more countries. The goal is to expand Israeli exports to new markets in developing countries. Ministry of Industry, Trade and Labor director general Raanan Dinur and Ministry of Finance Accountant General Dr. Yaron Zalika head the committee.

15 more countries were recently added to the list Israeli export destinations covered by insurance for political risk in foreign trade, including Guatemala, Macedonia, Mongolia, Serbia, Sierra Leone, and Ukraine.

Expanding the number of countries covered by insurance for political risk in foreign trade will boost exports by an estimated tens of millions of dollars. Total Israeli exports to Third World countries may reach hundreds of millions of dollars annually.

Published by Globes [online], Israel business news - www.globes.co.il - on July 14, 2005

TalB

July 18th, 2005, 03:35 AM

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TASE ranked 15 out of 26 in “Economist” emerging mkts survey

The aggregate value of TASE-listed shares in 2004 totaled $100 billion.

Zeev Klein 17 Jul 05 15:25

A joint survey by British financial weekly “The Economist” and the Morgan Stanley Dean Witter investment house found that the Tel Aviv Stock Exchange (TASE) is small even in terms of emerging markets.

The survey reported that the aggregate value of TASE-listed shares in 2004 totaled $100 billion, putting the TASE in 15th place out of stock exchanges in 26 emerging economies, according to “The Economist’s” ranking. The largest stock exchanges in emerging economies were Hong Kong ($500 billion), following by Taiwan, South Korea, South Africa, and India with $450 billion.

The TASE was also preceded in the ranking by stock exchanges in Turkey, Thailand, Chile, Malaysia, Singapore, Mexico, China, Russia, and Brazil, with aggregate values of $110-370 billion.

TASE-listed shares grew in value by only 17.1% last year. Only three of the 26 ranked exchanges had lower growth rates: Thailand 10.9%, Venezuela 4.3%, and the Philippines minus 46.4%.

Growth was highest on stock exchanges in Egypt 105.1%, Colombia 96.5%, India 95.2%, Brazil 76.7%, Argentina 73.6%, Turkey 63.7%, Russia 63%, Poland 55.7%, Hungary 50.7%, South Korea 50.1%, and South Africa 48.1%. Growth reached 18.7% in the Taiwan exchange, 24.1% on the Chinese exchange, and 29.6% on the Hong Kong exchange.

Published by Globes [online] - www.globes.co.il - on July 17, 2005

TalB

July 18th, 2005, 03:37 AM

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Delek Real Estate to make NIS 50-60 million profit on sale of 9 UK properties

The transactions, including refinancing, will generate an after tax cash flow of NIS 200 million for Delek Real Estate’s subsidiaries.

Roee Bergman 17 Jul 05 14:55

Delek Real Estate Ltd. (TASE:DLKR) today announced that its subsidiaries had signed and completed contracts for the sale of 55% of its rights in income-producing properties in the UK. The subsidiaries also signed shareholder agreements with the buyers to protect the sellers’ minority rights and adopt a business plan for managing and developing the properties.

The parties also closed a refinancing transaction with Morgan Stanley for the sold properties.

Delek Real Estate also sold all its rights to five income-producing properties in the UK to third parties.

The transactions, including refinancing, will generate an after tax cash flow of NIS 200 million for Delek Real Estate’s subsidiaries. The sellers and partners will prepare within 30 days reports adjusted for the date of deals’ closure. After this date, Delek Real Estate is expected to make a capital gain, currently estimated at NIS 50-60 million, on the sales.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

TalB

July 18th, 2005, 03:38 AM

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Jobseeker numbers down 0.5%

Trend figures for June show a 0.1% rise in the number of jobseekers with over two days of unemployment in a month.

Zeev Klein 17 Jul 05 12:11

The seasonally adjusted number of jobseekers has fallen by a further 0.5%, from 231,000 in May 2005 to 229,800 in June, the Israel National Employment Service (INES) reports.

Trend figures, however, show a 0.1% rise to 213,000 in the number of jobseekers who have accumulated over two days of unemployment over the past month.

84,200 jobseekers, 37% of the total, who have accumulated over 270 days consecutive of unemployment, constitute the hardcore unemployed.

18,500 new jobseekers joined the unemployed in June. Some were demobilized soldiers and some were fired from their jobs. The number new jobseekers was 12% fewer than the 21,100 new jobseekers in May.

22,100 requests for employees were registered at INES offices in June, 16.4% more than in June 2004. 10,400 unemployed people were placed in jobs, 3.5% more than in June 2004.

Published by Globes [online] - www.globes.co.il - on July 17, 2005

TalB

July 18th, 2005, 03:40 AM

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Manpower: Demand for workers up 13% in second quarter

Manpower Israel CEO Dalia Narkiss: We expect demand to remain stable with small rises for the rest of the year.

Globes’ correspondent 17 Jul 05 14:29

Manpower Israel reports that demand for employees rose 13% in the second quarter of 2005, compared with the second quarter of 2004, and 5%, compared with the first quarter this year. The figures are based on a survey by Manpower Israel of help-wanted ads in Israel's leading daily newspapers.

Manpower Israel also reported that demand for employees in June 2005 was 6% higher than in May, and 14% higher than in June 2004.

Manpower Israel CEO Dalia Narkiss said, “The slowly rise in demand is continuing. The second-quarter trend was positive in most sectors in the survey, except for marketing and sales. We expect demand to remain stable with small rises for the rest of the year.”

The largest rises in the second quarter, compared with the second quarter of 2004, were in computers and communications 34%, and retail trade and services 25%. The largest rises in the second quarter, compared with the first quarter, were in higher education graduates and management 9%, retail trade and services 9%, and computers and communications 8%.

Published by Globes [online] - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:41 AM

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No change expected in interest rate

Governor of the Bank of Israel Prof. Stanley Fischer will decide the August interest rate tomorrow.

Zeev Klein 17 Jul 05 12:59

Governor of the Bank of Israel Prof. Stanley Fischer is expected to keep the present interest rate for August unchanged, for the seventh consecutive month, believe top economic sources in Jerusalem. Fischer will decide the August interest rate tomorrow. There have been clear signs of an upward trend in inflation expectations lately, although they are still around the middle of the government’s 1-3% inflation target.

The Bank of Israel today said 12-month inflation expectations (until July 2006) rose to 2.1% over the past 30 days, compared with 1.9% in June and 1.7% in May. Inflation expectations for the following 12-month period (until July 2007) rose to 2.4%, from 2.2% in June and 1.9% in May.

In December 2004, 12-month inflation expectations were 1.4%, and for the next 12-month period were 1.9%. Inflation expectations are still within the range of the government’s inflation target, and therefore do not jeopardize the Bank of Israel’s long-term price stability target at this time. In June and over the past 30 days, inflation expectations for the third year and after (2008 and later) have been a fairly high 2.9%, down from 3-3.3% in January-May.

The money supply rose by a rapid 2.2%, or NIS 900 million, in June to a record NIS 43.2 billion. The money supply rose by a rapid 11.1%, or a cumulative NIS 4.3 billion, in the first half of 2005, and by 17%, or NIS 6.3 billion, over 12 months.

The average 12-month inflation (until July 2006) forecast by leading banks and investment houses has reached 2%, higher than the 1.9% forecast in May, but less than the 2.1-2.2% forecasts in February-April.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:43 AM

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Gov’t to insure exports to Africa against political risk

Kenya and Uganda will be the first two countries to benefit from the new export policy to Africa.

Zeev Klein 17 Jul 05 11:35

In a change in Israel’s policy on exports to Africa, the government is prepared to insure export transactions against political risk. A steering committee headed by Ministry of Industry, Trade and Labor director general Raanan Dinur and Accountant General Dr. Yaron Zalika decided on the measure.

Kenya and Uganda will be the first two countries to benefit from the new export policy.

The insurance against political risk for African countries, Uganda in particular, will not be comprehensive; instead each transaction will be weighed on its merits. At this time, only a few transactions worth a few tens of millions of dollars are involved.

The steering committee is also trying to improve infrastructure for Israeli exporters. One measure is the increase in the export marketing fund from NIS 17 million to NIS 120 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:44 AM

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Finance Ministry amends tax reform bill

The amendments follow extended talks between the Israel Tax Authority and the Israel Bar Association, Association of Certified Public Accountants, Institute of Tax Advisors, and business representatives.

Zvi Lavi 17 Jul 05 12:44

The Ministry of Finance has made a number of amendments to the tax reform bill. It will probably make further amendments soon, following extended talks between the Israel Tax Authority and the Israel Bar Association, Association of Certified Public Accountants in Israel, Institute of Tax Advisors in Israel, and business representatives. The Knesset Finance Committee discussed some of the amendments late last week. Lobbying on both on the Finance Committee and elsewhere for additional amendments will continue over the next two weeks.

In response to objections by the Institute of Tax Advisors against raising taxes on individuals’ deposits and capital gains, Tax Authority senior deputy director of professional matters Jackie Matza told the Finance Committee that the tax hikes would be offset by widening tax brackets, so that average income-earners would pay lower taxes on labor, beginning in 2006.

Matza also announced plans to recognize real losses on securities transactions, and to allow taxpayers with accumulated losses on securities traded on foreign bourses to deduct these losses from capital gains on the Tel Aviv Stock Exchange (TASE), beginning in 2007. The cumulative losses would apply to previous years, under the principle set by the previous Rabinovich tax reform committee. At the request of the Institute of Certified Public Accountants, the deduction will apply without restriction on exchange trading funds (ETFs) listed on the TASE.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:45 AM

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CPI up 0.1% in June

Since the beginning of the year, the CPI has risen 0.5%.

Yuval Mendelson 17 Jul 05 09:43

The Consumer Prices Index (CPI) for June held no surprises. The index rose 0.1% last month to 101.1 points.

There were notable price rises in clothing and footwear (8.7%), housing (1.2%), which between them contributed a rise of about 0.5% to the general index. On the other hand, fruit and vegetables prices fell 5.7%, transport and communications 0.7%, and food 0.6%, trimming 0.4% off the general index.

Since the beginning of the year, the CPI has risen 0.5%. The index excluding fruit and vegetables has risen by 1%, and the index excluding housing has risen 0.2%. In the past twelve months (July 2004 to June 2005) the CPI has risen 0.3%, the index excluding fruit and vegetables has risen 0.1%, and the index excluding housing has risen 1%.

The Wholesale Prices index fell 0.6% in June to 178.0 points. The residential Construction Inputs Index rose 0.5% in June, to 105.8 points.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:46 AM

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Brosh: Aviation policy costs economy $200m a year

Manufacturers Association president Shraga Brosh: Aviation restrictions prevent the creation of 4,000 jobs.

Ron Stein 17 Jul 05 10:43

“The restrictions imposed by the Ministry of Transport on an open skies policy in incoming aviation are preventing any substantial increase in either incoming tourism and importing cargoes of raw materials and goods,” economic organizations liaison committee chairman and Israel Manufacturers Association president Shraga Brosh wrote in a letter to the prime minister. The letter was sent following a meeting of the liaison committee leaders.

Brosh wrote that at present, any addition of flights to and from Israel by foreign airlines required approval from the Israel Civil Aviation Authority (ICAA), which created difficulties and was in no hurry to approve such requests.

Brosh asserts that a shortage of flights to Israel hampers planning, blocks competition, and prevents further tourist demand for Israel. The result is the loss of hundreds of thousands of potential tourists every year, which deprives the economy of revenue, and costs Israel $200 million a year in GDP. He added that the aviation restrictions also prevented the creation of 4,000 jobs.

According to Brosh, increasing the supply of flights and encouraging competition will inevitably reduce air cargo prices. He also said that current policy was also limiting movement of business people to Israel, and preventing the selection of Israel as a potential site for foreign conferences.

Published by Globes [online] - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:48 AM

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Nakash brothers buy Arkia Airlines

The value of the deal is estimated at $10 million. The Nakash brothers will own 65% of Arkia.

Guy Yamin 17 Jul 05 09:56

Sources inform ''Globes'' that that brothers Avi, Joseph, and Ralph Nakash have acquired the controlling interest in Arkia Airlines from its employees, in a deal worth an estimated $10 million. Following the deal, the Nakash brothers will own 65% of Arkia, and its employees the rest.

Arkia’s employees recently acquired 75% of the airline for $12 million. Under the deal, they acquired the airline’s planes (except leased planes) and routes: two Boeing 757-300s, Boeing 757-200, four ATR 72-500s, and four Dash-7s; and its domestic routes and charter flights.

Arkia’s domestic routes are Rosh Pina-Haifa, Sde Dov-Eilat; Ben Gurion-Eilat, routes to Israel Air Force bases, and civilian transfers to the Uvda Air Force Base. Arkia’s regional destinations are Sharm el-Sheikh in Sinai, Amman, Jordan, Larnaca and Paphos in Cyprus, and periodic flights to Turkey and the Greek islands. Arkia has 23 other international destinations.

Arkia’s employees also acquired the airline’s tourism activities, but Amir Erez said that this was a sideline, and that, “We’re interested in the aviation business.”

Antitrust Authority director for employee deals Adv. Peter Gad Naschitz will oversee implementation of today’s deal between Arkia’s workers committee and the Nakash brothers. The Nakash group acquired Arkia’s domestic and international aviation activities. The Nakash group today exercised a commitment given to the Arkia workers committee a year ago to acquire the controlling interest in the airline.

Avi Nakash said the acquisition of Arkia was another step in the group’s strategy to invest in Israel, and that it was a vote of confidence in the future of Israel’s tourism industry. He added that the group wanted to acquire full control of the plane leasing businesses from the Borovich brothers.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 03:49 AM

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"Euromoney" picks Merrill Lynch as Israel's leading M&A bank for 2005

Merrill Lynch advised on three completed deals worth about $2 billion.

Roee Bergman 17 Jul 05 13:51

Business journal "Euromoney" has chosen Merrill Lynch as the leading bank involved in mergers and acquisitions in Israel in 2005.

Merrill Lynch ranked top in the league table for the period, having advised on three completed deals worth about $2 billion - equivalent to 35% of the market.

Merrill Lynch was involved in the largest ever takeover of a Tel Aviv Stock Exchange listed company, advising Agis Industries on its $922 million sale to the Perrigo Company.

The bank also advised Elco Holdings (TASE: ELCO) on the $212 million sale of its subsidiary ElcoBrandt to Fagor.

Merrill Lynch advised the State of Israel in the sale of Bezeq (TASE: BZEQ) to the Apax-Saban-Arkin group for a total of $972 million. This is Israel's largest privatization of a government corporation to date.

Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, July 17, 2005

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July 18th, 2005, 03:50 AM

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GigaSpaces raises $2m

Intel Capital and BRM Capital participated in the round. GigaSpaces Technologies is a subsidiary of Formula Vision Technologies.

Batya Feldman 17 Jul 05 17:20

GigaSpaces Technologies Inc. closed a $2 million financing round on Friday. Intel Capital invested $1.5 million in the company and BRM Capital $500,000. GigaSpaces raised $3 million from BRM in January.

GigaSpaces, a subsidiary of Formula Vision Technologies Ltd. (TASE:FVT), provides dispersed grid-based infrastructure management and memory solutions for large financial and telecommunications enterprises.

Founded four years ago, GigaSpaces was wholly owned by Formula Vision until its previous financing round. BRM owns 23% of GigaSpaces and Formula Vision 59%. Formula Vision can invest an additional $1.3 million in the company.

Grid-based solutions are a software architecture enabling dispersed systems and processing across an enterprise’s full infrastructure, to exploit it better. Large enterprises with heavy information systems utilize only 15% on average of their infrastructure’s potential.

Among the company's customers are American International Group (NYSE:AIG), Nortel Networks (NYSE; TSX:NT), FXAll, Hutchison 3G, Tadiran Telecom Business System Ltd., and the New York Stock Exchange

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 11:28 PM

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Banks will inject NIS 140-160m into Clubmarket

The sum is reckoned to be enough to operate the supermarket chain until the end of the year.

Vered Sharon-Rivlin 18 Jul 05 20:07

This evening, Bank Hapoalim (LSE: BKHD; TASE: POLI), Leumi, and Israel Discount Bank (TASE: DSCT) reached agreement with the trustee of Clubmarket Marketing Chains Ltd, Adv. Shlomo Ness, whereby the banks will inject NIS 140-160 million into the troubled supermarket chain. This amount is thought to be sufficient to operate the chain until the end of the year.

Meanwhile, Clubmarket's small unsecured creditors have set up an action committee with the aim of achieving a creditors' arrangement, and to prevent the secured creditors, that is the banks, from receiving the money owed to them without the small creditors' interests being represented.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005.

TalB

July 18th, 2005, 11:29 PM

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Orckit meets second quarter estimates, ups guidance

The company now sees a profit of $17 million on revenue of $95 million for 2005.

Avi Asher 18 Jul 05 19:10

After rising about 50% during the second quarter, Orckit Communications (Nasdaq: ORCT; TASE: ORCT) delivered the goods today with its quarterly results.

Revenue in the second quarter totaled $21.8 million, compared with $350,000 in the corresponding quarter of 2004, and $20.6 million in the previous quarter.

Net profit for the quarter was $3.9 million, or $0.21 per diluted share, compared with a net loss of $5.9 million, or $0.45 per share, for the corresponding quarter of 2004.

The average of the analysts' estimates was a earnings per share of $0.21 on revenue of $27 million.

Orckit's main activity is in fact that of its subsidiary, Corrigent, which develops optical transport products.

Revenue for the six months to the end of June was $42.4 million, compared with $670,000 for the first half of 2004. Net profit for the period was $7.0 million, or $0.39 per diluted share, compared with a net loss of $11.3 million, or $0.86 per share, for first half of 2004.

For the quarter ending September 30, 2005, Orckit expects revenue of approximately $24.0 million, and a net profit of approximately $4.2 million, or $0.23 per diluted share.

For 2005, Orckit expects revenue of approximately $95 million, and a net profit of approximately $17 million, or $1.00 per diluted share. The company's previous guidance was for revenue of $90 million and a profit of $15 million, or $0.94 per share, in 2005.

Orckit's share is currently down more than 8%.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:31 PM

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Netanyahu has majority for Bachar reform

The big banks will sell their provident funds within three years, and the other banks within six.

Zvi Lavi 18 Jul 05 17:15

Bank Hapoalim (LSE:BKHD; TASE:POLI) and Bank Leumi (TASE:LUMI) will have to sell their holdings in provident funds within three years and mutual funds within four. Israel Discount Bank (TASE: DSCT) and the small banks United Mizrahi Bank (TASE:MZRH), First International Bank of Israel (TASE:FTIN1;FTIN5), Union Bank of Israel (TASE: UNON), and Bank of Jerusalem (TASE:JBNK) will have twice as long. They must sell their provident funds with six years and their mutual funds within eight.

Minister of Finance Benjamin Netanyahu and Likud members of the Knesset Finance Committee reached this compromise today, after two rounds of intensive consultations. Netanyahu opposed the Finance Committee’s position formulated yesterday.

The Finance Committee proposed giving preference to the small and medium-sized banks, allowing them eight years to sell their mutual and provident funds. Discount Bank was granted six years for this purpose. The committee agreed to adopt the original sell-off period in the capital market reform bill for the large banks, and one of the alternatives for the small and medium-sized banks.

Last-minute compromises on commission payments and the banks’ entry into the insurance market removed the main disputes with the Likud , which had prevented a majority for the reform bills in the Finance Committee vote, scheduled for tomorrow, for sending the bills for their second and third Knesset readings.

The comprises between Netanyahu and the Likud Finance Committee members are as follows:

Banks may collect commission payments from provident funds.

The amount of commission payments and their payment dates will be set by regulations, and will not be presented to MKs before voting on the reform bills.

Commission payments for insurance will be paid only by customers.

Banks may enter the insurance business only after selling all their holdings in mutual and provident funds.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:32 PM

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Mon: Bezeq leads way up

Foreign investors pushed Bank Hapoalim down, but gave Bezeq a boost, as the market partially corrected yesterday's fall.

Roy Meltzer 18 Jul 05 18:37

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 0.45% at 656.63 points, the Tel Aviv 100 index rose 0.47% to 671.68 points, and the Tel-Tech 15 index rose 0.58% to 397.04 points. Turnover totaled NIS 684 million.

The TASE shifted to moderate rises today, correcting somewhat for yesterday’s negative opening of the trading week. The leading indices were off and running at the outset, and were 1% ahead of their starting points by the early afternoon. The market weakened afterwards, however, with many traders saying that in the current situation, the market simply did not have enough good reasons for going up.

Today’s trend in bank shares was mixed. Bank Hapoalim lost 1.6% on a fairly large trading volume, with selling pressure from foreign investors. Bank Leumi and Israel Discount Bank inched up 0.1% each, while United Mizrahi Bank shed 0.7%.

Bezeq stood out with a strong 3.4% rise on heavy trading, benefiting from demand on the part of foreign investors. Israel Chemicals added 0.3%, after its leaders expressed optimism in a presentation to investors, and Psagot Ofek raised its target price for the share to NIS 17.30, 10% higher than the market price. MA (Makhteshim-Agan) Industries climbed 1.4%.

Teva rose 0.8%, while analysts to release previews of the company’s second quarter financial report. In a review of Teva published today as part of a general survey of the pharmaceutical industry, Merrill Lynch expressed optimism about the report, saying that Copaxone, the company’s multiple sclerosis drug, had greatly strengthened its position in the second quarter, with sales totaling $290 million.

The negative momentum of recent days in Borovich group shares created by the collapse of Clubmarket Marketing Chains continued today. Granite HaCarmel dropped another 1.5%, and has now tumbled 12% in the week since Clubmarket filed for a stay of proceedings.

As of now, the main beneficiaries in the Clubmarket affair are unquestionably rival supermarket chains Super-Sol and Blue Square Israel; Super-Sol gained 2% today, and Blue Square 1.2%. So far, Clubmarket’s misery has benefited the Super-Sol share to the tune of 8%, and that of Blue Square a tidy 14%.

Published by Globes [online] - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:34 PM

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Empire Online already worth $1 billion

Investors in the company’s IPO have made an 11% return.

Tali Tsipori 18 Jul 05 16:47

Is online gambling company Empire Online Ltd. (AIM:EOL) about to make an acquisition? A company announcement today implies that the answer is yes. Empire Online announced that it had appointed Andrew Burnett as a “consultant to lead its M&A drive”.

Burnett is considered a leading games, recreation and leisure analyst. Until recently, he was part of the team at Numis Securities, the investment house that underwrote Empire Online’s IPO. Burnett has founded Redux, a financing and M&A consultancy boutique. Empire Online is Burnett’s first client. In its press release, Empire Online said Burnett would “also play an active role in investor relations advice and support.”

Burnett worked as leisure analyst at Charterhouse, ABN AMRO, Merrill Lynch, and Numis. His most significant piece of research was 'Bet The World', a 200-page book on valuing and appraising online gaming companies. Published by Merrill Lynch in 2000, it is considered by many as the definitive work on the online gaming industry.

Empire Online CEO Noam Lanir said, “Following our successful IPO, we are rapidly rolling out our operations throughout Europe and will also consider making strategic acquisitions. We intend to play a leading role in the anticipated consolidation and we are looking to Andrew Burnett to spearhead this for us, working closely with our existing financial advisers, Numis.”

Burnett said, “The gaming sector is set for a period of tremendous growth and consolidation over the medium term. I look forward to being a part of the Empire Online team as they lead the market consolidation in the online gaming industry.”

Empire Online had $47 million in cash at the end of the first quarter, including $33 million raised in its IPO.

Empire Online’s share is continuing the climb begun ten days ago. It was up 1.8% in morning trading to ₤1.95. The current share price reflects a market cap of nearly $1 billion - $998 million to be precise. Investors in the company’s IPO in early June at ₤1.75 per share have made an 11% return on their investment.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:35 PM

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Record business sector January-June capital raising: NIS 21b

149 companies submitted requests to the Securities Authority for permission to publish prospectuses.

Stella Korin-Lieber 18 Jul 05 17:24

Capital raising reached a peak in Israel in the first half of 2005. The business sector raised a total of NIS 21.04 billion by issuing various types of securities, far beyond the NIS 12.27 billion raised in all of 2004, considered one of the best years in the history of the Tel Aviv Stock Exchange.

Israel Securities Authority chairman Moshe Tery cited these figures yesterday in a lecture to the Jerusalem Economics Forum about strategic measures for developing the capital market.

149 companies submitted requests to the Securities Authority for permission to publish prospectuses. Of these, 93 passed the examination stages successfully, 49 prospectuses were still at various examination stages, and seven had been withdrawn or canceled.

”We are already seeing the first steps toward the creation of a non-banking capital market,” Tery said. “I’m aware that the sums are quite nice, but I emphasize that the road to creation of a non-bank credit market is still long, and requires many measures for creating infrastructure for this market.”

Published by Globes [online] - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:37 PM

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Finance Ministry to present 2006 budget framework, economic plan to cabinet

Minister of Finance Benjamin Netanyahu and Ministry of Finance officials will present ideas for structural change and further economic reform to the prime minister, particularly in electricity and energy.

Zeev Klein 18 Jul 05 15:12

Minister of Finance Benjamin Netanyahu and Ministry of Finance officials will present the 2006 budget framework and economic plan to Prime Minister Ariel Sharon and Government of the Bank of Israel Prof. Stanley Fischer on Wednesday. Prime Minister’s Office director general Ilan Cohen, Ministry of Finance director general Dr. Joseph Bachar, budget director Kobi Haber, and Israel Tax Authority director Eitan Rub will also participate in the discussion.

The meeting will be the first discussion by Sharon and Netanyahu of budget priorities in the 2006 budget, ahead of the continuation of the cabinet’s macroeconomic discussion next Sunday and the presentation of the necessary budget cuts under the “automatic pilot” budget increment. A NIS 3.5-4 billion budget cut now appears likely, including NIS 1 billion for changing priorities. The size of the budget cut will adjusted to the amount of aid to Israel forthcoming from the US to finance defense expenses under the disengagement plan. No one is proposing a NIS 3 billion cut in the defense budget, or even anything approaching that sum. It now appears that the report of a NIS 3 billion defense budget cut in 2006 did not leak from the Ministry of Finance.

The working assumption is that disengagement will make the budget deficit deviate from the target by 0.4% of GDP in 2006 also. The budget deficit will be set at 3% of GDP, excluding disengagement spending, and 3.4% with it, the same as in 2005.

Netanyahu and Ministry of Finance officials will present ideas for structural change and further economic reform to the prime minister, particularly in electricity and energy. A severe dispute with Minister of National Infrastructures Benjamin Ben-Eliezer is expected to arise.

It will probably be decided to make preparations for introduction of a negative income tax in the 2007 budget. As of now, there is no possibility of a negative income tax in 2006. A special joint Ministry of Finance-Bank of Israel steering committee is currently formulating operative recommendations for implementing a negative income tax.

The main cabinet discussion on the 2006 budget will take place on August 7, only two weeks before Jewish civilians are removed from the Gaza Strip and northern Samaria.

Published by Globes [online] - www.globes.co.il - on July 18, 2005

TalB

July 18th, 2005, 11:39 PM

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Unemployment trend still downwards

The unemployment rate has fallen from 9.7% in November-December to 9.2% in January-February.

Zeev Klein 18 Jul 05 15:08

There is no change in Israel’s unemployment trend. The Central Bureau of Statistics reported today that trend figures indicate that the unemployment rate in May 2005 was unchanged at 9.1%, or 245,000 people, the same as in March-April.

The unemployment rate fell sharply at the beginning of 2005, dropping from 9.7% in November-December 2004 to 9.2% in January-February 2005 (in trend figures). The unemployment rate has fallen 1.8% from its 10.9% peak in December 2003, a decline of 48,474 unemployed.

The Central Bureau of Statistics says monthly estimates are based on only a third of its quarterly personnel sample, so sampling errors are higher than for quarterly estimates.

Unemployed persons are those who have not worked even one hour a week, and actively sought work during the four months preceding the survey, according to Israel National Employment Service (INES) records, or who had contacted employers personally or in writing. Trend figures for unemployment are calculated after removing seasonal factors and irregular factors, while taking business days into account. Monthly trend figures are occaisionally updated to take various economic and security incidents into account.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:43 PM

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Infinity Fund invests $1m in SightLine

The investment increases SightLine Technologies fourth financing round to $11 million.

Batya Feldman 18 Jul 05 15:59

Israel Infinity Venture Capital today announced that it was joining SightLine Technologies Ltd.’s fourth financing round. Infinity will invest $1 million, increasing the round to $11 million.

SightLine is developing diagnostic and treatment systems for tumors in the large intestine.

Israel Infinity Fund managing partner Amir Gal-Or said the fund would help SightLine set up and develop production, sales and marketing systems in China, using the fund’s connections there.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:45 PM

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Eurocom: We’ll sell 30,000 3G Nokia handsets in 2nd half

Nokia’s representative in Israel, Eurocom Cellular Communication, expects to win half the domestic market for 3G handsets.

Guy Hadass 18 Jul 05 14:33

Eurocom Group expects to sell 30,000 Nokia 3G 6680 handsets during the second half of 2005, winning half of Israel’s 3G handset market. Eurocom Cellular Communication CEO Ilan Greenboim Eurocom said this forecast was based on Partner Communications Co. Ltd.’s (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) pending launch of the handset. Cellular Communication represents Nokia (NYSE; LSE: HEX:NOK) in Israel. “I think that Partner will sell the handset at a reasonable price, so there won’t be any barrier blocking sales. I believe that the launch of the 6680 handset will be a real incentive for mass use of 3G by Israeli consumers,” he said.

The Nokia 6680 is the company’s first 3G handset with live video calls, which is why Partner decided to market it, leapfrogging the previous handset, Nokia 6630. The 6680 is Nokia’s flagship 3G handset, based on a Symbian OS-type smart phone platform, the same as all Nokia smart phones. The Nokia 6680 can take stills and video pictures, has an MP3 player, instant messaging, web surfing, and other applications. Its platform can download applications from a computer. Another advantage is that it supports push e-mail, providing real-time access to incoming e-mails and an appointments calendar. The e-mail supports formats for attached files, including Word, Excel, PowerPoint, MP3, PDF, and JPEG files.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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July 18th, 2005, 11:49 PM

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Sbarro Israel negotiating to manage Pizza Meter

So far as is known, Sbarro Israel will administer but will not be a partner in Pizza Meter.

Vered Sharon-Rivlin 18 Jul 05 09:26

Sources inform ''Globes'' that Sbarro Israel, owned by Amnon Barzilai and Dan Warner, is about to close a deal to take over management of the Pizza Meter pizza chain.

So far as is known, this is not a merger. Under the deal, Sbarro Israel will administer Pizza Meter in exchange for management fees, but will not be a partner in the latter. Sbarro Israel declined to comment on the report.

Sbarro Israel sources told “Globes” that it took over the administration of Domino’s Pizza Israel last year. The measure was designed to cut Domino’s Pizza Israel’s operating costs by 4-5%, making it profitable.

Pizza Meter was sold to a non-food company last year after falling into receivership. Sbarro Israel’s administrative integration of the chain is designed to cut Pizza Meter’s management, marketing, financial and personnel overhead.

Sbarro Israel has 22 branches across the country, and Pizza Meter 25 branches. Before its sale, Pizza Meter had estimated sales of NIS 45 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 17, 2005

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July 18th, 2005, 11:50 PM

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Israel exports to Asia up 10%, imports 20%

The Ministry of Industry, Trade and Labor foreign trade administration has declared three countries China, India, and South Korea as export targets.

Michal Raveh 18 Jul 05 16:00

Israeli exports to Asia rose by 10% in the first half of 2005 to $3.12 billion, compared with $2.8 billion in the first half of 2004. Israeli imports from Asia rose by 20%, to $4.46 billion. Total Israeli trade with Asia rose by 15% to $7.58 billion.

Ministry of Industry, Trade and Labor foreign trade administration deputy director-general Ronit Kan said the ministry attached great importance to trade with Asia, and declared three countries China, India, and South Korea as export targets.

Ministry of Industry, Trade, and Labor foreign trade administration director of Asia Pacific division Amiram Halevy-Laher said the growth rate of trade with Asia had slowed by an average of 30% a year in recent years, due to the Chinese government’s effort to cool down its economy, and that this trend would continue in 2005.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

TalB

July 18th, 2005, 11:51 PM

http://www.globes.co.il/serveen/
OpTier picks Avnet as European distributor

Avnet Partners Solutions has offices in Austria, Belgium, Czech, Republic, Germany, Hungary, Italy, Poland, Slovakia, Switzerland and the UK.

Globes correspondent 18 Jul 05 15:23

Transaction workload management software provider OpTier has selected Avnet Partner Solutions as its first official distributor in Europe.

CoreFirst, OpTier’s flagship product, dynamically allocates more resources to core business transactions, according to policies and tracks each and every IT transaction, in real time, across all tiers.

OpTier stated that its ability to contextually track transactions, and preserve business context, means that performance can be mapped and improved at every tier of the IT infrastructure, throughout the entire business process.

Avnet Partner Solutions business unit manager Richard Carpenter said, "OpTier’s innovative solution, as well as its experienced management team, really impressed us. We are delighted to add this solution to our portfolio and are looking forward to help firmly establish OpTier as a leading supplier in Europe.”

Avnet Partners Solutions is a distributor of enterprise computing systems, software, storage, networking solutions and services. The company has European offices in Austria, Belgium, Czech, Republic, Germany, Hungary, Italy, Poland, Slovakia, Switzerland and the UK.

Published by Globes [online], Israel business news - www.globes.co.il - on Monday, July 18, 2005

TalB

July 18th, 2005, 11:53 PM

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BOScom to sell its PrintBOS activity for $500,000

Revenues from PrintBOS in the first quarter of 2005 were $215,000.

Globes correspondent 18 Jul 05 14:59

BOS Better Online Solutions (Nasdaq: BOSC) announced today that its wholly-owned subsidiary, BOScom Ltd., has signed an asset purchase agreement with Consist Technologies Ltd. and Consist International Inc., for the sale of its PrintBOS activities.

BOScom will receive $500,000 plus a contingent payment in each of the next three years equal to 6-10% of the future revenues exceeding $1 million per year, that Consist generates from the PrintBOS activities.

The PrintBOS activities being sold include all related intellectual property rights, costumer and supplier agreements, distribution channels, goodwill and workstations.

BOScom will also transfer PrintBOS employees to Consist.

The closing of the transaction is subject to approval of the Office of the Israeli Chief Scientist.

BOS president and CEO Adiv Baruch said, “In order to continue implementing our strategy, we went through an intensive process to identify a global company with local presence who will have all the available resources required to continue investing and growing the PrintBOS business faster than with the resources that could have been allocated by BOScom for this purpose.

"Key factors for the transaction were to keep the existing team of employees and the existing distributors for customer satisfaction thus creating a smooth continuation of the product line. Finalizing the transaction with Consist was based on the mutual vision both companies had throughout the process.”

BOS chairman Edouard Cukierman said. “The selling of the PrintBOS activities to Consist is one more step of implementing the strategy we announced a while back, of growing through mergers and acquisitions while concentrating on activities that are significant in size and profitable. Our revenues from the PrintBOS activity in the first quarter of 2005 were approximately $215,000.”

BOS further announced today that Laurus Master Fund Ltd., holder of a secured convertible term note issued by the company, has given notice of conversion of approximately $1.58 million of the principal amount and interest accrued under the note, into 540,293 ordinary shares of BOS.

In June 2004, Laurus and BOS entered into a securities purchase agreement, under which BOS issued to Laurus a note of $2 million principal amount, repayable by June 2007. Previously, in March 2005, Laurus converted $308,000 of the principal amount of the note and was issued 100,000 ordinary shares. The recent conversion accounts for the remainder of the principal and accrued interest payable under the note.

BOS was established in 1990. BOS develops and markets communications products, connectivity products and software utilities solutions for documents. In addition BOS supplies electronic and RFID components and technology design services through the ODEM Division, based on Odem Electronic Technologies 1992 Ltd., in which a controlling stake was recently acquired.

Published by Globes [online], Israel business news - www.globes.co.il - on Monday, July 18, 2005

TalB

July 18th, 2005, 11:55 PM

http://www.globes.co.il/serveen/
Zero inflation in February-May

Leading Israeli banks and investment houses predict that prices could rise by a cumulative 1.3% in July-August.

Zeev Klein 18 Jul 05 14:12

Despite the rapid depreciation of the shekel against the dollar and rising oil prices, there is no inflation in Israel. The Central Bureau of Statistics today reported that trend figures indicate zero inflation in February-May 2005, the same rate as in October 2004-January 2005.

Leading Israeli banks and investment houses predict that prices could rise by a cumulative 1.3% in July-August: 0.8% in July and 0.5% in August. Until now, the banks and investment houses’ inflation estimates have overshot by 0.5%, and the actual rise in the CPI has been less than forecast.

Trend figures indicate that annualized inflation, excluding housing, was 0.9% in February-May, higher than the general CPI, but less than the government inflation target. Annualized basic inflation, the CPI excluding housing and fruits and vegetables, was 1.2% in February-May.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

Hebrewtext

July 19th, 2005, 04:09 PM

Map & Graph: Economy: Overall productivity - PPP

Country Description
Definition: Estimates: GDP (PPP) per person employed, US$

Amount
1. Luxembourg 89,722.30 (2002)
2. United States 74,624.70 (2002)
3. Ireland 74,266.60 (2002)
4. Italy 65,755.30 (2002)
5. Belgium 63,815.00 (2002)
6. Norway 59,443.80 (2002)
7. France 59,438.90 (2002)
8. Denmark 58,027.50 (2002)
9. Austria 57,781.10 (2002)
10. Canada 57,038.60 (2002)
11. Netherlands 55,187.30 (2002)
12. Australia 55,166.70 (2002)
13. Israel 54,510.40 (2002)
14. Finland 54,294.20 (2002)
15. Taiwan 54,217.30 (2002)
16. Germany 54,047.80 (2002)
17. Iceland 53,705.00 (2002)
18. Hong Kong 52,983.40 (2002)
19. Spain 51,974.60 (2002)
20. Sweden 51,516.60 (2002)
21. United Kingdom 50,825.40 (2002)
22. Japan 50,593.70 (2002)
23. Switzerland 48,729.00 (2002)
24. Greece 48,645.50 (2002)
25. Singapore 47,475.40 (2002)
26. New Zealand 40,549.80 (2002)
27. Slovenia 38,568.20 (2002)
28. South Africa 38,096.60 (2002)
29. Portugal 36,217.10 (2002)
30. 34,823.90 (2002)
31. Argentina 34,356.90 (2002)
32. Hungary 34,150.60 (2002)
33. Czech Republic 31,822.60 (2002)
34. Slovakia 31,762.40 (2002)
35. Chile 27,031.40 (2002)
36. Poland 26,443.30 (2002)
37. Estonia 25,068.50 (2002)
38. Malaysia 22,969.30 (2002)
39. Turkey 20,737.10 (2002)
40. Mexico 20,028.70 (2002)
41. Colombia 18,773.80 (2002)
42. Brazil 16,709.80 (2002)
43. Jordan 16,672.30 (2001)
44. Russia 16,114.30 (2002)
45. Romania 13,622.90 (2002)
46. Venezuela 13,042.30 (2002)
47. Thailand 12,487.90 (2002)
48. Philippines 10,469.60 (2002)
49. India 7,279.30 (2001)
50. Indonesia 6,774.50 (2001)
Weighted Average $19,433.96

Azazel

July 19th, 2005, 04:28 PM

Too bad we have such a low laborforce participation.

Giorgio

July 19th, 2005, 04:47 PM

How does PPP work?

TalB

July 19th, 2005, 10:52 PM

http://www.globes.co.il/serveen/
Broadcom to acquire Siliquent Technologies for $76m

Siliquent, a privately-held developer of Ethernet controllers to boost server performance, has R&D facilities in Tel Aviv.

Batya Feldman 19 Jul 05 15:38

Fabless semiconductor company Broadcom Corporation (Nasaq:BRCM) today announced that it has signed a definitive agreement to acquire Siliquent Technologies Inc.

Siliquent is a privately-held developer of Ethernet controllers that boost server performance, headquartered in Mountain View, with research and development facilities in Tel Aviv. The company has 59 employees.

Siliquent was founded in 2001 by CTO Amit Oren and EVP Dan Arazi. Prior to that, Oren was vice president of R&D at Orckit Communications Ltd. (Nasdaq:ORCT; TASE:ORCT) where he was responsible for system hardware and core ASIC development. Before Orckit, he was an engineer at the Ministry of Defense

At closing of the acquisition, Broadcom expects to pay approximately $76 million in cash in exchange for all outstanding shares of capital stock and vested options of Siliquent.

A portion of the consideration payable to the shareholders will be placed into escrow pursuant to the terms of the acquisition agreement. Broadcom will also assume all unvested employee stock options of Siliquent, which will entitle the holders to receive up to approximately 200,000 shares of Broadcom Class A common stock upon vesting.

Siliquent develops 10 Gigabit Ethernet (10GbE) network interface controllers (NICs) with advanced Ethernet processing technology for server networking, network storage and clustering applications.

Broadcom stated that the acquisition would significantly accelerate its delivery of 10GbE converged-NICs (C-NICs) for server LAN-on-motherboard (LOM) applications.

Gartner Dataquest predicts that 10GbE technology will begin its volume ramp in servers beginning in 2007. Blade servers are believed to be one of the likely early adopters of 10GbE C-NIC technology. According to IDC's "Worldwide Blade Server 2004-2008 Forecast," blade server shipments are expected to grow to 30% of server shipments by 2008.

The boards of directors of each of the companies and the shareholders of Siliquent have approved the merger. The closing is expected to occur during Broadcom's third fiscal quarter ending September 30, 2005.

Broadcom is one of the world's largest fabless semiconductor companies, with annual revenue of more than $2 billion. The company is headquartered in Irvine, Calif., with offices and research facilities in North America, Asia and Europe.

Broadcom plans to expand Siliquent’s Israeli R&D center. Siliquent has raised $39 million since it was founded in 2001.

Greylock Partners invested in Siliquent’s first financing round, and partners Moshe Mor and Charles Chi have been heavily involved in the company. Chi served as Siliquent CEO for over a year. Siliquent raised $21 million in its third and last financing round in September 2004. US fund Thomas Weisel Venture Partners led the round, with Vertex Venture Capital and Alta Berkeley Venture Partners participating, alongside existing investors Greylock, Benchmark Capital, and Orckit.

Alta Berkeley partner Pini Lozowick, who handles the fund’s investments in Israel, joined Siliquent as VP R&D after its investment.

Serial entrepreneur Barak Hachamov was involved in the founding of Siliquent. He was previously involved with Atrica, Corrigent Systems, and Veraz Systems.

Siliquent is the third Israeli company to be acquired by Broadcom.

Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, July 19, 2005

TalB

July 19th, 2005, 10:53 PM

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Tue: TASE continues to climb

The Tel Aviv 25 index rose 1.2% today, helped by a strong performance from Teva after it announced record Coapxone sales. Granite Hacarmel recovered from its recent woes.

Roy Meltzer 19 Jul 05 18:48

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index rose 1.2% to 664.54 points, the Tel Aviv 100 rose 1.03% to 678.59 points, and the Tel-Tech rose 0.56% to 399.26 points. Turnover was NIS 582.6 million.

The TASE continued to climb today in thin trading, completely erasing the drop early this week in the wake of the escalation in the security situation. The positive mood for the leading indices in the early morning grew stronger as the session wore on, as local investors returned today to place the majority of orders for shares.

Record sales for Copaxone

The big banks and Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) rose today, leading the blue-chip stocks. The local generic drug giant reported that Copaxone sales totaled $291 million for the second quarter, 29% more than for the corresponding quarter of 2004, and 14% more than for the preceding quarter. Investors, who had expected a middling quarter for Teva, liked the good news, and boosted its share 1.6%.

Among the banks, Bank Leumi (TASE:LUMI) rose 2.2%. Bank Hapoalim (LSE:BKHD; TASE:POLI) also rose 2.2%, despite heavy sales of shares by foreign investors. United Mizrahi Bank (TASE:MZRH) rose 3.7%, after Clal Finance upgraded its recommendation for the share.

Among chemicals shares, MA Industries>(Makhteshim Agan Ltd.) (TASE:MAIN)>MAIN) stood out, rising 2.9% on indications that the Brazilian farming season is opening at a good clip. Israel Chemicals Ltd. (TASE: CHIM) fell 0.9% today on profit taking.

Lipman Electronics Engineering Ltd. (Nasdaq:LPMA; TASE:LPMA) deserves mention among other outstanding shares today, rising 1.9%, after it obtained a hoped-for certification for sale of its clearing terminals in Spain.

Granite Hacarmel Investments Ltd. (TASE:GRNT) rose 8.3% today, after announcing its withdrawal from a tender to acquire Nitsba Holdings Ltd. (TASE:NTBA). Market sources believe Granite Hacarmel withdrew because of an anticipated credit crunch for Borovich family companies in the wake of Clubmarket Marketing Chains Ltd.’s collapse. Some market players said there was no connection, and that Granite Hacarmel was simply a bargain at its current price.

Among dual-listed shares, the latest market darling Orckit Communications Ltd. (Nasdaq:ORCT; TASE:ORCT) deserves mention. It fell 5.8%, despite meeting quarterly forecasts and providing good guidance for the future. Radware Ltd. (Nasdaq: RDWR; TASE:RDWR) rose 1.4%, after publishing a weak financial report, as expected. Radvision Ltd. (Nasdaq: RVSN; TASE:RVSN) rose 4.7% thanks to a positive financial report. NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE) fell 2% in lively trading on market speculation that the company would shortly raise money.

I will conclude with Rapac Technology (2000) Ltd. (TASE:RPTC), which jumped 7.4% after announcing that subsidiary Orpak Industries (1983) Ltd. had won an $8 million contract in India. Yarden Investment Ltd. (TASE:YRDN), affiliated with Suny Electronic Inc. ltd. (TASE:SUNY) controlling shareholder and CEO Ilan Ben-Dov, surged 18.4%, after announcing that it had made a joint investment with Amit Berger and Ronny Alroy (Israel Mendelson Technical and Engineering Supply - KMN 2005 Ltd.) in brokerage Solomon Capital Markets Ltd.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 10:56 PM

http://www.globes.co.il/serveen/
July options expiry projected to be one of TASE’s largest

TASE source: Most traders will have to close positions by purchasing shares for the upcoming expiry.

Roy Meltzer 19 Jul 05 16:23

“The expiry of options for July is expected to be one the largest in the history of the Tel Aviv Stock Exchange,” one senior derivates trader said today. He stated that, given the huge short positions taken during July trading, amounting to NIS 2.75 billion according to the most recent Tel Aviv Stock Exchange (TASE) figures, most traders would have to close positions by purchasing shares for the upcoming expiry.

The prediction, which is shared by a considerable number of market traders, is based on the balance of short positions remaining from June, when a wave of selling took place. The leading indices fell 6% last month on record trading turnovers, which exceeded NIS 2 billion in one day for the first time.

Market sources believe that most of the financial entities that sold shares short over the past month, will begin covering themselves towards the end of the month, for the following reasons:

Expectations of an upward breakthrough in the market as the disengagement plan becomes imminent.

Expectations that companies will distribute large dividends, which will bolster motivation for buying shares.

An inability or lack of economic worthwhileness to roll over open positions in the derivatives market.

Despite these factors, the derivatives market is still subject to a great deal of speculation. Some traders said that projections based on the derivatives market do not always correspond with what actually occurs. Other traders, however, hold that the market is likely to experience a volatile expiry. One trader predicted that the main indices would return to the vicinity of 700 points.

Published by Globes [online] - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 10:57 PM

http://www.globes.co.il/serveen/
Check Point rises on results and guidance

The company sees EPS of $1.24 on revenue of $588.94 million in 2005.

Ron Stein 19 Jul 05 16:23

In their conference call following the release of the company's second quarter results, network security company Check Point's management gave updated guidance for the third quarter and 2005 as a whole.

The company sees revenue of $140-150 million in the third quarter, and earnings per share (EPS) of $0.30-0.33, or $0.01 less if one-time expenses arising from the acquisition of Zone Labs are included.

The current analysts' consensus is EPS of $0.31 on revenue of $147.15 million.

For 2005 as a whole, Check Point expects to report revenue of $585-600 million, and EPS of $1.23-1.28, or $0.03-0.04 less if the Zone Labs acquisition expenses are included.

The current analysts' consensus for 2005 is EPS of $1.24 on revenue of $588.94 million.

In pre-market trading, Check Point shares are up a little over 5%, at $22.72. During the second quarter, the share fell 8.8%.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 10:59 PM

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Radware meets reduced guidance

CEO Roy Zisapel: We have the technology, vision, and business strategy to drive us back to growth.

Globes correspondent 19 Jul 05 12:50

Network management systems company Radware (Nasdaq: RDWR; TASE: RDWR) has reported revenue of $17.5 million for the second quarter, representing an increase of 7% compared with revenue of $16.3 million for the second quarter of 2004. Revenue for the first quarter of 2005 totaled $20.0 million.

Net profit for the second quarter of 2005 was $1.0 million, compared with a net profit income of $3.0 million in the second quarter of 2004, and $4.4 million in the first quarter of 2005.

Diluted net earnings per share for the first quarter of 2005 were $0.05, compared with $0.16 in the second quarter of 2004, and $0.22 in the first quarter of 2005.

The results are in line with the revised guidance in the company's profit warning issued on July 1. On that date, Radware announced that it expected that its revenue for the second quarter would be approximately $17.5 million, and that earnings per share would be in the range of $0.03 $0.05. Radware's previous guidance was for revenue of approximately $21 million, and the earnings per share of $0.23-0.24.

Radware president and CEO Roy Zisapel explained at the time, "We experienced significant and continuous delays in the closing of projects, especially during the month of June."

Radware generated $5 million cash in the second quarter, leading to a balance of $166.5 million in cash, short-term and long-term bank deposits and marketable securities at the end of it.

"As we announced in the preliminary earnings release, we are disappointed with the second quarter results," Zisapel said today. "However we believe that we have the technology, vision and business strategy to drive us back to growth and increased profitability," he added.

Radware shares closed at $16.95 in New York yesterday, giving the company a market cap of $313.37 million. On the Tel Aviv Stock Exchange, the stock is currently up 0.65%, at NIS 77.07.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:01 PM

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Merrill Lynch rates Ness Technologies "Buy"

The investment house sets a price objective for the Israeli IT company 70%above market.

Globes correspondent 19 Jul 05 14:16

In its recently released review of the computer services market, US investment house Merrill Lynch rates Israeli computer services company Ness Technologies (Nasdaq: NSTC) a "Buy", with a twelve-month price objective of $17.

Ness Technologies shares closed yesterday at $10.11, giving the company a market cap of $349 million.

"Our 12 month price objective of $17 equates to a P/E multiple of 18x our 2006 EPS estimate of $0.96. This multiple is in-line with the current 2006 median P/E multiple for other small/midsize IT service providers," Merrill Lynch's report says.

"A year from now, we expect this group to trade at a higher multiple based on 2006 EPS estimates so our price objective implies a discounted valuation for Ness relative to comparables. We believe a discount is warranted in light of Ness’ small size, lack of history and experience as a publicly traded company, and Israeli-specific risks.

" Longer term, we expect this gap to narrow as Ness builds a solid record of execution both financially and operationally.

"Risks to our outlook and price objective are potential earnings variability stemming from the company’s high mix of short term project work, geopolitical risk given the company’s exposure to Israel, and the highly competitive nature of the IT services industry," the section on Ness concludes.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:02 PM

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PowerDsine Q2 revenue steady at $10.5m

Net profit for the second quarter of 2005 was $800,000.

Globes correspondent 19 Jul 05 15:24

Power over Ethernet (PoE) company PowerDsine (Nasdaq: PDSN) announced today financial results for the second quarter ended June 30, 2005.

The company reported a net profit for the second quarter of 2005 of $800,000, or, $0.04 per diluted share, compared with a loss of $3 million for the second quarter of 2004, and a net profit of $800,000, or $0.04 per diluted share, for the first quarter of 2005.

Net profit for the second quarter of 2005 included a $500,000 non-cash stock-based compensation expense, compared to $4.2 million of non-cash stock-based compensation expense in the second quarter of 2004, and $500,000 of non-cash stock-based compensation expense in the first quarter of 2005.

For the second quarter of 2005, revenue was $10.5 million compared to sales of $10.4 million for the second quarter of 2004. On a sequential basis, revenue increased 3.8% from sales of $10.1 million in the first quarter of 2005. These results were in line with guidance provided during the company's first quarter conference call.

As of June 30, 2005, PowerDsine had cash, cash equivalents and marketable debt securities of $76.3 million as compared to $80.8 million as of December 31, 2004. The company stated that the decrease was primarily due to a one-time payment of withholding taxes resulting from employees' exercise of share options, which occurred during the first quarter of 2005.

PowerDsine CEO Igal Rotem said, "The second quarter marked a major development for PowerDsine as we were selected for inclusion in the Cisco Technology Partner program. With an even stronger team of technological leaders behind us, we are strongly positioned to continue to lead the growth of the rapidly evolving PoE market."

Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, July 19, 2005

TalB

July 19th, 2005, 11:05 PM

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Israeli exports to US up annualized 7.9% in Q2

Exports of goods, excluding diamonds, totaled $13 billion in the second quarter, while imports, excluding diamonds, totaled $17.5 billion.

Zeev Klein 19 Jul 05 15:44

Israeli exports to the US are recovering. Exports to the US rose by an annualized 7.9% in the second quarter of 2005, after rising 6.2% in the first quarter, the Central Bureau of Statistics reported today.

However, the Central Bureau of Statistics states that the export of goods, excluding diamonds, fell by an annualized 2.4% in trend figures in the second quarter.

Exports to the EU rose by an annualized 2.4% in June, and exports to Asia rose by an annualized 8.7%. Exports to the rest of the world fell by an annualized 6.9% in the second quarter, after rising 1.2% in the first quarter.

Imports, excluding diamonds, fuel, ships and planes, rose by an annualized 6.6% in the second quarter. Imports from the EU rose by an annualized 8.3% in the second quarter, after rising 2.4% in March. Imports from the US in first quarter fell by an annualized 19.5% in the second quarter, after falling 16% in the first. Imports from Asia rose by an annualized 11.8% in the second quarter, after rising 7.4% in the first. Imports from the rest of the world rose by an annualized 35.5% in the second quarter, after rising 40.4% in the first.

Exports of goods, excluding diamonds, totaled $13 billion in the second quarter, while imports, excluding diamonds, totaled $17.5 billion. Exports to the EU account for 36% of total exports, to the US 27%, and to Asia 15%. Imports from the EU account for 38% of total imports.

Israel had a $700 million trade surplus with the US in the first half of 2005, but a trade deficit of $1.9 billion with the EU, $1.2 billion with Asia, and $2.1 billion with the rest of the world.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:07 PM

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IMI management reaches agreement with Finance Ministry

Israel Military Industries will receive NIS 270 million from the state.

Shir Elron and Zeev Klein 19 Jul 05 14:29

Israel Military Industries (IMI) chairman Ovadia Eli and CEO Avi Felder reached agreement yesterday with the Ministry of Finance. The ministry will provide NIS 270 million in aid to the company. Felder said that IMI employees and pensioners would receive their salaries and pensions in the next few days.

Eli said that IMI appreciated the trust in it shown by its suppliers and employees, who had continued working in the company headquarters and production lines. He stated that IMI would meet all timetables for all its projects for both the Israel Defense Forces and foreign armed forces.

Eli thanked the minister of defense and the ministry of defense director general, who had helped the company. He claimed that the arrangement would enable IMI to operate in a competitive market, and make it possible to privatize the company at a maximum price, while upgrading its assets.

Minister of Defense Shaul Mofaz said, “The arrangement will make it possible to pay IMI’s employees, who are the company’s most important asset.” IMI’s management believes that its workers, who are demonstrating great responsibility regarding its future, will help the company recover, even at the painful cost of that essential concessions that are now required.

IMI employees demonstrated in front of the Prime Minister’s Office in Jerusalem. They surprised the police, most of whose forces are in the Gaza region, and managed to break through the barriers surrounding the compound.

Published by Globes [online] - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:10 PM

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Manufacturers: Productivity up 0.4% in January-April

Low technology industries laid off 330 employees, but high-tech industries hired 270 workers.

Globes’ correspondent 19 Jul 05 14:22

Manufacturing productivity rose by 0.4% in January-April 2005, compared with the fourth quarter of 2004. Industrial employment was also unchanged, after rising for three consecutive quarters.

Manufacturers Association president Shraga Brosh said analysis of the data indicated that low technology industries laid off 330 employees, 0.4% of its workforce, in January-April. These lay-offs were partly offset by the hiring of 270 workers by high-tech industries and by hiring in other sectors. The figures are compared with the fourth quarter of 2004.

On the basis of the figures, Brosh called on the government to present a growth and investment-oriented budget, which would put the economy on the path of growth and employment, as declared by the minister of finance. At the same time, the deficit and 1% increase in government spending targets should be preserved, as stipulated by the Budget Deficit Reduction Law (1992).

A monthly analysis by the Manufacturers Association found that mixed-high-tech industries increased their workforce by 0.5% in January-April, after a 0.5% drop in the fourth quarter of 2004. Mixed-low technology industries increased their workforce by 0.4% in January-April, following a 0.5% increase in the fourth quarter of 2004.

High-tech industrial output fell by 0.9% in real terms in January-April, due to a 1% drop in output by the electronic communications equipment sector, after a 18 months of growth.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:11 PM

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Tourist entries up strongly

Entries by air rose by an annualized 62% in the second quarter of 2005, following a 54% rise in the first quarter.

Zeev Klein 19 Jul 05 13:49

Israeli tourism is rapidly recovering. An analysis of Central Bureau of Statistics trend figures shows that tourist entries by air rose by an annualized 62% in the second quarter of 2005, following a 54% increase in the first quarter. The average monthly rise in the second quarter was 4.1%, compared with 3.7% in the first quarter.

According to seasonally adjusted figures, there were 145,000 tourist entries per month by air in the second quarter, compared with 123,000 in the first quarter, a 17.9% increase, and 72% in annual terms.

Tourist entries totaled 159,000 in June 2005: 133,500 by air, 22,900 by land, 2,000 on stop-over cruises, and 600 by sea.

There were 868,000 visitor arrivals in Israel in January-June 2005 (28% more than in the corresponding period last year), including 751,700 by air (25%) and 110,700 by land (48%).

33,500 tourists entered Israel on direct flights to Eilat in January-June, 30% more than in the corresponding period last year, and 3,800 came on stop-over cruises.

Published by Globes [online] - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:12 PM

http://www.globes.co.il/serveen/
Purchase tax on private and commercial vehicles to be equalized

The Tax Authority says the change will remove distortions in the car market.

Dubi Ben Gedalyahu 19 Jul 05 10:10

The Israel Tax Authority recommends eliminating different tax rates for private and commercial cars, according to its annual summary published last week.

The Tax Authority asserts that reform will help prevent the distortion of car buying habits and tax planning, and eliminate the red tape involved in classifying vehicles in Israel.

The current purchase tax rate on private vehicles is 95%, while purchase tax on commercial vehicles is 75%. Auto industry sources predict that if state revenues from taxes on vehicles continue to rise, a uniform purchase tax of 80-85% will be set for both kinds of vehicles.

At the same time, technical difficulties are liable to postpone implementation of the change until after January 2007, when adoption of European licensing regulations and vehicle classification is planned. Auto industry sources believe that the Tax Authority has a plan prepared on the matter ready for immediate implementation.

The Tax Authority’s annual report shows that state revenues from vehicle taxes totaled NIS 6.5 billion in 2004, 31.3% more than in 2003. Purchase taxes on private vehicles totaled NIS 5.7 billion, 36% higher in real terms, while purchase taxes on commercial vehicles amounted to NIS 502 million, 5% less than in 2003.

Revenue from customs duties, levied mostly on the 7% of cars imports from Asian countries, totaled NIS 282 million, up 44% in real terms, compared with the preceding year. The rise was mostly a result of increased imports of cars from South Korea and Japan, compared with European cars, which are exempt from customs duties. Revenue from purchase taxes and customs duties on spare parts amounted to NIS 288 million, including NIS 242 million in purchase taxes, up 11% in real terms, compared with the preceding year.

The two-wheel vehicle sector contributed NIS 44 million in tax revenue in 2004, a 42.5% rise in real terms, compared with 2003.

Published by Globes [online] - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:16 PM

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Israel-Australia trade tops $500m

Outstanding Israeli exporters to Australia and New-Zealand were awarded last night.

Globes correspondent 19 Jul 05 11:17

Over 200 senior Israeli business-people last night attended the trade awards ceremony organized by the Israel-Australia, New-Zealand & Oceania Chamber of Commerce.

Awards are given to companies that have excelled and made an outstanding contribution to bilateral trade between Israel and AustralAsia.

Award recipients for Australia and New Zealand included Motorola Israel general manager Elisha Yanay, Netafim president and CEO Erez Meltzer, Comverse CEO Ze’ev Bregman and Ormat chairman Lucien Bronicki.

Strauss Elite CEO Erez Vigodman received a certificate for opening a Max-Brenner store in Australia. Fox CEO Harel Wiesel was similarly awarded.

Other companies to receive awards included Actellis Networks, Caesar Stone, ClickSoftware, HP Indigo, ICL Fertilizers, JKD Trading, Makteshim-Agan, Mondi-Business Paper (Hadera), Plasson, Rafael and the RAD group.

The awards were presented by Minister of Industry, Trade and Labor, and Vice Prime Minister Ehud Olmert and Israel-Australia, New-Zealand & Oceania Chamber of Commerce chairman Gurion Meltzer. Australian Ambassador Tim George participated in the event, as did honorary consul of New Zealand Gad Propper and honorary consul of Micronesia Shimon Shenhar.

Israel-Australia, New-Zealand & Oceania Chamber of Commerce executive director Paul Israel said: “This was our largest trade awards event ever. It's very exciting as we have included new countries Papua New Guinea and Micronesia, plus the new categories of investments into Australia and Israel." Israel noted that over 50 Israeli companies have offices in Australia.

Bilateral trade between Israel and Australia is over $500 million, with Israeli exports approximately double the Australian exports.

Australian exporters were also be recognized for their efforts, including two companies that supply the Israel Electric Corporation: Aeropower and Netzer.

Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, July 19, 2005

TalB

July 19th, 2005, 11:17 PM

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Home buyers' index up 0.8% in June

The Mishkan index for home buyers has risen 9.4% since the beginning of the year.

Guy Yamin 19 Jul 05 15:40

Bank Hapoalim's Mishkan index for home buyers rose by 0.8% in June 2005 to 143.4 points, indicated improved circumstances for home buyers. The improvement in June continues the positive trend for home buyers of the past nine months. The Mishkan index has risen 9.4% since the beginning of the year.

Changes in the components of the Mishkan index for June, compared with May are as follows: the mortgage interest rate fell 0.03%; the average national salary rose 0.5%; the unemployment rate was unchanged at 9.1%; and housing prices were unchanged.

The monthly Mishkan index aims at reflecting the situation of homebuyers. The index comprises four elements published each month by the Bank of Israel or Central Bureau of Statistics: the mortgage interest rate, home prices, the unemployment rate, and average national salary.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:19 PM

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Tubul group offers $25m for ACE Israel

Zeevi Holdings receiver Adv. Lipa Meir published a tender for ACE Marketing Chains (ACE Israel).

Vered Sharon-Rivlin 19 Jul 05 19:26

The Tubul group has offered $25 million for ACE Marketing Chains (ACE Israel). 65% of the deal will be leveraged by financing from one of Israel’s large banks, and the rest from Tubul’s shareholders’ equity.

The Tubul group is owned by brothers Simo, Oren and Boaz Tubul. It comprises a number of construction companies operating in Ashdod and Jerusalem, a company that trades in building materials, a factory, and sales center.

The bidders for ACE Israel, previously owned by Gad Zeevi, are due to enter the information room next week.

Simo Tubul said the group had a turnover of NIS 150 million a year, and had been active in the construction industry for over 20 years.

Zeevi Holdings receiver Adv. Lipa Meir published a tender for ACE Israel. So far as is known, he wants to bypass the tender, through a deal with Benjamin (Benny Gaon) and ACE Israel partner Shlomo Zbeda. Meir wants to avoid a tender because of legal problems arising from Zbeda’s lawsuit against Zeevi, in which Zbeda is demanding a larger stake in ACE Israel.

Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2005

TalB

July 19th, 2005, 11:22 PM

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Teva's Copaxone sales hit record $291m in Q2

US sales in the quarter were 29% higher than in the corresponding quarter of 2004.

Globes correspondent 19 Jul 05 09:40

In conjunction with the release of the Sanofi-Aventis group's financial results Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today announced that global in-market sales of Copaxone reached record $291 million in the second quarter of 2005, an increase of 29% over the comparable quarter of 2004.

Copaxone (glatiramer acetate) is a treatement for multiple sclerosis (MS)

US sales in the second quarter 2005 increased 29% over the second quarter 2004 to $193 million. According to IMS Health Inc. research, Copaxone continued to hold its position as the market leader in both total and new prescriptions, reaching a total prescription revenue (TRx) share of 32.7% in June 2005. Furthermore, based on IMS weekly prescription data, Copaxone continued to be the leader in the last 10 and 19 weeks for TRx and new prescription revenue (NRx), respectively.

For the second quarter 2005, sales outside the U.S., mainly in Europe, increased by 28% over the comparable quarter of 2004, to $97 million.

Teva president and CEO Israel Makov said, "These record sales are a reflection of Copaxone's unmatched long term efficacy and its unique ability to address both the inflammatory and neurodegenerative aspects of MS. These attributes are no doubt the major driver in Copaxone's continuous global growth and leadership in the US."

Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, July 19, 2005

source26

July 20th, 2005, 01:07 AM

The problem is TEVA isnt an Israeli company anymore.. It s mostly controlled by Swiss and europeans and just the development and manufacturing is mostly here.. otherwise TEVA is much more inernational than other companies are.

Azazel

July 20th, 2005, 01:25 AM

Well, that's the nature of the stock market. You ain't happy with it, get rid of it.

source26

July 20th, 2005, 01:27 AM

Im happy but the stock bubble always blows and leaves the poor ven poorer and the rich even richer!

TalB

July 20th, 2005, 11:26 PM

http://www.globes.co.il/serveen/
HOT to invest NIS 770m in wireline telephony by 2010

The cable television company plans to recruit 400,000 phone subscribers during this period.

Guy Hadass and Yael Gaoni 20 Jul 05 19:15

Sources inform "Globes" that the cable companies, operating jointly under the HOT brand, will invest NIS 650 million in wireline telephony infrastructure by 2010, and another NIS 120 million in modems for its customers’ homes.

HOT invested NIS 150 million in 2004, and is due to invest NIS 115 million this year, NIS 140 million in 2006, and NIS 100-130 million a year in the four subsequent years.

According to its business plan, HOT plans to recruit 400,000 telephony subscribers by 2010. Its recruitment targets are 60,000 subscribers in 2005, 65,000 in 2006, a peak of 90,000 in 2007, and 50,000 a year in subsequent years.

At the same time, sources in HOT predicted that the company would outperform its business plan this year and reach 80,000 subscribers, even though mass recruitment had only begun in the second half of the year. HOT currently has 27,000 telephony subscribers, and its current recruitment rate is 700 per day.

15% of HOT’s telephony subscribers are not cable television subscribers. HOT is starting to see subscribers leaving Bezeq (TASE: BZEQ) to join it. Up until now, customers have been keeping a Bezeq line, together with their HOT line.

The cable companies were the first, and the only ones to date, to compete with Bezeq’s telephony services, which are classified as a monopoly.

Published by Globes [online] - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:27 PM

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Wed: Bachar boosts financial shares

The Tel Aviv 25 index rose 1.5% today, with the finance sector prominent. Insurance companies and the smaller banks did well, but even Hapoalim and Leumi, supposed victims of the Bachar reforms, gained ground.

Roy Meltzer 20 Jul 05 19:04

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 1.53% at 674.68 points, the Tel Aviv 100 index rose 1.40% to 688.08 points, and the Tel-Tech 15 index rose 0.47% to 401.12 points. Turnover totaled NIS 913 million.

The TASE continued its surge today, accompanied by a significant rise in trading volume. The leading indices jumped out ahead at the outset, and the trend persisted throughout the day, with lively activity in the derivatives market, too. The shekel-dollar exchange rate fell. The Finance 15 index responded to Knesset Finance Committee approval of the Bachar reform bill with a 2.3% jump.

Financial shares enjoy Bachar effect

The mood on the stock market was quite positive. The financial shares led the trend, especially the insurance companies and private brokers, which are expected to be the main beneficiaries of the reform bill. Clal Insurance Enterprises Holdings added 2.1%, Migdal Insurance 1.3%, Harel Insurance Investments 1.8%, and Menorah Holdings 2.9%. Israel Phoenix Assurance 1, which will hold a NIS 400 million private placement tomorrow led by the Leader & Co. Investment House, rose 2.7%.

Today’s bank share trend was also positive, with the Bachar bill putting the emphasis on the small and medium-sized banks. First International Bank of Israel 5 gained 2.9%, Israel Discount Bank 3.8%, and United Mizrahi Bank 3.3%. Bank Hapoalim (up 1.1%) and Bank Leumi (1.5%) weren’t far behind, regardless of the Bachar reform.

The private financial concern were also big winners today. DS Securities & Investments leaped 6.4%, Analyst Investment Management Services jumped 4.6%, Solomon (which also reported the sale of its controlling interest to Amit Berger), surged 5.7%, and Excellence added 0.4%.

Teva rose 1.7% today, after reporting yesterday that the US Food and Drug Administration (FDA) had granted conditional approval for its Tramadol and Acetaminophen tablets in 37.5 milligram and 325 milligram dosages. In addition, speculation continued about a possible acquisition of German pharmaceutical company Stada.

Most of the other blue chips gained ground today. Israel Chemicals was up 1.5%, and Bezeq gained 0.7%, following predictions that its new controlling shareholders were likely to declare a NIS 1 billion dividend in 2006. Strauss-Elite soared 6.2%, after reporting that it was negotiating the sale of the Elite lot in Ramat Gan.

Among the rest, C. Mer Industries stood out with a 1.9% gain, in the wake of another Brazilian order this one amounting to $4 million. Shemen Industries tumbled 8%, after reporting that loss of revenue stemming from the collapse of Clubmarket would be “substantial for it.”

Finally, NICE Systems climbed 2.7%, after confirming today that it had received many offers from large financial concerns to take part in an issue of NICE shares totaling up to $100 million. NICE itself, of course, is aware that the homeland security market is a hot item these days, but the company has not yet decided whether to undertake such a share issue.

Published by Globes [online] - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:29 PM

http://www.globes.co.il/serveen/
NICE get offers to raise $80-110m in shares

The company has not yet agreed to the measure. The parties involved may decide to wait for NICE Systems’ share to rise higher.

Hadass Geyman 20 Jul 05 17:18

Sources inform ''Globes'' that over the past two weeks, NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE) has received offers from five or six investment houses to raise $80-110 million through an issue of shares on Nasdaq. The offers came from Deutsche Bank (NYSE: DB; LSE: DBK; XETRA, AEX, SWX, ATX: DBKG), Lehman Brothers (NYSE:LEH), UBS (NYSE; SWX:UBS), and others. So as is known, Merrill Lynch & Co. (NYSE:MER) has not made an offer, but market sources believe that it will do so sooner or later, because it is involved in most major deals made in Israel.

Sources also inform ''Globes'' that the investment banks contacting NICE over the past two weeks did so after a recent successful meeting between NICE’s management and large US investment institutions. NICE’s management periodically meets investment institutions to explain its business and progress. So far as is known, investors demonstrated very favorable interest in NICE’s circumstances and activities at the latest meetings. These reactions led to the present offers received by the company.

Another presumed reason behind the offers to raise money is the surge in NICE’s share during the past year. NICE has risen 15% in the past three months, and 82.87% in the past twelve.

Nevertheless, US capital market sources say nothing has been finalized yet, and that NICE’s management has not yet agreed to the measure. Market sources suggest several reasons for NICE’s hesitation. One is the dilution of existing shareholders. Market sources say NICE will agree to the measure only if is shown that money can be raised at minimal dilution to existing shareholders.

A second reason that the measure has not been finalized apparently involves NICE’s share price. NICE closed at $41.40 yesterday, reflecting a market cap of $762.54 million. Market sources believe that the investment houses offering to raise money for NICE, as well as the company’s management, prefer waiting for the share to rise another 10-15% before issuing shares.

A third reason is the use of the proceeds. Unlike Comverse Technology Inc. (Nasdaq:CMVT) chairman and CEO Kobi Alexander, who says, “Money should be raised when possible, not when it it’s needed,” market sources believe that NICE’s management will not raise money through a share issue now, unless it has specific uses for the proceeds. The source believe, however, that if and when the company’s management decided to hold an issue, the subject of the use of the proceeds will not be an obstacle.

As for Lehman Brothers, although it has made an offer to raise money for NICE, market sources believe that it might not participate in an issue, especially in view of its closeness to Comverse Technology and NICE’s competitor, Verint Systems Inc. (Nasdaq:VRNT). Furthermore, no underwriter has been chosen to lead an issue at this time (if and when it is held).

Market sources believe that Deutsche Bank has the best chances of being chosen as the lead underwriter, although, as mentioned above, NICE’s management has not yet made any decision and nothing is closed. NICE has received a number of offers in the past year, which it has not acted on.

NICE said in response, “The company is examining all available strategic options.”

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:31 PM

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DSP earnings beat analysts' estimates by $0.03

Revenue for the second quarter was a record $49 million. The company has raised its guidance.

Globes correspondent 20 Jul 05 14:57

Fabless semiconductor company DSP Group (Nasdaq: DSPG), which mainly produces chipsets for residential wireless connectivity (Wi-Fi, Bluetooth, DECT) has reported revenue of $49 million for the second quarter of 2005, representing an increase of 11% from revenue of $44 million for the second quarter of 2004.

The company made a profit of $8.3 million in the quarter, 21% less than the $9.4 million profit for the second quarter of 2004.

Diluted earnings per share for the second quarter of 2005 fell 7% to $0.28, compared with $0.30 for the second quarter of 2004.

The revenue figure is slightly higher than the analysts' consensus estimate of $48.49 million, while DSP's earnings per share for the second quarter handily beat the analysts' estimate of $0.25.

DSP Group chairman Eli Ayalon said, "In keeping with the company's policy of maintaining high levels of operating profitability even while increasing investment in research and development to strengthen our product offerings, we achieved a strong operating profit level of 15% of revenues, despite a significant increase in research and development expenses in the second quarter of 2005 as compared to the second quarter of 2004.

"This higher level of research and development expenses reflect an increase of resources dedicated to developing multimedia over Wi-Fi products from technologies acquired from Bermai, Inc. in October 2004. We believe that this combined approach will continue to benefit our stockholders and increase our competitive edge."

CEO Inon Beracha said, "Record high revenues were achieved by the company in the second quarter of 2005, reflecting increased demand and market share in North America for our products. This together with a strong flow of orders during the quarter improves our revenue visibility for the third quarter and fiscal year 2005 and continues to validate our business strategy."

In revised guidance, the company says it expects revenue of $53-55 million in the third quarter, and gross profit margins of 46-48%. Revenue for 2005 as a whole is now expected to total $179-187 million, compared with previous guidance of $176-186 million.

DSP shares closed at $25.90 yesterday, giving the company a market cap of $734 million.

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:35 PM

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Smith Barney: PartyGaming should buy Empire Online

"We see Empire as like a troublesome child to PartyGaming, small but growing faster."

Globes correspondent 20 Jul 05 18:41

"We see Empire as like a troublesome child to PartyGaming, small but growing faster and taking more than its fair share of the budget," Citigroup Smith Barney says in a review of the online gaming companies.

"We think PartyGaming’s best option is to tie Empire in by buying it. However, the downside risks from Empire going off on its own are not huge and PartyGaming may have other more pressing deals to do first.

"Empire (ep.com) finds online poker players who then play on PartyGaming’s systems in return for which Empire pays PartyGaming a royalty. Empire’s players account for c4% of PartyGaming’s EBIT.

"This EBIT share appears unimportant. However, PartyGaming makes less profit on Empire players than players that come to PartyGaming direct. We estimate that PartyGaming’s 2005 EBIT would be c11% higher if it achieved a “normal”profit on Empire’s players.

"One assumes PartyGaming would want to renegotiate the deal with Empire. PartyGaming has the biggest online poker business and Empire benefits from the liquidity it can offer its players. However, Empire has the option of taking its c9% share of the online poker market elsewhere, beefing up a new partner’s poker room, reducing PartyGaming’s dominance a little and perhaps getting an even more favourable revenue share from the new partner.

"If PartyGaming bought Empire the inefficiency of competing with each other could be eliminated, Empire’s market share could be secured for PartyGaming and Empire’s successful non-US player recruitment could be expanded, reducing PartyGaming’s dependence on the US.

"We calculate that PartyGaming could pay a 30% premium for Empire without EPS dilution.

"Empire would get the best deal from a new poker partner if it agreed to bring all of its poker business with it. We estimate that the pro forma effect of Empire leaving the PartyGaming network would mathematically be only a 5% reduction in 2005 estimated earnings. However, the damage to PartyGaming from the implied re-jigging of market shares in the online poker market is uncertain.

"We would like to see PartyGaming acquire Empire; consolidation is one reason why it floated and a deal could make financial and strategic sense. However, our valuation is based on the status quo being maintained and Empire leaving would not be a major problem for PartyGaming.

"With the World Series of Poker due to be on TV in August and September driving even more online poker participation, we believe that the newsflow will be excellent in the short term.

"We reiterate our 1S (Buy/Speculative) rating and 185p target."

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:36 PM

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Meir Shamir negotiating acquisition of Elbit Vision

Elbit Vision is traded over-the-counter at a market cap of $13 million.

Roy Meltzer 20 Jul 05 17:57

Sources inform "Globes" that after enlarging his holding in Gilat Satellite Networks (Nasdaq: GILTF; TASE: GILTF) and acquiring 29% of Israel Salt Industries (TASE: SALT), Meir Shamir is now negotiating the purchase of controlling interest in Elbit Vision Systems(Nasdaq: EVSNF.OB).

Details of the deal have not yet been settled, but it is believed that Shamir will acquire control of Elbit Vision with a stake of over 50%. Shamir is expected to acquire the holdings of Elbit Vision’s principal shareholders, including the Alon family, ScanMaster Systems, and Israel Phoenix Assurance (TASE: PHOE1;PHOE5). IDB Holding Corp. (TASE: IDBH) subsidiary Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN), which owns 11% of Elbit Vision, will probably not sell its stake.

Elbit Vision’s market cap is $13 million, following a 19% rise in the share over the past week.

In 2004, Elbit Vision acquired South Korean company Yuravision and Hod Hasharon-based ScanMaster for $8.5 million. ScanMaster is headed for a London IPO in late 2005 at an estimated company value of $35 million.

Following its recent acquisitions, Elbit Vision has expanded to other business fields. In addition to its regular business in optical networks for the textile industry, the company has also moved into detecting defects in printed circuits, plastics, and microelectronics, as well as manufacturing and marketing of ultrasound testing equipment. Elbit Vision’s products are aimed at the auto and transportation market, the steel industry, and the aerospace industry.

After Elbit Vision held its IPO in 1996, a controlling interest in the company was sold in 2001 to textile company Altro Vienna, controlled by the Alon family. CEO Nir Alon is friendly with Shamir. The two men share an interest in the Hapoal Petah Tikva soccer club. Alon played for the team as a rear defender, and was even selected for Israel’s national team. Shamir was a sponsor of the team for years, and abandoned his sponsorship only recently.

If it goes through, the current deal will not be Shamir’s first business initiative with people linked to the soccer club. In May, he sold Wizcom Technologies (XETRA: WZM), one of Mivtach Shamir Holdings’ (TASE: MISH) portfolio companies, to Ronen Elad for $2.2 million.

Published by Globes [online] - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:37 PM

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Aladdin Q2 2005: $3.59m net profit on $20.06m revenue

Revenue on enterprise security products increased 43% in the second quarter of 2005.

Globes correspondent 20 Jul 05 16:50

Aladdin Knowledge Systems (Nasdaq: ALDN; TASE: ALDN) today announced financial results for the second quarter of fiscal year 2005 ended June 30, 2005.

Net profit for the second quarter of 2005 was $3.59 million, or $0.25 per basic share and $0.24 per diluted share. Net profit for the second quarter of 2004 was $2.07 million or $0.17 per basic and $0.16 per diluted share.

For the first six months of 2005, net profit was $4.82 million or $0.36 per basic share and $0.34 per diluted share, as compared with net profit of $3.82 million or $0.32 per basic and $0.30 per diluted share for the first six months of 2004.

Revenue for the second quarter of 2005 increased 21.4% to $20.06 million from $16.52 million for the same period in 2004.

Software DRM revenue for the second quarter increased 14.1% to $14.07 million from $12.34 million in the same period in 2004. Enterprise security revenue for the second quarter of 2005 increased 43% to $5.99 million from $4.18 million in the same period in 2004.

Revenue for the first six months of 2005 was $40.39 million, an increase of 21.0 percent from the $33.40 million recorded over the same period in 2004.

Cash, cash equivalents and marketable securities totaled $70.15 million at June 30, 2005, up $44.24 million from $25.91 million reported at December 31, 2004, with no outstanding debt. The increase includes the receipt of $38.78 million in net proceeds, following the completion of the company's offering of ordinary shares which closed on March 30, 2005.

Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, July 20, 2005

TalB

July 20th, 2005, 11:39 PM

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ITAC raises $36m on Wall Street

The Israel Technology Acquisition Corporation’s initial target for the issue was $18 million.

Globes’ correspondent 20 Jul 05 12:21

The Israel Technology Acquisition Corporation (ITAC), which was founded six months ago, today completed a $36 million financing round on Wall Street. ITAC’s initial target was $18 million, but after the road show, it was decided to double the amount. The company is now listed for trading on the over-the-counter bulletin board, under the ticker symbol ISLTU.

US investment house Early Bird Capital led the issue, in which six million units, each consisting of one share and two share options, were offered at $6 per unit.

ITAC’s prospectus, filed at the US Securities and Exchange Commission (SEC) four months ago, states, “We believe that Israel represents an attractive environment for a target business for several reasons including, among others Israel’s large population of scientists and technicians compared to other countries, favorable tax incentives and government funding plans offered to Israeli companies, and Israel’s reputation as being one of the most attractive centers for technology innovation outside of the United States.”

The prospectus adds, “According to the Israel Venture Capital Research Center, since 1999, $9 billion in venture capital was invested in Israel’s high-tech industry… there should be a greater number of prospective target businesses searching for liquidity event. We also believe… a transaction with us (is) an attractive alternative exit strategy.”

ITAC’s chairman and CEO is Israel Frieder, former president of Kardan Communications, former president of Tadiran Telecommunications, and former president of an ECI Telecom subsidiary in the US. Former CIBC banking division manager Glen Shear is CFO, secretary, and director, and former Poalim Ventures VP Dael Schnider is VP and director. Another investor in the company, who is also a director, is former Smith Barney research division manager Victor Halpert.

Published by Globes [online] - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:40 PM

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Private consumption recovering

Trade and service proceeds rose by an annualized 6.4% in March-May 2005.

Zeev Klein 20 Jul 05 13:10

Private consumption is continuing to recover. Trade and services proceeds rose by an annualized 6.4% in March-May 2005, after rising 7.1% in December 2004-February 2005, the Central Bureau of Statistics reported today.

The business services and immovable assets sectors led the rise in private consumption, with a 7% annualized rise in proceeds, double the rate in December-February. The liberal professions (lawyers, accountants, computer services, guard and cleaning services, and personnel agencies) proceeds also rose by an annualized 7% in March-May.

Total wholesale and retail trade proceeds rose by 5.8% in March-May, after rising 8.5% earlier. Wholesale trade proceeds rose by 6.6%, after previously rising 10.3%. The growth in wholesale trade proceeds was influenced by strong vehicle sales in May.

Proceeds by retail chains and stores rose by an annualized 3.4% in March-May, similar to the rise in December-February. Catering and accommodation services proceeds also rose by a fairly modest 4.3%, compared with 2.5% in December-February.

Education services proceeds rose by an annualized 9.4% in March-May. Health, welfare and nursing proceeds rose by 5.6%, and personal services proceeds rose by 11.6%.

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:42 PM

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Partial housing purchase tax exemptions for one year

The first 0.5% tax bracket on the purchase of a housing unit will be raised to NIS 550,000, and be exempt for one year.

Globes’ correspondent 20 Jul 05 13:07

The first purchase tax bracket will be widened and taxes in this bracket will be cancelled for one year, as part of the Kapota-Matza reform. Meanwhile, the Israel Tax Authority updated the purchase tax brackets this week, but if the Knesset Finance Committee passes the new regulations, as expected, they will apply retroactively from July 1.

As of now, the levy is 0.5% on the first tax bracket on the purchase of a single housing unit up to NIS 446,890. Under the reform, the bracket will rise to NIS 550,000, and no tax on this portion of the price of a housing unit will be paid for one year.

A 3.5% tax rate will apply on a housing unit worth between NIS 550,000 and NIS 693,600, and 5% on every shekel above this amount.

The exemption will only apply to single housing units; it will not apply to additional homes or farms.

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:43 PM

http://www.globes.co.il/serveen/
Oudi Recanati: I’ll invest all IDB proceeds in Israel

“I have made a business and Zionist decision that the proceeds from the sale of IDB will not leave the country.”

Aviva Krull 20 Jul 05 15:36

Former IDB Holding Corp. Ltd. (TASE:IDBH) controlling shareholder Oudi Recanati is again active in Israel. “I have made a business and Zionist decision that the proceeds from the sale of IDB will not leave the country,” he told “Globes”.

Recanati’s personal wealth is estimated at $200-250 million. He expanded and diversified his investments in Israel last year through Naftali Investments, his domestic arm. These included the acquisition of 20% of Maman Cargo Terminals and Handling Ltd. (TASE: MMAN), and increasing his stake to 33% in Aviv Giladi Productions Ltd., which holds a large number of television stations and recently acquired Yediot Communications Ltd.’s stake in Channel 2 franchisee Reshet Television. Oudi Recanati also owns 50% of Arva Tea Ltd. and 16% of the Maccabi Tel Aviv basketball club, and has invested in more than ten Israeli high-tech companies.

“Israel is too small to focus on one sector,” he said. “In Israel, everyone steps on everyone else and touches someone on every side. We’ll diversify into all kinds of sectors, and we’ll take interesting business opportunities where we see them.”

Oudi Recanati was chairman and co-CEO of IDB Holdings and chairman of Discount Investment Corporation Ltd. (TASE:DISI) when he announced his resignation in March 2001, and moved to Switzerland. He was later involved in the sale of the family-owned Swiss bank Discount Bank and Trade Company (DBTC) to Edgar di Picciotto’s Union Bancaire Privee (UBP) of Geneva, and in the sale of IDB Holding to Nochi Dankner.

“I didn’t leave,” Recanati now says. “I’m an Israeli. It’s a fact that I do business here. But the spotlights and Israel’s media, which are very unforgiving, bothered me.”

“Globes”: How did it feel to stop doing business in Israel?

Oudi Recanati: “It actually felt rather good. Israel is very crowded, and the regulations are very tough. Doing business in Israel is very complex and complicated. I sometimes travel and forget, and then feel terribly homesick and return, which helps me cope with things.”

A scion of one of Israel’s banking families, Oudi Recanati said he supported the Bachar capital market reform. “It’s the right thing to do. It’s happened in every banking system worldwide. In the end, there’ll be separation between asset management and retail banking. I think that this is the correct trend, although if I were an owner of Israel Discount Bank (TASE: DSCT), I certainly wouldn’t think this. The problem in Israel is that everything is concentrated in one place: the market is small and the banks are big. Things have to develop.”

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

TalB

July 20th, 2005, 11:46 PM

http://www.globes.co.il/serveen/
EDS, Ness win NIS 500m First International IT project

IBM and Matrix IT lost out on the contract, Israel's first bank outsourcing project.

Dafna Zucker 20 Jul 05 14:07

After over two years of preparations, Israel’s first bank outsourcing project, and one of the country’s largest computer projects, is getting underway. First International Bank of Israel (TASE:FTIN1;FTIN5) today announced that it had selected Electronic Data Systems (NYSE:EDS) and Ness Technologies Inc. (Nasdaq:NSTC) to carry out its outsourcing project, worth over NIS 500 million.

EDS and Ness Technologies beat the other finalist for the First International Bank project - a joint bid by IBM (NYSE:IBM) and Matrix IT Ltd. (TASE:MTRX).

The Bank of Israel recently approved the project, after several months delay, which delayed the project’s preparations. The delay was due to deliberations over Israel’s first large bank outsourcing project. The Bank of Israel wanted to ensure that banking confidentiality and stability would be preserved after First International Bank outsourced its computer services.

The outsourcing project is intended to save First International Bank NIS 200 million over the next eight years.

Published by Globes [online], Israel business news - www.globes.co.il - on July 20, 2005

M II A II R II K

July 21st, 2005, 01:50 AM

Would the WNBA help the economy....

source26

July 21st, 2005, 05:35 AM

WNBA is what? woman's NBA?

bluejon

July 21st, 2005, 06:11 PM

WNBA is what? woman's NBA?

Yup...Women's National Basketball Association.

source26

July 21st, 2005, 06:21 PM

and how will a bunch of 6"2 women help our economy exactly? :)

source26

July 21st, 2005, 06:37 PM

First quarter housing starts down 11%

Privately built housing completions fell by 8% in January-April, but publicly built completions unexpectedly rose 2%.

Zeev Klein 21 Jul 05 15:49

Israel’s residential construction industry is struggling to recover. Housing starts fell by an annualized 10.2% in January-April 2005, and housing completions fell by 6.2%, according to an analysis of Central Bureau of Statistics and Ministry of Housing and Construction estimates by economic ministries in Jerusalem.
Privately built housing starts fell by 8.9% in January-April, and new publicly built housing starts fell by 17.6%. Privately built housing completions fell by 8%, but publicly built housing completions unexpectedly rose by 2%

The first quarter of 2005 was the worst quarter for housing starts and completions in the past three and a half years.

Published by Globes [online], Israel business news - www.globes.co.il - on July 21, 2005

source26

July 24th, 2005, 06:58 PM

Tourist overnights up annual 92% in April-June

Zeev Klein 24 Jul 05 15:14

Tourist overnights rose by an annualized 92% in April-June 2005, according to trend figures published today by the Central Bureau of Statistics, less than the 113% increase in January-March. The average monthly rise in April-June was 5.6%, compared with 6.5% in January-March.
Trend figures showed a 2% annualized fall in Israeli overnights in April-June, following no change in January-March.

The seasonally adjusted number of Israeli overnights continues to total one million per month.

Seasonally adjusted figures indicate that tourist overnights averaged 525,000 per month in January-June 2005. There were 631,000 tourist overnights in June, a three-year peak.

Hotel occupancy in the first half of the year was 53%.

Published by Globes [online] - www.globes.co.il - on July 24, 2005

source27

August 3rd, 2005, 10:50 PM

BDI: Israel leads Western counties in government corruption

Business Data Israel: Government in Israel is inefficient, with a high rate of political corruption and a low rate of law enforcement.

Hadas Manor 3 Aug 05 16:24

Government in Israel is inefficient, with a high rate of political corruption and a low rate of law enforcement, according to Business Data Israel’s (BDI) government corruption index, based on indices examined by the Bank of Israel.
Israel’s rating is particularly poor in comparison with most developed countries. Israel’s alarmingly bad rating in the political stability index is worse than that of every Western country.

BDI general manager Tehila Tamir-Yanay said, “Israel’s particularly poor ratings for quality of government affect foreign investment in the country.” She added that deterioration in the security situation since late 2000, combined with the economic crisis in 2001-2003, had dragged down the rating for the quality of government in Israel.

The government efficiency index rates the quality of public services, including the professionalism of services personnel, bureaucracy, independence of political pressure, and government’s adherence to stated policies. Israel’s rating on this index was 80.8%, behind developed countries, such as the Netherlands, the UK, Germany, the US, France and Spain. The global average rating among developed countries for this index was 89.7%.

In law enforcement, which rates the credibility of the justice and law enforcement system, Israel’s rating was only 74.4%, behind Spain 85%, France - 88.9%, the US 92.3%, Germany 93.2%, the UK 93.7%, the Netherlands 95.2%, and the global average for developed countries 90.3%.

The government corruption index rates perceptions about the government’s use of authority and public officials exploiting their positions for personal gain. Israel’s rating on this index was 80.8%, far behind the 91.4% average for developed countries. Italy was the only developed country with a worse rating (74.9%) than Israel.

The regulatory framework index rates the degree to which government policy, such as supervision of prices, interferes with free market mechanisms. This index also rates the effectiveness of banking supervision. Israel’s 71.9% rating was lower than every developed country, and far below the 90.6% average for developed countries.

The political stability index rates risks to government stemming from violence and illegal activity, including terrorism. Israel got its worst rating, 15%, in this index, compared with an 83.5% average for developed countries. The Netherlands was highest with 88.3%, ahead of Germany 79.1%, the UK 71.4%, Spain 64.6%, France 63.1%, the US 60.7%, and Italy 56.3%.

Published by Globes [online] - www.globes.co.il - on August 3, 2005

TalB

August 12th, 2005, 01:47 AM

http://www.globes.co.il/serveen/
Netanyahu quitting boosted forex spot trades to $1.76b

Benjamin Netanyahu’s resignation boosted capital market inflation expectations by only 0.1%.

Zeev Klein 11 Aug 05 17:46

The so-called “Netanyahu effect” on the foreign currency market and inflation expectations lasted only one day.

Benjamin Netanyahu’s resignation as minister of finance boosted foreign currency spot trades to over $1.76 billion on that date. Trading volume returned to normal the next day, at $890 million. Spot trades by foreign investors totaled $464 million on the day of Netanyahu’s resignation, while Israeli banks accounted for $261 million.

On the following date, spot trades by foreign investors fell to $170 million, while Israeli banks accounted for $172 million.

Spot trades on the day of Netanyahu’s resignation were not a record; Ariel Sharon bears responsibility for the all-time record. Spot trades totaled $4 billion on the day he was elected prime minister in early 2001. Spot trades by foreign financial institutions and investors exceeded $2 billion, over half the volume.

The second-highest volume of spot trades occurred on the day when two IDF soldiers were lynched in Ramallah, at the start of the intifada. Foreign currency spot trades reached $3 billion, $1 billion of which was placed by foreign financial institutions.

Netanyahu’s resignation boosted capital market inflation expectations by only 0.1%. Inflation expectations for the next 12 months rose from 1.9% to 2%, and from 2% to 2.1% for the following 12-month period. Long-term inflation expectations, for three years and later, actually fell from 2.8% to 2.7%. Regardless, inflation expectations are still within the government’s 1-3% price stability target range.

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 01:49 AM

http://www.globes.co.il/serveen/
Discount Investment posts NIS 197m Q2 profit

Most of the profit was due to Elron Electronic Industries’ sale of its Partner Communications holding.

Roy Meltzer 11 Aug 05 18:19

In the wake of the huge Cellcom Israel Ltd. takeover deal, IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Discount Investment Corporation Ltd. (TASE:DISI) today published its financial report for the second quarter of 2005. Discount Investment posted a net profit of NIS 197 million for the second quarter, 147% more than for the corresponding quarter of 2004. Most of the profit came from the sale of Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) shares by Discount Investment subsidiary Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE:ELRN), which generated a NIS 135 million capital gain for Discount Investment.

In addition to Elron, Cellcom was another important source of revenue for Discount Investment, and will undoubtedly become even more important following the complete takeover of the company yesterday. Cellcom contributed NIS 32 million to Discount Investment’s second quarter net profit. Property and Building Corp. Ltd. (TASE:PTBL) contributed NIS 14 million, and Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF) NIS 6 million.

Discount Investment posted a net profit of NIS 252 million for the first half of 2005, mostly thanks to Elron’s sale of its stake in Partner. Cellcom contributed NIS 68 million, and Property and Building NIS 52 million. Discount Investment posted a net profit of NIS 350 million for the first half of 2004, thanks to the sale of its stake in Ormat Industries Ltd. (TASE:ORMT) for NIS 180 million.

Discount Investment’s industrial holdings did not contribute much to the company’s profit for the first half of this year NIS 7 million, 36% less than for the first half of last year. The drop was because American Israeli Paper Mills Ltd. (AMEX: AIP; TASE:AIP) wrote off Clubmarket Marketing Chains Ltd.’s debt, and poor market climate and low profitability on the part of Ham-Let (Israel-Canada) Ltd. (TASE:HAML), which in recent quarters has been paying the price of its rapid growth in international markets.

Discount Investment posted NIS 2.08 billion in revenue for the second quarter, 18% higher than for the corresponding quarter of 2004, and NIS 3.9 billion for the first half, 3% more than for the first half of last year.

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 01:50 AM

http://www.globes.co.il/serveen/
Blue Square net profit for Q2 2005 up 16.9%

Blue Square Israel today declared a dividend in the amount of approximately NIS 50 million.

Globes correspondent 11 Aug 05 15:39

Blue Square Israel (NYSE: BSI; TASE: BSI) today announced results for the second quarter and six month period ended June 30, 2005.

The company's net profit for the second quarter of 2005 increased by 16.9% to NIS 23.7 million, or NIS 0.61 per share, compared with a net profit NIS 20.2 million, or NIS 0.52 per share, for the comparable period of 2004. BSI stated that the increase reflected the quarter's higher operating income and lower other expenses compared to the second quarter of 2004.

Revenue for the second quarter of 2005 was NIS 1.42 billion, an increase of 7.9% compared with NIS 1.318 billion in the second quarter of 2004.

The growth in sales was attributed primarily from the timing of the Passover holidays, together with the company's brand consolidation program, which was carried out and completed during 2004, and an increase in the number of stores during the prior 12 months.

Gross profit for the second quarter of 2005 increased by 3.8% to NIS 362.8 million, compared with NIS 349.5 million in the second quarter of 2004, reflecting the quarter's higher revenues.

Gross margin for the second quarter of 2005 was 25.5% compared with 26.5% in the second quarter of 2004. The company stated that this reflected two factors: an increase in discounts associated with the redemption of gift certificates during the holiday season; and an increase in the proportion of discount sales in the overall sales mixture due to the consolidation program.

Selling, general, and administrative expenses for the second quarter of 2005 increased by 3.6% to NIS 304.1 million, compared with NIS 293.5 million in the second quarter of 2004. BSI stated that this reflected expenses related to the opening of new stores, noting that this was offset somewhat by the company's ongoing efficiency measures. As a percentage of revenues, expenses for the quarter declined to 21.4% compared to 22.3% in the second quarter of 2004.

Operating income for the second quarter of 2005 increased by 4.7% to NIS 58.7 million (U.S. $12.8 million) compared with NIS 56.1 million in the second quarter of 2004.

Operating margin for the quarter declined slightly to 4.1% from 4.3% in the second quarter of 2004.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) (excluding one-time expenses) for the second quarter of 2005 was NIS 91 million, an increase of 2.2% compared with NIS 89 million in the second quarter of 2004. EBITDA margin for the period was 6.4%, compared with 6.7% for the second quarter of 2004.

The company's financial expenses for the period were NIS 11.3 million in the second quarter of 2005, flat with the comparable period of 2004.

Other expenses for the second quarter of 2005 were NIS 1 million, a decrease of 49.5% from NIS 2 million in the second quarter of 2004. Other expenses for the period related primarily to the closing of stores and reserves taken, countered by a capital gain related to the sale of one of the company's small subsidiaries.

Same store sales for the second quarter increased by 4.9%, reflecting the positive effect of the Passover buying season. Same store sales of the second quarter of 2004 decreased by 7.3% compared to the comparable period of the previous year.

During the second quarter of 2005, the company closed one store, reducing the chain by a net total of 325 square meters. In July, the company opened two stores, adding a net total of 3,700 square meters to the chain.

The company's net profit for the first half of 2005 increased by 34.3% to NIS 45.5 million, or NIS 1.17 per share, compared to a net profit of NIS 33.9 million, or NIS 0.88 per share, for the first half of 2004.

Revenue for the first half of 2005 increased by 5.1% to NIS 2.73 billion compared with NIS 2.6 billion in the first half of 2004.

The growth in sales was attributed mainly from store openings during the past 12 months, together with a 1.6% increase in same store sales, the outcome of the company's brand consolidation program, which was carried out and completed during 2004.

Gross profit for the first half of 2005 increased by 3.4% to NIS 712.5 million, compared with NIS 688.8 million in the first half of 2004 reflecting the higher level of sales.

Gross margin for the period decreased to 26.0% compared with 26.5% in the first six months of 2004. The company stated that this reflected two factors: an increase in discounts associated with the redemption of gift certificates during the holiday season; and an increase in the proportion of discount sales in the overall sales mixture due to the consolidation program.

Selling, general, and administrative expenses for the first half of 2005 increased by 3.1% to NIS 601.1 million, compared with NIS 582.7 million in the first half of 2004. As a percentage of revenues, SG&A expenses decreased to 22.0% compared to 22.4% in the parallel period of 2004, reflecting the efficiency efforts.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) (excluding one-time charges) for the first half of 2005 was NIS 177 million, an increase of 0.6%, compared with NIS 176 million in the first half of 2004. The EBITDA margin for the period was 6.5%, compared to 6.8% for the first six months of 2004.

Operating income for the first half of 2005 increased by 5.0% to NIS 111.5 million, compared with NIS 106.1 million in the first six months of 2004. This reflects the increased revenues for the period, mitigated somewhat by the lower gross margin. Operating margin for the first half was 4.1%, flat with the first half of 2004.

Financial expenses for the first half of 2005 declined by 17.4% to NIS 22.7 million, compared with NIS 27.5 million in the first half of 2004.

The decline in financial expenses derived from a reduction in the nominal interest rate together with a decline in the foreign currency rate that impacted the valuation of a loan linked to a foreign currency.

Other expenses for the first half of 2005 were NIS 1 million, compared with NIS 6.2 million in the first half of 2004. Other expenses for the period reflected capital losses related to store closures and reserves, and were countered by a capital gain related to the sale of one of the company's small subsidiaries. BSI noted that other expenses for 2004 reflected impairment of assets together with expenses related to store closures.

During the first half of 2005, the company opened three stores and closed two, adding a net total of 2,200 square meters to the chain.

BSI today declared a dividend in the amount of approximately NIS 50 million. Subsidiary, Blue Square Chain Investments & Properties Ltd (BSIP), received approval from the Israeli court to distribute a dividend totaling NIS 80 million from capital gains originally classified as a capital reserve.

Blue Square president and CEO Gil Unger said, "We are pleased to report another quarter of solid top-line and bottom-line growth, validating a strategy of aggressive brand management, economic pricing policies, and an uncompromising focus on efficiency. Although we have chosen not to participate in suicidal price wars that have characterized our sector, we have achieved growth in same store sales for the second quarter in a row and steadily growing sales, without sacrificing our operating margins, which remain above our target of 4%."

"The collapse of Clubmarket, one of our biggest competitors, is a watershed event with consequences that will reach deeply throughout the industry's value chain. In the meantime, we continue operating the business as usual, with the goal, as always, of building market share and profits with an eye to the long-term sustainability of our business."

Earlier this month, the board of Blue Square Chain Investments & Properties authorized its management to prepare proposals for Clubmarket, and authorized a team to evaluate the strategic and economic merit of these proposals.

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

TalB

August 12th, 2005, 01:52 AM

http://www.globes.co.il/serveen/
Ormat Technologies posts $4.1m Q2 net profit on $55.7m revenue

CEO Dita Bronicki: We maintain 2005 revenue guidance at $170 million from our electricity segment; $18 million from subsidiaries and $53-$60 million from products.

Globes correspondent 11 Aug 05 19:11

Ormat Technologies, Inc. (NYSE:ORA), a subsidiary of Ormat Industries (TASE: ORMT), today announced financial results for the second quarter of 2005.

Net profit for the quarter ended June 30, 2005 was $4.1 million or $0.13 per share, compared with $3.5 million or $0.15 per share during the same period in 2004.

There were 31.6 million weighted average shares outstanding during the second quarter of 2005 and 23.2 million during the same period in 2004.

For the quarter, total revenue was $55.7 million as compared with $52.1 million for the same period in 2004, an increase of 7.0%.

Electricity segment revenues for the quarter were $42.1 million, an increase of 14.6% as compared to $36.8 million during the same period in 2004. This increase was attributed primarily to revenue from the Steamboat Hills project and the Puna project, which were acquired during the second quarter of 2004.

Products segment revenue for the quarter was $13.6 million compared to $15.3 million during the same period in 2004, a decrease of 11.2%. The company stated that the decrease reflected the usual quarterly fluctuations in revenue generated from the products segment.

Gross margin for the second quarter of 2005 was 30.2% compared with 36.6% during the same period in 2004.

Operating income for the quarter ended June 30, 2005 was $11.5 million as compared with $13.2 million for the same period in 2004, a decrease of 13.2%.

The lower gross margins were attributed to a portion of the new Puna project refinancing lease payments reflected in the cost of revenues, and higher than average operating costs at the Ormesa project.

Adjusted EBITDA for the quarter ended June 30, 2005 was $25 million as compared with $22.2 million for the same period in 2004. Adjusted EBITDA included operating income, depreciation and amortization totaling $4.9 million, for the quarters ended June 30, 2005 and $3.8 million for the quarter ended June 30, 2004, related to the company's unconsolidated investment interest of 50% in the Mammoth project in California and 80% in the Leyte project in the Philippines.

Net income for the six month period was $8 million or $0.25 per common share, compared with $6.3 million, or $0.27 per share for the same period of 2004.

There were 31.6 million weighted average shares outstanding during the first half of 2005 and 23.2 million during the same period in 2004.

Total revenue was $109.6 million, a 10% increase over revenue of $99.7 million for the same period in 2004.

For the six months ended June 30, 2005, the company's gross margin was 33.2% compared to 36.1% during the same period in 2004.

Operating income for the six months ended June 30, 2005 was $24.9 million as compared with $25.6 million for the same period in 2004, a decrease of 2.9%.

Adjusted EBITDA for six months ended June 30, 2005 was $51.4 million as compared with $46.7 million for the same period in 2004. Adjusted EBITDA included operating income, depreciation and amortization totaling $8.9 million for the six months ended June 30, 2005, and $6.9 million for the six months ended June 30, 2004, related to the Mammoth project and the Leyte project.

As of the end of the second quarter of 2005, the Ormat Technologies had cash, cash equivalents and marketable securities of $105 million compared with $125.9 million for the corresponding period in 2004. The company stated that the decrease in its cash position was principally due to capital expenditures, and the repayment of long-term debt, offset by an increase of $71 million as a result of the refinancing of the Puna project in May 2005.

The board of directors approved the payment of a quarterly cash dividend of $0.03 per common share, in accordance with Ormat's dividend policy, which targets an annual payout ratio of at least 20% of the company's net income, subject to board approval.

The company stated that it expects to pay the same dividend, of $0.03 per common share, in the third quarter as well.

Ormat president and CEO Dita Bronicki said, "The second quarter was consistent with our plans. In our electricity segment, we continued to make substantial investments toward the construction of new plants and enhancement of certain existing plants, notably Puna, Heber and Galena, with the expectation that these plants and enhancements will be completed by the end of the fourth quarter. These three projects when completed will add 32 megawatts of net generating capacity, and will increase our total generating capacity by more than 10 percent. Additionally, in the beginning of the third quarter we commenced the construction activities of the Amatitlan and Desert Peak 2 projects."

"Ormat strengthened its position in the recovered energy generation business in the second quarter by entering a new supply and engineering, procurement and construction contract with a western Canadian pipeline. We believe this contract further demonstrates the considerable growth potential in recovered energy, and we are confident that we have the appropriate assets, technology and skill sets to pursue additional opportunities in this market as they arise."

Bronicki said, "We remain on track to grow and remain in a solid position with regard to our product backlog. As such, we maintain our 2005 revenue guidance at approximately $170 million in our electricity segment. We also continue to expect an additional $18 million of revenue from our share of electricity revenue generated by subsidiaries and accounted for under the equity method. With regard to our products segment, we currently expect to deliver towards the higher end of our guidance range for 2005 of between $53 million and $60 million.

Bronicki noted that the US Energy Policy Act of 2005, which became law on August 8, 2005, extends a tax subsidy in the form of a 'production tax credit' of 1.9 cents per kWh for companies that generate electricity from geothermal fluids. "It may be claimed on the electricity output of new geothermal power plants put into service during a 'window period' that runs from October 23, 2004 through December 31, 2007. This production tax credit can provide significant benefits to projects that we may bring into service during such window period and in that regard we expect that it will benefit our growth potential for several years."

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

TalB

August 12th, 2005, 01:54 AM

http://www.globes.co.il/serveen/
Sapiens reports improved Q2 results

CEO Itzick Sharir: Revenue increased from the insurance industry, our strategic focus.

Globes correspondent 11 Aug 05 13:55

Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) announced today its unaudited financial results for the second quarter ended June 30, 2005.

Net loss for the second quarter was reduced to $1.7 million, compared with a net loss of $2.6 million in the first quarter of 2005.

For the quarter, the company recorded revenue of $9.6 million compared with revenue of $10.1 million in the first quarter of 2005, a decrease of 5.0%.

Gross profit increased to $3.8 million from $3.5 million, with gross profit margins increasing to 39.9% from 34.6% in the previous quarter.

The company reduced its operating loss to$1.3 million from $2.3 million in the first quarter, an improvement of 43.5%.

Sapiens president and CEO Itzick Sharir said, "Though we report a decline in our overall revenues, it relates primarily to our traditional line of business, where long term projects have been successfully implemented and, as a result, we face reduced revenue streams. On the other hand, we are glad to announce that there was an increase in revenue this quarter from our customers in the insurance industry, our strategic focus.

"We are also glad to report that we have increased our gross profit and gross profit margin and have significantly reduced both our operating and net losses. Most importantly, we were able to achieve positive operational cash-flow for the quarter.

"We continue to make progress in penetrating the global insurance marketplace and hope we will soon announce several important wins."

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

TalB

August 12th, 2005, 01:55 AM

http://www.globes.co.il/serveen/
Camtek Q2 results: $1.5m net profit on $16.7m revenue

CEO Rafi Amit: Semiconductor industry sales doubled. Net cash reserves are $7.6 million.

Globes correspondent 11 Aug 05 15:53

Camtek (Nasdaq: CAMT) today announced results for the second quarter ended June 30, 2005.

The company reported second quarter net profit of $1.5 million, or $0.05 per share, compared to a net profit of $3.2 million, or $0.12 per share, in the second quarter of last year, and a loss of $2.4 million in the first quarter of 2005.

Revenue for the second quarter of 2005 was $16.7 million, a slight decrease of 3.7% from the revenue of $17.4 million reported in the second quarter of 2004, and sequentially up 83% from $9.1 million reported in the first quarter of 2005.

Gross profit margin for the second quarter of 2005 was 50%, compared to 52% for the second quarter of 2004, and 41% for the first quarter of 2005.

Camtek CEO Rafi Amit said, "Because of our improved results, we recorded a net positive cash flow from operation of $3.4 million, taking our net cash reserves to $7.6 million. In addition, we announced earlier this week the investment of $5 million in Camtek by FIMI Opportunity Fund, a prominent Israeli investment fund, through a five year convertible loan, which will further increase our cash reserves providing us with ample working capital for executing our growth plans."

"Our revenues are back at the run rate which we saw during 2004, which was a very good year for us. Returning to this revenue level has improved our profitability, bringing our gross margins back to around the 50% level, within our normal range.

"A major factor in this profitability increase was the impressively growing contribution of our sales to the semiconductor manufacturing and packaging industry. We achieved this margin despite pricing pressure and fierce competition, in the PCB industry. In fact, revenues from the Falcon, our family of wafer inspection systems, nearly doubled from last quarter, amounting to $3.8 million, or 23% of our income in the quarter.

"We have also expanded our customer base with several leading international integrated device manufacturers, who evaluated the Falcon against competing products and selected it predominantly based on its performance."

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 01:58 AM

http://www.globes.co.il/serveen/
Gov’t debt up 3.5% in 2004 to NIS 539b

The government debt was 102% of GDP in 2004, down from 104% in 2003.

Zeev Klein 11 Aug 05 14:32

The government’s debt rose by 3.5% in 2004 to NIS 539 billion, states the Ministry of Finance Accountant General Government Debt Management Unit. Domestic debt rose by 3.5% to NIS 403 billion, and external debt rose by 3.8% to NIS 136 billion.

The ministry states that the total marketable domestic debt is NIS 247.1 billion, of which NIS 136.2 billion comprises unlinked shekel instruments, and NIS 101.6 billion CPI-linked shekel instruments. The total unmarketable domestic debt is NIS 156.2 billion, of which NIS 115 billion is for pension funds, NIS 30.1 billion for insurance companies, and NIS 11.1 billion for other entities.

The structure of the government’s external debt of NIS 136 billion comprises NIS 63.8 billion in guarantees, NIS 55.2 billion in unmarketable instruments, and NIS 16.9 billion in independent issues.

The government debt was 102% of GDP in 2004, down from 104% in 2003. Top Ministry of Finance officials have set targets to reduce the debt as a percentage of GDP to below 100% this year, and 90% by 2010. “It is clear that further economic growth in Israel, together with responsible fiscal policy, will ensure a downward trend in the debt to GDP ratio, and will strengthen Israel’s financial stability, a process that will support an upgrade of Israel’s credit rating on international markets.”

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 01:59 AM

http://www.globes.co.il/serveen/
Fewer men absent from work in Q1

Absenteeism among men has been rising lately, due to increased IDF and Border Guard call-ups of reservists for the disengagement plan.

Zeev Klein 11 Aug 05 16:13

The number of men absent from work declined by 1.6% during the first quarter of 2005. Central Bureau of Statistics data indicate that 66,000 men were absent from work during the first quarter, 1,100 fewer than during the fourth quarter of 2004. The number of men absent from work fell by 6.4%, or 4,500 men, from the peak of 70,500 absentees during the second quarter of 2002.

Men accounted for 38.9% of total absentees during the first quarter of 2005, compared with a peak 43.6% during the second quarter of 2002, caused by IDF call-up of reservists for Operation Defensive Shield.

Absenteeism among men has been rising lately, due to increased IDF and Border Guard call-ups of reservists for the disengagement plan. Excluding the effect of these call-ups, the decline in absenteeism among men that began in December 2002 is continuing.

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 02:02 AM

http://www.globes.co.il/serveen/
Final transfer of Bezeq control in 2 weeks

Haim Saban, Sir Ronald Cohen, and Moshe Arkin will take personal, if limited, responsibility for Bezeq.

Guy Hadass 11 Aug 05 16:28

The Ministry of Communications and Government Companies Authority reached agreement last night for a control permit in Bezeq (TASE:BZEQ) that the Apax-Saban-Arkin consortium has to obtain from the Ministries of Communications and Finance. Ministry of Communications director general Avi Balashnikov and Government Companies Authority director Eyal Gabbai are negotiating with the consortium to resolve the issue of the permit in advance of the scheduled signing next week.

Under the pending timetable, the final transfer of control in Bezeq to the Apax-Saban-Arkin consortium and payment to the state will take place within two weeks from today. The transfer of control in Bezeq will take place two to three weeks before Discount Investment Corporation Ltd. (TASE:DISI) takes over full control of Cellcom Israel Ltd. from the Safra Group and BellSouth (NYSE:BLS).

Signing of the control permit was delayed because the Ministry of Communications demanded that the Apax-Saban-Arkin consortium managers Saban Capital Group Inc. chairman Haim Saban, Apax Partners chairman Sir Ronald Cohen, and Moshe (Mori) Arkin personally sign the commitments undertaken under the sale. The ministry demanded that Saban, Cohen and Arkin take personal responsibility for the agreement, including any possible criminal liabilities.

Although Saban, Cohen and Arkin will personally responsible for Bezeq, that responsibility will be extremely limited, and will not include all of the clauses in the original control permit.

Published by Globes [online], Israel business news - www.globes.co.il - on August 11, 2005

TalB

August 12th, 2005, 02:04 AM

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Cellcom sale final

Safra group: We continue to explore investment opportunities in Israel, especially Bank Leumi.

Globes correspondent 11 Aug 05 10:46

The Safra Group last night confirmed that it has entered into an agreement to sell its 35% ownership stake in Cellcom to the Discount Investment group.

The purchase is expected to be completed by the end of September.

The Safra group stated, "The Safra relationship with Cellcom has been a productive one, and we believe this transaction will be successful for all parties. We continue to explore investment opportunities in Israel, especially the possible acquisition of Bank Leumi."

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

TalB

August 12th, 2005, 02:05 AM

http://www.globes.co.il/serveen/
Cellcom exit profits: Safra - $750m, BellSouth - $625m

Discount Investment’s purchase of the holdings of the two entities is on the verge of being signed.

Guy Hadass 10 Aug 05 18:00

BellSouth (NYSE: BLS) and the Safra group each invested only $50 million of their own money in Israeli wireless operator Cellcom, according to figures provided to "Globes" by sources close to the deal for the sale of the two entities’ holdings in Cellcom. These figures highlight the amazing exit by the two main partners in Cellcom emerging from the rapidly approaching conclusion of the deal for Discount Investment Corporation’s (TASE: DISI) purchase of the two holdings.

BellSouth and Discount Investment, controlled by Nochi Dankner, have already signed a deal, but the Safra group has first refusal rights to BellSouth’s Cellcom shares, as well as the right to sell its stake in Cellcom to Discount Investment. The deal would give Discount Investment 95% of Cellcom.

BellSouth and the Safra group each invested $1 million eleven years ago in the initial stage of the tender for Cellcom. After winning the tender, all the partners in Cellcom invested $140 million in the company’s infrastructure. Two years later, they made back their investment in the form of repayment of owners’ loans.

Since that time, the owners have not drawn a dividend from Cellcom, despite Cellcom’s ample cash reserves and equity. The contract for the sale of BellSouth’s 34.75% stake in Cellcom stipulates, however, that BellSouth will received $625 million for its shares, not including the return of its owners’ loan. This sum in effect constitutes BellSouth’s net profit on its investment in Cellcom. Furthermore, under the agreement between BellSouth and Discount Investment, if control of Cellcom is sold at a higher price within two years after the deal is completed, BellSouth will be entitled to further a payment from Discount Investment, amounting to half the difference between the proceeds in this sale and BellSouth’s proceeds in the current deal. This clause gives BellSouth another potential upside if Cellcom is sold again at a profit.

The Safra group is also expected to post an impressive profit of $750 million on its investment in Cellcom, with an additional premium on the price obtained by BellSouth. It is believed that the Safra family will receive a premium of $100-200 million on the price given BellSouth, which makes the Safra family’s investment in Cellcom even more impressive. The Safra family may yet succeed in further improving the terms of the deal, which has not yet been concluded. Nevertheless, BellSouth and the Safra group’s profit could have been even better, had they floated the company in 1999-2000, when the high-tech boom was at its peak, and Cellcom was only a few steps away from Nasdaq. Such an issue at a value of billions of dollars would have made the exit both bigger and earlier.

Published by Globes [online] - www.globes.co.il - on August 10, 2005

TalB

August 12th, 2005, 02:06 AM

http://www.globes.co.il/serveen/
BrainsGate raises $7m

Elron Electronic Industries now holds 20% of BrainsGate, which develops implantable medical devices.

Globes correspondent 11 Aug 05 13:01

Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN) today announced that it has completed a new investment of approximately $7 million in BrainsGate Ltd.

Israeli start-up BrainsGate is developing implantable medical devices to treat various central nervous system (CNS) related diseases. The company's core technology utilizes a miniature implant which increases the brain's blood vessel diameter and enables a controlled opening of the blood brain barrier.

Following the investment, Elron will hold 20% of BrainsGate, on a fully diluted basis. Existing investors in BrainsGate include Boston Scientific Limited, Pitango Venture Capital Fund, FBR Infinity II Ventures (a related venture capital fund) and MB Venture Capital Fund.

Elron president and CEO Doron Birger, said: "Our investment in BrainsGate provides us with a promising opportunity to participate in the development of its innovative technology to enable the use of a broad variety of medications and treatments for brain related diseases".

Through affiliates, Elron is engaged with a group of high technology operating companies in the fields of medical devices , telecom, semiconductors and advanced materials.

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

TalB

August 16th, 2005, 03:29 AM

http://www.globes.co.il/serveen/
CPI up 1.1% in July

The rise is much greater than had been expected. Inflation in the first 7 months of 2005 was 1.6%.

Zeev Klein 15 Aug 05 19:22

The Consumer Price Index (CPI) jumped 1.1% in July, far more than expected, and more than double the rise in the first half of the year. Inflation totaled 1.6% in January-July 2005. The annualized inflation rate is now over 2%, according to figures published today by the Central Bureau of Statistics.

At the current rate, inflation will reach at least 2.5% in 2005, in the upper part of the government’s 1-3% inflation target. Despite the exceptional rise in the CPI in July, the Bank of Israel is not expected to alter the interest rate at the end of the month. The current rate is 3.5%.

The July increase in the CPI was the steepest since July 2002, and the steepest in July since 1994.

The housing component of the CPI rose 2.9% in July, transportation and communications rose 2.5%, and culture and entertainment 1%. These items contributed a total of 1.4% to the rise in the general index. On the other hand, clothing and footwear prices were down 6.12%, and fruit and vegetable prices 1.7%. These two items subtracted 0.2% from the general index.

Excluding fruits and vegetables, the CPI rose by an even steeper 1.3% in July, while basic inflation (CPI excluding fruits, vegetables, and housing) was 0.9%. Excluding fruits and vegetables, the CPI rose 2.3% in January-July, while basic inflation was up 1.7%.

The industrial wholesale price index was up 0.8% to 179.5 points in July, and has risen by a cumulative 3.4% in July, triple the rise in the general index. The residential construction inputs index jumped 2.8% to 108.8 points in July, and rose by a cumulative 5% in January-July, almost five times the rise in the general index this period.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:30 AM

http://www.globes.co.il/serveen/
Kitan, Offis in merger talks

Clal Industries and Fishman Holdings want to improve competitiveness against Chinese textile imports.

Hadas Manor 15 Aug 05 16:04

Sources inform ''Globes'' that Clal Industries and Investments Ltd. (TASE:CII) is negotiating a merger of subsidiary Kitan Textile Industries Ltd. with Offis Textile Ltd. (TASE:OFIS), controlled by Fishman Holdings. The proposed merger would be through a share-swap, not a cash transaction.

If a deal is signed, the parties intend for Offis Textile to lead the merged company. Clal Industries, which controls Kitan, will receive Offis Textile shares, reducing its involvement in the management of low-technology industries, a sector that Clal Industries has been trying to quit for a long time.

In the next stage of the merger, Offis Textile’s factor in Azor will be consolidated with Kitan’s factory in Dimona.

Top sources involved in the deal confirmed the report, but the managements of Clal Industries and Offis Textile denied it.

In addition to lowering costs, a key factor favoring a merger is the consolidation of Israel’s textiles industry in the face of the threat of Chinese imports. Israel’s textile industry expressed concern about rising Chinese textile imports last year, when they rose by 26% to NIS 1.4 billion.

Kitan’s sales rose by approximately 20% last year, and are continuing to grow this year. Kitan broke even on NIS 308 million in sales in 2004, compared with a loss of NIS 20 million on NIS 250 million in sales in 2003. Kitan chairman Ron Gutman is the former chairman of Unilever Israel (Israel Edible Products (Tami)-Bestfoods).

Offis Textile, in which Fishman Holdings owns an 85% stake, posted a net profit of NIS 15 million on NIS 210 million in revenue in 2004. It posted a net profit of NIS 3.5 million on NIS 55 million in revenue for the first quarter of 2005. The company prints, dyes, and finishes woven fabrics and Jacquards for home textiles and upholstery. It has 220 employees.

Eliezer Fishman is the controlling shareholder in “Globes”.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:33 AM

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[u]Mon: TA 25 rises above 700

[b]In addition to disengagement, another factor in today’s trading was financial reports, which continued mostly on the positive side. Good results sent Frutarom, Rapac Electronics, and LIMS soaring.

Roy Meltzer 15 Aug 05 18:57

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 index was up 2.18% at 701.67 points and the Tel Aviv 100 index rose 1.69% to 708.98 points, but the Tel-Tech 15 index fell 0.08% to 397.39 points. Turnover totaled NIS 877 million.

Dankner’s dilemma

One feature of the TASE in recent days is IDB Holding chairman Nochi Dankner’s dilemma, created by conversion of Discount Investment’s bonds, following the latter’s acquisition of Cellcom. After the minor storm in the market at the end of last week, Dankner eventually chose to convert the bonds into Discount Investment shares, thereby disappointing some of the company’s shareholders. They may have expected him to seek legal loopholes that would have enabled him to refrain from converting the bonds.

Incidentally, IDB series 5 bonds jumped 4.1% today on rather lively trading, and are now traded at approximately their value according to the conversion option. Discount Investment, on the other hand, finished the day down 3.1%, following the expecting dilution of investors’ holdings.

Financial sector heats up

In addition to disengagement and Discount Investment, another factor in today’s trading was financial reports, which continued mostly on the positive side. Most leading shares rose fairly steeply, while small cap shares were largely left behind.

United Mizrahi Bank stood out by climbing 4.4%, after reporting a NIS 150 million net profit for the second quarter, reflecting an annualized 15% return on equity. Incidentally, investors drew a connection between the positive report and the housecleaning (a large provision for doubtful debts) initiated by CEO Eliezer (Eli) Yones when he took up his position several quarters ago. Other than Mizrahi Bank, the other bank shares rose more moderately: Bank Hapoalim 1.6%, and Bank Leumi 1.3%. The insurance shares took center stage, with Harel Insurance Investments gaining 4.2%, Clal Insurance Enterprises Holdings Ltd. 4.1%, and Migdal Insurance 3.4%.

Other stellar performers today included Israel Chemicals, which leaped 4.3%, and boosted Israel Corporation by 3.7%. Africa-Israel Investments rose 3%, and Strauss-Elite added 4.1%. MA (Makhteshim-Agan) Industries was an exception, dipping 1.8%. Frutarom Industries did exceptionally well, picking up 5.2% on excellent results, while Ormat Industries lost 2.9%, owing to the mixed sentiments that its results generated among investors.

Other financial reports today included Rapac Electronics, which catapulted 4.9% on a fine results. As expected, Mivtach Shamir reported a large capital gain on the sale of shares in Lipman Electronic Engineering, but the share was unchanged. LIMS published a strong report, as expected, and also predicted double-digit growth in its presentation to investors today. The share responded with a whopping 7.3% gain.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:35 AM

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Shamir Optical posts $2.1m Q2 net profit on $20.2m revenue

CEO Giora Ben-Zeev: We now expect annual revenue of $82-84 million.

Globes correspondent 15 Aug 05 15:03

Ophthalmic lens products provider Shamir Optical Industry Ltd (NASDAQ:SHMR) today announced unaudited financial results for the second quarter ended June 30, 2005.

Net profit for the second quarter of 2005 was $2.1 million or $0.13 per diluted share compared to a net profit of $2.1 million for the comparable period in 2004.

For the second quarter of 2005, revenue was $20.2 million, an increase of 11.2% compared to revenue of $18.2 million for the second quarter of 2004.

Gross profit for the quarter was $11.2 million, or 55.2% of revenues, an increase of 10.9% from gross profit of $10.1 million, or 55.4% of revenues in the same period last year.

Operating income was $3.1 million, or 15.5% of revenues for the second quarter of 2005, representing a decrease of 14.9% from operating income of $3.7 million, or 20.3% of revenues in the same period last year.

The company noted that excluding the effects of non-cash stock-based compensation expenses, second quarter 2005 operating income was $3.4 million, or 16.9% of revenues. This was a decrease of 7.6% from operating income of $3.7 million, in the same period last year.

The company further noted that excluding the effects of non-cash stock-based compensation expenses, net income for the quarter was $2.3 million, compared to pro forma net income of $2.1 million for the comparable period in 2004.

As of the end of the second quarter, Shamir Optical had cash and cash equivalents of approxiametly $44 million.

Shamir Optical CEO Giora Ben-Zeev said, "During the second quarter, Shamir Optical made significant progress but also experienced certain challenges. We continued to expand our sales efforts in the US through Shamir Insight (SII), our US distribution center for lenses, in which we recently increased our holdings to 90% (100% of the voting rights). We are pleased with SII's continued growth. In Europe, our business remained strong and, as part of our global growth strategy, we established new operations called Altra-Turkey."

"While our results for the quarter improved year-over-year, during the quarter Altra UK (previously Cambridge) experienced certain integration issues which caused lower than expected sales penetration and operational loses. We have addressed these issues, including the hiring of new sales people. In the US, some of our customers, third-party manufacturers, purchased fewer Shamir products than we expected. We believe this development is a short-term situation."

Ben-Zeev said he expected Altra-Turkey would contribute positively to Shamir's results in the second half of 2005, adding, "While in the past we have only provided an expected range of growth for the full year 2005, given the developments this quarter, we now expect that our revenues for the year will be approximately $82-84 million and that the non-GAAP net income will be approximately $9-9.5 million."

Published by Globes [online], Israel business news - www.globes.co.il - on Monday, August 15, 2005

TalB

August 16th, 2005, 03:37 AM

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Frutarom Q2 net profit up 86.9% to $8.4m

CEO Ori Yehudai: Our goal is future strategic acquisitions; during the second quarter we raised $75.8 million in London.

Globes correspondent 15 Aug 05 15:20

Frutarom Industries (TASE: FRUT; LSE:FRUT) today presented its second quarter 2005 results.

Net profit for the second quarter grew by 86.9%, reaching $8.4 million compared with $4.5 million during the same quarter last year.

Net profit for the first half of 2005 rose sharply by 88.6% to reach $15.2 million compared with $8.1 million in the first half of 2004.

Frutarom's sales in the second quarter of 2005 totaled $67.1 million, a 50.5% increase compared with the same quarter of 2004.

Sales during the first half of the year totaled $131.8 million, a 49.0% increase compared with the first half of last year.

Gross profit for the second quarter of 2005 rose 52.6% to reach $26.9 million compared with $17.6 million in the same quarter last year.

During the first half of the year gross profit grew 49.9% to reach $51.9 million compared with $34.6 million during the first half of 2004.

Gross margin during the second quarter reached 40.1% compared with 39.6% during the same quarter in 2004 and during the first half reached 39.4% compared with 39.1% during the same half of 2004.

Operating profit grew sharply by 91.1% during the second quarter of 2005 to $11.6 million compared with the same period in 2004, while during the first half of 2005 operating profit continued the growth seen in previous years and reached $20.8 million, up 86.1% compared with the first half of 2004.

In parallel with the growth in operating profit, operating margin continued to rise, reaching 17.2% in the second quarter of 2005 compared with 13.6% for the same quarter in 2004, and to 15.8% in the first half of 2005 compared with 12.7% in the same period in 2004.

Net margin reached 12.5% in the second quarter of 2005 to compared with 10.1% during the same quarter in 2004.

Net margin also grew and reached 11.5% compared with 9.1% during the first half of last year.

Earnings per share continued to grow during the second quarter of the year and reached $0.15 compared with US$0.10 in the second quarter of 2004.

Earnings per share for the first half of the year totaled $0.28 per share compared with $0.17 during the first half of last year.

During the second quarter of 2005, Frutarom achieved cash flow from operating activities of $8.2 million, compared with $4.7 million in the second quarter of 2004.

During the first half of 2005, Frutarom achieved cash flow from operating activities of $13.6 million, compared with $8.4 million in the first half of 2004.

Frutarom president and CEO Ori Yehudai said, "The good results are due to the continuing organic growth in our core activities; the successful integration of Flachsmann's activity, which was acquired by Frutarom in 2003; and the successful completion of the first phase of the integration of the Food Systems activity, acquired from IFF during the second half of 2004. Frutarom is now focusing on identifying and leveraging the synergy and cross-selling opportunities between the new customers and products added by the acquisition, and Frutarom's existing customers and products. We estimate that the full impact of the cross selling will materialize over the next two years."

"To achieve our goal of executing strategic acquisitions in the future, during the first quarter of 2005 we completed a $75.8 million (net) offering and registration of shares on the London Stock Exchange official list. The proceeds from the offering together with the successful completion of the integration of the activities acquired by Frutarom form an even more solid base than previously for realizing our rapid growth strategy and ensuring future growth. Our management will continue to invest substantial efforts and resources in identifying and executing potential acquisitions, and in continuing to achieve rapid growth targets in our core activities."

Published by Globes [online], Israel business news - www.globes.co.il - on Monday, August 15, 2005

TalB

August 16th, 2005, 03:38 AM

http://www.globes.co.il/serveen/
Orpak Q2 profit up 110% to NIS 5.5m ahead of London IPO

Orpak Industries’ parent company Rapac Technology’s second quarter net profit rose 374% to NIS 3.1 million.

Roee Bergman 15 Aug 05 14:58

Rapac Technology (2000) Ltd. (TASE:RPTC) published its financial report for the second quarter of 2005 today. Its net profit was NIS 3.1 million, 374% more than its profit of NIS 650,000 for the corresponding quarter of 2004. The company posted a NIS 37.9 million in revenue for the second quarter, up 41.4%, compared with its NIS 26.8 million in revenue for the corresponding quarter of last year.

Rapac Technology attributes its higher revenue and profit to growth by its subsidiary, Orpak Industries (1983) Ltd., which posted NIS 36.9 million in revenue for the second quarter, up 40%, compared with its profit of NIS 26.3 million for the corresponding quarter of last year.

Orpak posted a net profit of NIS 5.5 million for the second quarter, 110% more than its profit of NIS 2.6 million for the corresponding quarter of 2004.

Rapac Technology posted a net profit of NIS 5.4 million for the first half of 2005, compared with NIS 1.5 million for the first half of 2004. It posted NIS 70.7 million in revenue, 32% more than its NIS 53.7 million in revenue for the first half of last year.

Rapac Technology CEO Alexander Milner said, “Rapac Technology’s financial results demonstrate the success of Orpak’s strategic plan. Orpak can now provide high-quality solutions for all the needs of customers in international markets.”

Orpak is readying an IPO on London’s Alternative Investment Market (AIM). It is apparently planning to raise $20 million at a company value of $70-80 million, before money.

Rapac Technology focuses on fleet and fuel management systems as well as electronic payment systems. It's sister company, Rapac Electronics Ltd. is a distributor and system integrator for the defense, broadcasting and telecommunication markets. Subsidiary Orpak develops, manufactures and markets fuel management and taxi meters systems with electronic payment capability.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:39 AM

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Mizrahi Bank posts NIS 147m second quarter profit

The bank’s provisions for doubtful debts fell 19.6% to NIS 74 million. Its return on equity was 15%.

Avi Asher 15 Aug 05 12:44

United Mizrahi Bank (TASE:MZRH) published its financial report for the second quarter and first half of 2005 today. The bank posted a net profit of NIS 147 million for the second quarter, approximately 1% more than its NIS 146 million profit for the corresponding quarter of 2004. The profit reflects a return on equity of 15%.

Mizrahi Bank’s credit to the public rose to NIS 64.3 billion, 5.3% more than in the corresponding quarter of last year, while deposits rose by 4.5% to NIS 69.9 billion.

Mizrahi Bank posted a net profit of NIS 247 million for the first half of 2004, 4% more than its NIS 237 million profit for the first half of 2004. The bank’s return on equity was 12.3% for the first half of 2005, compared with 12.6% for the first half of 2004, and 10% for 2004 as a whole.

Mizrahi Bank’s provisions for doubtful debts shrank by 19.6% from NIS 92 million in the second quarter of 2004 to NIS 74 million in the second quarter of 2005. Its provisions for doubtful debts fell by 24.4% to NIS 127 million in the first half of 2005 from NIS 168 million in the first half of 2004. The bank’s provisions for doubtful debts was an annualized 0.4% of its credit portfolio, compared with 0.55% for the corresponding period of last year.

Mizrahi Bank’s return on equity, excluding an extraordinary provision for pensions and severance for early retirement, was 13.1% for the first half of 2005.

Mizrahi Bank’s shareholders’ equity rose by 10.9% to NIS 4.39 billion at the end of the second quarter, from NIS 3.95 billion at the end of the corresponding quarter of last year.

At a general meeting a few days ago, Mizrahi Bank’s shareholders approved a NIS 440,000 grant for chairman Jacob Perry on the basis of the bank’s 2004 profit of NIS 386 million. The grant comes on top of Perry’s 2004 salary of NIS 2 million. Approval of the grant was accompanied by a furious campaign by the bank’s workers committee, which is embattled in a prolonged labor dispute with management.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:40 AM

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Solomon to buy 45% of Ilanot Discount from IDB

Ilanot Discount manages NIS 14 billion in assets.

Golan Fridenfeld 15 Aug 05 12:23

Solomon Capital Markets Ltd., acquired recently by former Berger Holdings (TASE: BRGR) shareholder Amit Berger, is the first private brokerage to take practical steps towards acquiring control of bank-owned mutual funds. Solomon is about to acquire 45% of the Ilanot Discount Ltd. mutual funds company from IDB Holding Corp. (TASE: IDBH) for NIS 228 million, reflecting a NIS 507 million value for Ilanot Discount.

Israel Discount Bank (TASE: DSCT) owns the rest of Ilanot Discount. It appears that Solomon is preparing for the compulsory sale of Discount Bank’s mutual funds holding. It can be assumed that Solomon will be a natural candidate to acquire the rest of Ilanot Discount, since Solomon acquired first refusal rights together with IDB Holding’s stake. The acquisition requires regulatory approval. If this is obtained, there is no doubt that Solomon will become one of the most prominent players in the Israeli mutual funds market.

As of the end of 2004, Ilanot Discount managed mutual funds with total assets of NIS 12.3 billion, compared with NIS 10.2 billion at the end of 2003. As of the end of July 2005, Ilanot Discount’s assets had risen to NIS 14 billion, 14% more than at the beginning of the year.

Solomon is making its acquisition without knowing the size of sales commissions. High sales commissions are liable to cut its profits, while low sales commissions are likely to generate a substantial upside for acquirers of mutual funds.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:42 AM

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Israelis’ January-July overseas investments more than all 2004

Israelis invested $5.03 billion in overseas deposits in January-July, and $11.4 billion in the past 30 months.

Zeev Klein 15 Aug 05 17:18

Overseas investment by Israelis in January-July 2005 exceeded $9.8 billion, more than in all 2004, Overseas investment amounted to an annualized $17 billion, 17% of GDP.

In the past 30 months, Israel have invested $27.4 billion overseas. Direct overseas investment by Israelis amounted to $835 million in January-July 2005, 56% less in annualized terms than in 2004.

Israelis’ investment in marketable securities totaled $2.27 billion in January-July, 57% more than in all 2004. The private sector invested $2.14 billion in marketable securities.

Israelis also invested $5.03 billion in overseas deposits in January-July, and $11.4 billion in the past 30 months.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:43 AM

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Public’s provident fund assets up 2.6% in 1st half to NIS 217.5b

Overseas investment rose by 36% to NIS 2.06 billion.

Zeev Klein 15 Aug 05 17:09

The public’s provident fund assets rose by 2.6%, or NIS 5.6 billion, in the first half of 2005 to NIS 217.5 billion, states the Ministry of Finance capital markets, insurance and savings division’s assets report.

The public’s assets in retirement provident funds rose by 2.7%, or NIS 3.6 billion, in the first half of the year to NIS 131.6 billion; its assets in advanced training funds rose by 3.2%, or NIS 2 billion, to NIS 64.9 billion, and its assets in severance pay funds remained unchanged at NIS 19 billion.

A breakdown of assets by main investment types was as follows:

Investment in marketable stocks fell by 0.3% to NIS 34 billion.

Overseas investment rose by 36% to NIS 2.06 billion.

Investment in land was unchanged at NIS 162.1 billion.

Investment in non-marketable corporate bonds rose by 11% to NIS 30.1 billion.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:44 AM

http://www.globes.co.il/serveen/
Tourism Ministry to spend €500,000 on promoting tourism from Germany

The ministry is also organizing a $500,000 campaign to attract Jewish tourists from the US and Canada.

Dalia Tal 15 Aug 05 14:29

The Ministry of Finance will spend €500,000 to promote tourism from Germany. The campaign aims at supporting German tour operator TUI AG which has decided to operate 26 weekly flights to Tel Aviv, and Arkia Airlines, which will operate three weekly flights from Germany beginning in November, with follow-on flights to Eilat. The Ministry of Finance is also trying to persuade Israir to operate charter flights between Germany and Eilat.

The Ministry of Finance and the Conference of Presidents of Major American Jewish Organizations are also organizing a $500,000 campaign to attract Jewish tourists from the US and Canada. This campaign will include distributing brochures at 3,400 synagogues in North America before Rosh Hashana.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:46 AM

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Manufacturers: 600 graduate jobs vacancies in south

Omer Mayor Pini Badash: We want Omer to be the high-tech capital of the south, and also culturally attractive.

Hadas Manor 15 Aug 05 12:54

Over 100 jobs for software and hardware engineers are being offered at high-tech enterprises in the Omer industrial park in the Negev. A total of 600 jobs are available for higher-education graduates in the south, according to figures cited yesterday at a manufacturers conference in the Omer industrial park, which Stef Wertheimer founded.

Arie Dahan, who manages Omer the industrial park, said that the conference was designed to help companies interested in moving their development branches to the park find personnel. He said, “A large high-tech company currently located in the central region, which wants to open a development branch in the Omer industrial park, needs 50 software and hardware engineers with two years of experience.

”Freescale Semiconductor Israel and M-Systems Flash Disk Pioneers (Nasdaq: FLSH), which are located in Omer, also need more engineers for their expansion. The Negev is starving for software engineers, and I hope that the combination of efforts being made and the economic situation will persuade suitable people to come to work and settle in the Negev. In the Omer industrial park, we’ll help absorb those who are suitable.”

Figures for the Omer industrial park provided by Or National Missions show that 600 jobs are available there in electrical engineering, chemistry, life sciences, computers, economics, etc.

Omer Mayor Pini Badash said at the conference that the goal was to make Omer the high-tech capital of the south, and also a culturally attractive region. He added that there are many development plans for the Omer industrial park including a golf course, 6,000-dunam (1,500-acre) Jewish National Fund forestry project, nearby artificial lake, hotel, and restaurants.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:47 AM

http://www.globes.co.il/serveen/
Palestinian unemployment down 5.1% in second quarter

Palestinian unemployment dropped from 26.3% to 21.2%.

Lior Greenbaum 15 Aug 05 12:59

The Palestinian unemployment rate dropped from 26.3% in the first quarter of 2005 to 21.2% in the second quarter, according to figures from the Palestinian Central Bureau of Statistics (PCBS).

The unemployment rate at the end of the second quarter was 17.2% on the West Bank and 30.2% in the Gaza Strip. The Palestinian labor force numbers 833,000: 576,000 in the West Bank and 257,000 in the Gaza Strip.

The figures show a 12% rise in employment to 656,000 in the second quarter, compared with 586,000 at the end of the first quarter. Most of those hired were in the private sector.

The number of Palestinians working legally or illegally in Israel and Jewish communities in the West Bank and Gaza Strip grew from 60,000 in the first quarter to 65,000 in the second quarter.

The average daily Palestinian wage was NIS 73.90 in the West Bank and NIS 60.70 in the Gaza Strip, compared with NIS 125.60 in Israel and Jewish communities.

PCBS president Louay Shabana believes that the Palestinian economy has been recovering since mid-2004. He says that the main reason is relaxation of restrictions on movement in the West Bank, which has facilitated an increase of economic activity there. Another reason is international aid and employment projects undertaken by Palestinian Authority agencies.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 16th, 2005, 03:49 AM

http://www.globes.co.il/serveen/
Guardium raises $5.5m

Ascent Venture Partners led the round, joined by Cedar Fund, Veritas Venture Partners and Stage One Ventures.

Ofer Levi 15 Aug 05 16:20

Start-up Guardium Inc., a provider of database security and compliance solutions, has raised $5.5 million in its third financing round. New investor Ascent Venture Partners of the US led the round, joined by existing investors Cedar Fund, Veritas Venture Partners and Stage One Ventures. Guardium has raised $15 million to date, including the present round.

Guardium will use the funding to expand its sales, marketing and customer support teams.

Amnon Kenan founded Guardium two and a half years ago as a spin-off from Joseph (Yossi) Segev and Gil Migdan’s Log-On Software. Now managed by CEO Ram Metser, Guardium has 45 employees, mostly in the US.

Guardium’s solutions protect IBM, Oracle, Microsoft, and Sybase databases, providing secure authorized access to enterprises’ databases. Guardium's solutions secure applications for customers and business partners accessing an enterprise via the Internet, and secure Intranet access for a decentralized company.

Published by Globes [online], Israel business news - www.globes.co.il - on August 15, 2005

ZOHAR

August 16th, 2005, 10:14 PM

i like this pic:)

http://wmh.walla.co.il/archive/152744-5.jpg

Azazel

August 16th, 2005, 10:27 PM

GDP growth ( Annualized) is 5.6% in quarter!! :colgate:

Why I doubt we'll see a hike in salaries any time soon. :no:

TalB

August 16th, 2005, 11:38 PM

http://www.globes.co.il/serveen/
4.9% GDP growth in first half

Business product grew by an annualized 6.1%, and private consumption by 4.2%. Per capita growth in the first half of the year was 3.1%.

Zeev Klein 16 Aug 05 15:09

GDP grew by an annualized 4.9% in January-June 2005, and business product rose by a steeper annualized 6.1%, according to revised estimates published today by the Central Bureau of Statistics.

The standard of living rose 2.3% in January-June, after rising 2.2% in July-December 2004. Per capital growth in the first half of the year was 3.1%. Rapid growth in the first half of the year also reflects an 8.6% increase in exports of goods and services, and a 4.2% increase in private consumption.

Growth speeded up to an annualized 5.6% in the second quarter of 2005, compared with 3.9% in the first quarter and 6.4% in the fourth quarter of 2004.

The acceleration of growth in the second quarter reflect increases in all uses of resources: exports of goods and services - 13.2%, investment in fixed assets 7.8%, and total spending on private consumption 5.3%. Public civilian consumption (excluding defense imports) rose 5%.

The Central Bureau of Statistics has made a number of improvements in its calculation methods in order to adjust national accounts in Israel to international requirements.

Published by Globes [online] - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:39 PM

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Tue: Market treads water

The main indices were fairly flat today, but El Al shot up on good financials, and there were also rises in the banking and chemicals sectors.

Roy Meltzer 16 Aug 05 17:51

The Tel Aviv Stock Exchange (TASE) indices were flat today. The Tel Aviv 25 index edged down 0.07% to 701.19 points, the Tel Aviv 100 edged down 0.01% to 708.91 points, and the Tel-Tech fell 0.54% to 395.26 points. Turnover was NIS million.
The TASE zigzagged today, due to a number of economic and political developments.

In the economic arena, the CPI for July, published yesterday, unexpectedly rose 1.1%, tripling the inflation rate since the beginning of the year from 0.5% to 1.6%. In addition, the Central Bureau of Statistics published revised growth figures for the first half of the year, which unexpectedly showed an annualized growth rate of 4.9%.

Shares of the large banks and chemicals companies continued to climb, driving the indices upwards. Bank Hapoalim (LSE:BKHD; TASE:POLI) rose 0.2%, Bank Leumi (TASE:LUMI) 1.1%, while Israel Chemicals Ltd. (TASE: CHIM) rose 0.2% and MA Industries>(Makhteshim Agan Ltd.) (TASE:MAIN)>MAIN) rose 1.3%. This quartet also had the session’s largest turnovers.

El Al Israel Airlines (TASE:ELAL) stood out among companies publishing financial reports for the second quarter. It posted a net profit of almost $30 million, despite high fuel prices. Investors loved El Al’s financials, sending the share up 7.8%. El Al’s share had been unjustifiably hurt recently by the collapse of Clubmarket Marketing Chains Ltd., another company controlled by the Borovich family.

Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) fell 2%, after reporting a 41% drop in its net profit and the distribution of a NIS 275 million dividend. Clal Insurance’s results dragged down Harel Insurance Investments Ltd. (TASE:HARL), which fell 2.1% and Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL), which lost 0.9%.

Other news-making shares today included Delta Galil Industries Ltd. (Nasdaq: DELT; TASE:DELT), which rose 7.5%, after announcing the entry of a new partner to replace Sara Lee Corp. (NYSE:SLE), Delta Galil’s partner for the past 17 years. Shamir Optical Industries Ltd. (Nasdaq: SHMR; TASE: SHMR) fell 11.6%, after publishing disappointing financials yesterday, which caused it to plummet on Wall Street.

Avner Oil and Gas Limited Partnership (TASE:AVNR.L) rose 1.1% and Delek Drilling Limited Partnership (TASE:DEDR.L) rose 0.5%, after announcing that Yam Thetis would supply $160 million worth of natural gas to another Delek Group Ltd. (TASE:DLEKG) subsidiary, IPP, under a 15-year contract for powering the Ashkelon desalination facility.

Frutarom Industries Ltd. (TASE: FRUT; LSE:FRI) continued to respond to yesterday’s financials, rising another 2%, but Ormat Industries Ltd. (TASE:ORMT) fell another 1.3%, in response to tepid financials. American Israeli Paper Mills Ltd. (AMEX: AIP; TASE:AIP) rose 2.4%, after announcing a NIS 50 million dividend to be distributed on September 13. Delek Real Estate Ltd. (TASE:DLKR) rose 1.8%, after announcing the acquisition of 45% of a Zurich office building for NIS 184 million.

Among small-cap shares, E. Solomon Investment & Consultancy (1992) Ltd. (TASE:SOLO) rose 5% and Tao Tsuot Ltd. (TASE:TAO-M) rose 9.5%, after closing the acquisition of 45% of Ilanot Discount Ltd. from IDB Holding Corp. Ltd. (TASE:IDBH). Avrot Industries Ltd. (TASE:EVRO) rose 4.7%, after announcing a NIS 12 million contract with Mekorot National Water Company, and Golan Plastics Products Ltd. (TASE:GLPL) rose 7.8%, after publishing positive financials.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:42 PM

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Delek Real Estate buys 45% of Zurich office block

Credit Suisse Group rents the building for NIS 22.8 million a year.

Guy Yamin 16 Aug 05 18:19

Delek Real Estate Ltd. (TASE:DLKR) is entering Switzerland. A group of wholly-owned foreign subsidiaries bought 45% of a company that owns a Zurich office building. The price for the entire transaction was 111 Swiss francs (NIS 409 million), which means that Delek Real Estate’s share of the deal was NIS 184 million.

The 28,000-sq.m. building is leased to Credit Suisse Group (NYSE:CSR; SWX:CSGN; XETRA:CSGZ), which has $32 billion in shareholders’ equity, until September 2012. Credit Suisse will pay 6.2 million Swiss francs (NIS 22.8 million) in rent a year.

The Delek Real Estate subsidiaries took a 104.5 million Swiss franc (NIS 386 million) loan to finance the purchase, amounting to 94% of the price tag. The loan carries an interest rate of Swiss Libor for three months plus a 1.17% margin. The total current interest is 1.92%. The loan was hedged against the interest rate rising above 3.12%.

Delek Real Estate floated NIS 755 million worth of shares, bonds, and options on the Tel Aviv Stock Exchange (TASE) in June. The company posted a net profit of NIS 18.6 million on NIS 145 million revenue for the first quarter of 2005, and posted a net profit of NIS 124 million on NIS 503 million revenue in 2004.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:50 PM

http://www.globes.co.il/serveen/
Milim to raise $1.5m on London’s OFEX at $3.2m value

Milim Writing and Translation Services will hold its IPO in October.

Tali Tsipori 16 Aug 05 19:20

Milim Writing and Translation Services Ltd. is expected to raise $1.5 million in an IPO on London’s OFEX, the third largest exchange in the city. The underwriter is Ruegg & Company Ltd., and MG Equity Partners, headed by managing partner Amir Raveh, is the advisor.

Milim CEO Benny Or said the company hoped for an initial company value of $3.2 million, after money. Founded 15 years ago, Milim provides translation and localization services, technical writing, training, design, printing and publishing. The company’s customers include Hewlett-Packard (NYSE:HPQ), Motorola (NYSE:MOT), Orange (LSE:OGE), Siemens (NYSE:SI; XETRA:SIE), Sony (NYSE:SNE; TSE:6758). Milim translates training manuals for Motorola’s new handsets. Or describes Milim as “an old economy company that works for the new economy.”

Milim is a privately owned company wholly owned by Israel Air Force veterans Or and co-founder Yaakov Dok. Or says Milim has financed its business only from equity and working capital. The company has 20 employees and almost 50 subcontractors. Or says Milim is profitable, with a net profit margin of 25-30%.

If Milim’s IPO goes ahead as planned, it will become the second Israeli company listed on OFEX, after Espro Information Technologies Ltd. (OFEX:ESP).

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:52 PM

http://www.globes.co.il/serveen/
Discount New York Q2 net profit up 47% to $19.3m

Discount New York is a wholly-owned subsidiary of Israel Discount Bank.

Dafna Zucker 16 Aug 05 18:18

Israel Discount Bank of New York's net profit for the second quarter of 2005 rose by 47% to $19.3 million, according to figures obtained by “Globes”. The bank posted a profit of $32.3 million for the first half of the year, 13% higher than for the first half of 2004. This profit reflects an annualized return on equity of 12%, compared with 11.4% for the first half of last year.

Discount New York is a wholly-owned subsidiary of Israel Discount Bank (TASE: DSCT), which was recently privatized through a tender, won by a consortium headed by American-Jewish businessman Matthew Bronfman.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:55 PM

http://www.globes.co.il/serveen/
El Al Q2 net profit up 326% to $29.9m

Results improved despite a 52% surge in fuel prices. El Al’s second quarter revenue rose 30% to $423 million.

Globes’ correspondent 16 Aug 05 11:33

El Al Israel Airlines (TASE:ELAL) published its financial report for the second quarter of 2005 on Sunday night. The airline’s quarterly financials were the best second quarter in its history.

El Al posted a net profit of $29.9 million for the second quarter, 326% higher than its $7 million profit for the corresponding quarter of 2004. The airline’s second quarter revenue rose 30% to $423 million from $324 million for the corresponding quarter of last year.

El Al’s cash flow from current activities was $81 million for the quarter.

El Al posted a net profit of $11.4 million for the first half of the year, because its second quarter profit covered its $18.5 million loss for the first quarter. The airline’s first half profit was about the same as for the first half of last year.

El Al’s results improved despite a 52% surge in fuel prices for the second quarter, compared with the corresponding quarter of last year, and 17% compared with the first quarter of 2005. Higher fares covered only part of El Al’s second quarter $98 million in fuel costs, with the airline absorbing the rest. Fuel accounted for 23% of El Al’s turnover for the second quarter, compared with 18% for the corresponding quarter of last year.

El Al reported a capital gain of $8 million on the sale of its stake in Maman Cargo Terminals and Handling Ltd. (TASE: MMAN), and a one-time $10 million expense for its early retirement plan scheduled to come into effect in 2006.

Revenue from passengers for the second quarter rose by 33%, indicated that it was able to exploit its fleet and implement its marketing policy. Plane occupancy improved significantly, reaching 80%, reducing the airline’s costs as a percentage of turnover. The number of available seats rose by 16%, boosting El Al’s market share by 2%.

El Al increased the frequency of flights to Moscow, New York, Toronto, Los Angeles, Bangkok, Bombay, Hong Kong, Frankfurt, Larnaca, St. Petersburg, Berlin, Vienna, and other destinations.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 16th, 2005, 11:59 PM

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Apartment prices up 2.7% in second quarter

The average apartment price in the second quarter was NIS 712,200.

Zeev Klein 16 Aug 05 15:16

Apartment prices rose 2.7% in the second quarter of 2005, and 5.1% since the first quarter of 2004, according to Central Bureau of Statistics figures.

The average apartment price in the second quarter was NIS 712,200, compared with NIS 693,500 in the first quarter and NIS 677,100 in the first quarter of 2004.

Prices averaged NIS 478,200 for a 1.5-2-room apartment, NIS 567,700 for a 2.5-3-room apartment, NIS 806,700 for a 3.5-4-room apartment, and NIS 1,075,000 for a 4.5-5-room apartment.

Average apartment prices in Tel Aviv, the Dan region, and the Sharon region are 2.2 times higher than average apartment prices in northern and southern Israel. The price gaps for five-room luxury apartments are greater (2.7 times higher in the central region) and also for small apartments (3.4 times higher in the central region).

Published by Globes [online] - www.globes.co.il - on August 16, 2005

TalB

August 17th, 2005, 12:02 AM

http://www.globes.co.il/serveen/
Number of employed up 0.4% in January-June

Employment in Israel totaled 2.45 million at the end of June. 10,500 new jobs are being added each month.

Zeev Klein and Hadas Manor 16 Aug 05 10:01

Employment of Israelis continues to improve, although at a slower pace than in 2004. The number of Israeli employees rose 0.4% to 2.45 million in the January-June 2005. A net average of 10,500 jobs were added each month, according to analyses by economic ministries of Central Bureau of Statistics figures.

The number of jobs temporarily fell by 9,000 in June, but has risen by 79,800 (2.4%) since January 2004. Most of the increase was in 2004.

Trend figures show an annualized increase of 2% in the number of Israeli employees in January-June, compared with a 4% increase in 2004.

Federation of Israeli Chambers of Commerce chairman Uriel Lynn predicted that the number of jobs in trade and services, including part-time jobs, would grow by 50,000 in 2005, while the number of industrial jobs would increase by 5,000.

Published by Globes [online] - www.globes.co.il - on August 16, 2005

TalB

August 17th, 2005, 12:05 AM

http://www.globes.co.il/serveen/
Israeli inflation among lowest in emerging markets

Data published by “The Economist" before yesterday's 1.1% hike in CPI show 0.3% inflation for July 2004-June 2005.

Globes correspondent 16 Aug 05 09:20

Inflation in Israel in July 2004-June 2005 was only 0.3%, lower than in most emerging markets, according to a comparison published today by British economic weekly “The Economist”. Only Singapore had lower inflation minus 0.2%.

The Consumer Price Index rose 1.1% in July in Israel, more than the entire first half of 2005.

”The Economist” said that inflation had recently moderated in many emerging markets, and that inflation did not constitute a problem. In China, for example, annualized inflation fell from 5.3% a year ago to 1.8% at present.

Inflation poses a special problem in two countries: Russia, with a 13.3% annualized inflation rate, and Argentina, with 9.6%. Annualized inflation in Egypt was 4.7%, sixteen times the rate in Israel.

”The Economist” stressed that in a number of emerging markets, some inflation was a positive development. One example is Hong Kong, where the current inflation rate is 1.2%, after a long period of deflation.

Published by Globes [online] - www.globes.co.il - on August 15, 2005

TalB

August 17th, 2005, 12:07 AM

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Isaac Dabah buys Sara Lee stake in Delta Galil for $27.7m

Delta Galil chairman Dov Lautman: Dabah will contribute to the company’s activities.

Globes’ correspondent 16 Aug 05 12:55

US businessman Isaac Dabah has bought Sara Lee Corp.’s (NYSE:SLE) 23% stake in Delta Galil Industries Ltd. (Nasdaq: DELT; TASE:DELT) at $6.50 per share for a total of $27.7 million through GMM Capital LLC, which he controls.

With the completion of this transaction, Dabah will sign a shareholders agreement with Delta Galil founder and chairman Dov Lautman, which will resemble Lautman’s agreement with Sara Lee, ensuring Lautman a majority on Delta Galil’s board.

Sara Lee sold its stake in Delta Galil as part of its restructuring strategy announced early this year, which included splitting or selling all apparel activities. Seven Israeli and foreign parties were interested in Sara Lee’s stake in Delta Galil. Sara Lee sold the stake to GMM Capital at the recommendation of Lautman, who had first refusal rights to the shares.

Lautman said he was pleased by Dabah’s investment and becoming a strategic partner in Delta Galil, adding that he believed that Dabah’s extensive experience in branded apparel products would contribute to the company. Delta Galil has entered into the branded clothing market in recent years, mainly through Wilson (socks), Converse, Signature Jeans, and other companies, alongside Delta Galil’s main private label activity.

Israeli-born Dabah, 48, resides in the US, and has been in the textile and garment industry for 25 years. He acquired the Gloria Vanderbilt clothing brand in 1993, together with a group of investors, and sold it to Jones Apparel Group Inc. (NYSE:JNY) in April 2002. Under the agreement, Dabah was appointed CEO of Jones New York, Jones Apparel Group’s jeans brand, during 2003 and until the end of 2004. Jones New York has $1.1 billion in sales a year.

GMM Capital has made a number of investments in the retail, textile and clothing sectors. Dabah has also invested in Israeli real estate company Habas HZ Investments (1960) Ltd . (TASE:HABS) and in a denim factory in Kiryat Gat.

The shareholders agreement between the Lautman-controlled companies, which own 25% of Delta Galil, and GMM Capital, will come into effect when the Sara Lee deal is closed. Altogether GMM Capital will own approximately 25% of Delta Galil, after previously acquiring 2% of the company. Under the shareholders agreement, Lautman will hold the controlling interest in Delta Galil, and continue as chairman. He will have the right to appoint seven of the company’s twelve board members. Dabah will have the right to appoint three board members, and will probably be appointed acting chairman. The two other board members are external directors.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

TalB

August 17th, 2005, 12:09 AM

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Strum will approve Kitan-Offis Textile merger

Antitrust Authority director general Dror Strum will approve the merger because of intense competition from imports.

Hadas Manor 16 Aug 05 15:56

Sources inform ''Globes'' that Antitrust Authority director general Dror Strum is expected to approve the merger of Clal Industries and Investments Ltd. (TASE:CII) subsidiary Kitan Textile Industries Ltd. and Offis Textile Ltd. (TASE:OFIS), controlled by Fishman Holdings.

“Globes” reported yesterday that Kitan and Offis Textile were negotiating a merger through a share-swap. The merger is intended to cut operating costs, mainly by consolidating Offis Textile’s factory in Azor with Kitan’s factory in Dimona. The merger is also intended to consolidate marketing channels and strengthen the companies’ exports, in the face of competition with cheap textile exports by China, which are flooding the European and US markets.

Strum will not approve the merger because of the condition of Israel’s textile industry, but because of intense competition, caused by opening the market to imports. Tefron Ltd. (NYSE: TFR) recently fired 300 employees, and Delta Galil Industries Ltd. (Nasdaq: DELT; TASE:DELT) 500. The present 8-12% levies on Chinese textile imports are ineffective in preventing imports; they only make them a little more expensive.

Consequently, there appears to be no obstacle to the proposed merger.

Eliezer Fishman is the controlling shareholder in “Globes”.

Published by Globes [online], Israel business news - www.globes.co.il - on August 16, 2005

source26

August 17th, 2005, 12:13 AM

who cares about economy when the "disengagement plan" is the worst disgrace and humiliation this country has ever been through.

Shohad

August 17th, 2005, 01:13 PM

^^ what?!? Why do you involve such an unconnected topic? Some may care more about economy then the disengagement. Anyway, the disengagement will be over soon and the economic issues will remain.

TalB

August 18th, 2005, 12:48 AM

http://www.globes.co.il/serveen/
Emblaze buys VCON

Emblaze will hold 70% of newly merged Emblaze VCON. VCON will receive a $1.6 million cash injection from private investors. No cash is involved for Emblaze.

Hadass Geyfman 17 Aug 05 10:20

Emblaze (LSE: BLZ) today announced the creation of Emblaze VCON Ltd., following the merger of Emblaze Systems, and video communication systems company VCON Telecommunications Ltd. (Nouveau Marche:VCON). The merged company will deliver next generation audio/video applications over IP and 3G wireless networks.

Following the acquisition, Emblaze will hold 70% of Emblaze VCON.

Emblaze Systems is a wholly-owned unit within the Emblaze group that provides delivery and management solutions for video over wireless IP networks.

VCON's product portfolio comprises a suite of management systems for enterprise IP solutions including switching and conferencing in both audio and video. The solutions maximize performance over IP networks and facilitate interactive communications between multiple remote users.

Under the terms of the deal, Emblaze Systems will acquire VCON's assets, technologies, products, intellectual property and channel partner relationships while continuing to enhance and leverage its existing business.

VCON stated that the merger followed its failure to raise funds. VCON's original investors will not receive any gain, but a new investor group (unconnected to VCON) has formed. The new investors are interested in owning up to 30% of Emblaze VCON. It is possible that at a later date, VCON's original investors will joint the new group.

In order to close its business, VCON will receive a cash injection in the amount of $1.6 million plus a $250,000 credit line from the unnamed private investors via Emblaze VCON.

Parent company Emblaze will assume certain liabilities relating to VCON's employees, but stated that the acquisition did not involve any cash, will not impact its cash position, revenue, and profit forecasts for the current year, and will not result in any dilution of Emblaze shareholder interests.

Emblaze VCON will operate from Europe, US and Israel, with a total 70 employees.

Emblaze Systems and VCON's combined client base includes Renault in France, WIND Telecommunications in Italy, Telstra in Australia, Optimus in Portugal, Orange Suisse, Orange Israel, Telekom Austria and others.

Emblaze CFO Guy Bernstein said, "This acquisition is another major step by Emblaze to leverage its world-class IP and wireless technologies for delivering rich content to address new fast growing markets. We are confident that the merged business, spearheaded by Emblaze, will create significant shareholder value."

Published by Globes [online], Israel business news- www.globes.co.il - on Wednesday, August 17, 2005

TalB

August 18th, 2005, 12:49 AM

http://www.globes.co.il/serveen/
Tel Aviv 25 sets all-time record

The Tel Aviv Stock Exchange has now entirely made up the loss that followed the resignation of Benjamin Netanyahu as minister of finance.

Roy Meltzer 17 Aug 05 18:05

Today, only ten days after the resignation of Minister of Finance Benjamin Netanyahu, and two weeks after setting a new Tel Aviv 25 index record, the Tel Aviv Stock Exchange (TASE) again set a new record. The Tel Aviv 25 index, which includes the 25 largest TASE-listed companies, rose 1.72%. The Tel Aviv 100 index rose 1.51%, also setting a new all-time record in the process.

Continued positive figures on the Israeli economy and a quieter-than-expected beginning of disengagement are feeding the positive TASE trend. The recent positive economic and political developments have eased the concern on the capital market that followed the unexpected resignation of Minister of Finance Benjamin Netanyahu.

The main economic statistic published was 4.9% annualized growth in the first half of the year. Both foreign and Israeli investors are excited about it. The figure highlights Israel’s emergence from recession into accelerated economic recovery.

Investors drew encouragement from the relative calm in which the removal of Jewish communities from the Gaza Strip is taking place. Investors became convinced a week ago that disengagement would pass fairly quietly, but the relatively tranquil images broadcast from the Gaza Strip in recent days have added to the market’s feeling of confidence.

Despite the market’s optimism, it is worthwhile noting that foreign investors are largely responsible for the recent surge. Foreign investors have poured a steady stream of money into the Israeli capital market in recent weeks, despite political upheaval. A positive report on the state of the Israeli economy today by US investment house Merrill Lynch, which noted yesterday’s impressive growth figures, also encouraged investors.

A positive trend also prevailed today on the bond and foreign currency markets. The shekel rose sharply against the dollar today, with the shekel-dollar exchange rate again falling below NIS 4.50/$, while the dollar was strengthening on international currency markets. In the bond market, both linked and unlinked shekel instruments rose sharply today, reflecting the fall in Israel’s risk premium.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 12:50 AM

http://www.globes.co.il/serveen/
Lipshes tapped for chairman of Malam-Team

Malam Systems and Team Computers and Systems completed their merger today.

Roy Meltzer 17 Aug 05 16:38

Sources inform "Globes" that TTI Team Telecom International (Nasdaq: TTIL) chairman and CEO Meir Lipshes will soon be appointed active chairman of Malam Systems (TASE: MLAM). Team Computers and Systems (TASE: TEAM), controlled by Shlomo Eisenberg, reported today that it had completed the acquisition of Malam for NIS 126 million. TTI is a subsidiary of Team.

Team said today that it was able to complete the deal after receiving approval from creditors of the Zeevi group, the former controlling shareholder in Malam, and from regulatory agencies. Regulatory approval is necessary because the Malam-Team merger will constitute a significant force in the domestic computer services market. The two companies’ aggregate turnover is expected to total NIS 1.1 billion in 2004, about the same as local companies Matrix IT (TASE: MTRX) and Ness Technologies (Nasdaq: NSTC).

Team, whose current market cap is $20 million, provides comprehensive integration services for computer and communications infrastructures. Its main holdings include Omnitech-Eichut (TASE: OMNI) and Comtec (TASE: CMTC) in the hardware field, and McKIT Systems in software (to a lesser extent). The acquisition of Malam, which specializes in software, is expected to balance the merged company’s revenues evenly between software and hardware.

Malam, traded at a market cap of $30 million, had NIS 420 million in revenue and a NIS 16 million profit in 2004, compared with Team’s NIS 52 million loss.

Lipshes, a cofounder of the Team group, has distanced himself from it somewhat in recent years, following the public controversy involving Eisenberg. Lipshes’s return to the group, following the recovery process he oversaw at TTI, may signal the latter’s ambition of catching up to leading Israeli IT companies.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 12:51 AM

http://www.globes.co.il/serveen/
First Int’l Bank Q2 profit up 16% to NIS 102m

The bank’s provisions for doubtful debts fell slightly to NIS 89 million.

Yuval Mendelson 17 Aug 05 10:30

First International Bank of Israel (TASE:FTIN1;FTIN5) posted a net profit of NIS 181 million for the first half of 2005, 32.1% higher than its NIS 137 million net profit for the first half of 2004. The bank posted a net profit of NIS 102 million net profit for the second quarter, 29.1% more than its profit of NIS 79 million for the preceding quarter, and 15.9% more than its profit of NIS 88 million for the corresponding quarter of last year.

The bank’s return on equity was an annualized 10% for the first half of 2005, compared with 8% for the first half of last year and 6.9% for 2004 as a whole. Net return on equity was an annualized 11.2% for the second quarter, compared with 8.8% for the preceding quarter and 10.4% for the corresponding quarter of last year.

First International Bank CEO David Granot said the results showed an additional rise in return on equity, which brought it closer to the average in Israel’s banking system.

The increase in First International’s Bank’s profit for the first half of the year, compared with the corresponding period of 2004, was mainly due to three factors: a NIS 73 million (10.3%) increase in financing revenue; a NIS 69 million (16.6%) increase in operating and other revenue; and a NIS 38 million (20.2%) drop in provisions for doubtful debts. The bank’s earnings per share was NIS 36 for the first half of the year, compared with NIS 27.20 for the first half of last year.

First International’s Bank’s profit from financing activities before provisions for doubtful debts was NIS 779 million for the first half of 2005, compared with NIS 709 million for the first half of 2004, an 10.3% increase. Excluding Ubank Ltd.’s results, which were consolidated with First International’s Bank’s results beginning in the first quarter of 2005, the increase in First International’s Bank’s profit from financing activities was 3.6%. The bank’s profit from financing activities was NIS 406 million for the second quarter, 8.8% more than the NIS 373 million posted for the preceding quarter, and 6.3% more than the NIS 382 million posted for the corresponding quarter of last year.

The bank’s provisions for doubtful debts was NIS 146 million for the first half of the year, 20.2% less than the NIS 183 million provision made in the first half of last year. The bank’s provisions for doubtful debts was an annualized 0.66% of its credit portfolio for the first half of 2005, compared with 0.84% for the first half of last year and 1% for 2004 as a whole.

The bank’s provisions for doubtful debts was NIS 87 million for the second quarter, 47.5% higher than its NIS 59 million provision for the preceding quarter, but 2.2% lower than its NIS 89 million provision for the corresponding quarter of last year.

The bank’s problem debt shrank slightly during the first half of the year. The composition of its problem also improved slightly during the first half; the proportion of non-performing loans declined from 24.2% at the end of 2004 to 21.8% at the end of June 2005.

First International’s Bank’s shareholders’ equity was NIS 3.89 billion at the end of June, compared with NIS 3.71 billion at the end of 2004, an increase of 4.8%.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 12:53 AM

http://www.globes.co.il/serveen/
4.1-4.2% growth seen in 2005

Government source: We'll probably have to revise the 2006 growth forecast upwards as well.

Zeev Klein 17 Aug 05 15:11

The revision of the growth estimate for the first half of 2005 to 4.9% and for the second quarter to 5.6% will add at least 0.2-0.3% to the growth forecast for the year, from 3.9% to 4.1-4.2%.

A top economic source in Jerusalem said today, “The growth estimates published by the Central Bureau of Statistics yesterday took us rather by surprise. The growth estimate for 2005 will no longer be 3.9%, but rather higher than 4%. The rise is not technical.”

The source said an upward correction in the growth forecast for 2006 would probably also be necessary. “We have to be a bit patient. We have to see figures for the coming months, and how the disengagement will end.”

The source specifically mentioned that the second quarter was excellent for growth, and that the growth components were also very good. He said all components rose: exports, investment, and private consumption. Imports were also very high, which will affect growth in second half of the year.

The source mentioned a number of important economic parameters:

The exchange rate is not running wild. The source says he sees no reason why it should.

Despite the CPI for July, inflation in Israel is low.
There is a balance of payments surplus.
Israel’s risk premium is very low.
Capital is flowing into the economy.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 12:54 AM

http://www.globes.co.il/serveen/
Merrill Lynch: Israeli economy on firmer footing

"Strong growth is positive for Israeli shekel and equities."

Globes correspondent 17 Aug 05 13:08

In a report following publication of Israel's GDP growth figure for the first half this year, Merrill Lynch says, "Economic growth is broad based, suggesting that the Israeli economy is now on a firmer footing." The US investment house has revised its growth estimate for Israel for 2005 from 3.8% to 4.2%.

"Israeli economic growth surged at a higher than expected pace in the second quarter. Real GDP expanded at a 5.6 percent annual rate in the quarter after growing at a 3.9 percent pace in the first quarter (revised up from an initial estimate of 2.9 percent)," the report says.

"The burst of GDP growth was led by a 5.3 percent jump in consumer spending, after a dismal 0.4 percent pace in the first quarter. The strong pick up in private consumption is driven by low interest rates and strong employment growth the past twelve months.

"Fixed investments surged at a 7.8 percent rate, following a sharp 11 percent decline in the first quarter, a clear sign of recovery in business spending.

"Government spending, up 5.0 percent after 5.6 percent drop in 1Q05, also contributed to growth.

"Exports of goods and services, led by booming tourism, were solid, rising 13 percent, but imports were much stronger, jumping 24.9 percent.

"In our view, the latest GDP report could provide a big political boost for PM Sharon as he is likely to face a challenge from the former finance minister Netanyahu after the implementation of the disengagement plan.

"However, Monday's higher than expected CPI for July and the surge in economic growth may change the Bank of Israel's monetary policy stance, bringing rate hikes forward.

"Strong growth is positive for Israeli shekel and equities."

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:08 AM

http://www.globes.co.il/serveen/
Egyptian QIZ cos buy 13.7% Israeli inputs

50 Egyptian companies met the threshold condition of Israeli inputs under the QIZ agreement for duty-free exports to the US.

Hadas Manor 17 Aug 05 16:57

50 of the 54 Egyptian companies cooperating with Israeli companies in the joint Qualified Industrial Zones (QIZ) will continue operating in the next quarter. 50 Egyptian companies met the threshold condition of Israeli inputs under the QIZ agreement for duty-free exports to the US. Four Egyptian companies failed to meet the threshold condition, and were disqualified.

During the first quarter of the Egyptian QIZ’s operation, the participating Egyptian companies bought 13.7% of inputs from Israel, above the 11.7% mandated minimum. The jointly produced goods are exempt from US customs.

A joint Israel-Egypt committee met this week in Jerusalem to examine the operation of the QIZs. Ministry of Industry and Trade Foreign Trade Administration Middle East desk director Gabi Bar, Israeli co-chairman of the committee, expressed satisfaction with the first quarter results.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:09 AM

http://www.globes.co.il/serveen/
BDI: Israel should support $3b G8 aid to PA

Business Data Israel: Aid to the Palestinian Authority will double Israeli exports to it.

Hadas Manor 17 Aug 05 16:16

Business Data Israel (BDI) recommends Israeli support for increased foreign aid to the Palestinian Authority (PA). BDI said that the decision by the G8 countries (the US, Canada, France, Germany, the UK, Japan, Italy, and Russia) to inject $3 billion in to the PA would double to $3 billion Israeli exports to it.

Israeli exports to the PA amounted to $1.6 billion in 2004, 30% more than the $1.25 billion exported in 2003. Imports from the PA grew from $221 million in 2003 to $303 million in 2004, a 37% rise.

BDI said that foreign economic aid to the PA had totaled $900 million annually since 2002. BDI added that recent US studies indicated that every $1 in aid could increase output in the PA by $1.64. BDI concluded that $3 billion more in aid was likely to increase Palestinian output by $4.9 billion, leading to the doubling of Israeli exports to the PA.

According to figures from international institutions, real GDP in the PA grew 10% in 2004, after four years of negative growth. One factor was freer movement of goods and people in 2004, which led to increased economic activity. Activity grew substantially in agriculture, industry, trade, transportation, hotels, and restaurants. Exports were up 27%, and imports 23%.

GDP in the PA totaled $4.5 billion in 1999, the same level as in 1999. Growth also increased employment from 51,470 in 2003 to 54,000 in 2004, a 4.7% rise.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:10 AM

http://www.globes.co.il/serveen/
Per capita private consumption up 3.4% in January-June

Per capita private consumption totaled an annualized NIS 22,931 in the first half of the year.

Zeev Klein 17 Aug 05 13:25

Per capita private consumption totaled an annualized NIS 22,931 in January-June 2005, including NIS 2,104 on electrical appliances and durable goods and NIS 20,827 on current consumption, according to Central Bureau of Statistics figures.

Per capita private consumption was NIS 761 higher than in the corresponding period in 2004, a 3.4% increase, and NIS 1,392 higher than in the first half of 2002, when the terrorist attacks that inspired Operation Defensive Shield reached a peak a 6.5% rise. NIS 191 of the increase per capita since 2002 was spent on electrical appliances and durable goods, and NIS 1,201 on current consumption.

Per capita private consumption is still NIS 416 (1.2%) less than the peak of NIS 23,347 in the second half of 2004. NIS 34 less per capita was spent on electrical appliances and durable goods, and NIS 382 less on current consumption.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:12 AM

http://www.globes.co.il/serveen/
[u]“The Economist”: 3.7% growth this year, 4.1% next

The Economist Intelligence Unit is more optimistic than the Ministry of Finance and the Bank of Israel.

Zeev Klein 17 Aug 05 14:47

British financial weekly “The Economist” is more optimistic about Israel’s economy than the Ministry of Finance and the Bank of Israel. "The Economist Intelligence Unit" (EIU) predicts 3.7% economic growth in Israel this year and 4.1% growth next year, while the Bank of Israel last week forecasts 3.5% growth this year and 4% next year. The EIU attributes slower growth in Israel this year to slower global growth.

The EIU does not expect the Bank of Israel to raise the interest rate before the beginning of 2006. “Interest rates are expected to gradually rise starting in early 2006, as the Bank of Israel responds to rate hikes in the US, and to increased domestic demand,” the EIU predicted.

The EIU expects that inflation in Israel will rise, but remain low. The intelligence unit also predicts that that the surplus in Israel’s balance of payments current account will continue. “The budget deficit will trend downward slowly, thanks to increased tax revenue, even if election-year spending causes a temporary deviation,” the EIU states.

The EIU also made the following economic predictions:

Privatization and reform will continue, but the government’s political difficulties may cause delays.
Stronger recovery in Israel’s domestic economy will partially offset weakening global demand for exports.
A further fall in unemployment will restore consumer confidence.
In the absence of an escalation in Israeli-Palestinian violence, tourism will continue to recover.

The EIU also made the following political predictions:

The split in the Likud and division in the Labor Party make it unlikely that Prime Minister Ariel’s government will survive to the end of its term in late 2006.
The disengagement plan will be carried out.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:13 AM

http://www.globes.co.il/serveen/
Record Israeli overseas investment in June - NIS 123.8b

Israeli investment in foreign stocks rose by NIS 1.2 billion in June 2005 to NIS 48.2 billion.

Zeev Klein 17 Aug 05 14:40

Israeli overseas financial investment rose by 2.8%, or NIS 3.4 billion, in June 2005 to a record NIS 123.8 billion. Israeli overseas financial investment rose by 8.6%, or NIS 9.8 billion, in the first half of the year.

Israeli overseas financial investment has risen by 22%, or NIS 22.4 billion, in the past two and a half years, and by 43%, or NIS 37.1 billion, since December 2001.

Israeli investment in foreign securities rose by 2.6%, or NIS 1.2 billion, in June to NIS 48.2 billion, and by 14%, or NIS 5.9 billion, in the first half of the year. Israeli investment in foreign securities has risen 2.6-fold, or NIS 30 billion, in the past two and a half years.

Israeli overseas financial investment includes deposits in foreign banks, and Israeli and foreign stocks and bonds traded on foreign bourses.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:14 AM

http://www.globes.co.il/serveen/
Public assets rose NIS 8.2b in June to NIS 1.64t

The public assets portfolio grew by 7% in real terms in the first half of 2005.

Zeev Klein 17 Aug 05 13:46

The public held NIS 1.64 trillion in financial assets in June 2005, an all-time high. The public assets portfolio grew by 0.5%, or NIS 8.2 billion, in June, the Bank of Israel monetary department reported today.

The public assets portfolio grew by NIS 121.7 billion, 8% in nominal terms, in the first half of 2005. Discounting inflation, the real increase was 7%. The public assets portfolio has grown by 37%, or NIS 443 billion, in the past three and a half years.

The public assets portfolio per family was NIS 745,000 in June; the value of the portfolio per person was NIS 252,000. The value of financial assets held by the top two deciles is four times the national average: NIS 3 million per family and NIS 931,000 per person.

Israeli investment in Tel Aviv Stock Exchange (TASE)-listed stocks rose by 11%, or NIS 37.4 billion in the first half of 2005 to NIS 378.6 billion. Israeli investment in TASE-listed stocks has risen 2.22-fold, or NIS 208 billion, since 2002.

Investment in foreign currency-linked instruments rose by 12%, or NIS 24.2 billion, in the first half of the year to NIS 225.7 billion. Investment in unlinked shekel instruments rose by 2%, or NIS 9.5 billion, to NIS 484.6 billion, and investment in index-linked instruments rose by 10%, or NIS 44.8 billion, to NIS 502.2 billion.

A breakdown of the public’s assets portfolio in June was as follows: index-linked instruments 30.6%; unlinked shekel instruments 29.6%; TASE-listed stocks 23.1%; foreign currency-linked instruments 13.8%; foreign stocks 2.9%.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:16 AM

http://www.globes.co.il/serveen/
Super-Sol to buy Clubmarket

Super-Sol will pay for 10-15% of the purchase price though an allocation of shares.

Keren Tsuriel-Harari 17 Aug 05 12:52

Clubmarket Marketing Chains Ltd. trustees Adv. Shlomo Ness and Gabi Trablissi CPA will recommend to the Tel Aviv District Court that Super Sol (NYSE: SSLTF.PK; TASE: SAE) be allowed to buy Clubmarket. Super-Sol is offering to buy all of Clubmarket for NIS 825,555,555, plus the chain’s inventory for NIS 130-140 million. The deal contributes NIS 950 million to Clubmarket’s creditors’ arrangement. Clubmarket owes an estimated NIS 1.2 billion.

Super-Sol will pay for 10-15% of the purchase price though an allocation of its shares. Super-Sol will allocate 4.17% of its marketable shares, worth up to NIS 100 million, subject to the price of the Super-Sol share on the stock exchange.

Six bids were submitted to the trustees yesterday. Other than Super-Sol, the bidders were Israel Cold Storage Supply Co. Ltd. (TASE: CDSS); Blue Square Israel (NYSE: BSI; TASE: BSI); Rami Levy Hashikma Marketing Ltd., together with Rekah Pharmaceutical Industry (TASE: REKA) and the Rejwan family; US company Kega Trust, and the Elkayam-Sheetrit group. The trustees said that these bids were in the NIS 400-500 million range, significantly lower than Super-Sol’s bid.

The trustee’s proposal is currently being given to Antitrust Authority director general Dror Strum.

Ness stressed that the Super-Sol bid was unprecedented, higher than expected, and decisively better than the other bids. Ness noted that Super-Sol would hire all of Clubmarket’s 3,000 employees. He said that Clubmarket’s creditors could now sleep soundly. Trablissi added that the creditors had made the right decision by supporting the chain, and would now receive most of the money owed them as a result.

Published by Globes [online] - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:17 AM

http://www.globes.co.il/serveen/
Golden Lines to market VoB inland telephony

The goal is 100,000 subscribers within two years.

Guy Hadass 17 Aug 05 10:24

Golden Lines International Communication Services Ltd. has begun marketing inland telephony services, becoming, at least on paper, Israel’s third inland telephony operator after Bezeq (TASE:BZEQ) and HOT. Golden Lines CEO Stella Handler said the company’s goal was 100,000 subscribers within two years.

Golden Lines will use the 072 prefix for its services, on the basis of a license from the Ministry of Communications for a market test of Voice over Broadband (VoB) technology. The test is limited to 7,000 subscribers, which the company hopes to raise to 10,000.

Golden Lines is targeting both business and private customers who are subscribers for its Internet services, because VoB uses the company’s Internet infrastructure. Golden Lines’ rates will be slightly lower than Bezeq’s, and subscribers will not have to pay Bezeq’s fixed charges. Golden Lines will price calls by the minute, rather than HOT’s policy of a block of time for a fixed charge.

HOT has a bill and keep agreement with Bezeq, imposed by the Ministry of Communications, so HOT does not pay Bezeq for calls to the latter’s network. However, Golden Lines will pay Bezeq NIS 0.042 per minute for calls to Bezeq’s network, which is why it decided to charge by the minute.

In addition to its VoIP switchboard services, Golden Lines will offer business customers access to its 072 lines from any location in Israel and around the world, including voice services from mobile computers.

Golden Lines has also applied to the Ministry of Communications for a license for fixed-line VoIP telephony services. The company said its test was successful, it had contracts with other companies, and plans to invest NIS 30 million in fixed-line telephony.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

TalB

August 18th, 2005, 01:18 AM

http://www.globes.co.il/serveen/
Pele-Phone buys Cellact’s Guardian platform for NIS 500,000

The platform screens content and spam sent to handsets.

Guy Hadass 17 Aug 05 16:44

Wireless operator Pele-Phone Communications Ltd. has bought Cellact Ltd.’s Guardian platform for NIS 500,000. Pele-Phone, Israel’s first wireless operator, allows its customers to select wireless content sent to them. The Guardian platform screens content and spam as determined by the subscriber. It is a customer service tool for wireless operators, which enables customer service staff and subscribers to precisely define content the subscriber wants, either by category or individually. Unwanted content is prevented from reaching the subscriber’s handset.

Cellact says blocking spam and screening content is a growing necessity for wireless operators worldwide. The growing use of short messaging service (SMS) and multimedia messaging service (MMS) as marketing tools has increasingly led to the sending of marketing information via these media without the authorization from the subscriber. Wireless operators need engineering solutions to preserve the credibility of these marketing tools among subscribers, and to block the delivery of unwanted information.

Another growing issue among wireless operators in the world with the penetration of 3G services is to restrict access to adult content services to authorized customers, and block minors’ access to this content.

An anti-spam bill, specifically banning unauthorized SMS messages, has been submitted to the ministerial committee for legislation, which is expected to vote on it soon.

Published by Globes [online], Israel business news - www.globes.co.il - on August 17, 2005

Azazel

August 18th, 2005, 09:06 AM

Super-Sol will pay for 10-15% of the purchase price though an allocation of shares.

Keren Tsuriel-Harari 17 Aug 05 12:52

Clubmarket Marketing Chains Ltd. trustees Adv. Shlomo Ness and Gabi Trablissi CPA will recommend to the Tel Aviv District Court that Super Sol (NYSE: SSLTF.PK; TASE: SAE) be allowed to buy Clubmarket. Super-Sol is offering to buy all of Clubmarket for NIS 825,555,555, plus the chain’s inventory for NIS 130-140 million. The deal contributes NIS 950 million to Clubmarket’s creditors’ arrangement. Clubmarket owes an estimated NIS 1.2 billion.

Super-Sol will pay for 10-15% of the purchase price though an allocation of its shares. Super-Sol will allocate 4.17% of its marketable shares, worth up to NIS 100 million, subject to the price of the Super-Sol share on the stock exchange.

Six bids were submitted to the trustees yesterday. Other than Super-Sol, the bidders were Israel Cold Storage Supply Co. Ltd. (TASE: CDSS); Blue Square Israel (NYSE: BSI; TASE: BSI); Rami Levy Hashikma Marketing Ltd., together with Rekah Pharmaceutical Industry (TASE: REKA) and the Rejwan family; US company Kega Trust, and the Elkayam-Sheetrit group. The trustees said that these bids were in the NIS 400-500 million range, significantly lower than Super-Sol’s bid.

The trustee’s proposal is currently being given to Antitrust Authority director general Dror Strum.

Ness stressed that the Super-Sol bid was unprecedented, higher than expected, and decisively better than the other bids. Ness noted that Super-Sol would hire all of Clubmarket’s 3,000 employees. He said that Clubmarket’s creditors could now sleep soundly. Trablissi added that the creditors had made the right decision by supporting the chain, and would now receive most of the money owed them as a result.

Published by Globes [online] - www.globes.co.il - on August 17, 2005
__________________

These are very very sad news. I'd rather have it aquired by the cold storage supply company, to create the consecutive chain synergy or even the Pharma company, ( for the creation of a general congolmeration), rather by another retailer - This will lead to lessened competition, and that's the last thing we need in the retail. So, a great move for Supersol, and Clubmarket's creditors, a lousy move for the consumer.

source26

August 18th, 2005, 11:44 AM

Rich are getting (much much) richer, poor are getting (much much) poorer:

Hapoalim first half profit up 45.9% to NIS 1.53b
Annualized return on equity was 21.4% in January to June. Chairman Shlomo Nehama: We're exceeding our targets.

Bank Hapoalim (LSE: BKHD; TASE: POLI), Israel’s largest bank, this morning published its results for the second quarter of 2005.
Bank Hapoalim’s net profit rose from NIS 534 million in the second quarter of 2004 to NIS 601 million in the second quarter of 2005, a 12.6% increase.

The bank’s net return on equity in the second quarter was 16.1%, compared with 15.5% in the corresponding quarter last year.

Bank Hapoalim’s provision for doubtful debts shrank from NIS 476 million in the second quarter of 2004 to NIS 333 million in the second quarter this year, a 30% drop.

The bank’s net profit in January-June 2005 totaled NIS 1.53 billion, 45.9% more than its NIS 1.05 billion profit in the corresponding period last year. Its return on equity in the first half of the year was an annualized 21.4%, compared with 15.3% in the first half of 2004.

Bank Hapoalim’s board of directors announced a NIS 390 million dividend for the second quarter, to be distributed on September 13.

Bank Hapoalim chairman Shlomo Nehama said, “The second quarter financial report shows that Bank Hapoalim is continuing to meet, and even exceed, the targets set in its multi-year strategic plan. The main business parameters reflect this. I thank the bank’s management and workers for the encouraging results, which reflect Bank Hapoalim’s leading status among Israel’s largest banking groups.”

Published by Globes [online] - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:26 AM

http://www.globes.co.il/serveen/
Thu: Market keeps climbing

The Tel Aviv 25 index was up 5% on the week, but players are divided on whether foreign money will continue pouring in. The banking sector was again very strong.

Roy Meltzer 18 Aug 05 18:20

The Tel Aviv Stock Exchange (TASE) indices rose today. The Tel Aviv 25 index rose 1.03% to 720.6 points, the Tel Aviv 100 rose 1.01% to 726.92 points, and the Tel-Tech rose 1.35% to 403.57 points. Turnover was NIS 1.06 billion.

The week ended today with new records for TASE indices and the positive mood continuing. Although the positive trend eased in afternoon trading, due to reports from Gush Katif about stiffening resistance by settlers to the disengagement plan, the indices resumed their climb toward the end of the session. The Tel Aviv 25 index rose 4.9% for the week and the Tel Aviv 100 index rose 4.3%, both reaching all-time highs. Long-term shekel bonds rose by over 1% for the week, while the shekel-dollar exchange rate fell by a similar amount. Positive growth figures for the first half of the year, and the fairly smooth completion of the first stage of the disengagement plan also generated a tail wind for the market.

“I think that foreign investors will continue to be optimistic about the market in the near term. When they look at the disengagement, they see a new diplomatic horizon and great potential. They’re less interested in people being uprooted from their homes, and the resulting ramifications,” said one player cynically.

Other players believe that foreign investors are likely to take their foot of the gas pedal in the coming days, and cruise along, while waiting for new political and diplomatic signals.

Bank Hapoalim (LSE:BKHD; TASE:POLI) today published excellent figures for the second quarter of the year. Its quarterly profit rose 13% to NIS 600 million, reflecting an annualized return on equity of 16%. It also announced a NIS 390 million dividend. Analysts responded positively to the financial report, specifically citing the drop in the bank’s provisions for doubtful debts.

Bank Hapoalim rose 1.1% today, pulling the entire banking sector upwards. Bank Leumi (TASE:LUMI) 4.3%, United Mizrahi Bank (TASE:MZRH) rose 1.2%, and First International Bank of Israel (TASE:FTIN1;FTIN5) rose 4.3%. Israel Discount Bank (TASE: DSCT) fell 0.8%.

Israel Salt Industries Ltd. (TASE:SALT), which owns 7% of Bank Hapoalim, and the Jewish Colonial Trust Ltd. (TASE:OHH), which owns 5% of Bank Leumi, have both benefited from surge in bank shares in recent days: Salt Industries is up 14% for the week, and the Jewish Colonial Trust is up 5%.

Among blue-chip shares, chemicals continued to splutter. MA Industries>(Makhteshim Agan Ltd.) (TASE:MAIN)>MAIN) fell 0.3%, but Israel Chemicals Ltd. (TASE: CHIM) rose 0.1%.

Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) rose 2.3%, Bezeq (TASE:BZEQ) rose 0.2%, and Discount Investment Corporation Ltd. (TASE:DISI) rose 3.7%.

Super-Sol Ltd. (TASE:SAE; OTCBB:SSLTF) continued to be a focus of attention, following its unexpectedly high offer to buy Clubmarket Marketing Chains Ltd. Super-Sol fell another 1.4% today.

Among dual-listed shares, NICE-Systems Ltd. (Nasdaq: NICE; TASE:NICE) rose 3.2%, without any connection to its announcement today of the acquisition of an Australian distributor for $1.8 million. Alvarion Ltd. (Nasdaq:ALVR; TASE:ALVR), which announced the deployment of its BreezeMAX system in Kenya, rose 0.2%. Lipman Electronics Engineering Ltd. (Nasdaq:LPMA; TASE:LPMA) rose 2.3% and Orckit Communications Ltd. (Nasdaq:ORCT; TASE:ORCT) rose 3.9%.

I will conclude with Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L), whose drama continued today. Trading in the share was suspended last week at the request of shareholders, according to the company. It sent to the TASE today a detailed report on the situation at the Megged 4 drilling, which stated that it was not yet clear whether the well was commercially viable. Givot Olam’s share plummeted 21.4% as a result.

Published by Globes [online], Israel business news - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:28 AM

http://www.globes.co.il/serveen/
Stocks best investment this year so far

Ministry of Finance: The Tel Aviv 25 index rose 9.9% in January-July 2005.

Zeev Klein 18 Aug 05 14:03

Investment in stocks have had the best returns since the beginning of 2005, indicates a capital market survey for July, published by the Ministry of Finance capital markets, insurance and savings division.

The survey found that stocks rose again in July, after falling sharply in June. The Tel Aviv 25 index rose 6.2% in July and 9.9% in January-July, and the Tel Aviv 100 index rose 4.9% in July and 8.2% in January-July.

In contrast, investment in dollars generated a return of 5.06% in January-July, and investment in euros generated a negative return of 6.9%.

Published by Globes [online], Israel business news - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:29 AM

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CIBC ups Comverse price target

"Our channel checks leaves us feeling increasingly confident about Comverse's second quarter performance "

Globes correspondent 18 Aug 05 14:36

CIBC World Markets has raised its price target for Comverse Technology (Nasdaq: CMVT) from $30 to $33 in advance of publication of the communications software company's quarterly results. Comverse Technology. Comverse Technology shares closed at $25.65 yesterday, giving the company a market cap of $5.14 billion.

"Our final round of channel checks for Comverse leaves us feeling increasingly confident about Comverse's 2Q performance and overall business momentum," CIBC's report says. "While our estimates of $278.8 million in sales and $0.13 in EPS are consistent with consensus and guidance, upside is achievable.

"Furthermore, given the strong secular trends in CNS and Verint's core markets, we would not be surprised to see backlog grow approximately 1%-3% sequentially and reach new all-time high levels of $580-$590 million. This would be a very positive forward indicator.

"We are raising our 12-to 18-month price target to $33 from $30. Our price target is derived by applying a 30x multiple to our 2006 operating EPS estimate of $0.80 and adding back $8.50 in net cash per share. Our target multiple is at a premium to peers' 17x-25x range.

"We are reiterating our Sector Outperformer rating on shares of Comverse. While the stock is not cheap, we believe that CNS and Verint's strong positions in sectors experiencing sustainable growth momentum will lead to continued upward estimate revisions and gross margin expansion."

Published by Globes [online], Israel business news - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:30 AM

http://www.globes.co.il/serveen/
Formula Systems reports Q2 profit of just $111,000

President Gad Goldstein: Gains on realization of investments were substantially lower in the first six months of 2005.

Globes correspondent 18 Aug 05 12:06

IT company Formula Systems (Nasdaq: FORTY; TASE: FORT), controlled by Dan Goldstein and the FIMI fund, made a net profit of just $111,000 in the second quarter of 2005. This compares with $2.0 million in the second quarter of 2004. Net profit in the first six months of 2005 totaled $1.9 million, compared with $4.7 million in the same period last year.

Revenue in the second quarter of 2005 totaled $126.4 million, compared with $110.3 million in the comparable quarter of 2004, representing an increase of 15%. For the first six months of 2005, Formula reported revenue of $255.1 million, representing an increase of 16% from the same period last year.

Operating profit in the second quarter of 2005 was $2.9 million, compared with $3.7 million in the second quarter of 2004. In the first half of 2005 operating income increased to $8.7 million from $6.5 million in the comparable period of 2004.

Formula president Gad Goldstein said, "I am satisfied with the revenue and operational growth of 16% and 33% respectively in the first half of 2005 as compared to the same period in 2004. Gain on realization of investments was substantially lower in the first six months of 2005 as compared to the same period of 2004 and had a negative impact on the net income for this period.

"Since capital gains do not occur on a regular basis it is difficult to control their timing. Based on our arsenal of potential capital gains, whose materialization we are working on, and encouraged by the nice head start of the Formula Telecom IPO in the AIM stock market, we believe that the second half net income will follow the positive trend of the revenues and operating income in the first half."

Published by Globes [online], Israel business news - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:32 AM

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Israeli civilian R&D spending up 164% in 1990-2004

A study by the Neaman Institute shows a steeper rise in Israel’s R&D spending than in Finland and Ireland.

Ofer Levi 18 Aug 05 12:03

Since the State of Israel was declared, it has been obvious to every government that country’s most important economic resource is the human one. It wasn’t a difficult conclusion to reach. In the absence of natural resources, such as oil wells, and cheap labor, it was clear to Israeli policymakers that without investing money in education and R&D, Israel’s economic capacity would not progress.

Some policymakers turned their understanding into deeds. Others had good intentions, but achieved nothing. Some simply ignored this basic principle. A new study at the Samuel Neaman Institute for Advanced Studies in Science and Technology, headed by director Prof. Liron Nadav, shows that shows that the amount spent on R&D and the quantity of research in Israel are far from negligible.

A recent study by Dr. Daphne Getz, Hani Mansour, Prof. Dan Peled, and Marian Shumaf-Tehawkho indicates that national spending in Israel on civilian R&D rose 164% to NIS 23.8 billion in 1990-2004. In terms of purchasing power (the usual method of comparing sums in different currencies), Israel’s R&D spending grew 126% in 1996-2002, while GDP rose 29%. For the sake of comparison, Finland’s R&D spending rose 85% in the same period, and its GDP 36%, while in Ireland, R&D spending was up 40%, while GDP grew 64%.

The study also presents figures on the volume of scientific articles published, and their quality. An average of 1,549 scientific articles per million residents per year were published by Israel in 1999-2003. The study, based on a database compiled by Prof. Gideon Czapski, puts Israel just behind Switzerland in this category, and far ahead of the US, which averages 900 articles per million residents per year, and the EU (729 articles per million residents per year).

How much respect does the academic world have for the quality of research conducted in Israel? Indices for measuring the volume and quality of scientific work are not perfect, but various indicators have been developed in recent years. One widely used method is to use scientific articles as a measure of the productivity of scientific research, and the number of times the articles are quoted as a measure of the quality of research.

The Neaman Institute explains that in order to compare research productivity of different countries in every research field, it is customary to use the each country’s proportion of all articles published in the world in each field and/or the number of articles in each field per million residents. The study shows that Israel accounted for 1.28% of all scientific articles worldwide. The leading field in Israel was mathematics, in which Israel accounted for 2.74% of all articles, followed by computer science (2.22%) and physics (1.52%).

The study also counted the number of times scientific research was quoted in science and technology publications. It was discovered that Israeli research was most frequently quoted in molecular biology, life sciences, and immunology. Another important figure is the high proportion of quotes of Israeli research, compared with the global proportion. Israeli research is ahead of research in other countries in the proportion of quotations in almost every science and technology field.

The Neaman Institute study reveals a number of interesting statistics about the high proportion of women in the civilian R&D labor force, and in institutions of higher learning.

The study says that, according to figures from the Israel Central Bureau of Statistics and the European Commission, the proportion of women among R&D workers in Israel was 23.4%. This puts Israel in second place, behind Denmark, ahead of Sweden, Finland, and Spain.

Women accounted for 37% of all degrees granted in science and engineering in Israel, one of the highest proportions in the world. This compares with 38% in Ireland and 25% in Finland.

Published by Globes [online] - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:34 AM

http://www.globes.co.il/serveen/
Psagot Ofek sees rising economic uncertainty

“It cannot be ruled out that early elections will prevent approval of the 2006 budget.”

Zeev Klein 18 Aug 05 14:52

Vered Dar, chief economist of Psagot Ofek, Bank Leumi’s (TASE: LUMI) investment house, and former Ministry of Finance deputy director for economics, predicts that political upheaval may increase economic uncertainty by making preventing passage of the state budget for 2006.

In her new economic forecast, Dar writes that as a result of political upheaval, “It cannot be ruled out that early elections will prevent approval of the 2006 budget, which will be submitted to the Knesset in late October.” If this occurs, Dar expects the government to continue operating according to the budget from the preceding year, as it has done in preceding years. The vacuum will then continue until a new government is formed and a new state budget approved.

In this context, Dar noted that the speed with which Prime Minister Ariel Sharon announced the appointment of a new minister of Finance indicates the importance that both he and acting Minister of Finance Ehud Olmert attach to adherence to the clear economic policy line prevailing during former Minister of Finance Benjamin Netanyahu’s term. Dar says that Netanyahu’s policy unquestionably won the support of local economic players and foreign investors in the Israeli capital market.

Figures show that foreign investors invested $705 million in Israel in July, including $401 million in stocks and bonds traded on the Tel Aviv Stock Exchange. Total investment in the capital market in July was the same as in June, but its distribution was different; investment in stocks was higher in July than in June, and investment in bonds was lower.

In her macroeconomic review, Dar noted the following points:

It is difficult to find any trace of the many dramatic events of the past four weeks in the capital and foreign currency markets. At the same time, the effect of these events is evident in the particularly sharp daily fluctuations on the stock and bond markets.
The Consumer Price Index (CPI) surprised the market by rising 1.1% in July. The CPI is expected to rise by 0.3% in August, and by 2.5% in 2005 as a whole.
The gap between the shekel and dollar interest rates was completed eliminated in August for the first time ever, but this had no immediate effect on the shekel-dollar exchange rate.
Despite the unexpected rise in the CPI in July, no new changes in the shekel-dollar exchange rate are expected before the end of August. The Bank of Israel interest rate will remain unchanged at 3.5% in September.

Published by Globes [online] - www.globes.co.il - on August 18, 2005

TalB

August 19th, 2005, 03:36 AM

http://www.globes.co.il/serveen/
Clubmarket deal excellent for Super-Sol - sources

“Dankner is buying an excellent business, which generated competition in the retail market.”

Keren Tsuriel-Harari 18 Aug 05 13:16

Sources close to the Borovich-Mozes-Rosen group and capital market sources said today that Super Sol (NYSE: SSLTF.PK; TASE: SAE), controlled by Nochi Dankner, had made a very good deal by acquiring Clubmarket Marketing Chains Ltd. “Dankner is buying an excellent business, which generated competition in the retail market, and produced an annual NIS 80 million cash flow and an annual turnover of NIS 3.5 billion” the sources said. They added that it would be extremely foolish not to acquire Clubmarket.

Another reason why the deal is worthwhile is the capital that the Borovich-Mozes-Rosen group injected into Clubmarket. The chain being sold has NIS 1.2 billion in debt, the same amount of debt Clubmarket had when Borovich-Mozes-Rosen group acquired it in late 2001. The NIS 400 million invested in Clubmarket by its owners has significantly improved its business, despite its problems.

The sources said that the deal was also very good for Clubmarket’s suppliers and employees. The capital injected in recent years, the improvement in the chain, and now its sale, are preventing loss to the suppliers. If Super-Sol’s acquisition is completed, suppliers will receive all the money they are owed, or the vast majority of it.

Clubmarket controlling shareholder Oded (Dedi) Borovich declined to comment. From a legal standpoint, Clubmarket’s owners are not a party in its sale, which is being conducted by its trustees, under court auspices.

Published by Globes [online] - www.globes.co.il - on August 18, 2005

source27

August 19th, 2005, 08:04 AM

yes the stock market is going up on the backs of 9000 refugees because of our terrorist government.. hooray! more money for the people who already have more money than theyw ill ever need! lets all clap hands and destroy a few more lives for a little more green arrows going up!!

TalB

August 21st, 2005, 02:36 AM

It's still good that terrorism hasn't affected the stock market after all these years.

source26

August 21st, 2005, 09:23 AM

The stock market is controlled by 50 super-wealth israeli families, who jointly own roughly 50-60 percent of israel's economy, from the major companies, banks, food stores, factories, real estate, you name it - its theirs!
They have homes and accounts here and everywhere in the world, and as long as us slaves produce money for them, they wont leave israel. They are the local oligarchs.

Israel's 600 richest (mostly grouped in families) are worth US$45-50 billion
Some of these families are:
(7 richest figure in billions of new shekels, 4.5 nis = 1$)

Ofer Brothers 11 billion NIS
Podhortser family
Wertheimer family 11 billion NIS
Arison family 16 billion NIS
Morris Kahn 7 billion NIS
Yitzhak Tshuva 4.09 billion NIS
Beni Steinmitz
Strauss Family
Dankner family
Borovitch Family
Shachar - Karaso Family
Leviev family 11.2 billion NIS
Michael Chernoy 9.5 billion NIS
Arkadi Gdeimak
Hertzikovitch Family
Sami Shimon

we are all their slaves. they control business and finance and can influence political descisions and threaten the government.

source26

August 21st, 2005, 09:47 AM

http://www.nrg.co.il/online/16/ART/783/681.html

this is the "israels richest" article of 2004, meanwhile with the stock market they all got richer.. of course.

TalB

August 22nd, 2005, 05:03 AM

http://www.globes.co.il/serveen/
Stocks keep rising as Gaza evacuation nears end

The Tel Aviv 25 index crossed the 725-point threshold. Long-term bond yields dropped to a low of 6%.

Roy Meltzer and Gadi Golan 21 Aug 05 17:13

The positive trend on the Tel Aviv Stock Exchange (TASE) continued today as the new trading week opened, with the leading indices reaching new record heights. The Tel Aviv 25 index was up 0.6% to a record 725 points by early afternoon.

The calm implementation of the disengagement plan, and foreign investors’ optimism about the local market, are still driving the TASE upward. In addition, the recently published impressive growth figures for the first half of the year are continuing to influence foreign investors, combined with the newly created diplomatic horizon, is causing them to perceive the TASE as a quite attractive investment opportunity.

Paralleling the positive trend on the stock market, prices on the bond market have also been rising sharply recently. Yields on long-term shekel bonds are now traded at an all-time low of 6%, reflecting the plunge in Israel’s risk premium, compared with recent years.

The foreign currency market is also stable, with the shekel-dollar exchange rate hovering below NIS 4.50/$. The strength of the shekel is underscored by the dollar’s rise against leading international currencies, and the interest rate parity between Israel and the US, which are not undermining the stability of the local market.

Another recent feature is that Israelis have not been playing a part in the TASE boom. Since a huge sell-off in June, Israelis have converted most money previously invested in share-based mutual funds to foreign currency-based mutual funds, consequently missing the latest surge in stock prices.

As of web-posting, IDF and Israel Police forces have been evacuating the settlements of Atzmona, Katif, and Slav, thereby completing the pullout from Gush Katif. Meanwhile, following cabinet approval today for the evacuation of settlements in the northern Gaza Strip, IDF and Police forces also entered Elei Sinai, where 30 families remain. Netzarim will be evacuated tomorrow. Later this week, units will be transferred to northern Samaria, where confrontations have already broken out today.

Prime Minister Ariel Sharon said today, “I see that the Yesha Council has caused settlers great suffering, and calling on them to move to tent encampments, even though there has been a longstanding plan enabling them to live as they would like. There are those prepared to cause people to suffer, in order to ensure that their political goals are carried out.”

At today’s cabinet meeting, the SELA administration presented updated figures: 1,203 families have applied for compensation, 729 families have received payments in varying stages; 729 families have contacted the education system, but over 800 families have not yet made any contact concerning classes for their children in the 2005-06 school year.

Published by Globes [online], Israel business news - www.globes.co.il - on August 21, 2005

TalB

August 22nd, 2005, 05:04 AM

http://www.globes.co.il/serveen/
State of the Economy index up 0.1% in July

Overall economic activity rose by 1.5% in the first half of the year, compared with the first half of 2004.

Zeev Klein 21 Aug 05 17:08

The State of the Economy index rose 0.1% in July, after remaining unchanged in June, the Bank of Israel announced today.

Overall economic activity rose by 1.5% in the first half of the year, compared with the first half of 2004, and rising 4.3% in 2004 as a whole. The Bank of Israel said developments in the State of the Economy index reflect continuing economic growth.

5,000 business sector jobs were added in May, to reach 1.73 million. 92,000 business sector jobs have been created since January 2004, an increase of 5.6%.

The 0.1% rise in the State of the Economy index in July followed a cumulative 0.5% drop in February-June, after remaining unchanged in December 2004-January 2005.

In a separate development, Prof. Rafi Melnick today published his Melnick Index on the economic situation. The Melnick Index fell 0.1% in July, after rising 0.5% in May-June, and 0.7% since March. The Melnick Index completely contradicts the Bank of Israel State of the Economy index. Melnick said the Melnick Index for July reflected the lack of change in economic activity, although the high level of private consumption was maintained.

Published by Globes [online], Israel business news - www.globes.co.il - on August 21, 2005

TalB

August 22nd, 2005, 05:06 AM

http://www.globes.co.il/serveen/
Sun: Israel Chemicals leads rises

The Tel Aviv 25 index closed 0.13% higher today, with traders still attributing the market's strength to foreign investors. Israel Chemicals attracted attention in advance of its quarterly results.

Roy Meltzer 21 Aug 05 19:02

The Tel Aviv Stock Exchange rose today. The Tel Aviv 25 index rose 0.13%, to 721.55 points; the Tel Aviv 100 index rose 0.25%, to 728.77 points; and the Tel-Tech index rose 0.31%, to 404.82 points. Turnover totaled NIS 794 million.

The positive trend on the Tel Aviv Stock Exchange (TASE) continued today as the new trading week opened, with the leading indices reaching new record heights. The Tel Aviv 25 index was up 0.6% to a record 725 points by early afternoon, but fell back a little by the close.

The calm implementation of the disengagement plan, and foreign investors’ optimism about the local market, are still driving the TASE upward. In addition, the recently published impressive growth figures for the first half of the year are continuing to influence foreign investors, combined with the newly created diplomatic horizon, is causing them to perceive the TASE as a quite attractive investment opportunity.

Paralleling the positive trend on the stock market, prices on the bond market have also been rising sharply recently. Yields on long-term shekel bonds are now traded at an all-time low of 6%, reflecting the plunge in Israel’s risk premium, compared with recent years.

The foreign currency market is also stable, with the shekel-dollar exchange rate hovering below NIS 4.50/$. The strength of the shekel is underscored by the dollar’s rise against leading international currencies, and the interest rate parity between Israel and the US, which are not undermining the stability of the local market.

Another recent feature is that Israelis have not been playing a part in the TASE boom. Since a huge sell-off in June, Israelis have converted most money previously invested in share-based mutual funds to foreign currency-based mutual funds, consequently missing the latest surge in stock prices.

Traders in the market said that foreign investors were still fueling the positive trend. Although activity by foreigners was lighter today, there were interesting developments in this respect at the end of last week, when popular TheStreet.com guru Jim Cramer said that Israel was a preferred target for investment. He cited the relatively quiet evacuation of the Gaza Strip, and said that accelerated economic growth was likely to follow.

Israel Chemicals led the positive trend. After days of treading water, the share rose 1.1% today, ahead of the scheduled release of its results on Tuesday.

Among other leading shares, the trend in the banks was mixed. Bank Hapoalim was down 1.3%, and Bank Leumi 1%. United Mizrahi Bank gained 0.4%, while Israel Discount Bank slipped 0.1%. The sharp rises in banks shares in recent weeks also boosted the shares of a number of small holding companies owning bank shares. These include Israel Salt Industries, which owns Bank Hapoalim shares; Jewish Colonial Trust, which owns Bank Leumi shares; and Mivtach Shamir, which recently acquired a stake in Salt Industries.

Among the other beneficiaries of the today’s positive mood were the IDB shares, which scored handsome rises. Clal Industries and Investments rose 1.3%, following publication of its second quarter results, and roof company IDB Holding added 0.9%. Elron Electronic Industries continued its climb today with a 2.2% rise, following the positive trend in Given Imaging’s share in recent days.

Of the other Tel Aviv 25 index shares, Osem Investments (controlled by Nestle) inched up 0.3%, after reporting the setting up of a new Tivall factory in the Czech Republic at an investment of $30 million. Africa-Israel Investments rose 0.4%, after reporting that it would post a NIS 130 million capital gain in the third quarter from the Alon USA’s IPO. Israel Corporation was up 1.6%, following the rise in Israel Chemicals. Elbit Medical Imaging climbed 2%, after reporting a distribution agreement between its InSightec subsdiary and General Electric from the end of last week.

Africa-Israel Properties dipped 0.3%, despite a positive second quarter report, and Golan Fine Crafts zoomed 32.2%, after reporting the acquisition of real estate activity for NIS 100 million. Gazit-Globe added 0.8%, after reporting another quarter of growth.

Published by Globes [online] - www.globes.co.il - on August 21, 2005