2007

Arledan Investments Ltd.

Company Profile

20082009

2

► Arledan is a leading public investment company.

► The company invests in several areas such as real estate,

publishing, print, electronics and startups, as well as

various financial investments.

► The company was incorporated in 1971 as a private

corporation, and acted primarily as a real estate

developer.

► In 1981 Arledan went public, and its shares have been

traded ever since on the Tel Aviv Stock Exchange.

Arledan Investments Ltd. (“Arledan”)

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Real Estate and Construction

► Arledan acts as a developer with regard to properties it owns,

and also rents out various commercial and residential

properties, primarily in Jerusalem and Tel Aviv.

► Some of the projects Arledan has successfully developed

over the years include residential projects in the

neighbourhoods of French Hill, Gilo, Givat Oranim and

Mevaseret Zion, as well as residential and commercial

projects in downtown Jerusalem.

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Publishing

► Through its subsidiary, the Keter Publishing House,

Arledan is one of Israel's leading publishers of quality

literature, as well as providing management, production

and marketing services to the "Ma'ariv Library", the

publishing arm of one of Israel's largest daily newspapers.

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Publishing

► Keter recently merged its publishing business with that of

the Steimatzky Group Ltd., which is also Israel's largest

retail bookstore chain.

► The joint activity is conducted in a new company called

Keter Books Ltd., which is owned 81% by Keter and 19%

by Steimatzky.

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Print

► Through Keter's printing plant Arledan provides

production and print services, primarily to other printing

houses and commercial customers.

► Keter recently took over the printing arm of

“Keter Digital", which specializes in commercial digital

printing.

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Importing and Marketing of Electronic Components

► Arledan is a major shareholder in Telsys Ltd.,

one of Israel's largest importers and marketers of

electronic parts.

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High-Tech Startups and Venture Capital Funds

► Arledan has invested in several Israeli high tech

start-up companies, both directly and through a

venture capital funds.

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Company Mission and Strategy

► Arledan is a very liquid and stable investment

company. The company’s shareholders equity

stands at NIS 207 million according to the IFRS

(most of it in cash and short term investments) and

finances 37% of its combined balance sheet.

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Company Mission and Strategy

► The company's high level of liquidity puts it in a convenient

position to take advantage of business opportunities in

both Israel and abroad.

► Arledan seeks to add value to its investment portfolio by

locating entrepreneurial investment opportunities which

would give expression to the company's decades of

business and management experience.

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Group Structure - updated to December 31, 2009

ARLEDANInvestments

Ltd.

ARLEDANInvestments

Ltd.

Arledan Luxemburg

Ltd.95%

Arledan Luxemburg

Ltd.95%

Rosetime Investments

Ltd.25%

Rosetime Investments

Ltd.25%

Keter-PublishingHouse Ltd.

81%

Keter-PublishingHouse Ltd.

81%

Telsys Ltd.21.14%

Telsys Ltd.21.14%

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Arledan Holdings Ltd.

26.84%

Arledan Holdings Ltd.

26.84%

Public27.81%Public

27.81%

Achi Neemanut

Ltd.43.74%

Achi Neemanut

Ltd.43.74%

Keter-Publishing House Ltd.

1.61%

Keter-Publishing House Ltd.

1.61%

ARLEDANInvestments

Ltd.

ARLEDANInvestments

Ltd.

Share Holders

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► The company was established in 1971 and acted

primarily as real estate developer.

► The company’s shares were registered for trade on the

Tel Aviv Stock Exchange in 1981.

► In 1992 Arledan acquired control of one of Israel’s

biggest publishing house – the publicly-traded

Keter Publishing House Ltd.

Major Milestones

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► In 1993 Arledan acquired 50% of a private company Telsys Ltd.,

which imports and sells electronic components to the Hi-Tech

industry in Israel. One year later Telsys Ltd. shares were

registered for trade on the Tel Aviv Stock Exchange.

► In January 2006 Arledan sold a 6,000 square metre plot in

downtown Jerusalem for $23 million.

► At the end of 2006 Arledan bought a 12,000 square metre plot

in Tel Aviv with significant development potential for

approximately $15 million.

Major Milestones

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Consolidated Balance Sheets IFRSAssets December 31 2008 December 31 2007

Current Assets

Cash and cash equivalents 54,134 46,101

Marketable securities 67,072 148,382

Other accounts receivable 55,035 34,549

Tax receivable 5,012 3,982

Inventories 12,885 10,473

Total current assets 194,138 243,487

Investments and long term investments

Held to maturity 17,931 31,424

Loans and receivables 998 4,429

Available for sale 5,271 5,620

Assets due to severance pay 857 1,078

Deferred taxes 135 138

Land for construction 221,512 118,985

Investment in subsidiaries 31,356 31,612

Other long term investments 2,451 2,388

Total long term investments 277,203 192,208

Property and equipment, net 68,838 68,230

Intangible assets 0 665

Total assets 543,487 504,590

Liabilities and shareholders equity

Current Liabilities

Short term loans 40,935 26,278

Accrued expenses and other liabilities 29,272 31,739

Total current liabilities 70,207 58,017

Long term liabilities 271,210 212,980

Shareholders equity (including minority) 202,070 233,593

Total liabilities and shareholders equity 543,487 504,590 NIS in thousands

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Consolidated Statements of OperationsYear ended Year ended

December 31 2008 December 31 2007Revenues 78,342 68,724 Cost of revenues 58,302 46,735 Gross profit 20,040 21,989Operating expenses Selling and marketing 10,813 8,057 General and administrative 13,769 11,574Other income/(expense) (287) 4,488Total operating expenses 24,869 15,143 Operating income/(expense) (4,829) 6,383 Financial expense (34,370) (16,200) Financial income 6,733 7,389 Equity profits, net 3,784 3,197

Income/(expense) before taxes on income (28,682) 769 Taxes on income ( tax benefit) (4,632) (1,859) Income after taxes (24,050) 2,628Net income/loss (24,050) 2,628

NIS in thousands

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Management Team

Chairman of the Board

Chairman of the Board

Chief Executive Officer

Chief Executive Officer

Chief Financial OfficerChief Financial Officer Business Development

Business Development

Corporate Legal Advisor

Corporate Legal Advisor

AccountingAccounting

Investments and Assets

Investments and Assets

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Selected Projects

Arledan building 1, Jerusalem

Arledan House, Jerusalem

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Selected Projects

Residential Building, Trumpeldor St., Jerusalem

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Selected Projects

Residential Building, Givat Oranim, Jerusalem

Residential Building, Givat Oranim, Jerusalem

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Selected Projects

Residential Building, Gilo, Jerusalem

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Selected Projects

Residential Building, Nof Harim, Mevaseret Zion

Residential Building, Nof Harim, Mevaseret Zion

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Selected Projects

S M H Logistik-Park, Germany

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Selected Projects

Mega Area “Atidim”, Tel Aviv

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