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Israel sold 8.33% of Discount Bank to UBS

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Sunday, September 26th, 2010

In July, the State of Israel sold 8.33% of the shares of Discount Bank to the investment bank UBS, which won a competitive proceeding, for a consideration of NIS 552,688,172. Four foreign
investment banks entered bids in the tender. In the transaction, executed by Finance Ministry Accountant General Shouky Oren according to the instructions of Finance Minister Dr. Yuval Steinitz, UBS purchased 8.33% of the shares of Discount Bank at an average price of NIS 6.789 per share, or a total of NIS 552,688,172. As part of the deal, the government agreed to sell no additional shares of the bank for ninety days.

Both foreign and Israeli investors participated in the sale. This is the first time that a buyer bank (UBS) in a block-trade sale of bank shares has succeeded in generating sufficient demand in order to exercise this
option. Following the completion of the transaction, the State of Israel holds 11.67% of the shares of Discount Bank. The state also holds approximately 10% of the shares of Bank Leumi.