Gmul Investments Gmul Investments Company LtdCompany Ltd..

Company overview

IntroductionIntroduction

Gmul investments company is one of the leading Gmul investments company is one of the leading investments companies in Israel. It was established investments companies in Israel. It was established in 1950 as a major investments group for provident in 1950 as a major investments group for provident funds and is traded on the Tel Aviv Stock Exchange. funds and is traded on the Tel Aviv Stock Exchange. Gmul is controlled by the Gmul is controlled by the Building & Assets Company, Building & Assets Company, Mishor Hachof Ltd., which has Mishor Hachof Ltd., which has built thousands of housing built thousands of housing units throughout the country units throughout the country since the early 1980’s.since the early 1980’s.

Residential units in Shoam, Israel, built by the mother-company

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Financial Data Gmul

31.12.2006 Million NIS

Current Assets 1,220

Long Term Assets 702

Total Assets 1,922

Short Term Liabilities 678

Long Term Liabilities 804

Equity 440

Profit for 12 months 108 Million NIS

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Gmul Organizational Structure

Residential Real-estate in Israel

Gmul is focusing on developing & building residential neighborhoods in Israel.

Gmul owns lands in central Israel and plans to built over 1,421 housing units (re-zoning already approved). 1,396 units are still waiting for re-zoning .

Gmul’s activities in this field include acquiring land, designing, developing it for housing, building thorough constructors; as well as marketing and selling the residential units.

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Residential Real-estate in Israel Main projects

Beit-HashmonaiBeit-Hashmonai

•Phase 1 – Phase 1 – 96 residential units were sold during construction and are being populated these days

•Phase 2 – Phase 2 – Beginning of marketing of 60 more residential units is expected during 2007

•A commercial center of 950 m2.

Photo of the units built by the company in Beit-Hashmonai, Israel

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NetaniaNetania – –

•Building 160 residential units in 2 buildings.

•Beginning of marketing & construction is expected during 2007

Demonstration of the buildings in Netania, Israel

Residential Real-estate in Israel

Main projects

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Residential Real-estate in Israel Main projects

Demonstration of the buildings in Yahud, Israel

YahudYahud (70%) – (70%) –

•Phase 1Phase 1 – approved re-zoning for 332 residential units + 8,600 m2 commercial. The target is to convert commercial ground into commercial hence creating up to 523 residential units + 600 m2 commercial.

•Phase 2Phase 2 - Demolition of 154 residential units and construction of 921 residential units instead.

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Residential Real-estate in Israel Main projects

Demonstration of a building in Petah-Tikva, Israel

Petah TikvaPetah Tikva – –

•Building 523 residential units in 8 towers.

•Beginning of marketing and construction is expected during 2008.

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Residential Real-estate in Israel Main projects

Demonstration of the buildings in Rehovot, Israel

RehovotRehovot (50%) – (50%) –

•Building up to 270 residential units in several buildings.•Beginning of marketing and construction is expected during 2008.

The project is still subject to re-zoning.

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Residential Real-estate in Israel Main projects

“Magic Future in Ramat-Hasharon, Israel

Ramat-Hasharon (40%)Ramat-Hasharon (40%)– – •Building, marketing & operating 212 units at the prestigious “Magic Future” retirement community. The project is active since 1.07, about 108 units out of 212 were sold.

Commercial Real-estate in Israel

Gmul is constructing and marketing 2 commercial centers in Modiin (50%):

•2 floors commercial center of 4600 m2, including about 46 stores, 3,069 m2 have already been sold.

•Commercial center of 2,428 m2, including

about 21 Shops. 1,482 m2 have already been sold.

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Residential Real-estate Israel

Units Income Profit

Beit-Hashmonai 156 66* 10*Netania 160 212 29*

Yahud (70%) 332 376* 53*Petah Tikva 523 478 67*

Modiin (50%)commercial 99* 22*

Rehovot Up to 270

Total 1,411Numbers are in Million NIS

•Expected and subject to the beginning date, construction pace, materials cost etc’. The profit is before Tax and not capitalized.

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Gmul Hotels

Gmul owns a chain of hotels in prime tourist locations in Israel, including:• On the shores of the Dead SeaOn the shores of the Dead Sea – – 160 rooms

hotel, operating in 80% capacity. • EilatEilat – – 159 rooms hotel• JerusalemJerusalem – – 96 rooms hotel, some of which are

used for the “Hadassah Baby” maternity hospital.

• NetanyaNetanya – – 155 rooms hotel by the sea. • St. Louis, MissuriSt. Louis, Missuri – – 392 rooms hotel near the

airport.

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Gmul Hotels

Eilat Natanya Dead Sea

St. Louis Jerusalem

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Gmul Vehicles

• Gmul holds a long term license and franchise to import, market and service Subaru vehicles in Israel via its substantial stake in Metis Capital.

• Metis also holds a franchise from Europcar to rent and lease cars, as well as real-estate in high demand areas.

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Introduction

• Balkan Capital is a subsidiary of Gmul Ventures.

• Balkan Capital has been focusing in the past year on developing business opportunities in eastern Europe.

• The current activity is in the fields of real-estate.

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Balkan Capital’s Strategy

Balkan Capital is planning to create a portfolio in Albania and Romania, we will consider other countries as well.

The preference:1. The availability of construction in a short period of time.2. Local partners.3. Profitable projects.4. High probability for pre-sale of about 25% with the

beginning of the activity.

The target: to examine the possibility of IPO in the future.

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Current Portfolio – Gmul Ventures

Project m2 Equity Capital

New Tirana (Albania)

16,094 800,000€

Lake Fundeni Towers (Romania)

10,000 1,800,000 €

Pipera (Romania) 135,000 9,7000,000 €

Otopen (Romania)*

55,000 3,500,000 €

Total 216,094 15,800,000 €

* Owned by Gmul Investments company.

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Real-Estate

• Tirana, the Albanian capital has tripled its population in the last decade and is a preferred location for purchasing apartments. Respectively there is also a high unanswered demand for commercial property.• The demand for apartments stands at 19,000 per year, while the number of apartments built each year is about 4,500. • Due to the high demand for residence, people tend to buy apartments immediately at the beginning of the projects. Respectively, most of the equity capital is funded by pre-sales

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Purchasing Power

1.1. Population relocationPopulation relocation - Albania transformed from an agrarian country into a capitalist country; hence, there was a massive movement of population from the villages into the main cities. This fact created a great demand for purchasing and renting apartments.2. The new middle classThe new middle class - - 800-900,000 Albanian citizens work in neighbor countries, their wage is higher then the average in Albania. This new middle class is a new economic force who seeks to improve its accommodation and can finance it.3. Albanians resident not only in AlbaniaAlbanians resident not only in Albania - - many Albanian resident in neighbor countries. These residents are patriotic and so they see great importance in doing business with Albanian companies, especially purchasing real-estate in Albania (even if only for investment).4. Government activitiesGovernment activities - - recently, during 2006, there was a reform in the income tax in all that is related to buying and selling apartments. This was made in order to encourage construction and to ease purchasing.

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New Tirana and Tirana Heights

Tirana heights and New Tirana are construction projects, located near each other as a part of a new exclusive neighborhood. The complex includes residential buildings, designed to answer the growing demand for accommodation in Tirana.

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New Tirana

Project Simulation Construction site

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Tirana Heights

Project Simulation Construction site

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Sales

The projects has started its pre-sale, the

web site for the sales is: www.fortesal.com

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Real Estate Overseas (Romania)

GMUL is intensively active in developing andfinancing prime residential projects in the Romanian Market.

The company is currently owning and Developing 120,000 m2 of land with projected building rights for approx 200,000 m2, for about 2,100 apartments’ portfolio to be built.

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Real Estate Overseas (Romania)

• Lake FUNDENI Towers – 2 residential towers on the lake waterfront in Bucharest, consist of 10,000 m2 for 130 apartments and underground parking.

• OTOPEN Residential Campus – 61,000 m2 plot of land, consists of 260 units: semi-detached houses, raw-houses and duplexes to be developed in a Campus Style

• AMERICAN REGENCY, PIPERA – a Quality Campus Style development of 135,000 m2 for 1,700 apartments on 54,000 m2 of land, to be develop in high standard.

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Real Estate Overseas (Romania)

OTOPEN Residential Campus – project simulation

Lake Fundeni Towers – project simulation

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Real Estate Overseas (France)

Land of 11.3 thousand m2 including an

office building of 2,861 m2, a basement and

130 parking spaces.

Real-estate Overseas (USA)Real-estate Overseas (USA)

Whitestone, Queens NYWhitestone, Queens NY – – promoting Rezoning procedure on a 13.5 Acers land plot along the east river, including 4.5 acres of waterfront rights, aiming to develop an exclusive residential project consisting of 350,000 SF houses and luxury apartments.

WHITESTONE Queens, NY

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Other InvestmentsOther Investments

1. Polar – 12.3%2. Nitzba – 4.99%3. Tamir Fishman Venture Capital II - 6% 4. Ofir Tech – 15%5. Shamrock – 5.6%6. L Capital – 1.8%7. Proceed – 10.5% 8. Fimi – 2.5% Fimi Opportunity – 1.87%9. Medica I Funs – 9% Medica II – 9%10. Milgam – 25%

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Thank you for the attention!Thank you for the attention!

Gmul Investments Company Ltd.