ISRAEL GOVERNMENT COINS & MEDALS CORPORATION

1. ISRAEL GOVERNMENT COINS & MEDALS CORPORATION

2. BACKGROUND The Israel Government Coins & Medals Corporation (IGCMC) was established in 1961 by David Ben Gurion, the first Prime Minister. The Corporation has remained under the full ownership of the State of Israel. The corporation is active in several spheres of activity: coins, medals, ancient coins, judaica and decorative items, jewelry andart items.

3. GOALS OF THE CORPORATION The Goals of the Corporation stated in the Articles of Association are: To commemorate historic and national events, achievements of the State of Israel, important personalities and leaders, historic sites, meaningful personal and family milestones; to advance Israeli and Jewish art; the purchase and sale of ancient and modern Israeli coins.

4. SPHERES OF ACTIVITY: COMMEMORATIVE COINS AND SPECIAL ISSUES Commemorative coins and special coins are Issued by the Bank of Israel. The Israel Government Coins and Medals Corporation is the exclusive certified distributor of these coins in Israel and worldwide. Five coins are generally struck each year, including an Independence Day coin and a set of Hanukka coins.

5. SPHERES OF ACTIVITY: COMMEMORATIVE COINS AND SPECIAL ISSUES -Continued- • Some of the coins are issued as part of series, for example the • “Biblical Art” series, “Israel Independence Day Coins” series, and “Israeli Nobel Prize Winners” series. • Other coins are issued individually, for example, the “Judo” coin and “Saluting Reserve Soldiers”. • The Corporation markets two sets of circulation coins annually: • Uncirculated Coin Set • Hanukka Mint Set(Contains special coins with the word Hanukka and a tiny Menorah Mint Mark.)

6. SPHERES OF ACTIVITY: ANCIENT COINS למדליות ולמטבעות The IGCMC markets authentic ancient coins and other antiquities, such as oil lamps and jewelry set with ancient Roman Glass. All items are chosen with the assistance of experts. They are sold under license from the Antiquities Authority and are accompanied by certification of authenticity and historical explanations.

7. SPHERES OF ACTIVITY: MEDALS למדליות ולמטבעות • The Corporation strikes and markets medals in Gold, Silver, • Bronze, Copper-nickel, and occasionally Platinum. The design, • production, determination of metal content, quantities, and prices • are the responsibility of the IGCMC. • There are three categories of medals: • Official or State Medals • Official Award Medals • Official Award Medals ordered by a specific institution

8. SPHERES OF ACTIVITY: JUDAICA AND GIFT ITEMS The IGCMC markets gift and decorative items designed by Israeli artists. These products are produced for the IGCMC in limited, numbered editions with the artist’s signature. Many items incorporate in the design medals sold by the Corporation. Most items are sold on consignment. The Corporation also markets Judaica items such as: Hanukka lamps, Mezuzah cases, Bibles, Passover Haggadot, Kiddush cups, etc.

9. SPHERES OF ACTIVITY: JEWELRY AND WATCHES The Corporation markets a variety of jewelry items and watches, frequently embellished with a medal. “Adillion”, a registered trademark of the IGCMC, is a coin or medal mounted in a gold or silver frame. Jewelry items are supplied with a Certificate of Authenticity certifying the design, metal content, and quality of the stones.

10. Art Lovers club The IGCMC offers its subscribers art items including lithographs, serigraphs, sculptures, wall rugs, and other art objects. The art items, chosen with the assistance of the Corporation’s art consultant, include works by artists of world renown such as Chagall, Rubin, Castel, Gutman, and Modigliani, as well as works by promising Israeli artists.

11. MARKETING The IGCMC has a subscriber base of about 40,000 people in Israel and abroad. Six times annually subscribers receive a brochure describing new products offered by the Corporation. Orders are received at the Corporation’s office in Jerusalem where the products are packed and shipped by mail, within Israel and abroad. Orders can also be placed via the online shop on the IGCMC website.

12. MARKETING -Continued- The IGCMC has six shops in Israel: Operated directly – in Tel Aviv, Haifa and Ben Gurion Airport Operated via concession – in Jerusalem, Raanana abd Beersheva

13. PRODUCTION OF COINS Issuing Commemorative Coins of the State of Israel is the exclusive responsibility of the Bank of Israel. In certain cases, the IGCMC is authorized by the Bank of Israel to produce the coins that the Corporation markets. In 2004 the IGCMC set up a mint near Jerusalem. Recent Commemorative Coins issued by the Bank of Israel were struck by the Corporation at quality levels comparable to those abroad. final authorization by the Bank of Israel before they are released.

14. PRODUCTION OF MEDALS The Corporation strikes most gold, silver, and bronze medals up to 50mm (5cm) diameter in the IGCMC mint. The remaining medals are produced in Israel and abroad (mostly in Europe and the U.S.)

15. PERSONNEL TheCorporation employs 40 people. 15 employees are covered by a collective agreement, and 25 work according to private contracts.

16. BOARD OF DIRECTORS ORGANIZATION STRUCTURE ACCOUNTANT LEGAL COUNSEL COMPTROLLER MANAGING DIRECTOR FINANCE DEPARTMENT Computer System DEPUTY MANAGING DIRECTOR PRODUCTION AND PROPERTY DEPARTMENT MARKETING AND ADVERTISING DEPARTMENT LOGISTICS AND VAULT CUSTOMER SERVICE DEPARTMENT Mailing in Israel and Abroad IGCMC Mint DUTY-FREE SHOP TERMINAL 3, BEN-GURION AIRPORT JERUSALEM SHOP (concession) BEERSHEVA SHOP (concession) TEL AVIV SHOP RAANANA SHOP (concession) HAIFA SHOP

17. FINANCIAL INFORMATION Data from the Financial Report In thousands of shekels

18. FINANCIAL INFORMATION Data from the Financial Report In thousands of shekels

19. FINANCIAL INFORMATION Data from the Financial Report In thousands of shekels

20. FINANCIAL INFORMATION Data from the Financial Report In thousands of shekels