Not just a bond A bond with Israel

As an investor (or potential investor) in Israel Bonds, you will be interested to learn of important changes to the Israel Bonds portfolio that became effective March 1, 2006. These changes include the addition of new securities and features, including instruments with maturities of only two years.

Savings Bonds These new bonds are offered with a 2 year maturity. The bonds have a minimum $2,500 purchase price and multiples of $2,500, and carry a fixed rate of interest payable upon maturity. Jubilee Bonds Fixed annual interest rate for the life of the bond is determined one business day before the beginning of the Sales Period. Issued on the 1st, 8th, 15th and 22nd of each month. Matures in 2 or 5 years, depending on which series is purchased. Interest paid every May 1st and November 1st. Minimum Subscription: $25,000 and multiples of $5,000. Floating Rate LIBOR Bonds Initial interest rate is equal to the 6-month LIBOR rate in effect on the initial determination date plus or minus a spread. The spread remains fixed until maturity. Issued on the 1st, 8th, 15th and 22nd of each month. Matures in 2 or 5 years, depending on which series is purchased. Interest paid every June 1st and December 1st. Minimum subscription of $5,000 and multiples of $2,500 State of Israel Savings Bonds Fixed annual interest rate for the life of the bond is determined one business day before the beginning of the Sales Period. Issued on the 1st, 8th, 15th and 22nd of each month. Matures in 1, 3 or 10 years, depending on which series is purchased. Interest not paid until maturity. Minimum Subscription: $2,500 and multiples of $2,500. Mazel Tov Bonds Fixed annual interest rate for the life of the bond is determined one business day before the beginning of the Sales Period. Matures 5 or 10 years from issue date, depending on which series is purchased. Interest not paid until maturity. Minimum Subscription: $100 and additional multiples of $50.

The versatility of the new Israel Bonds portfolio offers significant choices for numerous investment objectives, including retirement plans, foundation endowments, matching funds programs, and charitable and personal gift-giving. The new Israel Bonds portfolio will play an important part in helping to build a new Israel. We are confident of your continued support.

For a prospectus and complete purchase details, contact our local Israel Bond Office

Israel Bond Office, 800 752-5652 230 Old Bridge Turnpike South River, NJ 08882 Telephone: 732-390-2173

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