20% Growth in the Number of Life Science Companies and 34% Growth in the Number of Life Science Employees in Jerusalem Relative to 2006.

Nir Barkat, Mayor of Jerusalem: "I intend to raise and invest 100 million NIS in Jerusalem's biomedical industry over the next 5 years"

JERUSALEM -- Speaking today in a reception organized by Yissum Research Development Company Ltd., the Technology Transfer Company of the Hebrew University of Jerusalem, as part of the ILSI Biomed 2009 conference, Mr. Nir Barkat, Mayor of Jerusalem, said that the Jerusalem Municipality, in collaboration with the Jerusalem Development Authority, intends to raise and invest approximately 100 million NIS over the next 5 years to promote the health and life sciences business cluster in the capital city. The budget will be allocated to bolstering infrastructure necessary for biomedical research and development; training skilled personnel for the life science industry; promoting and populating the first Israeli biomedical industry park situated in the campus of Hadassah medical center and the Hebrew University School of Medicine; and for establishing an investment fund that will focus on life science companies based in Jerusalem.

Mayor Nir Barkat: "I am personally committed to the field of biomed and the health and life sciences business cluster as a core competitive advantage that we must exploit in Jerusalem. Among other things, I intend to award financial incentives in order to encourage international companies to put down roots in Jerusalem, as well as to define Jerusalem as a Special Economic Zone with tax benefits for high-tech and biotech companies. These steps are intended to turn Jerusalem, the health and life sciences capital of the State of Israel, to a renowned partner in the international arena."

The Mayor explained that he has long considered the health and life sciences business cluster as a field of utmost importance for the economic growth of the city and for the creation of new jobs, and that he fully intends to continue and even intensify the growth of the capital's biomedical industry that we are witnessing in the past few years.

Shirley Kutner, Ph.D., Executive Director of BioJerusalem, the Jerusalem Development Authority added, "Despite the economic situation, we have seen a 20% growth in the number of companies and a 34% growth in the number of biomed employees in town relative to 2006. With Teva Pharmaceutical Industries as the anchor of the pharma industry in Jerusalem, additional bio-pharma companies, such as Protalix and Omrix, recently purchased by Johnson & Johnson, join the 110 biomed companies that are currently based in Jerusalem and that employ over 3,250 people. We project that the growth trend will significantly increase in the near future. The investment on behalf of biomed companies is expected to top $350 million over the next five years. This growth will be accompanied by an addition of some 2,000 employees with academic degrees in biology, biotechnology, chemistry, pharmacy, and engineering."

The life science industry in the capital is based on impressive academic infrastructure and R&D that have already yielded two innovative drugs, Doxil and Exelon, which originated from the Hebrew University and are sold at over a billion dollars per year. Jerusalem is Israel's leading knowledge center in the life science field in general, especially in bio-pharma. Approximately 43% of all biotech research in Israel is performed at the Hebrew University, and Hadassah Medical Center is responsible for about half of the clinical research in the country. Of note is the School of Pharmacy of the Hebrew University, the first and only of its kind in Israel, which has long been a strategic partner of the biotech and pharmaceutical industry, and that has recently been converted to an institute for drug research and development. In addition, Jerusalem hosts the only incubator in Israel dedicated to drug development - BioLine Innovations Jerusalem. The town's assets render Jerusalem the natural center of the biomed industry in Israel.

About the Jerusalem Development Authority

The Jerusalem Development Authority is a statutory authority pivotal in initiating and advancing projects that shape the city's economic status, and assist in the development of the city. The Jerusalem Development Authority advances novel projects that improve that quality of life of the city's residents turning Jerusalem into a center of excellence. In the last two decades, the Jerusalem Development Authority has advanced dozens of projects that benefited the quality of life in the city, including infrastructure (roads, public spaces and parks), housing (many apartments in new neighborhoods), and employment (industrial parks, technology centers and incubators). For further information, please visit www.jda.gov.il

About BioJerusalem

An initiative of the Jerusalem Development Authority, BioJerusalem was founded to help fuel the economic development of Jerusalem by leveraging the vast life sciences resources available in the city. BioJerusalem is committed to developing Jerusalem into a thriving life sciences center of sustainable enterprises and solid investments, grounded on cutting edge innovation. BioJerusalem is the hub for life sciences in the city, connecting life science companies with resources, offering guidance to companies, attracting ventures to Jerusalem, encouraging the creation of new enterprises in the city, and strengthen the ties between the local and global life sciences industry. For more information and to access BioJerusalem's database, please visit www.biojerusalem.org.il.