A New Index on the TASE: Tel-Div 20 - the Index of Dividend Payers.

TEL AVIV, Israel -- The TASE is launching a new index - the Tel-Div 20. This index will be comprised of the twenty shares listed on the TA-100 with the highest annual dividend yield. The index will be launched on July 1, 2006.

Dividend indices are common in major capital markets; examples include the Div-Dax on the German stock exchange and the pan-European Dow Jones Stoxx Select Dividend 30 Index. The index is attracting interest from institutional investors and Index linked certificates issuers. Inclusion in the index will help companies improve their tradability.

The new index will be updated twice a year, along with the TASE's other leading indices, based on companies' dividend yield over the past year.

A research thrown by TASE indicates that dividend payments on the TASE have grown consistently in recent years, parallel to the growth in companies' profitability. A structural change has also taken place: more and more companies are sharing profits with shareholders as part of a long-term dividend payout policy.

"The accepted view in developed securities markets is that dividend distribution sends a message to the market that the company is strong, profitable, and able to create value for investors in its shares," commented Dror Shalit, Senior Vice President and Head of the Trading and Clearing Department. "The launch of the Tel-Div 20 index will encourage TASE-listed companies to adopt a long-term dividend policy."