Bank Hapoalim Named Best Bank in Israel by GLOBAL FINANCE Magazine; In Effort to Further Streamline, Bank Hires McKinsey Company.

TEL AVIV, Israel--(BUSINESS WIRE)--Oct. 25, 1999--

The American financial monthly, GLOBAL FINANCE, has named Bank Hapoalim, Israel's largest bank, "Best Bank in Israel."

In their special edition for the International Monetary Fund Meetings in Washington, the publication ranks the world's banks by various categories, including financial management, sophistication, innovation, range of products, and the ability to overcome challenges.

GLOBAL FINANCE pointed out that Bank Hapoalim was able to thrive despite the slowdown and rising unemployment rates in the Israeli economy. The publication noted the fact that Bank Hapoalim is the only Israeli bank traded on the London Stock Exchange, which will enable it to expand its investor base and increase liquidity.

GLOBAL FINANCE also noted that Bank Hapoalim's shareholders' equity, total assets, return on equity and net profit were the highest in the banking system in Israel.

McKinsey Company to Consult on Streamlining Measures

The Board of Management of Bank Hapoalim has hired the McKinsey Company to examine procedures within the Bank, in an effort to streamline the Bank's expenditures.

This is a further step in an overall program, initiated two years ago, to cut back on expenditures and bring down the Bank's operational costs. In the past two years, the Bank has offered two early retirement programs, cutting its payroll by 700 employees.

The McKinsey company will consult the Bank on areas such as contracts with suppliers, and expenses for maintenance and construction, but not on organizational structure or human resources.

Mr. Jacob Elinav, a member of the Board of Management, is responsible for streamlining program, and will oversee McKinsey's work with the Bank.

Bank Hapoalim is the most efficient among the five largest banking groups in Israel, with a ratio of expenses to income which declined to 59.1 percent in the first half of 1999.

Bank Hapoalim has more than 360 branches and offices in Israel and in 15 financial centers worldwide.