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Israel Land Development Company Reports Third Quarter Results.

Business Editors

TEL AVIV, Israel--(BUSINESS WIRE)--Dec. 4, 2000

-A Significant Increase in Profit From Operations of ILDC

for the First Nine Months of 2000-

Israel Land Development Company Ltd ("ILDC") (NASDAQ/ NMS:ILDCY) today announced results for the second quarter and six months ended September 30, 2000.

Ron Weisberg ILDC's Acting CEO stated, "ILDC is focusing and developing two central fields, which we believe to be the industries of the twenty first century: communications, media and content (through Maariv Holdings) and the development of the sectors of insurance and financial services (through ILD Insurance Holdings). All this is founded on the Company's traditional capital base - real estate, which is in fact the basis of our strength."

During the first nine months of 2000 ILDC registered a significant improvement in operating income, including from the operations of its subsidiaries, which totaled NIS 100.5 million and an amount of NIS 31.7 million during the third quarter of the year compared to operating income of NIS 57.1 million for the first nine months of 1999 and NIS 19.2 million for the third quarter of the last year. This can be seen from the financial reports submitted to the Stock Exchange by the acting CEO Mr. Ron Weisberg and the acting co-general manager Mr. Shimon Marfogal.

Ron Weisberg, the Acting CEO of ILDC, said that the improvement in operating income is the result of a significant improvement in the operating income of the communications business, particularly the profits of Maariv- Modiim Publishing and Rapid Ltd., a reduction in the losses of the hotels chain and revenues from the sale of real estate. These positive effects where set-off to some extent by a reduction in operating income from insurance business compared to the equivalent period last year and by the operating losses of Natali Ltd.

Notwithstanding the increase in operating income, the Company registered a decline in income before taxes on income and this due to the particularly high capital gains obtained last year and a significant increase in net financing expenses, which for the first nine months of the year totaled NIS 24.2 million compared to NIS 16.1 million for the equivalent period in the previous year. The main increase in financing expenses resulted from an increase in bank credit and changes in the capital markets, which had an effect on the operations of the insurance company.

The share of the companies in the ILDC Group in the profits of affiliated companies, net, resulted for the first nine months of 2000 in a loss of NIS 21.5 million, compared to a loss of NIS 5.7 million for the first nine months of 1999, and this mainly as a result of losses of Matav, in which Maariv holds about 15% of its shares. Matav's losses resulted from a transition of this company to operative losses, and also as a result of its share of losses of Partner Communications, 15% of whose shares are held by Matav.

As a result of the aforesaid, net consolidated income of ILDC for the first nine months of 2000 reached NIS 30.1 million compared to net income of NIS 79 million for the equivalent period in the previous year. In the third quarter of the year ILDC registered net income of NIS 2.9 million compared to NIS 2.4 million in the third quarter of 1999.

Financial condition - the consolidated balance sheet of ILDC and its subsidiaries on September 30, 2000 totaled NIS 4,609 million compared to 4,071 million on December 31, 1999 and NIS 3,866 million on September 30, 1999.

The main increase in the balance sheet since the beginning of the year resulted from two main reasons. One- The expansion in the volume of ILDC Insurance Business, which reflects an increase in insurance reserves and reserves for pending claims of the insurance group at a rate of about 13%. The second reason - the consolidation for the first time of three companies the main one being Optima Ltd.

In the first quarter of the year ILDC paid NIS 40 million as an interim cash dividend to its shareholders, which reflects a payment at a rate of 141% for every NIS 1 issued share capital. For the last three year ILDC paid a total amount of over NIS 200 million as divided to its shareholders.

At the end of September 2000, the Sevenstar Shopping Mall in Herzlia was opened, in which 65 million dollars were invested. All the areas have been leased.

On October 15, 2000 ILDC moved to its new premises in Arial Shenkar Street, Tel Aviv.

Investor Contact: Cynthia DeMonte DeMonte Associates 212-473-3700

For details: Tali Shaar:052-807771


 The Israel Land Development Company Limited
 Statement of Operations
 Unaudited
 U.S. Dollars in Thousands, except per share data


 Nine months ended Three months ended
 09/30/2000 09/30/1999 09/30/2000 09/30/1999
 ---------- ---------- ---------- ----------

Revenues
Real Estate 26,494 25,661 7,042 4,448
Publishing and Media 180,288 151,190 62,254 51,325
Insurance 105,950 87,569 37,233 28,093
Hotels 17,281 16,942 6,655 6,766
Emergency Medical Care 4,979 5,014 1,547 1,593
Capital Gains, net 7,697 16,821 4,332 1,005
 ------- ------- ------- -------
 Total 342,689 303,197 119,062 93,230
 ------- ------- ------- -------

Costs and Expenses
Real Estate 16,491 18,150 5,235 2,236
Publishing and Media 165,060 148,649 57,167 50,586
Insurance 104,675 82,168 36,557 26,372
Hotels 17,925 18,270 6,024 6,680
Emergency Medical Care 5,857 4,960 1,860 1,580
Financing Expenses, net 6,012 3,996 3,686 3,235
Management, General
 and Other 7,290 6,204 2,881 2,139
 ------- ------- ------- -------
 Total 323,311 282,397 113,409 92,827
 ------- ------- ------- -------

Profit before tax 19,377 20,799 5,653 403
Income Tax (Tax Benefit) 7,483 708 2,336 (441)
 ------- ------- ------- -------
Profit after tax 11,895 20,091 3,317 844
Company's share in
 profits of affiliated
 companies (5,349) (1,405) (3,085) (863)
 ------- ------- ------- -------
Minority interest in
 profits of consolidated
 subsidiaries 950 946 482 626

Net Profit 7,496 19,632 713 607
 ======= ======= ======= =======
Net Income per share 0.27 0.69 0.02 0.02
 ======= ======= ======= =======
Number of shares
outstanding 28,269,000 28,269,000 28,269,000 28,269,000
 ========== ========== ========== ==========

All U.S. $ figures represent convenience translations using an
exchange rate of 4.024 New Israeli Shekel to US $ 1.00 at September
30, 2000
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