Israel – ‘The little state that could’ Israel is Second only to China in Listed Companies in Nasdaq

(Among NASDAQ International Companies)

in the world for venture capital funds right after the US

in No. of High-Tech Startups after the U.S.

in terms of the number of patents granted by the US Patent Office for 2010 (after US)

#2

#1

#9

Israel – Macro Economic indicators

Source: EIU, CBS, Bank of Israel

CriteriaCriteria 20052005 20062006 20072007 20082008 20092009 20102010

GDP (B$ -at current market prices) 134 146 168 202 195 218

GDP Real Growth rate)%( 5.1% 5.7% 5.4% 4.2% 0.8% 4.6%

GDP per Capita (PPP, $) 23,390 25,080 26,730 27,960 27,930 29,404

Exports of Goods & Services (B$) 57.2 62.5 71.3 81.1 67.7 80.5

Imports of Goods & Services (B$) 57.6 61.7 73.5 84.0 62.9 76

Unemployment Rate)%( 9.0% 8.4% 7.3% 6.1% 7.5% 6.6%

Inflation Rate (Year End) 2.4% -0.1% 3.4% 3.8% 3.9% 2.7%

Current Account balance (% of GDP) 3.1% 5.1% 2.9% 0.8% 3.9% 3.1%*

Source: CBS & IEICI Calculations’

Total High-tech Export of 2010: 29 B$29 B$

3%11%

6%

12%

15%23%

12%

18%

Office & computing equipment

Electronical components

Aircraft

Electronic communication equipment

Equipment for control & supervision

Pharmaceutical products

Research and development

Computer and related services

Israel Hi-Tech Export

Israel’s R&D Investments a as % of GDP (2008)

Source: Ministry of Finance

Israel is ranked 1st of all OECD countries by expenditure on R&D (research & development)

#6 in the world in innovation WEF report 2010-2011

`

R&D and manufacturing centers*

* Partial List

‘Start Up’ Nation

Transfer of knowledge Military/Academy to industry

Networking

A Culture that promotes entrepreneurship

Early adaptor market – Israel is a ‘Beta site’

Government support of R&D

Robust VC sector

Breakthrough Solutions & Aquasitions

Disk on Key invented by M-Systems

World leader in DRM and CA Systems for TV

Introduced Toolbars as a monetization platform

AOL acquired ICQ

Facebook aquired Snaptu

Motorola aquired Bitband TechnologiesDG acquired Mediamind (2011)

• The ‘Golden age’ of the empowered consumer – What, When, Where, How and with WhomWhat, When, Where, How and with Whom

• Report insights:– By 2015 –

• VOD spending to reach 4.7 B US$ (2.9 B US$ in 2010)• Internet Spending to reach 408 B US$ (8.6% compound annual increase)

– Internet advertising will overtake newspaper advertising in 2012– Online and wireless video games will overtake console/handheld

games in 2013

The Global Media Market (PWC Media outlook)

Source: PWC Global entertainment and media outlook: 2011-2015

New Media Industry

Gaming

Broadcasting Technologies

Entertainment Technology (CE)

Internet

New Media Industry - overview

Export estimate at 2 B US$ (2008)

Over 1000 companies

Most (~500) are Seed and R&D

90% are Internet companies

Leading target markets – US, Europe & Far East

Internet

• Applications & Services

• E-Commerce & Marketing

• Online Advertising

• Entertainment & Video

• Search

• Social Networks

Broadcasting Technologies

• Digital & Cable TV,OTT, IPTV, Satellite

• Content Creation & Management

• Content Delivery

• Personal & Interactive TV

• STB & DVR

Gaming

• Gaming Platforms• Social Gaming• Mobile Gaming• Advertising• Publishers

Entertainment Technology (CE)

• Fabless Semiconductor• New interface remotes• Home entertainment

IBC 2011 – Israeli Companies

Content Management & Distribution

Cable & Digital TV, IPTV

Online & OTT Video

Service Delivery/ Management Platform

Satellite Communications

Broadband Wireless Solutions

• Founded in 1958• Non-profit organization• JV between Government and Industry• 27 sectors of Industry in Israel

• High-tech department - Telecom, IT and New Media

• Mission - Promoting International Cooperation and Export

IEICI – Overview

Thank you!