MTS Israel Volumes Surpass €1 Billion equivalent soon after Launch

London/Tel Aviv - 24 October 2006

MTS Israel, the reference market for shekel-denominated Israeli government bonds, is pleased to announce that volumes have already surpassed the equivalent of €1 billion since the launch of the market in September.

Adi Rivlin, Head of Government Debt Management for the Israel Ministry of Finance, said: “MTS Israel has already proven an effective contributor to the liquidity of our bond market. Participants are able to trade with a greater degree of confidence, thanks to the quote-driven market model introduced with MTS Israel, and we expect this to encourage increased investment in our debt, given the increased transparency that we are observing. As an issuer, our expectation is that the implementation of MTS Israel will result in more effective management of our debt and ultimately contribute to a lower cost of funding”.

Gianluca Garbi, Chief Executive Officer of EuroMTS Limited, said: “Our priority in establishing the MTS model in Israel has been to deliver to Israeli government bonds the benefits of a single network and market integration that have served to promote liquidity and efficiency throughout Europe’s bond markets. As such, we are delighted to witness the strong initial growth of MTS Israel and look forward to its continued development”.

Liquidity in the MTS Israel market is ensured by the following 19 dedicated liquidity providers: Bank Hapoalim, Bank Leumi, Citibank, Clal Finance, Deutsche Bank, Excellence Nessuah, First International Bank of Israel, Goldman Sachs International, Israel Discount Bank, Lehman Brothers International, Merrill Lynch International, Mizrahi Bank, Morgan Stanley International, Poalim Sahar, Standard Bank, The Central Co. Stock Exchange Services, U-Bank, UBS and Union Bank.

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