HAREL MALLAC & CO. LTD.

Harel Mallac & Co. Ltd. wishes to inform its shareholders and the public in general that Mr. Christopher Boland will join the company in April 2007 and will assume the functions of Chief Executive Officer (CEO) as from the 1^st May 2007.

Mr. Christopher Boland is Australian born and has qualified as a Chartered Accountant in 1975. He has also done post graduate studies in Management Accounting and Computer Studies.

Mr. Boland has since 1980 held various senior positions in Australian, French and Danish companies and has lately been serving Hexcel Reinforcements, a subsidiary of an American Group of companies, as President and Operations Director of its French Reinforcement operations, as well as President of its French and Danish holding companies.

Mr. François Montocchio, the current CEO of Harel Mallac & Co. Ltd. will relinquish his position as from 30th April 2007 and will act as adviser thereafter.

The Board of Directors of the company wishes to put on record its appreciation of the excellent work performed by Mr. Montocchio during his tenure of office.

Jean Marc Ulcoq

Secretary 22^nd February 2007

This Communiqué is issued pursuant to Listing Rule 11.3.

The Board of Directors of Harel Mallac & Co. Ltd. accepts full responsibility for the accuracy of the information contained in this communiqué.