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April 2, 2008 U.S. Listing Opportunities for Israeli Companies Presented by Guy Cohen Executive Director, Head of Israeli Investment Banking, Oppenheimer IPO Market Overview Market Snapshot Capital Markets Performance Source: FactSet, Bloomberg as of 3/28/08 3 Market Snapshot (cont.) Economic/ Sentiment Indicators Source: FactSet, Bloomberg as of 3/28/08 4 ECM Activity Number of Deals IPOs (1) 0 Week of 3/24 2 4 6 8 10 12 14 16 0 2 0 Week of 3/17 10 12 14 16 0 2 6 8 10 12 14 16 0 2 4 3 6 8 10 12 14 16 4 2 6 4 6 1 4 3 3 0 4 Converts(3) 5 2 Week of 2/18 8 0 0 Week of 2/25 6 4 1 Week of 3/3 4 9 2 Week of 3/10 P.I.P.E.s(2) Follow-ons 7 1 5 2 Week of 3/24 2,526 17,945 22 276 0 0 Week of 3/3 108 1,170 99 Week of 2/18 122 105 10 00 15 00 20 00 25 00 30 00 35 00 40 00 220 440 700 256 Week of 2/25 386 0 50 0 96 63 1,361 10 00 15 00 20 00 25 00 30 00 35 00 40 00 0 50 0 10 00 15 00 20 00 25 00 30 00 35 00 40 00 0 50 0 0 Week of 3/17 Week of 3/10 10 00 15 00 20 00 25 00 30 00 35 00 40 00 0 0 50 0 Amount ($M) 1,740 220 545 Source: Dealogic and Sagient Research as of 3/28/08 Deal values exclude overallotment; Excludes closed-end funds and non-SPAC unit offerings (1) Includes SPACs (2) ≥ $20M and excludes capital injections (3) Includes publicly marketed capital injections 5 IPO Issuance Pace of Issuance In 2008, 10 IPOs priced to raise $18.7B(1) compared to 41 IPOs priced in Q107 that raised $8.7 billion In 2007, 205 IPOs priced to raise $43.3B Recent IPOs – Visa, Cardionet, Heritage-Crystal Clean The current IPO Backlog has approximately 93 transactions that are expected to raise $18.4B Sector Breakdown ($62.1B)(2) 30 20,000.0 24 16,000.0 18 12,000.0 12 8,000.0 6 4,000.0 0 Real Estate 3% Media 8% Finance 43% Telecom 5% Consumer 6% 0.0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar07 07 07 07 07 07 07 07 07 07 07 07 08 08 08 Market Caps < $250M Market Caps ≥ $250M Healthcare 7% Technology 13% $ Amount (M) # of Deals Monthly Issuance $ Amount (M) Energy & Utility 6% Industrial 9% Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, market caps ≥ $50M Excludes SPACs (1) Including the IPO of VISA Inc. that raised $17.9 billion (2) Sector breakdown by $ amount 6 IPO Performance Since 2007, 27.9% of IPOs priced above their initial filing ranges IPOs have performed well on their first day of trading, up an average of 12.9% With the recent volatility in the markets, current performance has suffered; since 2007, IPOs are down an average of 11.0% from their offer prices Offer Price Relative to Filing Range Share Offered Relative to Shares Filed Source: Dealogic as of 3/28/08, Deal Value ≥ $20M, Excludes SPAC 7 IPO Sizing Analysis Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs 8 IPO Sizing Analysis (cont.) 2007-08 YTD IPOs # of Deals by Market Cap $ Amount by Market Cap Source: Dealogic as of 3/28/08, deal values ≥ $20M and exclude overallotment, excludes SPACs 9 2007- 2008 YTD Israeli IPOs in the US Pricing Date 10/30/07 7/25/07 7/18/07 5/23/07 4/4/07 3/14/07 2/26/07 2/7/07 2/5/07 Issuer Name Ticker Symbol 012 Smile.Communications Ltd Voltaire Ltd Limco-Piedmont Inc STARLIMS Technologies Ltd Veraz Networks Inc BigBand Networks Inc Rosetta Genomics Ltd Mellanox Technologies Ltd Cellcom Israel Ltd SMLC VOLT LIMC LIMS VRAZ BBND ROSG MLNX CEL Number of Deals: Total Amount Raised ($B): 9 0.9 Specific Industry % Deal Offer % Change Change % Change Value Market Price Price Initial Price Price Offer / Excl Ovl Cap ($M) (US$) / Offer (1) Offer / 1 Current ($M) Day Telecommunications-Telephone Technology-Services Transportation-Airports Technology-Software Technology-Services Technology-Networks Healthcare-Drugs/Pharmaceuticals Technology-Semiconductors Telecommunications-Wireless/Cellular 12.00 9.00 11.00 13.50 8.00 13.00 7.00 17.00 20.00 80.1 51.9 48.4 28.4 72.0 139.1 26.3 102.0 400.0 304.3 184.3 140.4 126.4 316.5 742.6 78.8 506.6 1,570.5 (20.0) (30.8) 4.8 (1.5) (27.3) 18.2 (41.7) 30.8 17.7 0.0 (7.4) 20.9 0.2 (2.5) 30.8 4.6 17.7 (2.3) (13.8) (38.9) (45.5) (44.5) (66.6) (53.5) (41.4) (20.5) 66.5 High Mean Median Low 20.00 12.28 12.00 7.00 400.0 105.3 72.0 26.3 1,570.5 441.2 304.3 78.8 30.8 (5.5) (1.5) (41.7) 30.8 6.9 0.2 (7.4) 66.5 (28.7) (41.4) (66.6) Source: Dealogic as of 3/24/08, Shaded deals represent Oppenheimer bookrun offerings (includes Oppenheimer plus CIBC World Markets) Deal Value ≥$20M and excludes overallotment (1) IPO % Change Price Initial / Offer is calculated from mid-point of filing range to offer price 10 Recent IPO Filings – SPAC dominance SPAC Fillings: Majority of recent filings NASDAQ and NYSE proposed rule changes Bulge Bracket sponsored SPACs Investor appetite changes Source: Dealogic as of 3/28/08 Deal Value ≥ $20M Excludes closed-end funds and non-SPAC unit offerings * represents SPAC 11 TM&T IPOs in Registration Filing Date Issuer Name Ticker Symbol Specific Industry Current Deal Value ($M) Issuer Business Description 3/10/08 Eyeblaster Inc EYEB New Media-Software 115.0 2/14/08 IDS Group Inc IDSI Technology-Software 86.3 A provider of software services. 57.5 A residential solar energy integrator. 2/7/08 Real Goods Solar Inc RSOL Technology-Alternative Energy 1/28/08 Current Media Inc CRTM Media-Cable Television 11/1/08 Valor Computerized Systems Ltd VLOR 1/11/08 LogMeIn Inc 1/10/08 Produces rich media ad technology and digital marketing solutions via a web dashboard. 100.0 Operators of cable television network. Technology-Software 80.5 Develops software for circuit boards. LOGM Technology-Software 86.3 A provider of on-demand, remote-connectivity solutions to small and medium-sized businesses. Intelius Inc INTL New Media-Services 143.8 A commerce company that provides intelligence services to consumers over the internet. IPC Systems Holdings Corp IPCA Telecommunications-Telephone 400.0 A provider of communications services. 12/26/07 Source Photonics Inc SRSE Technology-Semiconductors 130.0 Provides optical communication products used in telecommunication systems and data communications networks. 12/21/07 Anda Networks Inc ANDA Technology-Networks 86.3 12/18/07 GlassHouse Technologies Inc GLAS Technology-Software 100.0 Provides enterprise storage services, backup and recovery, business continuity, and program management 12/14/07 Infonxx Inc - Technology-Services 250.0 An information services provider. 12/14/07 ExactTarget Inc EXTG Technology-Software 86.3 12/11/07 Digital Domain Inc DTWO Media-Film 100.0 Full-service digital studio and production company. 11/30/07 Broadview Networks Holdings Inc Telecommunications-Services 287.5 Provider of high-speed Internet access and services High Mean Median Low 400.0 140.6 100.0 57.5 1/4/08 - Developer of a network access platform for communication service providers to deliver data services. Provider of on-demand email marketing software solutions. Note: Deals filed within last 120 days Source: Dealogic as of 3/28/08, Deal Value ≥ $20M 12 Healthcare IPOs in Registration Filing Date Issuer Name Ticker Symbol Specific Industry Current Deal Value ($M) Issuer Business Description 3/20/08 Zogenix Inc ZGNX HealthcareDrugs/Pharmaceuticals 86.3 Specialty pharmaceutical company. 3/13/08 Salient Surgical Technologies Inc SLNT Healthcare-Instruments 86.3 Medical technology company that develops and markets surgical products. 3/12/08 CyDex Pharmaceuticals Inc CYDX HealthcareDrugs/Pharmaceuticals 50.0 Pharmaceutical company focused on the development and commercialization of drugs. Bostwick Laboratories Inc BOST Healthcare-Miscellaneous Services 1/25/08 Phenomix Corp PHMX HealthcareDrugs/Pharmaceuticals 1/23/08 Accuro Healthcare Solutions Inc ACCU Healthcare-Services 1/22/08 Cardiovascular Systems Inc 3/7/08 100.0 86.3 143.8 Laboratory focused on the diagnosis of cancer. Drug discovery firm investigating new treatments for immune system, central nervous system, and metabolic diseases. Provider of comprehensive solutions that enhance revenue and improve financial, clinical and logistical operational efficiencies for healthcare providers. CSII Healthcare-Instruments 86.3 Medical device development company that has completed designs, develops, testing, and markets clinical devices for the treatment of cardiovascular disease. A clinical-stage biopharmaceutical company. 1/9/08 Bayhill Therapeutics Inc BHTX HealthcareDrugs/Pharmaceuticals 86.3 1/9/08 Omeros Corp OMER HealthcareDrugs/Pharmaceuticals 115.0 Biopharmaceutical company advancing a pipeline of product candidates for use in orthopedics, rheumatology, urology, cardiovascular medicine, general surgery and pain management. 12/31/07 Alma Lasers Ltd ALMA Healthcare-Instruments 86.3 Developer, manufacturer and marketer of laser, light and radiofrequency-based systems for the aesthetic medical market. 12/19/07 Prometheus Laboratories Inc - HealthcareDrugs/Pharmaceuticals 100.0 High Mean Median Low 143.8 93.3 86.3 50.0 Offers pharmaceutical products, pharmacogenetic testing, therapeutic drug metabolic monitoring, specialised surgical pathology and IT services. Note: Deals filed within last 120 days Source: Dealogic as of 3/28/08, Deal Value ≥ $20M 13 Exchange Comparison Investor and Exchange Stages Maturity PE Expansion Growth VC Initial Sales R&D Exchange/ Concept Venture Private AIM TSX NASDAQ Capital Equity Candidates Candidates Candidates Note: Qualitative graph Investor Type 15 IPO Exchange Comparison Source: Thomson Financial, IVC-Online and Exchange websites (1) Performance based on 60 days post-IPO 16 2007 Initial Public Offerings Source: Thomson Financial and IVC-Online 17 Israeli Listings on Various Exchanges Source: Thomson Financial 18 Israeli Listings on Nasdaq Source: Thomson Financial 19 US Listing Advantages Liquidity Research Coverage Technology and Healthcare Orientation Shares as Acquisition Currency Valuation Israeli Companies Acceptance Consideration point: Regulatory Enviroment 20 US IPO Opportunity IPO Issues for Consideration Selection of underwriters Structure of IPO Corporate governance Professional services Timing Costs 22 US IPO Timeline A US IPO Process Typically Takes 12 – 14 Weeks amendments 23 Introduction to Oppenheimer Oppenheimer Investment Bank Oppenheimer Wealth Management > > > > > > Investment bank focused on Mid and Small cap companies Leading underwriter of Mid and Small cap equity transactions with global distribution Leading financial advisor dedicated to providing best-in-class advice and M&A services globally Proven equity, convert and high yield sales and trading Leading provider of corporate and executive services > > > The Leading Israeli Investment Bank 40 years of operation in Israel Most active underwriter of U.S. -listed Israeli companies > Broad institutional distribution network throughout Europe > > Offices in China and Hong Kong Leading underwriter of U.S. -listed IPOs for Chinese companies > > 7th largest independent U.S. investment bank based on # of registered brokers Robust retail distribution network with ~1,300 financial advisors servicing high net worth individuals Manages ~$62 billion in Client Assets Oppenheimer Asset Management > > Provides traditional asset management services and alternative investment strategies ~$17 billion in Assets under Management 24 Strong Commitment to Israel Over 65 financings since 1997 for $6.7 billion in gross proceeds Over 10 M&A advisory assignments for $3.6 billion Selected Transaction: 25 Thank You! 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