November 2006

Going Public Abroad

How, Where and When

Assets and Track RecordInfinity has managed over $270M* since 1993

Track Record: Average IRR Net/Gross: 33%/48% Top quartile (In the top 25% of comparable U.S. Vintage Funds )**

*All figures include committed capital values** Cambridge Associates March 31, 2006

Nitzanim

$27M (1993)13 investments

121% Net IRR

Top Quartile!

Infinity I + Annex

$91M (1999)21 investments

(16%) Net IRR

Infinity II

$64M (2001) 19 investments

5% Net IRR

Top Quartile!

Infinity MS

$75M (2002)13 investments

29.4% Net IRR

Top Quartile!

Infinity-CSVC (China Fund )

$15M (2005) 5 investments

26.21% Net IRR

Top Quartile!

Recent Exits

Total deal value

Company Exit TypeIndustry Deal Value

Shopping. com

Scitex Vision

Native Networks

Shellcase

Saifun

Maayan

Iomai

Sightline

Identify

Internet

Printing

Telecom

Semiconductor

Semiconductor

Incubator

Medical Device

Medical Device

Software

Acquired by eBay

Acquired by HP

Acquired by Alcatel

IPO (Nasdaq: SFUN)

IPO (TASE: MAYN)

IPO (Nasdaq: IOMI)

Acquired by Stryker

Acquired by BMC

IP was acquired by Tessera

$620M

$230M

$55M

$33M

$800M

$22M

$90M

$140M

$150M

ProActivity Software

Industrial Equipment

51% acquired by Johnson Electric $20MNanomotion

Acquired by EMC

$22.5M$2.2B

11%

9%4%

17%

9%

27%

23%

27% Life Science23% Software17% Semiconductor11% Industrial Equipment 9% Communications 9% Security4% Other

Infinity’s Portfolio Communications

BianatechUnity WirelessTeledataWhole Optics

Life ScienceNicastBrainsgateIomaiProneuronGluconVisioncareApplisonixGalil MedicalOpthtoCareRedent-NovaDiagnosticaIntumed

 SemiconductorShellcaseGenesis-OSCerelSmart LinkYitranLucidExpert Dynamics

Industrial EquipmentCognitensNanomotionPower PaperPulsarMicroheat

SoftwareRed BendNext NineProsightProActivityOrsusViryanetCosmocomTelemessageOridian – Online Media SolutionsRevolver

 Tegrity

SecurityCyberArkMavixMateBeepcard

OtherBio-Sense TechnologiesMagink

The list of the world’s largest economies may look quite different in 2050

Source: Goldman SachsFor illustrative purposes only

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The BRICs economies currently account for less than 15% of the combined GDPs of the G6.

BRICs could become four of the top seven largest economies by 2050, with China leading the way.

GDP 2050 US$ bn

Infinity: First in ChinaIn May 2004, Infinity and IDB/Clal co-founded the first Chinese registered foreign-invested VC fund (No. 00001).

Infinity/Clal’s partner is the Chinese Government via investment arms: CSVC (China Singapore Venture Capital) and SIP (Suzhou Industrial Park).

The event was monumental for pioneeringventure capital in China and international business relations between Israel and China.

The signing ceremony was attended bygovernment leaders Ehud Olmert from Israel and the Deputy Prime Minister of China.

Key China Partnership – SIP/CSVCChina-Singapore Suzhou Industrial Park (SIP) and Venture Capital (CSVC) CSVC is a $455M VC fund, investment

arm of SIP (Suzhou Industrial Park ). Most advanced hi-tech park in China,

created in 1994 by the Chinese and Singapore governments.

Four thousand companies operating in the park including 100 Fortune 500 companies.

Total land area of the park is 300 sq km. Ten universities established campuses

with post graduate school and hi-tech R&D industrial park.

Has its own government and tax authority.

China Partnership Achievements

• Five investments in Israel-related companies one profitable exit.

• Three years of Israeli and Chinese team experience and cooperation.

• Leveraging both government and corporate relationships.

• Full risk sharing and alignment of interests with Chinese Government partners.

• Both onshore and offshore financial flexibility.

• Infinity’s portfolio company received the first ever direct equity investment by the Chinese government in an Israeli company.

• Exclusive $30M commitment from the China Development Bank to co-investment with us.

A-shares: the most liquid equity market in China

As at 20-Jan-06 for A shares and for other markets.1 Qualified Foreign Institutional Investor2 Companies traded on the Hong Kong Stock Exchange that have a Mainland Chinese corporate shareholder owning at least 35%3 As at 20-Jan-06.4 As at 20-Jan-06.5 Average for 6 months to 31-Dec-05. Liquidity in the China A share market is better than the H-shares over the past 1-2 years in terms of daily turnover.Source: Bloomberg, CEIC.

Share Type A-shares H-shares B-shares Red Chips2

Listing Shanghai/Shenzhen Hong Kong Shanghai/Shenzhen Hong Kong

No. of companies3 1,319 121 108 87

Market cap (US$ bn)4 403 457 9 212

Daily trading volume (US$ mn)5 1,736 542 25 308

Denominated in RMB HKD HKD/USD HKD

Accessible to Chinese/QFII1 Licensees Foreigners Chinese/Foreigners Foreigners

Valuations are more attractive

The correction of P/E is due to both declining stock prices and growing earnings

When fully implemented, the reform of non-tradable shares will potentially give existing shareholders 20-30% free shares and, we believe, therefore, will bring P/E down further

Shanghai A-share Composite Index Trailing P/E

Source: CEIC

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Jan-

97

Jul-9

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Jul-9

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(X)

Shanghai A-share Composite index trailing P/E Dec 2005: 16.4X

Apr 2001: 61X

Shellcase - Infinity-led Recovery Wafer-level electronic product packaging technologies

Then (2004)

On the verge of shutdown $20 million debt Lack of focus, investors losing faith Problem with order fulfillment Problematic capital structure

Now

“Infinity’s leadership and creativity saved Shellcase. It created and boosted a new industry”

Shalom Daskal, CEO Shellcase

Change of business model to an IP company separated from manufacturing Build a manufacturing facility in China – profitable, a leader in wafer level manufacturing, received $20M China government support

Sale of the company’s patents to Tessera (NASDAQ –TSRA) for $33M Created $80M value in one year

Nanomotion – The Infinity Difference Small, silent, precise ceramic servo motors

Then (2003) Numerous challenges relating

to production and attainment of strategic goals

Explore the option to bring Johnson Electric (the leading Chinese manufacture of motors and related products) as a strategic partner

Complex capital structure and difficult decision making processes

Now Sale of 51% to the Chinese Johnson Electric

80% product cost reduction Distribution channels opened alongside new innovative products New management, clean capital structure, new strategy Massive rise in expected sales and two new product releases

“Infinity’s vision and execution capabilities enabled the paradigm shift in Nanomotion”

Jim Dick, JE

Infinity Israel China Fund Investment Strategy

The Infinity Israel China Fund will invest primarily in late stage/pre exit Israeli companies with strong technology IP and grow them into global companies with a China focus.

Sector focus: medical devices, semiconductor, telecom, software, and materials arenas.

Pragmatic exit and return oriented strategy with an activist approach.

Prime investment criteria are quality of management & Infinity’s added value mainly in China.

Why Our China Strategy Wins….

Alignment of interests - our Chinese partners invest with us both in the Israeli company (minority) and in the Chinese companies (majority).

We operate in China as “Chinese” as opposed to foreigners - the result is significant government support (financial , regulations, customers, first license).

We create value by structuring companies which bring together real businesses and proven technologies at attractive valuations.

We create Chinese IP and get government IP protection. We have a government ruling enabling the fund to transfer capital

in and out of China as needed. We have the China Development Bank and SIP as our true

partners along side top government support. We already have two exits (Nanomotion- 2X, Shellcase - 2X).

Investment Business Model –Preferred OptionA

Israel ChinaFund

China Partners &Co-Investors

Israeli company Chinese companyLicense

Royalties, License fee/shares

Majority investment

Minority investment

Majority investment

*Minority investment

Exit – China IPO/M&A

Exit - Global IPO/M&A

*Minority investments in Chinese companies can be direct or conducted via a co-investing fund with Chinese partners

Our Mapping of Technologies for China:

www.LightSpeedAnalyst.com/China – Sample Map:

Suzhou JurisdictionMunicipality Area ： 8,488 sq kmCity Area ： 1,649 sq kmTotal population ： 6.92 millionCity population ： 2.07 million

Wu Xi

Shellcase's Entrance in China