Jewish Post, Indianapolis, Marion County, 8 January 2003 — Page 5

January 8. 2003 IN 5

Jubilee (Series A) Issue Bond Fixed annual interest rate for the life of the bond is determined at the beginning of the sales period. Minimum subscription $25,000. Matures: 5 years from issue date. Jubilee (Series B) Issue Bond Fixed annual interest rate for the life of the bond is determined at the beginning of the sales period Minimum subscription: $25,000. Matures: 10 years from issue date. LIBOR Floating Rate Issue (LFRI) Bond Rate based on fixed number of basis points above the applicable 6 month LIBOR rate, which is adjusted quarterly. Minimum subscription: $5,000 ($3,000 or $3,500 for IRAs only) Matures: 10 years from issue date. Zero Coupon Bond The purchase price and effective yield to maturity are determined at the beginning of the Sales Period m which the bond is purchased. Matures at $6,000 10 years from issue date (first day of the month following the month in which subscription is accepted by Fiscal Agent).

Development Issue Current Income Bond 4 00% annual interest rate $500 and increments of $500 Matures 15 years from issue date. Development Issue Savings Bond $500 and increments of $500. Matures 15 years from issue date at 180% of issue amount, resulting in an effective yield to maturity of approximately 4 00% Chai Bond Purchase price: Variable. Matures in 5 years from issue date at $180. Non-transferable. Not eligible for early redemption May only be purchased for/registered to an (only onei individual. MATURED BONDS: After maturity, bonds no longer cam interest. ISSUES SUBJECT TO AVAILABILITY. this is t>01 an olleting. »htcr> cun lx - mmlr ori.y r»> (KOsixx:fus fto&tl it camfull) iwto/ir iiuint'Dit Mnnitn'i Sf> SUV

This is not an ottering, which can t>c made only by prospectus Head it carefully before investing. Member NASD. SIPC Development Corporation lor Israel/State of Israel Bonds 3901 West 86th Street, Suite 300 • Indianapolis, IN 46268 317-876-7074 • 317-876-7187 www. israelbonds .com

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