immediate report about event or matter which deviated of the regular business corporation 7/6/2007   Further to the previous reports, DIFI and R&SAI signed on a Contract upon a mutual initiative for joint control between them, by means of allocating shares of R & SA in GDI. subsequent to said allocation as stated, GDI, preparing in initiating and establishing the activity of Direct Insurance in the world, will be maintained in equal part of the 2 side. Between the two side be agreed that GDI will be involved with direct marketing of insurance products in particular for those that are not life insurance, in specific limited cases also life insurance and every other activities that will be agreed. In consideration for the issue of the Shares, R&SAI will pay GDI 170 million US dollars. 120 million US dollars at completion of the transaction, whilst the balance of 50 million US dollars of the Investment amount will be paid in 4 instalments by 30.6.2010. After the aproval of the company’s directorate the with agriment SA&R has been signed on the 6.6.2007. it includes also limitations about passing the control on DIFI and agriment for no competition. The GDI deal is bent to the aproval from the genral meeting of the company’s share holders. The Company estimates that the transaction shall result in a capital gain to the Company of approximately 220 million New Israeli Shekels (about 54 million USD).