How to Invest in Israel Bonds
If you are interested in purchasing an Israel bond, you may contact your local office. They will provide you with personalized service regarding your investment options.

Current Investment Rates
Valid September 8, 2008 Through September 14, 2008
Bond Rate Maturity Date
(3-YEAR) 2.05% September 1, 2011
(5-YEAR) 3.06% September 1, 2013
Minimum Subscription: $25,000 and multiples of $5,000.
Issued on the 1st, 8th, 15th and 22nd of each month.
Interest paid every May 1st and November 1st.
1-Year, 2-Year and 10-Year Jubilee Bonds are not offered in this sales period.
Bond Rate Maturity Payment Maturity Date
(3-YEAR) 2.05% holder receives $2,655
per $2,500 at maturity.		 September 1, 2011
Minimum Subscription: $2,500 and multiples of $2,500.
Issued on the 1st, 8th, 15th and 22nd of each month.
1-Year, 2-Year and 10-Year Savings Bonds are not offered in this sales period.
Bond Rate Maturity Payment Maturity Date
(5-YEAR) 3.20% holder receives $117
per $100 at maturity.		 October 1, 2013
Minimum Subscription: $100 and multiples of $50 not to exceed $2,500*.
Issued on the 1st of the next month.
10-Year Mazel Tov Bonds are not offered in this sales period.
* The maximum amount that may be purchased by any person on any purchase date in the name of any one holder is $2,500.
Bond Rate Maturity Date
(3-YEAR)

1.725%

September 1, 2011
Minimum Subscription: $5,000 and multiples of $2,500.
(5-YEAR) 2.375% September 1, 2013
Minimum Subscription: $5,000 and multiples of $2,500.
(2-YEAR
Financing)**		 2.775% September 1, 2010
Minimum Subscription: $100,000 and multiples of $25,000.

Issued on the 1st, 8th, 15th and 22nd of each month.
The initial interest rate is equal to the 6-month LIBOR rate in effect on the initial interest determination date
plus or minus a spread. The spread shall remain fixed until maturity.
Interest paid every June 1st and December 1st.
2-Year, 3-Year Financing, 4-Year and 10-Year Floating Rate LIBOR Bonds (Seventh Series) are not offered in this sales period.

** May only be purchased if financed by an Authorized Institutional Lender, as such term is defined in the prospectus supplement. For a list of Authorized Institutional Lenders, download using the link below.

Rates of Outstanding Israel Notes can be found here.
State of Israel's Most Recent 18k (2007) -- Dated as of June 6, 2008
List of Authorized Institutional Lenders

This is a representative sampling of the securities offered. Issues subject to availability. Bonds will not earn or accrue interest after maturity.  Interest rates are determined and announced prior to the applicable issue date of the bond. Bonds are being issued in book-entry form. Certificates will be issued only to government agencies, pension funds, financial institutions and Employee Benefit Plans by request at the time of purchase. The above rates are valid only for the period specified above.
The bonds may not be transferred, sold or pledged (except under certain limited circumstances).
This is not an offering, which can be made only by prospectus.
Read it carefully before investing to fully evaluate the risks associated with investing  in State of Israel bonds.

The State of Israel has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates.  Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other documents the State of Israel has filed with the SEC for more complete information about the issuer and the offering.  You may get these documents for free by visiting EDGAR on the SEC Website.  Alternatively, the State of Israel or the Development Corporation for Israel will arrange to send you the prospectus and prospectus supplement if you request, by sending an email here.

Checks for purchase of bonds should be made payable to:
STATE OF ISRAEL

DEVELOPMENT CORPORATION FOR ISRAEL/
STATE OF ISRAEL BONDS
National Headquarters
575 Lexington Ave, New York, NY 10022
800-229-9650
For a list of toll-free numbers nearest you, click here.

The information contained within this website is issued solely for informational purposes and does not constitute and is not to be construed as an offer to sell or a solicitation of any offer to buy securities, nor shall any such security be offered or sold to any person, in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. For more complete information on any financial instrument, download and read the prospectus for such particular financial instrument before you invest or send money.

Development Corporation for Israel
Check here for your local office
E-mail us at: webmaster@israelbonds.com
Copyright 2008 Development Corporation for Israel
Member FINRA, SIPC