Permira has agreed to acquire a controlling stake in Netafim Ltd (“Netafim”), the
global leader in smart drip and micro irrigation solutions, from the Kibbutzim,
Yiftah and Magal and the Israeli funds Markstone and Tene.

Netafim is the world’s largest drip irrigation company, with sales in more than a
hundred countries and manufacturing facilities in Israel and in an additional
ten countries worldwide. The drip irrigation concept and technology were
invented in Israel by Netafim over forty years ago. Today, drip irrigation
serves as the basis for a comprehensive agronomical solution developed at
Netafim for specific crops. This solution which substantially increases yield
has gained global acceptance as it addresses both the global water shortage and
the increasing demand for food.

Dr. Ariel Halperin, Tene’s Senior Managing Partner, who led the fund’s investment
in Netafim stated: “Since our investment in Netafim in 2006, we have
focused on the company’s growth and development. Today Netafim is the global
market leader in its sector, with advanced and sophisticated technologies and
agronomical solutions that address some of the world’s most pressing issues
including the global water shortage and the increasing demand for
food”.  Dr. Halperin continued: “After years of intensive work with the company’s management and its other
shareholders, I am proud of Netafim’s successes which include a revenue
increase of a 140% and an increase in operational profitability of 200%.  We hand over a stable and growing company
which continues to attract the interest of global markets. Netafim is well
positioned for additional growth and I believe it will continue to be the
global market leader in this sector.”

Tene Investment Funds is an Israeli PE fund focused on investment in Israeli Mid-Tech
industries. Tene invests in established and profitable export and growth
oriented companies with leading global market positions.

Among others the fund’s portfolio includes investments in Caesarstone - a leading
global manufacturer of quartz counter tops, Gazit Industries – a
leading manufacturer of extruded plastic products and acrylic boards, and SCR
Engineers - a global provider of innovative electronic and computerized
dairy farming systems. For more information regarding the fund please see www.tenecapital.com

T.A.G. Medical Products develops, manufactures, and markets surgical tools and implants for Arthroscopic, Orthopedic, and Endoscopic soft tissue procedures.  The US soft tissue repair market is expected to grow 8% per year from $1.05 billion in 2009 to over $1.9 billion in 2016.  Hoping to capitalize on this growth, T.A.G. exports 99% of its production to prime customers such as DePuy Mitek, Inc. (a Johnson & Johnson company), Stryker Corporation, and Tornier, Inc.

T.A.G.’s experience and streamlined research and development process places the company in a prime position for growth within the field of sports medicine.  The firm has developed eighteen families of inventions that are either patented or patent-pending.  In addition, T.A.G’s products have gained worldwide regulatory and quality certifications including FDA and CE approvals.

In 2004, Dr. Ariel Halperin established Tene Investment Funds (www.tenecapital.com) as an Israeli private equity fund focusing on established, profitable and growth-export oriented Israeli industrial companies.  Among Tene’s investments are Netafim – world leader in drip irrigation solutions, Caesarstone - a prominent global manufacturer of quartz kitchen counter tops and vanities, Gazit Industries – a leading manufacturer of extruded plastic products and acrylic boards, and SCR - a global provider of innovative electronic and computerized dairy farming systems.

According to Ran Ben-Or, a partner in Tene Investment Funds: “Tene identified T.A.G. as suitable to its investment strategy in companies which present innovation and excellence in a quickly growing global market.  Tene is looking forward to helping the company realize its vast business potential in cooperation with the company’s management and with the Kibbutz.”

Under the terms of the agreement, Chromagen will offer A. O. Smith exclusive marketing and distribution rights of its solar collectors for use in residential and commercial solar water heating systems United States and Canada.  The two companies also agreed to work cooperatively to design, develop, and market energy-efficient solar products.

“Chromagen, a pioneer in solar water heating, offers a proven solar product line of consistently high quality, extensive technical capabilities, and a global presence in the rapidly expanding renewables market,” Ajita G. Rajendra, president of A. O. Smith Water Products Company, said in making the announcement.  ”As A. O. Smith expands its offering of high-efficiency water heating solutions, it is important we team up with the right strategic partners so that together, we can bring the best value to our customers in this rapidly changing market.”

On April 9, A. O. Smith Water Products Company announced one of the largest product launches in its 74-year history, with four new high-efficiency product lines including the Cirrex ™ solar water heating system for residential applications.  The company plans to begin shipping Cirrex systems later in the second quarter.

Chromagen has two manufacturing operations in Israel and distributes products in more than 35 countries worldwide.  The company provides solar products designed for domestic use as well as complex central systems for commercial applications.

Chromagen solar collectors are certified by the Solar Rating and Certification Corporation (SRCC) in the U.S., International Standard ISO 9806, and a number of other certifications worldwide.

The company was founded in 1962 and also owns Chromagen Spain, a leading supplier of solar water heating systems in that country.

A. O. Smith Corporation, with 2009 sales of $2.0 billion, is a global leader applying innovative technology and energy-efficient solutions to products marketed worldwide. The company is one of the world’s leading manufacturers of residential and commercial water heating equipment, offering a comprehensive product line featuring the best-known brands in North America and China. A. O. Smith is also one of the largest manufacturers of electric motors for residential and commercial applications in North America.

Gazit Industries specializes in the production of rigid plastic sheets used in the construction sector as well as plastic packaging for the food industry. With Europe as the major market. Gazit’s production facilities are spread across Israel as well as in Eastern Europe.

Poligal Ltd. (www.polygal.com) is a manufacturer of poly carbonate multi-wall sheets. Poligal benefits from strong management and its major markets include West and East Europe, Russia, South America and the United States. In addition, the company has four subsidiaries across the globe. Poligal is a valuable addition to Gazit Industries’ group of companies with high potential synergy to both companies’ productions and marketing activities.

Consistent with Tene’s strategy to add significant value to its portfolio companies, Ran Ben-Or and Eyal Attia led the acquisition on Gazit’s behalf.  According to Eyal Attia, a Partner at Tene Investment Funds, “Poligal acquisition is consistent with Gazit’s long term strategic plan outlined by Tene in conjunction with Gazit management.”

Hanita Coatings, a leading converter of polyester films, recently announced the appointment of Oved Shapira as Managing Director, replacing Sason Fluxman, who is now CEO of automotive parts manufacturer Fishman Ltd.

Oved Shapira, 41, gained rich managerial experience during 7 years at Frutarom, one of the leading global companies in the field of flavors and specialty ingredients. After a series of rapid promotions in sales and marketing, he eventually headed the F&F Ingredients Business Unit. In this role, he was responsible for the reorganization of the $90m division, developing a synergy between the varied technologies, marketing infrastructure and R&D that lead to expansive growth. Oved will bring the skill-set gained to Hanita Coatings, a company also blessed with a unique range of divergent technologies, a prolific R&D department and a diverse global marketing framework.

“Hanita Coatings under Sason Fluxman’s management has shown an impressive increase in both turnover and capacity,” comments Oved. “But it was Hanita’s future growth potential, and the challenge offered in fulfilling it that most attracted me to the company. One of my first priorities will be to increase marketing efforts in those areas where Hanita can best offer its customers cost and performance advantages. This will be the key to leading the company on to its next phase of expansion and development.”

Oved Shapira will be taking over managerial responsibility of Hanita Coatings from the 19th of July, 2009. From that date onward, he can be contacted through +972 4 985 9919, and via oved@hanitacoatings.com.

About Hanita Coatings RCA Ltd: Hanita Coatings is an Israeli coating, metallizing and laminating company specializing in the manufacture of window films for solar control and glass security; topcoated polyester films for label face stock; digital print media; high performance barrier packaging, and antennas for RFID tags.

Blue I Water Technologies, a global leader in advanced water quality control systems, has been selected by Chinese officials to monitor the water quality in the competition’s pools.  Blue I has been chosen as the surveyor, controller & supplier- for all six swimming pools at the 2008 Beijing Olympics, replacing two internationally recognized players in the water quality analysis industry.

The decision to take on Blue I for this important project came following a rigorous testing process, beginning just a year after Blue I opened its offices in China.  The Olympic pools were already being constructed, a leading German company had won the tender to supply the water quality monitoring systems for 4 of the parameters along with an American company responsible for the monitoring and supervision of two additional parameters.  The Chinese Olympic Committee were unsatisfied with the results provided by these suppliers and turned to Blue I, five months ago, to provide a comprehensive solution.

A two month evaluation process followed, and was supervised by a variety of Chinese organizations, including the Chinese Ministry of Health, which intends to develop a program of high level standardization in the water industry in China. The Blue I product selected to monitor the Olympic pools is HydroGuard, a multi-sensor system, which measures several chemical parameters of water quality, all in one device, at one time.

Blue I has recently seen an increase in sales with over 70% growth in the first half of 2008 in comparison to the previous year.  Sales in the Chinese market have grown to six times their previous numbers.  The decision to adopt Blue I’s systems in the Olympic pools opens the door to China for Blue I’s advanced technologies.