Leumi Group President and CEO, Rakefet Russak-Aminoach: "LeumiTech is an innovative venture in the Israeli banking system designed to provide a dedicated response to an industry that is currently driven mainly by foreign capital. LeumiTech will become a financial home of Israeli high-tech by providing a comprehensive package of services, including allocating two billion NIS of credit".

Bank Leumi officially launched today "LeumiTech", a fully owned subsidiary of the Leumi Group, with the goal of promoting financing and development in the high-tech industry in Israel and abroad. LeumiTech will serve as the high-tech arm of the Group and will concentrate and leverage the capabilities of the Leumi Group in the high-tech sector for the benefit of Israeli high-tech companies, providing them with a comprehensive package of services including: credit and financing, investments and partnerships, unique products and services, an international platform and an innovative platform for managing their financial operations.

It should be noted that even today, Leumi is a leader in providing banking services to the Israeli high-tech community through designated branches in high-tech areas in Israel and a dedicated office in Palo Alto (Silicon Valley), while more than 50% of Israeli high-tech companies manage their banking activities through the Bank. The establishment of LeumiTech represents a major breakthrough in the financial services provided to these companies and will allow them a wider range of financing options and financial management in Israel and abroad. The aim of the Group, through LeumiTech, is to become a significant and leading player in the industry, by providing services and financing options which are not currently provided to the industry by the Israeli banking system.

As part of the strategy for setting up LeumiTech - which was based on the notion that the Israeli high-tech industry is a growth engine of the Israeli economy - and in recognition of the needs of the industry, the Bank plans to increase the allocation of credit to the industry in the coming years to NIS 2 billion.

Leumi Group President and CEO, Rakefet Russak-Aminoach: "LeumiTech is an innovative venture in the Israeli banking system designed to provide a dedicated response to an industry that is currently driven mainly by foreign capital. LeumiTech will become a financial home of Israeli high-tech by providing a comprehensive package of services, including allocating two billion NIS of credit".

LeumiTech has set up specialist teams with in-depth familiarity with the industry and the financial needs of these companies. Separate 'GROWTH' and 'SEED' teams are adapted to the nature of the companies and their current stage of business and will help them deal with the challenges they face. The company also offers high-tech companies a package of tailor-made solutions, including, first and foremost, global support in high-tech centers worldwide - Silicon Valley (Palo Alto), New York and London - which will provide a response to the global needs of Israeli start-up companies.

In addition to financial tools, high-tech companies will benefit from partnerships LeumiTech has established with key players in the industry: venture capital funds, academic entities and accelerators such as 'Elevator', 'SOSA', 'Junction', 'Pitango', 'Star TAU', 'IGP', 'Viola' and more.

Yifat Oron, a respected high-tech veteran, who was also engaged in the past in investment banking, was appointed CEO of LeumiTech. Prof. Danny Tsiddon, Deputy CEO of the Leumi Group, will serve as Chairman of the company. In addition, Leumi has recruited employees whose field of expertise is high-tech and finance.

LeumiTech CEO, Yifat Oron, noted that: "Israel is known as the 'Startup Nation', but so far the banking system has failed to provide a dedicated response for this significant industry. The establishment of LeumiTech stems from identifying the need for breaking the boundaries of traditional banking and creating real change in this sector, so as to provide a response from the moment a company is created until the realization of its potential. We intend to become a significant player in the financing of high-tech companies and change the map of financing that currently exists in Israel. We believe that the development of new and complementary forms of financing, the expansion of the range of transactions and the collaborations with investors in Israel and abroad, will all increase the supply of money in the industry and help high-tech companies in their financial management and their ability of exposure to customers and investors."

Israeli high-tech industry accounts for about 20% of GDP and about 30% of exports. There are about 5,000 active high-tech companies in Israel and 600 new companies are set up every year. More than 290 R&D and production centers of international companies are spread throughout the country. In 2013, there were 80 M&A transactions and approximately $7 billion were issued.

Most of the high-tech industry today relies on foreign capital, while the primary method of financing is equity: about $2.3 billion in 2013 and $673 million in the first quarter of 2014, of which 76% and 84% respectively were from foreign funds. Leumi identified the need for available Israeli capital as a supplementary source to the existing finance system.

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