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Index

Page 1. International Waters: Demand and Supply ..............4 2. The Israeli Water Experience ....................................4 3. Defining the Israeli Water Technology Sector .........5 4. Agricultural Solutions................................................6

a. Drip Irrigation ..........................................................6 b. Advancements in Drip Irrigation Technology ..........7 c. Israeli Irrigation Technology....................................7 d. Advanced Greenhouses .........................................7

Success Story – Netafim ........................................8 5. Purification and Reclamation ....................................8

a. Saltwater Desalination ............................................8 b. Israel's Desalination Expertise ................................9 c. Export Desalination.................................................9 Success Story – IDE...............................................10 d. Water Recycling and Reuse ...................................10 e. Streamlining Innovation ..........................................10

6. Water Management ....................................................11 a. Water Transport ......................................................11 b. Streaming Technology ............................................11 c. Water Transportation & Distribution........................11 d. Measurement and Monitoring .................................11 Success Story – Mekorot ........................................13

7. Water Security ............................................................14 8. Economic Indicators ..................................................15 9. Why Israeli Water Technologies ...............................15 10. Israel NEWTech – National Government Program

to support the Israeli Water Technology Sector......17

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Israeli Water Technologies –Solutions for a Thirsty Planet 1. Israel, with a 75% water recycling rate, is

the world's number one water recycler. The second largest water recycler is Spain, at a rate of 12%.

2. Israel is home to the world's largest Seawater Reverse Osmosis (SWRO) desalination plant, producing 100 million cubic meters per year at the low cost of approximately 57¢ for per cubic meter of water.

3. Israel produces 25% of its total water consumption.

4. Israel's low pressure irrigation methods helps achieve 70% - 80% of water efficiency in agriculture - the highest rate in the world.

5. Drip irrigation, invented in Israel, is used on 60% of agricultural land in Israel, compared to only 6% in the U.S.

6. Israel's National Water Carrier has transferred over 13 billion cubic meters of water from the country’s lush northern region to the arid area of Israel within the past 40 years.

"Water is an extremely precious commodity in

Israel. The landscape there provides the perfect

environment for researching and developing water

technologies in 'real-world' conditions and then

marketing and selling them globally."

Dr. Roger Radke,

CEO of the Water Technologies Division of Siemens, June 2006

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Thirsty for Solutions According to the UN: • 20% of the world's population faces

water shortages today. This number is expected to rise to 50% of the world's population in 50 years.

• 1 in 6 people worldwide do not have daily access to potable freshwater.

• 1.6 million people die every year from drinking contaminated water.

Water Technology: It's in our Roots The total amount of water that Israel consumes has remained the same since 1994, with little increase since 1964, in spite of a growing population, growing water consumption needs and an increase in agricultural production.

International Waters: Demand and Supply The Falling Water Line: Due to the growing world population, global warming and a decrease in water supply, it is estimated that over the next 15 years there will be a 35% shortage in consumable water. According to the World Health Organization (WHO), increasing the access to clean water is essential to: • Reduce water-related diseases • Improve the well-being of a large part of the world's

population • Sustain economic development in developed and

developing countries • Alleviate poverty The World Water Market – Rising Tides: Currently at a tipping point, the world is searching for efficient solutions to address the impending water shortages. The anticipated scarcity is transforming water into the “new oil” of the 21st century and is causing the pace of water technology development to accelerate. The annual size of the international water market is estimated to be $425 to $700 billion by sources such as Global Water Intelligence and private consultants and with 7% annual growth, it is one of the fastest growing in the world. The Israeli Water Experience Since its founding 60 years ago, embedded in Israel’s culture is a national awareness for water scarcity issues which has created an atmosphere for developing novel and efficient water technologies. Situated in one of the world's most arid regions, Israel first entered the international water technology market with its easily

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implementable solutions in agriculture. Using its agricultural experience as a foundation, combined with its high-tech know-how, Israel is now becoming an important player in the international market, in areas such as desalination, water recycling & reuse, water security and management. The atmosphere of the Israeli water technology sector is reminiscent of the early 1990's, when Israel's high-tech industry took off with the backing of a strong and diverse venture capital industry. Israel as a Beta Site Israel's topography and climate, which includes desert, mountains, forest and coastal conditions, reflect more than 50% of the world's environment. The continual threat of desertification caused the Israeli government to place water planning on a high-national priority. The country's first-hand, long-term experience in dealing with water scarcity problems is now available to the rest of the world - that is increasingly sharing similar concerns.

Defining the Israeli Water Technology Sector: A Fountain for Water Technology Israel's commercial water sector, which was originally based on agricultural related companies, has expanded its R&D activities to different fields. Israeli start-ups are now focusing on: • Purification: Desalination, Recycling & Reuse • Agricultural Solutions • Water Management and Transport • Water Security By the end of 2006, the number of water technology companies in Israel increased to approximately 270. The expansion of the Israeli water technology industry caused the country's water exports to increase to nearly $900 million in 2006 - an increase of nearly 21% over 2005.

Area: 22,000 km2 Population: ~ 7 million GDP: $140.3 billion Precipitation Levels: Northern Region - 700 mm Central Plains - 500 mm Desert Region - 35 -200 mm Annual Water Usage: 560 - 595 million meters3

Israel

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Fast Facts: 70% of global water consumption is

channeled into agriculture. 82% of water consumption in

developing countries is for agriculture.

Fast Facts: • 70% of global water consumption is

channeled into agriculture. • 82% of water consumption in

developing countries is for agriculture.

Agricultural Solutions – The Roots of Israeli Water Technology Israel has achieved a significant drop in agricultural water consumption, despite a yearly rise in agricultural production, through increasing water efficiency in agriculture and developing advanced methods of irrigation. In spite of low water supply, the country produces most of its own food requirements. Today, the sector in Israel is based almost entirely on R&D, with academic institutions, cooperative agricultural bodies and government agencies working collaboratively to seek solutions for water problems.

Drip Irrigation: With Just a Drop of Water The international market for drip irrigation solutions is estimated at $2 billion and Israeli companies are leading, with a 40% market share.

Israel established its reputation as leader in water technologies in the early 1960's when Israeli researchers and farmers created drip irrigation technology. This innovation addressed the worldwide demand for efficient, water saving irrigation techniques and created a global drip irrigation market. Drip irrigation is based on the straightforward concept of maximizing the efficiency of a limited quantity of water by dripping it onto strategic points through plastic piping. Drip irrigation technology successfully:

• Limits evaporation • Minimizes water wastage • Reduces the requirement for fertilizers and chemicals • Enhances the capacity to effectively control plant disease

Israel's R&D Model: Two-way flow of information

between researchers and farmers

Problems in the field are brought directly to researchers to develop specific solutions, while scientific results are quickly field-trialed.

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Facts about Israeli Agriculture and Drip Irrigation: • Drip irrigation has the highest water

efficiency rate in agriculture, reaching a 70%-80% rate, versus open irrigation, which achieves 40%.

• According to BusinessWeek1, Israeli firms control half of the estimated $1 - $1.5 billion global market of Drip Irrigation.

• Israel exports more than 80% of its irrigation solutions.

• Israel uses drip irrigation on 60% of agricultural land, compared to only 6% in the U.S.

Advancements in Drip Irrigation Technology: Methods to optimize the quality and quantity of water based on soil type:

• Unique features to use saline or brackish water that prevent salt accumulation at the roots.

• Buried irrigation, in which lateral pipes are buried at a depth of 50 centimeters - at the plants roots.

• Line drippers, regulated and unregulated fixed drippers, and integrated drippers, which are pre-cast onto the wall of the irrigation lines.

• Distribution of fertilizers through drip irrigation systems, which ensure that components, such as phosphorous, directly reach the roots.

Israeli companies like Netafim, Naan-Dan and Plastro are world leaders in drip-irrigation technologies. Israeli Irrigation Technology:

• Individual Spray Irrigation allows precise irrigation of trees and has an efficiency rate that reaches 85%. Water consumption using spray irrigation ranges between 30 and 300 liters per hour.

• Advanced Computerization of Irrigation Systems allows for real-time operation, monitoring, precision and reliability, pre-programming of irrigation intervals which prevents water waste. This technology can be adapted to all methods of irrigation.

• Real-Time Monitoring systems register deviations from the regular quantities of water or fertilizer and shuts down automatically if it detects a problem.

• Buried Moisture Sensors provide information regarding moisture levels of the soil while special plant sensors determine irrigation intervals by checking changes in the diameter of the stem or fruit.

Advanced Greenhouses: The natural restrictions of soil, water and climate led Israel to develop greenhouse technologies for high value-added crops. In order to maximize water availability in greenhouses, Israel developed computerized, pre-programmed irrigation processes that optimize water use.

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Success Story: Netafim Making the Desert Bloom with just a few Drops of Water

In 1965, Israeli scientists and farmers at Netafim developed the revolutionary method of drip irrigation in order to overcome the desert conditions in Israel.

Netafim's R&D has continued to adapt innovations to drip irrigation, including:

• A pressure compensated dripper that enabled stable distribution of water and nutrients at pressure differences of up to 3.5bar;

• A thin wall integral dripper line - a low cost solution for industrial field crops such as sugar cane;

• A new generation of drippers for soil-less greenhouse growing.

• Crop Management Technology (CMT) which provides "real time" monitoring of growing systems

Purification and Reclamation Techniques Saltwater Desalination:

• Making Freshwater out of Saltwater with only a few cents

• Desalination has emerged as Israel's major tool to

keep pace with increasing water demand. Israel's water commission anticipates that Israel will consume 20% desalinated water by 2010.

• Breaking Desalination Records IDE, a leading Israeli desalination company, founded the world's largest saltwater reverse osmosis (SWRO) desalination facility. The $250 million dollar facility, located in Ashkelon, Israel, annually produces 100 million meters3 of potable water. In addition to the Asheklon plant, Israel has 31 small desalination plants in the southern part of Israel, which generate 26 million cubic meters of water per year.

Drip Irrigation in the U.S.

More than 3 million acres of farmland in the United States uses Netafim's

concept of drip irrigation.

Fast Fact:

70% of the Earth's surface is covered by water, but 97.5% of that is

saltwater.

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Israel's Desalination Expertise: • Independent and Flexible Operating Systems: A three-centre design models which separates

the high pressure pumps, energy recovery devices and membrane banks. • Cost-Efficiency: Separation of the high-pressure pump from the energy recovery device breaks

the link between pump capacity and the RO bank capacity and enables the desalination process to be optimized for each of the constituent elements.

• Energy Reclamation: An energy recovery centre with Double Work Exchanger Energy Recovery (DWEER) devices which collects pressurized brine from each plant's RO banks and reclaims the energy.

• Advanced System Management: Separate lines for raw seawater to maximize operational capacity in the event of a blockage, real-time flow-rate adjustment, two stage filtration process and automatic backwash facility, which offers a 33% standby overcapacity.

Exporting Desalination: Due to the country's impressive national track record in desalination, there is a great international demand for Israeli made desalination plants. Israeli companies have already set up hundreds of desalination plants throughout the world, including in Asia, Europe, South America and Africa.

Success Story: IDE Setting International Records in Desalination

The Ashkelon desalination facility, the world's largest reverse osmosis desalination plant, produces high-quality drinking water at a price of approximately 57¢ per meter3 - the lowest cost

in the world.

The accomplishments of the Ashkelon desalination plant were recognized for its great contribution to the progress of the international desalination industry when it was declared 'Desalination Plant of the Year 2006' at the prestigious Global Water Awards ceremony in Dubai.

With a capacity of 320,000m3 per day, the plant produces around 13% of the country's domestic consumer demand – equivalent to 5–6% of Israel's total water needs. This facility is the first in a network of desalination plants planned along the Mediterranean coast.

Israeli Desalination in China

IDE is providing China with the country's largest desalination facility. The $119 million facility will provide

100,000 cubic meters of potable water a day.

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Wastewater Recycling and Reuse: The Renovation of Water Wastewater recycling provides solutions for multiple problems. By recycling used water, fresh water is "freed up" for domestic needs, which is less expensive than developing new water resources. Additionally, water recycling solves waste disposal problems and reduces fertilizer requirements. Israel's Shafdan Treatment and Reclamation Plant, is one of the largest of recycling plant in the world. The plant is responsible for: • Treating wastewater originating from nearly 2.3

million residents in Tel Aviv's 13 municipalities – which represents 8% of Israel's entire water consumption.

• Purifying approximately 130 million meters3 annually of wastewater for irrigation purposes.

• Providing treated water to the Israel's desert region for irrigation uses.

Streamlining Innovation: Israeli companies have developed a variety of innovative filtration technologies to allow the reuse and recycling of wastewater and prevent water borne diseases, contaminants and pollution, including: • Magnetic-Based Water Treatment - A process that

uses magnetic particles to separate toxic organic substances, such as oil, detergents, phenols, dyes and heavy metals from the water which simultaneously produces a magnetic and hydrophobic sediment.

• Electro-Flocculation System – A method that speeds up the settling process of water by releasing metal electrodes with positively charged electrons to pull the negatively charged particles downward. This process is estimated to reduce operating costs by 15%.

• AGAR (Attached Growth Airlift Reactor) - A system that significantly increases surface area of biological purification treatments by using biomass carriers and is particularly cost-efficient as it does not require expanding the plant's current infrastructure.

Israel's Recycling Record

Israel is the largest water recycler in the world, with a recycling rate of

75% - the second largest water recycler is Spain, with only a 12%

reuse rate.

Israel has developed a unique method of water purification using

the geological structure of land adjacent to the purification plant. The treatment plant provides advanced

biological treatment of wastewater, including the removal of nitrogen and phosphorous, by injecting the

effluents into the sandy layers of land surrounding the plant and attaining an effective biological filtration of the

water. This water is then retrieved and transported to the Negev.

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• Laser Based Analysis: A time and energy saving

process that uses on-line laser-based particle size analyzers to detect solids in water, from lime deposits to sub-micron objects, such as viruses.

• UV Light Purification: A disinfecting system in which water passes through a specialized quartz tube that bounces beams of ultraviolet light through it. This process kills billions more microbes than conventional techniques.

• Electro Coagulation: A dramatically cost-saving treatment that removes heavy metals from water by introducing highly charged polymeric metal hydroxide species.

• Transportable and Portable Systems: Technology that can be adapted for personal use, and can bring quick relief in natural disaster situations.

• Suction Scanning Technology: Fast, efficient, self-cleaning technology that ensures a continuous flow of filtered water.

Water Management – The Pipeline in Water Technology Streaming Technology: National Water Management Israel, with one of the most sophisticated and intricate national water management systems in the world, specializes in developing multifaceted water management technologies in the fields of:

• Water Transportation & Distribution • Water Measurement and Monitoring

Water Transportation & Distribution: Precipitation imbalances forced Israel to develop efficient water transportation technology to facilitate the transfer of water from the lush and fertile northern region to the arid and dry southern region. Israel has transferred more than 13 billion meters3 of water since the 1960’s, using sophisticated water transport systems, which include high-quality pipes, advanced pumping stations and enhanced water monitoring technologies.

Making a Splash with Technology Convergence

Electromagnetic technology that was

developed to detect impurities in chemicals has since been adapted for use in water purification technology.

Scientists who previously worked in the medical and aesthetic laser fields have

applied their know-how to develop innovative UV water purification

techniques.

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Israeli companies – Tahal, an engineering company founded in the 1950s, and Mekorot, Israel's national water company founded in the 1930s, are the country's largest and most experienced in water management. The two companies were set up in order to help the country overcome its persistent water scarcity and distribution problems. Working together, the companies have created:

• Dependable water transport systems • Long-lasting storage structures and durable reservoirs • Rain harvesting techniques • Energy-conserving technology

As part of the country's overall water policy, Mekorot acts as a test bed, enabling the sector's start-ups to use the national facilities for the testing of new technologies.

Solutions for efficient and precise water management include a wide range of products, including sophisticated, computerized, remote-controlled and automated systems that assure reliability and high quality of water supply.

Water Measurement and Monitoring:

Preventing water loss is dependent on the quality and reliability of the system's infrastructure. Leaks in a city's underground pipes can account for up to 40% of a city's total water consumption.

Israeli firms specialize in designing more durable valves, reliable pipes and accurate meters that better control water supply and water flow, for industry, domestic and agricultural needs. Israeli advancements in the fields include:

• Corrosion-resistant material • Leak & Surge prevention and detection technology • Minimum-maintenance systems • Tailor made and Light-weight valves • Automatic control • Efficient Designs

Israeli Arad Technologies has developed the world’s first transmitting

meter, which combines mechanical accuracy with micro-electronics.

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Success Story: Israel's National Water Carrier – Delivering water to the country for over 60 years

Mekorot - Israel's National Water Company - supplies 1.3 million meters3 of water per year, which accounts for 90% of Israel's drinking water and 70% of the country's water supply.

Surrounding the plant and attaining an effective biological filtration of the water. This water is then retrieved and transported to the Negev.

Israel's success in water management stems from its ability to incorporate an extensive variety of solutions under multiple constrains. Mekorot is responsible for: • Reclaiming 68% of Israel's reused effluents in agricultural • Treating 32% of wastewater in Israel (160 million meters3 annually) • Transferring water from the lush northern region to the arid southern part of the country with a

total pumping capacity is 72,000 meters3 annually • Rainfall Augmentation by up to some 15% • Managing 29 desalination plants • Testing water quality in 200,000 different analyses annually • Remote Monitoring of water systems Israel's sophisticated and advanced water infrastructure includes: • 3,000 installations throughout the country • 800 pumping stations and more than 2,400 pumps • 1,200 wells • Over 10,500 km. of large-diameter pipes • 750 concrete and steel reservoirs and 90 large earth

reservoirs

International cooperation:

The Siemens Company, currently the largest company in the water

technology market with a sales volume of roughly $2 billion, signed a

cooperation agreement with Mekorot for joint development of new water

technologies in mid 2006.

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Water Security – Preventing a New Kind of Threat The world's water supplies are facing greater risks, as intentional human interference is becoming a greater concern and global warming increases the amount and severity of natural disasters. These trends have resulted in a significant rise in the need for sophisticated water security. As the damage to water supply from natural disasters and sabotage is similar, the same prevention techniques can be applied. Prevention Research: Leading Israeli universities, such as the Technion, Hebrew University and Ben Gurion University of the Negev have piloted multiple projects on water security and safety. Hebrew University is currently researching models for safety and security in urban sewage models as part of the Sixth EU R&D Framework. Israel's Institute of Technology, the Technion, is carrying out research, financed by NATO, which consist of mathematical models of water flow in order to identify strategic placement for monitoring stations and develop technology that can identify and neutralize chemical and biological contaminants in water. Water Security Technology: Israeli companies specialize in all fields of water security: • Perimeter Security: The first line of protection is to physically safeguard and secure water

infrastructures in order prevent threats from both human infiltration and natural causes. This technology includes advanced perimeter control systems and prevention methods, such as fences, alarm systems and barriers.

• Contamination Detection: If waters become contaminated, then the next step is to detect contamination in order to prevent the pollutant or toxins from reaching the public. Israeli companies are leading the world in developing technology in the fields of surveillance, reconnaissance, command & control systems sensors to measure water quality and bio-sensors to detect toxins. Israeli companies have developed technology that strategically monitors waterways for biological and chemical contaminants.

• Neutralization: Once water is identified as being contaminated, then measures to counteract the contaminants are implemented. (See Page 11 - ”Streamlining Innovations”)

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Consulting: Israeli consulting companies offer packaged solutions in water safety issues which integrate decision-making processes in order to minimize casualties and economic damage. These consulting packages include:

• Identifying gaps in water security • Crisis Management Procedures • Policies and planning • Drills and Lesson Implementation

ECONOMIC INDICATORS An Increasing Current in Water Technology Exports During 2006 Israeli water technology exports rose 10%-15% to $900 million. Forty five percent of exports were in irrigation and agricultural projects, 27% in valves and meters, 13% in engineering services and projects, 8% in filters, 8% in desalination technology and 4% in pipes. World's Highest Expenditure on R&D Israel invests a larger percentage of its GDP – 4.8 % - on civilian R&D than any other OECD country according to both the IMD World Competitiveness Yearbook 2006 and the WEF. A Surge of VC Investments According to the IVC Research Center, Israeli VCs raised $2.52 billion in the period from 2004-2006. Ranked 2nd by both the IMD and WEF for its VC availability, Israel claimed over $1.62 billion of funds raised in 2006 from both foreign and Israeli VCs – a 21% increase over the previous year. Six venture capital funds in the clean-tech sector began to raise funds worth over $300 million in 2006. As the water industry is being recognized as profitable, funds dedicated to clean-tech are locally emerging. They support the industry and encourage startups by providing business expertise and networks. WHY ISRAELI WATER TECHNOLOGY Israel's proven track record for dealing with water shortage and developing efficient solutions to meet growing water demand, uniquely position it to share its knowledge and become a central player in the water technology market. World Class Research Institutions Advancing Technology Development A new crop of advanced water technology start-ups is using Israel's established R&D infrastructure to transform innovative ideas into marketable products. The innovative research and development at Israel's universities and academic institutions have provided the platform for the

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country's world-renowned high-tech sector. From telecommunications and semiconductors to medical devices and biotechnology, Israel now exports billions of dollars of products, systems and solutions that started out as R&D ideas.

The Department of Soil and Water Sciences at the Hebrew University's Faculty of Agriculture in Rehovot has provided invaluable ideas for Israel's agricultural development, in fields such as drip irrigation and efficient utilization of brackish water. Israel's universities have traditionally dedicated major resources to R&D in order to find techniques to stretch the country's limited water supply.

Water research institutes at Ben-Gurion University of the Negev focus on all aspects of water technology research, ranging from groundwater production and desalination technologies to treatments for marginal water sources. Particular emphasis is placed on R&D of water resources in arid climates. The water research institute at the Technion in Haifa, focuses on inter-disciplinary R&D in water science, technology, engineering and management. Partnerships and Collaboration between Academia and Industry The excellent collaboration that exists between education, R&D institutions, companies and entrepreneurs, is key to the growing potential of the Israeli water technology industry and a main reason for the accelerated pace of research in the country. Water Dedicated Technological Incubators: Israel's unique and advanced system of technological incubators supports entrepreneurship and accelerates the growth of water technology start-ups.

The Kinarot Jordan Valley Technological Incubator, which was acquired by Canadian businessman Ron Stern, is dedicated exclusively to water technologies.

The Ashkelon Technological Incubator (ATI) serves to provide a business commercialization framework for Israeli scientist-entrepreneurs to transform their technological ideas, knowledge and experience into viable and profitable water technology. The incubator is an additional incubator which specializes in environmental and water technologies. The incubator has currently eight companies in the incubation stage.

Highly Skilled Workforce Israel has more doctors, engineers and scientists per capita than any other country in the world. Approximately 24% of Israel's workforce holds university degrees – 3rd in the industrialized world after the USA and the Netherlands. Additionally, 12% of Israel’s workforce possesses advanced degrees or doctorates.

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Interdisciplinary Strength Israel's success in the hi-tech arena provides the water technology sector a strong base. Due to the complexity and the multidisciplinary nature of the water industry, its success requires technologies to be developed from other fields, including nano-science, biology and microelectronics. Entrepreneurial Spirit and Ingenuity The resourcefulness of Israeli researchers and entrepreneurs is evident in the fact that they frequently overcome technological barriers and solve problems within a short period of time and at a fraction of the cost of some of their larger and better-funded competitors overseas. Israel NEWTech - Novel Efficient Water Technologies National Government Program Promoting the Water Technology Sector Recognizing Israel's potential to be a leader in the growing international water technologies market, the government designed a unique national program, authorized on June of 2006. The program, called Israel NEWTech – Novel Efficient Water Technologies, builds upon Israel's experience in coping with water scarcity problems, while incorporating all the separate industry elements in order to advance the sector at an international level. The Israeli government is heavily invested in the program and has allocated over $50 million over the next three years to advance the sector and reach notable benchmarks. Israel NEWTech Goals: • Increase Israeli Exports: By 2010, Israel intends to double its exports in the water technology

field. • Position Israel at the Cutting Edge of Water Technology: By using its first-hand experience in

overcoming water scarcity, combined with its R&D and hi-tech expertise, Israel plans to establish itself as a leading country in the international water technology market.

• Enhance International Investment: Already a well-established destination for international investment in hi-tech, Israel aims to boost multinational's interest and foreign government investment activity in its water technology sector.

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Israel NEWTech Activities: • Concentrated R&D: Multi-million dollar funds are

allocated to promote academic research that has industrial applications in the water sector and advance water-dedicated technological incubators.

• Strengthening Human Capital: A heavy investment in academic programs, research scholarships, professional training and mentorship programs of local start-ups is aimed at maintaining highly educated and qualified professionals in the sector.

• Promoting Technology Implementation: Nearly $10 million is designated to transform Israel into an international beta-site by encouraging technological innovation and its implementation in the local market.

• Penetrating International Markets: An international marketing program is being launched to increase Israel's activity in the international water market.

Leading international players in the water technologies market, such as, GE, Siemens, Coca-Cola, 3M, Jain Irrigation have already identified Israel as strategic target for investment and cooperation. French Veolia announced that it is doubling its investment in the country to $2 billion over the next six years.

Israel NEWTech Initial Achievements: Within just the past year since the program was initiated, the fruits of the program are already evident. Exports of Water Technology will surpass $1 Billion in 2007. Cooperation Agreements have been signed between Israeli and: • The Chinese Government

through the Beijing Water Authority

• The Australian Government through the Melbourne Water Authority

• The Argentinean Government through the Buenos Aries Water Authority

• The Spanish Government through the Madrid Water Authority

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