UShana
Tova
from State of Israel Bonds

This High Holy Day season, reaffirm your
Jewish identity with a commitment to Israel

7.45%
Effective yield to maturity and current purchase price of $2,925 for bonds

6th Zero Coupon Bond

purchased through October 25, 2000. Matures at $6,000 10 years from
issue date (first day of the month following the month in which sub-
scription is accepted by Fiscal Agent).

Jubilee (Series A) Issue Bond

6.80%

Fixed annual interest rate for bonds purchased through October 25, 2000.
Matures 5 years from issue date. Minimum Subscription $25,000.

Jubilee (Series B) Issue Bond

7.20%

Fixed annual interest rate for bonds purchased through October 25, 2000.
Matures 10 years from issue date. Minimum Subscription $25,000.

2nd LIBOR Floating Rate
Issue (LFRI) Bond

7.5625%

Interest rate for bonds purchased through October 2000. Based on 75
basis points (fixed at time of purchase) plus the 6 month LIBOR rate in
effect on issue date, and recalculated thererafter on March 1, June 1,
September 1 and December 1. Minimum subscription: $5,000 ($2,500 or
$2,000 for IRAs only). Matures: 10 years from issue date.

Development Issue Current Income Bond

4.00% annual interest rate. $500 and increments of $500. Matures 15
years from issue date.

Development Issue Savings Bond

$500 and increments of $500. Matures 15 years from issue date at 180%
of issue amount, resulting in an effective yield to maturity of approxi-
mately 4.00%

Chai Bond

Purchase price: $136. Matures in 5 years at $180. Non-transferable. Not
eligible for early redemption. Purchaser may only purchase one Bond for
a given owner in any calendar year. May only be purchased for/registered
to an (only one) individual.

ADVANCE REINVESTMENT: All unmatured 4% bonds issued in 1985 and 1986

due in 2000 and 2001 are eligible for advance reinvestment. The govern-
ment of Israel has agreed to give you credit for the full maturity value
provided you add additional funds and reinvest in securities of a higher
denomination (7th Development, LFRI and Jubilee Bonds only).

MATURED BONDS: After maturity, bonds no longer earn interest.

ISSUES SUBJECT TO AVAILABILITY.

This is not an offering, which can be made only by prospectus. Read it carefully before investing. Member NASD, SIPC

Development Corporation for Israel/State of Israel Bonds

29201 Telegraph Road, Suite 324 • Southfield. MI 48034-7654

248-352-6555 • 888-352-6556 • fax: 248-352-7887

www.israelbonds.com

