The High Holy Days. Time to reflect. Time to act.

ISRAEL BONDS: AN INVESTMENT FOR YOU AND YOUR FAMILY AND
AN EXPRESSION OF LOVE AND APPRECIATION FOR THE STATE OF ISRAEL.

6.90%
Effective yield to maturity and current purchase price of

4.25%

7th Zero Coupon Bond

4th LIBOR Floating
Rate Issue (LFRI) Bond

$3,079 for bonds purchased through September 25, 2001.
Matures at $6,000 10 years from issue date (first day of the
month following the month in which subscription is
accepted by Fiscal Agent).

Interest rate for bonds purchased through September 2001.
Based on 75 basis points (fixed at time of purchase) plus the
6 month LIBOR rate in effect on issue date, and recalculated
thereafter 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.

5.80%
Fixed annual interest rate for bonds purchased through

7th Development Issue (DI) Bond

2nd Jubilee (Series A)
Issue Bond

September 25, 2001. Matures 5 years from issue date.
Minimum Subscription $25,000.

2nd Jubilee (Series B)
Issue Bond

6.70%

Fixed annual interest rate for bonds purchased through
September 25, 2001. Matures 10 years from issue date.
Minimum Subscription $25,000.

Current Income Bond: Annual interest rate is 4.00%. Payable
by check once a year on May 1.
Saving Bond: Matures at 180% of issue amount, resulting in
an effective yield to maturity of approximately 4.00%.
Matures 15 years from issue date. Minimum subscription:
$500.

Chai Bond

Purchase price: Multiples of $136. Matures in 5 years at
$180. Non-transferable. Not eligible for early redemption.
May only be purchased for/registered to an (only one)
individual.

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

ISSUES SUBJECT TO AVAILABILITY.

Happy New Year from State of Israel Bonds.

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

Development Corporation for Israel/State of Israel Bonds
29201 Telegraph Road, Suite 324 • Southfield, MI 48034

248-352-6555 • 888-352-6556 • (Fax) 248-352-7887

nrymrn ri=lt3 rimy

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Member NASD, SIPC