arrFiles=new Array();arrFiles[0]=new Array("Apycom DHTML Menu.txt","Apycom DHTML Menu.txt","Apycom DHTML Menu Licensed version of menu How to setup the licensed version.  1. Replace the free trial apymenu.js file by the apymenu.js from this zip.  2. Edit your data file (data.js by default) and add the following line:   var key= \"THE_KEY \";   where THE_KEY is the key for your website. Common problems and solutions.  P: The menu shows  \"Trial Version \" nag. S: You \'re still using a free trial version of menu. Replace the free trial apymenu.js file by the file from this zip. Also,  it \'s possible you \'re still viewing a cached data by your browser or  at provider proxy. Try to access your site from another computer or  provider.  P: The menu shows  \"Incorrect Key \" nag. S: The key you added to the data file is not valid for the url where you placed the menu. Things to check: * The key works only with pages that have the registered domain in url. * Use cut-n-paste to add the key to avoid typing errors.   ","null","null","");arrFiles[1]=new Array("index.html","BSR Europe | Home page","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[2]=new Array("Key for http--www_bsreurope_com domain_ Product ID 204226.htm","Key for  \"http://www.bsreurope.com \" domain. Product ID: 204226","------------------------------------------------------------------------------Dear Doron,Thank you for interest in our products.Please, keep this info safe since you might need some of theinformation at a later time, and read the following sections of itcarefully. This page contains your website (domain) license registration keyfor DHTML Menu.The registration key for \"http://www.bsreurope.com \" website is:159b1359exidTo install the registered version:----------------------------------------* Download license package: http://www.apycom.com/download/a0dh8ui7/apdm-lic.zip Note: This file contains a licensed .js file(s) only. If you need menu templates, images, GUI wizard please download the free trial package from our site first.* Unzip downloaded file.* Replace the free trial .js file(s) by .js file(s) from this zip.* Edit your data file (data.js by default) and add the following line: var key= \"159b1359exid \";----------------------------------------This key is valid throughout \"http://www.bsreurope.com \" website for DHTML Menu.Within the website you can use the menu with the key as many timesas you like.----------------------------------------Common problems and solutions.P: The menu shows \"Trial Version \" nag.S: You \'re still using a free trial version of menu.Replace the free trial .js file(s) by .js file(s) from this zip.Also, it \'s possible you \'re still viewing a cached data by yourbrowser or at provider proxy. Try to access your site from anothercomputer or provider.P: The menu shows \"Incorrect Key \" nag.S: The key you added to the data file is not valid for the urlwhere you placed the menu.Things to check:* The key works only with pages that have the registered domain in url.* Use cut-n-paste to add the key to avoid typing errors.P: The menu shows \"Incorrect Copyright \" nag.S: The script can \'t find required copyright params.Make sure the script has all copyright notices, for example:<!-- Apycom DHTML Menu --><noscript><a href=http://dhtml-menu.com/>DHTML Menu, (c)2006 Apycom</a></noscript><script type= \"text/javascript \" language= \"JavaScript1.2 \" src= \"apymenu.js \"></script><!-- Apycom DHTML Menu, dhtml-menu.com -->************* Special Offer *************Now you can purchase other our products with 25% discount!XP Web Buttons www.xp-web-buttons.comhttp://www.regsoft.net/purchase.php3?productid=62316&pc=GS198Web Buttons www.web-buttons.comhttp://www.regsoft.net/purchase.php3?productid=63974&pc=16u2TFlash Menu Templates www.flash-menu-templates.comhttps://secure.shareit.com/shareit/checkout.html?productid=208491&COUPON1=587-25-afpALL Apycom Applets www.apycom.comhttps://secure.shareit.com/shareit/checkout.html?productid=175882&COUPON1=587-25-afpNOTICE: These discount links are valid within a week only. *****************************************Kind regards,Steven Verbitsky order@apycom.com--Apycom Home Page: http://www.apycom.com/DHTML Menu: http://dhtml-menu.com/------------------------------------------------------------------------------","null","null","");arrFiles[3]=new Array("results.html","BSR Group","Presentation	--	Search	The Company	Projects--	Projects	News & Press	Contact	Site Map	Home	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[4]=new Array("results1.html","Search results for  \\ \" \" + s98 +  \" \\ \"","\" ;sk += \" \";sk += \"You searched for \" + s98 + \". \"; sk += \" \" }; function sY() { if(sT==0) { sk += \"No pages matched your search. \"; } else { var sA = sT==1 ? \"page shown. \" : \"pages shown. \"; sk += \" \" + sT + \" \" + sA + \" \"; } sk += \"Search Again \"; sk += \" \"; } function s11() { var s23 = sk;document.open(); document.write(s23); document.close(); } function s03( sy ) { var sqh= \" \";for( var st=0; st \" ) { sqh += \"> \"; } else if( sy.charAt(st)== \" \\ \" \" ) { sqh += \" \" \"; } else { sqh += sy.charAt(st); } } return( sqh ); } function s93() { sm = sl.indexOf( \"* \"); if( sm == 0 ) { sm = -2; sn = false; } else if (sm == sl.length -1) { sm = -3; sn = false; } else if (sm 0 ) { sm = -4;sn = true; } else { sn = false; } if ( sl.indexOf( \"* \") != sl.lastIndexOf( \"* \") ) { if( sm == -2 ) { if( sl.lastIndexOf( \"* \") == sl.length - 1 ) { sm = -5; } else { sm = -4; sn = true; } } }if( ( sm == -2 ) || (sm == -5 )) { sl = sl.substring( 1, sl.length ); } if( ( sm == -3 ) || (sm == -5 )) { sl = sl.substring( 0, sl.length - 1 ); } } function startsearch() { var sv;sl=document.formSearch.txtSearch.value;if (( sl.length 0 )&&( sl != \"* \" )) { sk = \" \";s98 = sl; sl = s03(sl);s93();if( s17 ) { sv = sl; } else { sv = sl.toUpperCase(); }if (s45 != 0) { s41=sv.split( \' \'); } else { s41=sv.split(); }if ( !(sn ) ) { for( var st=1; st Search this Site Search this site: The search engine will find pages on this website only.For best results enter just one or two words.Searches on more than one word will be treated \"as a phrase \". Use the asterisk (*) character for wildcard searches.","null","null","");arrFiles[5]=new Array("search.html","BSR Europe | Search Results","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	--	Search Results	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Group All Rights reserved	Site byVision","null","null","");arrFiles[6]=new Array("search1.html","Search Engine Builder Standard -- Search this site","null","null","null","");arrFiles[7]=new Array("test.html","BSR Europe | Home page","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[8]=new Array("about/32007.pdf","NO TITLE","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF MARCH 31, 2007  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 8 9 - 11 12  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  B.S.R Europe Ltd.  The accompanying condensed interim consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of March 31, 2007, and the related condensed interim consolidated statements of income, changes in shareholders \' equity and cash flows for the three months then ended are derived from the unaudited financial statements of the Company.  We have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain subsidiaries, whose assets constitute approximately 71.2% of total consolidated assets as of March 31, 2007, and whose revenues constitute approximately 86.9% of total consolidated revenues for the three months then ended. In addition, we have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain affiliates, the investment in which, at equity, amounted to NIS 130,728 thousand as of March 31, 2007, and the Company \'s equity in their losses amounted to NIS 1,566 thousand for the three months then ended.  Based on our review and the reports of other accountants dated May 29, 2007, we are not aware of any material modifications that should be made to the interim consolidated financial statements.  The accompanying financial statements which are derived from the abovementioned financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations, and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel May 29, 2007 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  March 31, Unaudited Reported NIS 2006  2007  Convenience translation (Note 1) March 31, 2007 Unaudited Euro  (In thousands)  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of previously consolidated companies Inventories of contracts in progress and buildings for construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Investments in affiliates and other companies Investment property, net  187,524 6,667 19,226 28,188 445 118,748 360,798 249,057 192,441 21,362 *) 8,023 13,918 11,154 81,030 327,928 217,393 205,457 4,919 17,297 20,749 141,701 44,742 434,865 155,277 37,124 889 3,125 3,749 25,604 8,084 78,575 28,057  41,214 125,944 39,084 206,242 23,265 1,573 33,984 45,075 103,897 3,428 130,728 39,228 173,384 619 23,621 7,088 31,328  FIXED ASSETS: Cost Less - accumulated depreciation  *) 20,774  *)  753 20,021 2,517  DEFERRED TAXES  838,635  *) 53,957 *) 2,086 51,871 2,206 703,295 21,724 814 20,910 2,469 786,905 3,928 147 3,781 446 142,187  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  March 31, Unaudited Reported NIS 2006  2007  Convenience translation (Note 1) March 31, 2007 Unaudited Euro  (In thousands)  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable  128,365 23,911 45,939 198,215 87,457 23,347 42,752 153,556 50,336 20,545 51,415 122,296 9,095 3,712 9,291 22,098  LONG-TERM LIABILITIES: Convertible debentures Debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  1,406 145,455 185,412 154 8,981 341,408 2,667 296,345 838,635 *) 80,741 *) 95,077 181,934 43 137 4,241 362,173 484 187,082 703,295 1,232 146,266 136,123 118 3,557 287,296 3,725 373,588 786,905 223 26,429 24,596 21 643 51,912 673 67,504 142,187  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  May 29, 2007 Date of approval of the financial statements  Kalman Sufrian Chairman of the Board Nachshon Kivity CEO and Director Assaf Raz CFO  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2006 Audited  Three months ended March 31, Unaudited (In thousands, except per share amounts)  2007  2006 Reported NIS  Convenience translation (Note 1) Three months ended March 31, 2007 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other expenses Income before taxes on income Taxes on income Income after taxes on income Equity in losses of affiliates Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per Ordinary share: Basic net earnings Diluted net earnings  198,371 126,740 71,631 21,617 50,014 5,581 4,201 40,232 7,518 32,714 (529) 240 32,425 33,832 26,308 7,524 4,724 2,800 532 2,268 1,309 959 (153) 145 951 175,034 68,607 106,427 9,492 96,935 4,479 92,456 10,725 81,731 (1,566) (1,103) 79,062 31,627 12,397 19,230 1,715 17,515 809 16,706 1,938 14,768 (283) (199) 14,286  2.44 1.83 0.09 0.08 4.35 4.18 0.79 0.75  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Year ended December 31, 2006 (audited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the year Cost of share-based payment Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the year 241 19 52 312 137,232 10,924 88,133 236,289 273 (267) 6 2,751 (1,084) 1,667  Capital reserve, share-based payment Reported NIS (In thousands) 21 594 (297) 318  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,408 4,323 24,731 24,262 (23,000) 32,425 33,687 (8,438) 1,179 6,594 (665) 176,477 594 273 10,741 94,512 4,323 (23,000) 32,425 296,345  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Three months ended March 31, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options Capital reserve, share-based payment adjustments for autonomous entities  Retained earnings  Dividend declared subsequent to the balance sheet date  Less - shares held by the Company and by subsidiary  Total  Reported NIS (In thousands) 21 20,408  Balance at the beginning of the period (audited) Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared subsequent to the balance sheet date Cost of share-based payment Net income Balance at the end of the period  241 137,232 2,751 24,262 (8,438) 176,477  1 1 243 178 (637) 136,773 273 273 (14) 2,737 147 168 7,026 27,434 (23,000) 951 2,213 23,000 23,000 2,679 (5,759) 273 165 2,043 7,026 147 951 187,082  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Three months ended March 31, 2007 (unaudited) Foreign currency translation  Receipts on account of stock options Capital reserve, share-based payment adjustments for autonomous entities  Retained earnings  Dividend declared subsequent to the balance sheet date  Less - shares held by the Company and by subsidiary  Total  Reported NIS (In thousands)  318 76 394 24,731 (2,147) 22,584 Balance at the beginning of the period (audited) Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared subsequent to the balance sheet date Cost of share-based payment Net income Balance at the end of the period 312 *) 312 236,289 252 236,541 6 6 1,667 1,667 33,687 (32,000) 79,062 80,749 32,000 32,000  (665) -  (665)  296,345 252 (2,147) 76 79,062 373,588  Convenience translation into Euro (Note 1) (In thousands)  301 301 57 14 71 4,469 (388) 4,081 6,087 (5,782) 14,286 14,591 Balance at the beginning of the period (audited) Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared subsequent to the balance sheet date Cost of share-based payment Net income Balance at the end of the period 56 *) 56 42,695 46 42,741 1 1 5,782 5,782  (120) -  (120)  53,546 46 (388) 14 14,286 67,504  *) Represents an amount lower than reported NIS 1 thousand ($ 1 thousand).  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended March 31,  2006 Reported NIS Unaudited (In thousands) 2007  Convenience translation (Note 1) Three months ended March 31, 2007 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investments in fully and proportionately companies that were deconsolidated (b) Acquisition of fully and proportionately consolidated companies (c) Debt collection for realization of investment in subsidiary Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of long-term deposits Investment in affiliates Investment in fixed assets and real estate Withdrawal (deposit) of short-term deposits, net Net cash used in investing activities Cash flows from financing activities: Exercise of stock options into shares Issuance expenses in subsidiary Dividend paid Redemption of debentures Issuance of debentures and convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Refund of deposits from tenants, net Net cash provided by financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  32,425 (22,100) 10,325 951 5,578 6,529 79,062 (53,523) 25,539 14,286 (9,671) 4,615  111,696 (58,371) 31,809 (41,788) 8,452 (79,247) (234,772) (4,184) (266,405) (40) (9,738) 24,986 (828) 452 (1,379) (29,884) (20,087) (36,518) 62,286 (23,453) 921 (7,018) (54,427) 1,721 (19,970) 11,255 (4,238) 166 (1,268) (9,834) 311 (3,608)  9,584 (4,201) (23,000) (2,458) 51,637 278,579 (56,141) (554) 253,446 165 38,151 (6,841) (517) 30,958 47,742 (34,946) 12,796 8,627 (6,314) 2,313  957 (1,677) 189,201 187,524 2,271 3,240 189,201 192,441 (432) 17,933 187,524 205,457 (78) 3,242 33,882 37,124  The accompanying note is an integral part of the interim consolidated financial statements. - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended March 31,  2006 Reported NIS Unaudited (In thousands) 2007  Convenience translation (Note 1) Three months ended March 31, 2007 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates Depreciation and amortization Gain from sale of real estate and deconsolidated companies Cost of share-based payment Increase (decrease) in accrued severance pay Revaluation (erosion) of loans granted and shortterm deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  (240) 529 1,862 (48,811) 594 60 (1,031) (3,098) (941) (51,076) (145) 153 875 (2,836) 147 43 137 1,377 69 (180) 1,103 1,566 548 (96,438) 76 (36) (963) 1,961 (1,451) (93,634) 199 283 99 (17,425) 14 (7) (174) 354 (262) (16,919)  Changes in asset and liability items: Decrease (increase) in trade receivables Increase in other accounts receivable Decrease (increase) in inventories of contracts in progress and building under construction Increase in trade payables and other accounts payable  (7,530) (6,158) 3,252 39,412 28,976 (22,100) 3,833 (495) (806) 3,226 5,758 5,578 (178) (4,863) 12,436 32,716 40,111 (53,523) (32) (879) 2,247 5,912 7,248 (9,671)  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended March 31,  2006 Reported NIS Unaudited (In thousands) 2007  Convenience translation (Note 1) Three months ended March 31, 2007 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately companies that were deconsolidated *): Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Deferred taxes Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries and sale of activity, net  (1,239) 208,773 (142,700) 11,059 1,740 (13,468) (1,280) 48,811 111,696 (1,036) 17,512 (15,763) (849) (2,740) 2,836 (40) (15,322) 203,978 (138,718) 61,049 (3,880) (141,259) 96,438 62,286 (2,768) 36,857 (25,065) 11,031 (701) (25,524) 17,425 11,255  (c)  Acquisition of fully and proportionately consolidated companies **): Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net Long-term loans Investments in affiliates Minority interest Long-term liabilities Deferred taxes  4,958 (83,576) 1,563 (153) 14,041 4,796 (58,371) 4,527 (30,200) 136 1,563 (153) 14,041 348 (9,738) -  (d)  Significant non-cash activities: Conversion of debentures into shares Purchase of fixed assets and real estate by credit Exercise of stock options into shares  94,512 3,795 1,157 2,043 5,620 252 766 46 138 -  *) **) In 2006 includes sale of activity and assets. In 2006 includes full consolidation of an affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of March 31, 2007 and for the three months then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.5343). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\07 \\EC3-SHORT.DOC  - 12 -   ","null","null","");arrFiles[9]=new Array("about/62007.pdf","NO TITLE","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF JUNE 30, 2007  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 10 11 - 13 14  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of June 30, 2007 and 2006, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the six and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2006 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  We have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain subsidiaries, whose assets constitute approximately 85.7% of total consolidated assets as of June 30, 2007, and whose revenues constitute approximately 63.9% and 80.1% of total consolidated revenues for the six and three months then ended, respectively. In addition, we have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain affiliates, the investment in which, at equity, amounted to NIS 109,975 thousand as of June 30, 2007, and the Company \'s equity in their losses amounted to NIS 2,337 thousand and NIS 771 thousand for the six and three months then ended, respectively.  Based on our review and the reports of other accountants dated August 24, 2007, we are not aware of any material modifications that should be made to the interim consolidated financial statements.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel August 28, 2007 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  June 30, Unaudited Reported NIS 2006  2007  Convenience translation (Note 1) June 30, 2007 Unaudited Euro  (In thousands)  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of companies Inventories of contracts in progress and buildings under construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Investments in affiliates and other companies Investment property, net  187,524 6,667 19,226 28,188 445 118,748 360,798 249,057 122,881 22,076 10,862 45,370 1,129 83,172 285,490 347,169 558,585 5,171 8,845 17,549 68,213 30,613 688,976 83,882 97,771 905 1,548 3,072 11,940 5,358 120,594 14,682  41,214 125,944 *) 39,084 206,242 35,779 1,495 73 *) 36,218 73,565 3,304 109,975 26,445 139,724 578 19,249 4,629 24,456  FIXED ASSETS: Cost Less - accumulated depreciation  *) 20,774  *)  753 20,021 2,517  *) 102,894  *)  4,003 98,891 1,239  DEFERRED TAXES MINORITY INTEREST IN LOSSES OF SUBSIDIARIES  26,143 866 25,277 2,282 4,577 152 4,425 399  838,635 806,354 799 940,940 140 164,696  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  June 30, Unaudited Reported NIS 2006  2007  Convenience translation (Note 1) June 30, 2007 Unaudited Euro  (In thousands)  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable  128,365 23,911 45,939 198,215 125,570 19,318 39,244 184,132 24,481 15,759 86,418 126,658 4,285 2,758 15,127 22,170  LONG-TERM LIABILITIES: Convertible debentures Debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  1,406 145,455 185,412 154 8,981 341,408 2,667 296,345 838,635 *) 68,185 *) 96,535 273,098 46 133 4,339 442,336 179,886 806,354 295 146,402 97,941 138 1,971 246,747 567,535 940,940 52 25,625 17,143 24 345 43,189 99,337 164,696  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  August 28, 2007 Date of approval of the financial statements  Shachar Brickman Director and Acting Chairman of the Board of Directors *) Nachshon Kivity CEO and Director Assaf Raz CFO  *)  On August 28, 2007, the Company \'s Board authorized Mr. Shachar Brickman, a director, to sign the financial statements as of June 30, 2007 in lieu of Mr. Kalman Sofrin, the chairman, due to the latter \'s absence from the Board \'s meeting.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2006 Audited  Three months ended June 30, 2006 2007 Six months ended June 30, 2006 2007  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Six months ended June 30, 2007 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income (loss) after taxes on income Equity in losses of affiliates, net Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per share: Basic net earnings Diluted net earnings (loss)  198,371 38,510 189,050 72,342 364,084 63,727  126,740 71,631 21,617 50,014 5,581 (4,201) 40,232 7,518 32,714 (529) 240 32,425 31,269 7,241 4,548 2,693 2,436 257 525 (268) (24) 636 344 42,968 146,082 17,885 128,197 9,692 113,632 232,137 15,028 217,109 (771) (17,248) 199,090 57,577 14,765 9,272 5,493 2,968 2,525 1,834 691 (177) 781 1,295 111,575 252,509 27,377 225,132 14,171 113,632 324,593 25,753 298,840 (2,337) (18,351) 278,152 19,529 44,198 4,792 39,406 2,480 19,889 56,815 4,508 52,307 (409) (3,212) 48,686  2.44 1.83 0.03 (0.02) 10.87 10.47 0.12 0.10 15.24 14.65 2.67 2.56  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Year ended December 31, 2006 (audited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the year Cost of share-based payment Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the year 241 19 52 312 137,232 10,924 88,133 236,289 273 (267) 6 2,751 (1,084) 1,667  Capital reserve, share-based payment Reported NIS (In thousands) 21 594 (297) 318  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,408 4,323 24,731 24,262 (23,000) 32,425 33,687 (8,438) 1,179 6,594 (665) 176,477 594 273 10,741 94,512 4,323 (23,000) 32,425 296,345  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Three months ended June 30, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period 243 1 7 251 136,773 2,380 12,172 151,325 273 273 2,737 (349) 2,388  Capital reserve, share-based payment Reported NIS (In thousands) 168 148 316  Retained earnings  Less - shares held by the Company and by subsidiary  Total  27,434 (229) 27,205 25,213 (23,000) 344 2,557 (5,759) 1,179 151 (4,429) 187,082 3,211 12,330 (229) (23,000) 148 344 179,886  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Three months ended June 30, 2007 (unaudited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period 312 2 1 315 236,541 2,213 1,256 240,010 6 (5) 1 1,667 (355) 1,312  Capital reserve, share-based payment Reported NIS (In thousands) 394 77 471  Retained earnings  Less - shares held by the Company and by subsidiary  Total  22,584 23,668 46,252 112,749 (32,000) 199,090 279,839 (665) (665) 373,588 1,860 1,252 23,668 (32,000) 77 199,090 567,535  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Six months ended June 30, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the period (audited) Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period  241 137,232 2,751  Capital reserve, share-based payment Reported NIS (In thousands) 21  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,408 24,262 (8,438) 176,477  2 8 251 2,558 11,535 151,325 273 273 (363) 2,388 295 316 6,797 27,205 (23,000) 1,295 2,557 1,179 2,830 (4,429) 273 3,376 14,373 6,797 (23,000) 295 1,295 179,886  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Six months ended June 30, 2007 (unaudited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period 312 2 1 315 236,289 2,213 1,508 240,010 6 (5) 1 1,667 (355) 1,312  Capital reserve, share-based payment Reported NIS (In thousands) 318 153 471  Retained earnings  Less - shares held by the Company and by subsidiary  Total  24,731 21,521 46,252 33,687 (32,000) 278,152 279,839 (665) (665) 296,345 1,860 1,504 21,521 (32,000) 153 278,152 567,535  Convenience translation into Euro (Note 1) (In thousands)  292 (62) 230 55 27 82 4,329 3,767 8,096 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period  55  55  41,358 388 264 42,010 2 (1) 1 5,894 (5,601) 48,686 48,979 (116) (116) 51,869 326 263 3,767 (5,601) 27 48,686 99,337  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended June 30, 2006 2007 Six months ended June 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2007 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investments in fully and proportionately companies that were deconsolidated (b) Acquisition of fully and proportionately consolidated companies (c) Debt collection for realization of investment in subsidiaries Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of long-term deposits Proceeds from sale of affiliates Investment in affiliates Investment in fixed assets and real estate Payment of VAT on purchase of real estate Withdrawal (deposit) of short-term deposits, net Net cash provided by (used in) investing activities Cash flows from financing activities: Exercise of stock options into shares Issuance expenses in subsidiary Dividend paid Dividend to minority in sub-subsidiary Redemption of debentures Issuance of debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Refund of deposits from tenants, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  32,425 (22,100) 10,325 344 2,175 2,519 199,090 (176,614) 22,476 1,295 7,753 9,048 278,152 (230,137) 48,015 48,686 (40,282) 8,404  111,696 (58,371) 31,809 (41,788) 8,452 (79,247) (234,772) (4,184) (266,405) 2,734 6,823 (12,954) 480 (2,308) (151,173) (25,249) (771) (182,418) 259,270 (80) 2,499 146,115 (12,611) (2,799) (92) 392,302 2,694 (9,738) 31,809 (13,782) 932 (3,687) (181,057) (25,249) (20,858) (218,936) 321,556 (23,533) 3,420 146,115 (19,629) (57,226) 1,629 372,332 56,283 (4,119) 599 25,575 (3,436) (10,016) 285 65,171  9,584 (4,201) (23,000) (2,458) 51,637 278,579 (56,141) (554) 253,446 3,211 (3,516) (23,000) 143,899 (9,590) 9 111,013 1,860 (32,000) (17,527) 4,661 (22,462) (65,468) 3,376 (3,516) (23,000) 182,050 (16,431) (508) 141,971 1,860 (32,000) (17,527) 52,403 (57,408) (52,672) 326 (5,601) (3,068) 9,172 (10,048) (9,219)  957 (1,677) 189,201 187,524 (674) (69,560) 192,441 122,881 3,818 353,128 205,457 558,585 1,597 (66,320) 189,201 122,881 3,386 371,061 187,524 558,585 593 64,949 32,822 97,771  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended June 30, 2006 2007 Six months ended June 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2007 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates, net Depreciation and amortization Gain from sale of affiliates Gain from sale of real estate and deconsolidated companies Cost of share-based payment Increase (decrease) in accrued severance pay Erosion (revaluation) of loans granted and shortterm deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  (240) 529 1,862 (48,811) 594 60 (1,031) (3,098) (941) (51,076) (636) 24 345 148 (4) (80) 1,170 250 1,217 17,248 771 600 (113,632) (144,296) 77 20 (133) 624 67 (238,654) (781) 177 935 (2,836) 295 39 57 2,547 319 752 18,351 2,337 1,148 (113,632) (240,734) 153 (16) (1,096) 2,585 (1,384) (332,288) 3,212 409 201 (19,889) (42,136) 27 (3) (192) 452 (242) (58,161)  Changes in asset and liability items: Decrease (increase) in trade receivables Decrease (increase) in other accounts receivable Decrease (increase) in inventories of contracts in progress and building under construction Increase (decrease) in trade payables and other accounts payable  (7,530) (6,158) 3,252 39,412 28,976 (22,100) (2,959) (505) 7,412 (2,990) 958 2,175 9,070 5,058 10,211 37,701 62,040 (176,614) 874 (1,000) 6,891 236 7,001 7,753 8,892 195 22,647 70,417 102,151 (230,137) 1,556 34 3,964 12,325 17,879 (40,282)  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended June 30, 2006 2007 Six months ended June 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2007 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately companies that were deconsolidated *): Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Deferred taxes Receivables for realization of investments in subsidiaries Payables for realization of investments Capital gain from sale of investments in subsidiaries and sale of activity, net  (1,239) 208,773 (142,700) 11,059 1,740 (13,468) (1,280) 48,811 111,696 2,734 2,734 (19,867) 95,869 (48,915) (1,034) 83,164 5,757 144,296 259,270 (1,042) 17,512 (15,763) (849) 2,836 2,694 (35,189) 299,847 (187,633) 61,049 (4,914) (58,095) 5,757 240,734 321,556 (6,159) 52,483 (32,842) 10,686 (860) (10,169) 1,008 42,136 56,283  (c)  Acquisition of fully and proportionately consolidated companies **): Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net Long-term loans Investments in affiliates Minority interest Long-term liabilities Deferred taxes  4,958 (83,576) 1,563 (153) 14,041 4,796 (58,371) 4,527 (30,200) 136 1,563 (153) 14,041 348 (9,738) -  (d)  Significant non-cash activities: Conversion of debentures into shares Receivables for realization of affiliates Purchase of fixed assets and real estate by credit Exercise of stock options into shares  *)  94,512 3,795 1,157 12,330 15,644 1,252 6,333 347 14,373 21,264 1,504 6,333 1,113 263 1,108 195 -  In 2006 includes sale of activity and assets.  **) In 2006 includes full consolidation of an affiliate. The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of June 30, 2007 and for the six months then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.7132). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\07 \\EC6-SHORT.DOC  - 14 -   ","null","null","");arrFiles[10]=new Array("about/92007.pdf","NO TITLE","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF SEPTEMBER 30, 2007  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 10 11 - 13 14  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of September 30, 2007 and 2006, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the nine and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2006 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  We have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain subsidiaries, whose assets constitute approximately 61.8% of total consolidated assets as of September 30, 2007, and whose revenues constitute approximately 68.2% and 100% of total consolidated revenues for the nine and three months then ended, respectively. In addition, we have been furnished with reports of other accountants in respect of the review of the interim financial statements of certain affiliates, the investment in which, at equity, amounted to NIS 117,067 thousand as of September 30, 2007, and the Company \'s equity in their losses amounted to NIS 3,453 thousand and NIS 1,116 thousand for the nine and three months then ended, respectively.  Based on our review and the reports of other accountants dated November 28, 2007, we are not aware of any material modifications that should be made to the interim consolidated financial statements. The Hebrew version of the financial statements includes interim pro forma statements of income.  The accompanying financial statements are condensed financial statements and do not include disclosures regarding the interim pro forma statements of income and other disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel November 28, 2007 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  September 30,  2006 Reported NIS Unaudited (In thousands) 2007  Convenience translation (Note 1) September 30, 2007 Unaudited Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of companies Inventories of contracts in progress and buildings under construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term trade receivables and receivables Investments in affiliates and other companies Investment property, net  187,524 6,667 19,226 28,188 445 118,748 360,798 249,057 152,313 42,566 23,804 26,958 818 96,871 343,330 381,381 577,519 6,612 384 11,267 69,600 29,432 694,814 36,329 101,501 1,162 67 1,980 12,232 5,173 122,115 6,385  41,214 125,944 *) 39,084 206,242 43,547 276 33 35,566 *) 34,984 114,406 9,110 117,067 25,133 151,310 1,601 20,575 4,417 26,593  FIXED ASSETS: Cost Less - accumulated depreciation  *) 20,774  *)  753 20,021 2,517 838,635  DEFERRED TAXES  *) 24,118 *) 3,072 21,046 1,630 861,793 31,172 694 30,478 912,931 5,479 122 5,357 160,450  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2006 Audited  September 30,  2006 Reported NIS Unaudited (In thousands) 2007  Convenience translation (Note 1) September 30, 2007 Unaudited Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable Dividend declared  128,365 23,911 45,939 198,215 69,287 28,048 53,163 150,498 29,602 8,620 89,556 236,000 363,778 5,203 1,515 15,739 41,478 63,935  LONG-TERM LIABILITIES: Convertible debentures Debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  1,406 145,455 185,412 154 8,981 341,408 2,667 296,345 838,635 15,306 146,283 294,687 44 147 4,717 461,184 1,914 248,197 861,793 69 149,496 66,288 125 1,833 217,811 441 330,901 912,931 12 26,274 11,650 22 322 38,280 78 58,157 160,450  The accompanying note is an integral part of the interim consolidated financial statements.  November 28, 2007 Date of approval of the financial statements  Shachar Brickman Director and Acting Chairman of the Board of Directors *) Nachshon Kivity CEO and Director Assaf Raz CFO  *)  On November 28, 2007, the Company \'s Board authorized Mr. Shachar Brickman, a director, to sign the financial statements as of September 30, 2007 in lieu of Mr. Kalman Sofrin, the chairman, due to the latter \'s absence from the Board \'s meeting.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2006 Audited  Three months ended September 30, 2006 2007 Nine months ended September 30, 2006 2007  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Nine months ended September 30, 2007 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses (income), net Other income (expenses) Income before taxes on income Taxes on income Income after taxes on income Equity in losses of affiliates, net Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per share: Basic net earnings Diluted net earnings  198,371 42,302 56,242 114,644 420,326 73,874  126,740 71,631 21,617 50,014 5,581 (4,201) 40,232 7,518 32,714 (529) 240 32,425 28,598 13,704 5,821 7,883 1,561 6,322 726 5,596 (112) (435) 5,049 25,850 30,392 6,578 23,814 (36,375) 60,189 7,703 52,486 (1,116) (168) 51,202 86,175 28,469 15,093 13,376 4,529 8,847 2,560 6,287 (289) 346 6,344 137,425 282,901 33,955 248,946 (22,204) 113,632 384,782 33,456 351,326 (3,453) (18,519) 329,354 24,153 49,721 5,968 43,753 (3,903) 19,971 67,627 5,880 61,747 (607) (3,255) 57,885  2.44 1.83 0.46 0.39 2.81 2.78 0.61 0.53 18.05 17.62 3.17 3.10  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Year ended December 31, 2006 (audited) Foreign currency translation  Receipts on account of stock options adjustments for autonomous entities  Balance at the beginning of the year Cost of share-based payment Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the year 241 19 52 312 137,232 10,924 88,133 236,289 273 (267) 6 2,751 (1,084) 1,667  Capital reserve, share-based payment Reported NIS (In thousands) 21 594 (297) 318  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,408 4,323 24,731 24,262 (23,000) 32,425 33,687 (8,438) 1,179 6,594 (665) 176,477 594 273 10,741 94,512 4,323 (23,000) 32,425 296,345  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended September 30, 2006 (unaudited) Foreign currency  Beneficial conversion feature in convertible debentures  Receipts on account of stock options  translation adjustments for autonomous entities  Share capital Share premium  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Cost of share-based payment Net income Balance at the end of the period 251 14 42 307 151,325 6,913 66,237 224,475 273 (253) 20 2,388 (721) 1,667  Capital reserve, share-based payment Reported NIS (In thousands) 316 150 466  Retained earnings  Less - shares held by the Company and by subsidiary  Total  27,205 (9,120) 18,085 2,557 5,049 7,606 (4,429) (4,429) 179,886 6,206 66,026 (9,120) 150 5,049 248,197  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended September 30, 2007 (unaudited) Foreign currency  Beneficial conversion feature in convertible debentures  Receipts on account of stock options  translation adjustments for autonomous entities  Share capital Share premium  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Cost of share-based payment Issue of stock options Repurchase of shares Net income Balance at the end of the period 315 2 *) 317 240,010 3,241 246 243,497 1 (1) 1,312 (510) 756 1,558  Capital reserve, share-based payment Reported NIS (In thousands) 471 285 (756) -  Retained earnings  Less - shares held by the Company and by subsidiary  Total  46,252 (39,704) 6,548 279,839 (236,000) 51,202 95,041 (665) (15,395) (16,060) 567,535 2,733 245 (39,704) (236,000) 285 (15,395) 51,202 330,901  *) Represents an amount lower than NIS 1 thousand.  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Nine months ended September 30, 2006 (unaudited) Foreign currency  Beneficial conversion feature in convertible debentures  Receipts on account of stock options  translation adjustments for autonomous entities  Share capital Share premium  Balance at the beginning of the period (audited) Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period  241 137,232 2,751  Capital reserve, share-based payment Reported NIS (In thousands) 21  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,408 24,262 (8,438) 176,477  16 50 307 9,471 77,772 224,475 273 (253) 20 (1,084) 1,667 445 466 (2,323) 18,085 (23,000) 6,344 7,606 1,179 2,830 (4,429) 273 9,582 80,399 (2,323) (23,000) 445 6,344 248,197  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Nine months ended September 30, 2007 (unaudited) Foreign currency  Beneficial conversion feature in convertible debentures  Receipts on account of stock options  translation adjustments for autonomous entities  Share capital Share premium  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Issue of stock options Dividend declared Repurchase of shares Net income Balance at the end of the period 312 4 1 317 236,289 5,454 1,754 243,497 6 (6) 1,667 (865) 756 1,558  Capital reserve, share-based payment Reported NIS (In thousands) 318 438 (756) -  Retained earnings  Less - shares held by the Company and by subsidiary  Total  24,731 (18,183) 6,548 33,687 (32,000) (236,000) 329,354 95,041 (665) (15,395) (16,060) 296,345 4,593 1,749 (18,183) (32,000) 438 (236,000) (15,395) 329,354 330,901  Convenience translation into Euro (Note 1) (In thousands)  293 (152) 133 274 56 77 (133) 4,347 (3,196) 1,151 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Issue of stock options Dividend declared Repurchase of shares Net income Balance at the end of the period 55 1 56 41,529 958 308 42,795 1 (1) 5,921 (5,624) (41,478) 57,885 16,704 (117) (2,706) (2,823) 52,085 807 307 (3,196) (5,624) 77 (41,478) (2,706) 57,885 58,157  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended September 30, 2006 2007 Nine months ended September 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2007 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investments in fully and proportionately consolidated companies that were deconsolidated (b) Additional consideration relating to a company sold in previous years Acquisition of fully and proportionately consolidated companies (c) Debt collection for realization of investment in subsidiaries Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of long-term deposits Proceeds from sale of affiliates Investment in affiliates Investment in fixed assets and real estate Payment of VAT on purchase of real estate Withdrawal (deposit) of short-term deposits, net Net cash provided by (used in) investing activities Cash flows from financing activities: Exercise of stock options into shares Issuance expenses in subsidiary Repurchase of shares Dividend paid Dividend to minority in sub-subsidiary Redemption of debentures Issue of debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt (refund) of deposits from tenants, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  32,425 (22,100) 10,325 5,049 (170) 4,879 51,202 (39,406) 11,796 6,344 7,583 13,927 329,354 (270,700) 58,654 57,885 (47,576) 10,309  111,696 (58,371) 31,809 (41,788) 8,452 (79,247) (234,772) (4,184) (266,405) 27,167 (30,184) (15,150) 3,324 (658) (23,607) 25,249 (18,820) (32,679) 46,247 6,756 (6,250) (9,580) (10,947) (1,462) 24,764 29,861 (39,922) 31,809 (28,932) 4,256 (4,345) (204,664) (39,678) (251,615) 367,803 6,756 (29,783) 3,420 146,115 (29,209) (68,173) 167 397,096 64,642 1,187 (5,234) 601 25,680 (5,134) (11,982) 29 69,789  9,584 (4,201) (23,000) (2,458) 51,637 278,579 (56,141) (554) 253,446 6,206 (685) (2,458) 51,637 38,370 (33,969) 13 59,114 2,733 (15,395) (6,301) (67) 5,646 (2,306) (15,690) 9,582 (4,201) (23,000) (2,458) 51,637 220,420 (50,400) (495) 201,085 5,750 (15,395) (32,000) (23,828) (67) 58,049 (59,714) (67,205) 1,011 (2,706) (5,624) (4,188) (12) 10,202 (10,495) (11,812)  957 (1,677) 189,201 187,524 (1,882) 29,432 122,881 152,313 (1,936) 18,934 558,585 577,519 (285) (36,888) 189,201 152,313 1,450 389,995 187,524 577,519 255 68,541 32,960 101,501  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended September 30, 2006 2007 Nine months ended September 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2007 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates, net Depreciation Gain from sale of affiliates Gain from sale of real estate, deconsolidated companies and recognition of capital reserves Cost of share-based payment Increase (decrease) in accrued severance pay Revaluation of loans granted and short-term deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  (240) 529 1,862 (48,811) 594 60 (1,031) (3,098) (941) (51,076) 435 112 467 (5,368) 150 14 (1,900) (2,179) 1,192 (7,077) 168 1,116 451 (66,272) 285 (13) (1,403) 3,690 2,165 (59,813) (346) 289 1,402 (8,204) 445 53 (1,843) 368 1,511 (6,325) 18,519 3,453 1,599 (113,632) (307,006) 438 (29) (2,499) 6,275 781 (392,101) 3,255 607 281 (19,971) (53,957) 77 (5) (439) 1,103 137 (68,912)  Changes in asset and liability items: Decrease (increase) in trade receivables Decrease (increase) in other accounts receivable Decrease (increase) in inventories of contracts in progress and building under construction Increase in trade payables and other accounts payable  (7,530) (6,158) 3,252 39,412 28,976 (22,100) (13,222) (3,052) (7,748) 30,929 6,907 (170) 8,335 4,567 1,248 6,257 20,407 (39,406) (12,348) (4,052) (857) 31,165 13,908 7,583 17,227 3,605 23,895 76,674 121,401 (270,700) 3,028 634 4,200 13,474 21,336 (47,576)  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2006 Audited  Three months ended September 30, 2006 2007 Nine months ended September 30, 2006 2007  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2007 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately consolidated companies that were deconsolidated *): Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Deferred taxes Receivables for realization of investments in subsidiaries Payables for realization of investments Capital gain from sale of investments in subsidiaries and sale of activity, net  (1,239) 208,773 (142,700) 11,059 1,740 (13,468) (1,280) 48,811 111,696 (431) 43,025 (22,104) 1,740 (431) 5,368 27,167 (1,311) 54,491 (33,131) 1,322 922 23,954 46,247 (1,473) 60,537 (37,867) 1,740 (1,280) 8,204 29,861 (36,500) 354,338 (220,764) 61,049 1,322 (4,914) (58,095) 6,679 264,688 367,803 (6,416) 62,276 (38,800) 10,730 232 (864) (10,210) 1,174 46,520 64,642  (c)  Acquisition of fully and proportionately consolidated companies **): Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net Long-term loans Investments in affiliates Minority interest Long-term liabilities Deferred taxes Payables for acquisition  4,958 (83,576) 1,563 (153) 14,041 4,796 (58,371) 295 (48,633) (295) 18,449 (30,184) 4,958 (78,833) 1,563 (153) 14,041 53 18,449 (39,922) -  (d)  Significant non-cash activities: Conversion of debentures into shares Receivables for realization of affiliates Purchase of fixed assets and real estate by credit Exercise of stock options into shares Dividend declared  *)  94,512 3,795 1,157 -  66,026 -  -  245 282 236,000 80,399 1,749 6,333 282 236,000 307 1,113 50 41,478  In 2006 includes sale of activity and assets.  **) In 2006 includes full consolidation of an affiliate. The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of September 30, 2007 and for the nine months then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.6898). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\07 \\EC9-SHORT.DOC  - 14 -   ","null","null","");arrFiles[11]=new Array("about/FinancialReport0306.doc","FinancialReport0306.doc","  B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2006 UNAUDITED   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 8Consolidated Statements of Cash Flows 9 - 12Note to Interim Consolidated Financial Statements13  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax:   972-3-5622555   The Board of Directors B.S.R Europe Ltd.  Dear Sirs, The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of March 31, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERMay 30, 2006A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS  Conveniencetranslation(Note 1)December 31,March 31,March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) ASSETSCURRENT ASSETS:Cash and cash equivalents189,20143,794192,44133,989Short-term deposits 1,3471,62621,3623,773Trade receivables9,5245,3427,9151,398Other accounts receivable 12,82013,51913,9182,458Receivable for sale of previously consolidated companies33,27630,06311,1541,970Inventories of contracts in progress and buildings for construction, net57,86018,04181,03014,311304,028112,385327,82057,899INVENTORIES OF REAL ESTATE164,979119,342217,39338,396LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 22,28351,52323,2654,109Long-term deposits 1,6931,3731,573278Long-term receivables and trade receivables13624010819Investments in affiliates and other companies33,0628,97533,9846,00257,17462,11158,93010,408FIXED ASSETS:Cost116,872277,902100,87817,817Less - accumulated depreciation5,24317,1353,932695111,629260,76796,94617,122OTHER ASSETS 10,0256,7902,206390647,835561,395703,295124,215  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED BALANCE SHEETS  Conveniencetranslation(Note 1)December 31,March 31,March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others50,58919,36987,45715,447Trade payables 21,55216,59323,3474,123Other accounts payable28,78938,33742,7527,551Dividend declared-16,600--100,93090,899153,55627,121LONG-TERM LIABILITIES:Debentures and convertible debentures 182,13393,816175,81831,053Long-term loans181,762208,841181,93432,133Deposits from tenants 5412,776438Accrued severance pay948513724Deferred taxes5,2053,5954,241749369,735309,113362,17363,967CONVERTIBLE DEBENTURES-5,834--MINORITY INTEREST69394048485SHAREHOLDERS \' EQUITY*) 176,477154,609187,08233,042647,835561,395703,295124,215 *) Restated. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME  Conveniencetranslation(Note 1)Year ended December 31,Three months ended March 31,Three months ended March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands, except per share amounts) Revenues from lease, sales, construction of buildings and apartments and services 177,77926,81333,8325,975Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services121,62318,44226,3084,646Gross profit56,1568,3717,5241,329General and administrative expenses*) 17,872 3,6644,724834Operating income38,2844,7072,800495Financial expenses, net17,2415,07153294Other income8773--Income (loss) before taxes on income21,130(291)2,268401Taxes on income1,301(1,700)1,309232Income after taxes on income19,8291,409959169Equity in losses of affiliates--(153)(27)Minority interest in losses (earnings) of subsidiaries, net230(112)14526Net income 20,0591,297951168Net earnings per NIS 1 par value of Ordinary shares (in reported NIS):Basic net earnings **) 1.80  **) 0.180.090.02Diluted net earnings **) 1.54 **) 0.150.080.01  The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY   Year ended December 31, 2005 (audited)Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the year234138,3453,250-39,12620,803(46,042)155,716Exercise of stock options into shares 75,581(499)---1,0196,108Conversion of convertible debentures-(6,694)----37,25030,556Purchase of Company shares by the Company------(665)(665)Foreign currency translation adjustments for autonomous entities----(18,718)--(18,718)Dividend paid-----(16,600)-(16,600)Stock-based payment cost (*---*)  21---21Net income-----*) 20,059  -20,059Balance at the end of the year241137,2322,7512120,40824,262(8,438)176,477  *)  Restated.  The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY   Three months ended March 31, 2005 (unaudited)Share capitalShare premiumReceipts  on account of stock optionsForeign currency translation adjustments for autonomous entitiesRetained earningsLess - shares held by the Company and subsidiaryTotalReported NIS(In thousands)Balance at the beginning of the period (audited)234138,3453,25039,12620,803(46,042)155,716Exercise of stock options into shares1408(42)--156523Conversion of convertible debentures-(4,493)---27,49122,998Foreign currency translation adjustments for autonomous entities---(9,325)--(9,325)Dividend declared----(16,600)-(16,600)Net income----1,297-1,297Balance at the end of the period235134,2603,20829,8015,500(18,395)154,609   The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended March 31, 2006 (unaudited)Share capitalShare premiumBeneficial conversion featureReceipts  on account of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Dividend declared subsequent to balance sheet dateLess - shares held by the Company and subsidiaryTotalReported NIS(In thousands)Balance at the beginning of the period (audited)241137,232-2,751*)  2120,408*)  24,262  -(8,438)176,477Split of beneficial conversion feature of convertible debentures less issuance expenses-- 273---- --273Exercise of stock options into shares1178-(14)----165Conversion of convertible debentures1(637)-----2,6792,043Foreign currency translation adjustments for autonomous entities-- ---7,026--7,026Dividend declared------(23,000)23,000--Stock-based payment cost----147----147Net income------951--951Balance at the end of the period243136,7732732,73716827,4342,21323,000(5,759)187,082 Convenience translation into Euro (Note 1)(In thousands)Balance at the beginning of the period (audited)4324,238-486*)  43,604*)  4,285  -(1,490)31,170Split of beneficial conversion feature of convertible debentures less issuance expenses-- 48---- --48Exercise of stock options into shares31-(2)----29Conversion of convertible debentures(113)-----473360Foreign currency translation adjustments for autonomous entities-- ---1,241--1,241Dividend declared------(4,062)4,062--Stock-based payment cost----26----26Net income------168--168Balance at the end of the period4324,15648484304,8453914,062(1,017)33,042*) Restated. The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Three months ended March 31,Three months ended March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands)Cash flows from operating activities:Net income20,0591,297951168Adjustments to reconcile net income to net cash provided by operating activities (a)(9,888)(1,044)5,578985Net cash provided by operating activities10,1712536,5291,153Cash flows from investing activities:Proceeds from realization of investment in fully and proportionately subsidiaries that were deconsolidated (b)40,516-(40)(7)Tax payment for investment that was sold last year(15,580)---Acquisition of fully and proportionately consolidated subsidiaries(c)(28,690)(22,074)(9,738)(1,720)Full consolidation of previously consolidated companies by the proportionate method while realizing real  estate (d)23,969---Debt collection for realizing an investment in subsidiaries58,55237,82124,9864,413Loans granted and deposit of long-term deposits(18,120)(3,707)(828)(146)Collection of loans and withdrawal of long-term deposits51,1621,26445280Investment in affiliates(15,243)-(1,379)(244)Investment in fixed assets and real estate (76,081)(14,367)(29,884)(5,278)Proceeds from sale of fixed assets73---Deposit of short-term deposits, net(218)(525)(20,087)(3,548)Net cash provided by (used in) investing activities20,340(1,588)(36,518)(6,450)Cash flows from financing activities:Purchase of Company shares by the Company(665)---Exercise of stock options into shares6,10852316529Dividend paid(16,600)---Issuance of debentures and convertible debentures (net of issuance expenses)94,661---Receipt of long-term loans and other liabilities114,54515,21138,1516,738Repayment of long-term loans and other liabilities (73,450)(5,981)(6,841)(1,208)Refund of advances from tenants, net111(15)(517)(91)Net cash provided by financing activities124,7109,73830,9585,468Effect of exchange rate differences from cash balances of autonomous entities(1,923)(512)2,271401Increase in cash and cash equivalents153,2987,8913,240572Cash and cash equivalents at beginning of period35,90335,903189,20133,417Cash and cash equivalents at end of period189,20143,794192,44133,989 *) Reclassified. The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Three months ended March 31,Three months ended March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net(230)112(145)(26)Equity in losses of affiliates--15327Stock-based payment cost21  *)-14726Depreciation and amortization5,9351,733875155Gain from sale of real estate, deconsolidated subsidiaries and realization of capital surplus(25,241)(1,028)(2,836)(501)Capital gain from sale of fixed assets, net(10)---Increase in accrued severance pay2920438Erosion of loans granted and short-term deposits(1,495)(361)13724Accrued interest and revaluation of debentures and long-term loans, net10,8103,0961,377243Deferred taxes, net637(1,800)6912(9,544)1,772(180)(32)Changes in asset and liability items:Decrease (increase) in trade receivables (including long-term)(6,599)(3,586)3,833676Increase in other accounts receivable(5,318)(1,237)(495)(87)Decrease (increase) in inventories of contracts in progress9,8436,072(806)(142)Increase (decrease) in trade payables and other accounts payable1,730(4,065)3,226570(344)(2,816)5,7581,017(9,888)(1,044)5,578985  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Three months ended March 31,Three months ended March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (b)Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated :Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents)1,676-(1,036)(183)Fixed assets, net (net of payables for fixed assets)137,893-17,5123,093Long-term liabilities(75,492)-(15,763)(2,784)Long-term loans granted(18,360)---Tenants \' deposits(2,302)--Deferred taxes(554)-(849)(150)Receivables for realization of investments in subsidiaries(21,336)-(2,740)(484)Capital gain from sale of investments in subsidiaries, realization of capital surplus and sale of activity, net18,991-2,83650140,516-(40)(7)(c)Acquisition of fully and proportionately consolidated subsidiaries (1):Working capital (excluding cash and cash equivalents)3,8363,8724,527800Fixed assets, net (82,289)(62,678)(30,200)(5,334)Long-term loans1,425-13624Long-term liabilities47,97533,92714,0412,480Investment in affiliate--1,563276Payables for acquisition3632,827--Minority interest-(219)(153)(27)Deferred taxes-19734861(28,690)(22,074)(9,738)(1,720)(1)  In 2006, includes full consolidation of affiliate. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Three months ended March 31,Three months ended March 31,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (d)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate:Working capital (excluding cash and cash equivalents)17,842---Investment in affiliate(9,551)---Real estate and fixed assets5,402---Long-term liabilities6,686---Capital gain3,590---23,969---(e)Significant non-cash activities: Conversion of debentures into shares30,55622,9982,043361Purchase of fixed assets and real estate by credit19,1109,7995,620993Dividend declared-16,600-- The accompanying note is an integral part of the interim consolidated financial statements.   NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of March 31, 2006 and for the three months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.6619). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.   - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC3.DOC 1   1 -  2  -  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  B.S.R EUROPE LTD. NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[12]=new Array("about/FinancialReport0306.pdf","(Microsoft Word - \343\345\347 \341\340\360\342\354\351\372 31 3 2006 _2_.DOC)","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF MARCH 31, 2006  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 ­ 8 9 - 12 13  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of March 31, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel May 30, 2006 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  March 31, Unaudited Reported NIS 2005  2006  Convenience translation (Note 1) March 31, 2006 Unaudited Euro  (In thousands)  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of previously consolidated companies Inventories of contracts in progress and buildings for construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables and trade receivables Investments in affiliates and other companies  189,201 1,347 9,524 12,820 33,276 57,860 304,028 164,979 43,794 1,626 5,342 13,519 30,063 18,041 112,385 119,342 192,441 21,362 7,915 13,918 11,154 81,030 327,820 217,393 33,989 3,773 1,398 2,458 1,970 14,311 57,899 38,396  22,283 1,693 136 33,062 57,174 51,523 1,373 240 8,975 62,111 23,265 1,573 108 33,984 58,930 4,109 278 19 6,002 10,408  FIXED ASSETS: Cost Less - accumulated depreciation  OTHER ASSETS  116,872 5,243 111,629 10,025 647,835 277,902 17,135 260,767 6,790 561,395 100,878 3,932 96,946 2,206 703,295 17,817 695 17,122 390 124,215  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  March 31, Unaudited Reported NIS 2005  2006  Convenience translation (Note 1) March 31, 2006 Unaudited Euro  (In thousands)  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable Dividend declared  50,589 21,552 28,789 100,930 19,369 16,593 38,337 16,600 90,899 87,457 23,347 42,752 153,556 15,447 4,123 7,551 27,121  LONG-TERM LIABILITIES: Debentures and convertible debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  CONVERTIBLE DEBENTURES MINORITY INTEREST SHAREHOLDERS \' EQUITY  182,133 181,762 541 94 5,205 369,735 693 *) 176,477 647,835 93,816 208,841 2,776 85 3,595 309,113 5,834 940 154,609 561,395 175,818 181,934 43 137 4,241 362,173 484 187,082 703,295 31,053 32,133 8 24 749 63,967 85 33,042 124,215  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2005 Audited  Three months ended March 31, Unaudited (In thousands, except per share amounts)  2006  2005 Reported NIS  Convenience translation (Note 1) Three months ended March 31, 2006 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income Income (loss) before taxes on income Taxes on income Income after taxes on income Equity in losses of affiliates Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per NIS 1 par value of Ordinary shares (in reported NIS): Basic net earnings Diluted net earnings  177,779 121,623 56,156 *) 17,872 38,284 17,241 87 21,130 1,301 19,829 230 20,059 26,813 18,442 8,371 3,664 4,707 5,071 73 (291) (1,700) 1,409 (112) 1,297 33,832 26,308 7,524 4,724 2,800 532 2,268 1,309 959 (153) 145 951 5,975 4,646 1,329 834 495 94 401 232 169 (27) 26 168  **) 1.80 **) 1.54 **) 0.18 **) 0.15 0.09 0.08 0.02 0.01  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Year ended December 31, 2005 (audited) Foreign currency translation adjustments for  Capital surplus Retained earnings  Balance at the beginning of the year Exercise of stock options into shares Conversion of convertible debentures Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Dividend paid Stock-based payment cost (* Net income Balance at the end of the year 234 7 241 138,345 5,581 (6,694) 137,232 3,250 (499) 2,751 *) 21 21  autonomous entities Reported NIS (In thousands) 39,126 (18,718) 20,408  Less - shares held by the Company and subsidiary  Total  20,803 (16,600) *) 20,059 24,262 (46,042) 1,019 37,250 (665) (8,438) 155,716 6,108 30,556 (665) (18,718) (16,600) 21 20,059 176,477  *) Restated. The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended March 31, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Net income Balance at the end of the period 234 1 235 138,345 408 (4,493) 134,260 3,250 (42) 3,208  adjustments for autonomous entities Reported NIS (In thousands) 39,126 (9,325) 29,801  Retained earnings  Less - shares held by the Company and subsidiary  Total  20,803 (16,600) 1,297 5,500 (46,042) 156 27,491 (18,395) 155,716 523 22,998 (9,325) (16,600) 1,297 154,609  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended March 31, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium  Beneficial conversion feature  Capital surplus  adjustments for autonomous entities  Retained earnings  Dividend declared subsequent to balance sheet date Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands) *) 21 20,408  Balance at the beginning of the period (audited) Split of beneficial conversion feature of convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Stock-based payment cost Net income Balance at the end of the period  241 137,232 2,751 *) 24,262 (8,438) 176,477  1 1 243 178 (637) 136,773 273 273 (14) 2,737 147 168 7,026 27,434 (23,000) 951 2,213  -  23,000 23,000  2,679 (5,759) 273 165 2,043 7,026 147 951 187,082  Convenience translation into Euro (Note 1) (In thousands) *) 4 3,604 *) 4,285  Balance at the beginning of the period (audited) Split of beneficial conversion feature of convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Stock-based payment cost Net income Balance at the end of the period *) Restated.  43 24,238 486 (1,490) 31,170  -  43  31 (113) 24,156 48 48 (2) 484 26 30 1,241 4,845 (4,062) 168 391  -  4,062 4,062  473 (1,017) 48 29 360 1,241 26 168 33,042  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended March 31,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) Three months ended March 31, 2006 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investment in fully and proportionately subsidiaries that were deconsolidated (b) Tax payment for investment that was sold last year Acquisition of fully and proportionately consolidated subsidiaries(c) Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d) Debt collection for realizing an investment in subsidiaries Loans granted and deposit of long-term deposits Collection of loans and withdrawal of long-term deposits Investment in affiliates Investment in fixed assets and real estate Proceeds from sale of fixed assets Deposit of short-term deposits, net Net cash provided by (used in) investing activities Cash flows from financing activities: Purchase of Company shares by the Company Exercise of stock options into shares Dividend paid Issuance of debentures and convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Refund of advances from tenants, net Net cash provided by financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period *) Reclassified.  20,059 (9,888) 10,171 1,297 (1,044) 253 951 5,578 6,529 168 985 1,153  40,516 (15,580) (28,690) (22,074) (40) (9,738) (7) (1,720)  23,969 58,552 (18,120) 51,162 (15,243) (76,081) 73 (218) 20,340 37,821 (3,707) 1,264 (14,367) (525) (1,588) 24,986 (828) 452 (1,379) (29,884) (20,087) (36,518) 4,413 (146) 80 (244) (5,278) (3,548) (6,450)  (665) 6,108 (16,600) 94,661 114,545 (73,450) 111 124,710 523 15,211 (5,981) (15) 9,738 165 38,151 (6,841) (517) 30,958 29 6,738 (1,208) (91) 5,468  (1,923) 153,298 35,903 189,201 (512) 7,891 35,903 43,794 2,271 3,240 189,201 192,441 401 572 33,417 33,989  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended March 31,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) Three months ended March 31, 2006 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates Stock-based payment cost Depreciation and amortization Gain from sale of real estate, deconsolidated subsidiaries and realization of capital surplus Capital gain from sale of fixed assets, net Increase in accrued severance pay Erosion of loans granted and short-term deposits Accrued interest and revaluation of debentures and long-term loans, net Deferred taxes, net  (230) 21 5,935 (25,241) (10) 29 (1,495) 10,810 637 (9,544)  *)  112 1,733 (1,028) 20 (361) 3,096 (1,800) 1,772 (145) 153 147 875 (2,836) 43 137 1,377 69 (180) (26) 27 26 155 (501) 8 24 243 12 (32)  Changes in asset and liability items: Decrease (increase) in trade receivables (including long-term) Increase in other accounts receivable Decrease (increase) in inventories of contracts in progress Increase (decrease) in trade payables and other accounts payable  (6,599) (5,318) 9,843 1,730 (344) (9,888) (3,586) (1,237) 6,072 (4,065) (2,816) (1,044) 3,833 (495) (806) 3,226 5,758 5,578 676 (87) (142) 570 1,017 985  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended March 31,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) Three months ended March 31, 2006 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated : Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Tenants \' deposits Deferred taxes Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries, realization of capital surplus and sale of activity, net  1,676 137,893 (75,492) (18,360) (2,302) (554) (21,336) (1,036) 17,512 (15,763) (849) (2,740) (183) 3,093 (2,784) (150) (484)  18,991 40,516 2,836 (40) 501 (7)  (c)  Acquisition of fully and proportionately consolidated subsidiaries (1): Working capital (excluding cash and cash equivalents) Fixed assets, net Long-term loans Long-term liabilities Investment in affiliate Payables for acquisition Minority interest Deferred taxes  3,836 (82,289) 1,425 47,975 363 (28,690) 3,872 (62,678) 33,927 2,827 (219) 197 (22,074) 4,527 (30,200) 136 14,041 1,563 (153) 348 (9,738) 800 (5,334) 24 2,480 276 (27) 61 (1,720)  (1) In 2006, includes full consolidation of affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended March 31,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) Three months ended March 31, 2006 Unaudited Euro  (d)  Full consolidation of previously consolidated companies by the proportionate method while realizing real estate: Working capital (excluding cash and cash equivalents) Investment in affiliate Real estate and fixed assets Long-term liabilities Capital gain  17,842 (9,551) 5,402 6,686 3,590 23,969 -  (e)  Significant non-cash activities: Conversion of debentures into shares Purchase of fixed assets and real estate by credit Dividend declared  30,556 19,110 22,998 9,799 16,600 2,043 5,620 361 993 -  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of March 31, 2006 and for the three months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.6619). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC3.DOC  - 13 -   ","null","null","");arrFiles[13]=new Array("about/FinancialReport0605.doc","FinancialReport0605.doc","DRAFT: 6.9.05   B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2005 UNAUDITED   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 9Consolidated Statements of Cash Flows 10 - 14Note to Interim Consolidated Financial Statements15  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax:   972-3-5622555   The Board of Directors B.S.R Europe Ltd.  Dear Sirs, The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of June 30, 2005 and 2004, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the six and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2004 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERAugust 18, 2005A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,June 30,June 30,2004200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents35,90320,58726,2964,758Short-term deposits 1,181-2,047370Trade receivables1,7791,4767,6661,387Other accounts receivable 11,58763,57413,3282,411Receivable for sale of a previously consolidated company and property59,026-59,05610,686Inventories of contracts in progress and buildings for construction13,9903,82116,7483,030123,46689,458125,14122,642INVENTORY OF LAND58,47638,356116,25221,033LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 49,34651,60234,8866,312Long-term deposits 1,694-1,520275Long-term receivables9,86133,21010419Investments in affiliates and other companies9,2537,25821,4993,89070,15492,07058,00910,496FIXED ASSETS:Cost285,287237,199265,60648,056Less - accumulated depreciation17,05512,46617,7233,207268,232224,733247,88344,849OTHER ASSETS AND DEFERRED CHARGES, NET7,5966,9466,7161,215527,924451,563554,001100,235  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,June 30,June 30,2004200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others17,37819,36841,1807,451Trade payables and other accounts payable48,75355,24335,4686,41766,13174,61176,64813,868LONG-TERM LIABILITIES:Convertible debentures - related parties29,27428,978--Convertible debentures95,69573,02698,49117,820Long-term loans171,745137,164204,52737,004Deposits from tenants 2,8971,9312,755498Accrued severance pay65-10820Deferred taxes5,2961,1925,226946304,972242,291311,10756,288MINORITY INTEREST1,105381,602290SHAREHOLDERS \' EQUITY155,716134,623164,64429,789527,924451,563554,001100,235  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands, except per share amounts) Revenues from lease, sales, construction of buildings and apartments and services 305,537246,11142,457257,89769,27012,533Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services193,890170,55328,997174,01247,4398,583Gross profit111,64775,55813,46083,88521,8313,950General and administrative expenses23,14510,2244,17913,5177,8431,419Operating income88,50265,3349,28170,36813,9882,531Financial expenses, net7,9025,1915,6319,84810,7021,937Other income (expenses)54(56)(3)(56)7013Income before taxes on income80,65460,0873,64760,4643,356607Taxes on income28,41125,23228126,587(1,419)(257)Income after taxes on income52,24334,8553,36633,8774,775864Minority interest in losses (earnings) of subsidiaries, net(475)(630)(644)380(756)(137)Net income 51,76834,2252,72234,2574,019727Net earnings per NIS 1 par value of Ordinary shares:Basic net earnings 598566255895410Diluted net earnings 37825521286529  The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Year ended December 31, 2004 (audited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings (accumulated deficit)Less - shares held by the  Company  and  subsidiaryLess - loans to employees  and former employees  for acquisition of Company sharesTotalReported NIS (In thousands)Balance at the beginning of the year22,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares 7439,329(2,066)---1,147-9,153Conversion of convertible debentures-400----3,377-3,777Foreign currency translation adjustments for autonomous entities----18,601---18,601Public issuance of stock options (1)--2,224-----2,224Sale of Company shares held by the Company and by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Dividend paid-----(22,300)--(22,300)Net income-----51,768--51,768Capital split and reduction(23,182)23,182-------Balance at the end of the year234137,5873,25075839,12620,803(46,042)-155,716  (1) Net of issuance expenses. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Three months ended June 30, 2004 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings (accumulated deficit)Less - shares held by subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period22,952109,1574,04975820,438(8,633)(50,566)98,155Exercise of stock options into shares 1241,611(624)---1,1472,258Conversion of convertible debentures-21----642663Foreign currency translation adjustments for autonomous entities----(678)--(678)Net income-----34,225-34,225Balance at the end of the period23,076110,7893,42575819,76025,592(48,777)134,623 Three months ended June 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the  Company  and  subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period235133,5023,20875829,8015,500(18,395)154,609Exercise of stock options into shares 43,543(331)---8634,079Conversion of convertible debentures-(2,201)----9,7597,558Foreign currency translation adjustments for autonomous entities----(4,324)--(4,324)Net income-----2,722-2,722Balance at the end of the period239134,8442,87775825,4778,222(7,773)164,644 The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Six months ended June 30, 2004 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings (accumulated deficit)Less - shares held by the  Company  and  subsidiaryLess - loans to employees  and former employees  for acquisition of Company sharesTotalReported NIS (In thousands)Balance at the beginning of the period (audited)22,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares 4036,092(1,891)---1,147-5,751Conversion of convertible debentures-21----642-663Foreign currency translation adjustments for autonomous entities----(765)---(765)Public issuance of stock options (1)--2,224-----2,224Sale of Company shares held by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Net income-----34,257--34,257Balance at the end of the period23,076110,7893,42575819,76025,592(48,777)-134,623  (1) Net of issuance expenses. The accompanying note is an integral part of the interim consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Six months ended June 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the  Company  and  subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period (audited)234137,5873,25075839,12620,803(46,042)155,716-Exercise of stock options into shares 53,951(373)---1,0194,602Conversion of convertible debentures-(6,694)----37,25030,556Foreign currency translation adjustments for autonomous entities----(13,649)--(13,649)Dividend declared-----(16,600)-(16,600)Net income-----4,019-4,019Balance at the end of the period239134,8442,87775825,4778,222(7,773)164,644 Convenience translation into Euro (Note 1)(In thousands)Balance at the beginning of the period (audited)4224,8945881377,0793,764(8,330)28,174-Exercise of stock options into shares 1715(67)---184833Conversion of convertible debentures-(1,212)----6,7405,528Foreign currency translation adjustments for autonomous entities----(2,470)--(2,470)Dividend declared-----(3,003)-(3,003)Net income-----727-727Balance at the end of the period4324,3975211374,6091,488(1,406)29,789  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from operating activities:Net income51,76834,2252,72234,2574,019727Adjustments to reconcile net income to net cash provided by (used in) operating activities (a)(44,699)(35,686)531(31,357)(513)(93)Net cash provided by (used in) operating activities7,069(1,461)3,2532,9003,506634Cash flows from investing activities:Proceeds from realization of investment in deconsolidated subsidiaries (b)42,210(760)-(760)--Repayment of debt in respect of sale of investment in previous year- - (15,580)-(15,580)(2,819)Collection of debt in respect of realization of investment in the previous year----37,8216,843Acquisition of companies initially consolidated (c)(3,034)-(2,827)-(24,901)(4,505)Full consolidation of company previously included by the proportionate method and sale of property (d)--547-54799Loans granted and investment in long-term deposits(20,721)*) (10,814)  (2,482)(7,376)(6,189)(1,120)Collection of loans and withdrawal of long-term deposits11,074*)  2,719  10,197-11,4612,074Investment in affiliates(4,986)(1,765)(3,879)(1,765)(3,879)(702)Investment in fixed assets and real estate (136,918)(67,965)(5,337)(95,544)(19,704)(3,565)Proceeds from sale of fixed assets87-----Withdrawal of (investment in) short-term deposits, net31,64132,812(590)32,812(1,115)(202)Net cash used in investing activities(80,647)(45,773)(19,951)(72,633)(21,539)(3,897)  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from financing activities:Issuance of stock options into convertible debentures1,325--1,325--Issuance of stock options into shares, net2,224--2,224--Exercise of stock options into shares9,5682,2584,0796,1664,602833Conversion of stock options into convertible debentures and their sale by subsidiary, net27,07834-34--Dividend paid(22,300)-(16,600)-(16,600)(3,003)Redemption of debentures to related parties(1,257)-----Issuance of convertible debentures (net of issuance expenses)52,044--52,044--Receipt of long-term loans and other liabilities88,51052,31632,96059,67848,1718,716Repayment of long-term loans and other liabilities (39,845)(15,035)(21,000) (24,774)(26,981)(4,882)Receipt of advances from tenants, net2,9671,767403,427255Sale of Company shares held by the Company and by subsidiary, net2,724--2,724--Short-term credit from banks and others, net(39,081)(38,569)-(36,310)--Net cash provided by (used in) financing activities83,9572,771(521)66,5389,2171,669Effect of exchange rate differences from cash balances of autonomous entities1,925134(279)183(791)(144)Increase (decrease) in cash and cash equivalents12,304(44,329)(17,498)(3,012)(9,607)(1,738)Cash and cash equivalents at beginning of period23,59964,91643,79423,59935,9036,496Cash and cash equivalents at end of period35,90320,58726,29620,58726,2964,758  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by (used in) operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net475630644(380)756137Depreciation and amortization*)11,537  *) 4,882 1,583*) 6,664  3,316600Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus(77,878)(58,793)(5,008)(58,793)(6,036)(1,092)Capital gain from sale of fixed assets, net(11)-----Increase in accrued severance pay19-23-438Erosion of loans granted and short-term deposits(4,890)(1,741)(527)(3,290)(888)(161)Accrued interest and revaluation (erosion) of debentures and long-term loans, net(5,092)4874,0281,5107,1241,289Deferred taxes, net690(4,781)1,270(4,317)(530)(96)(75,150)(59,316)2,013(58,606)3,785685Changes in asset and liability items:Increase in trade receivables (including long-term)(6,361)(5,628)(2,225)(6,179)(5,811)(1,051)Increase in other accounts receivable(3,085)(5,503)(1,758)(2,494)(2,995)(542)Decrease (increase) in inventories of contracts in progress*) (3,338) *)  (514)  2,705*)  (456)  8,7771,587Increase (decrease) in trade payables and other accounts payable43,23535,275(204)36,378(4,269)(772)30,45123,630(1,482)27,249(4,298)(778)(44,699)(35,686)531(31,357)(513)(93) *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (b)Proceeds from realization of investments in deconsolidated subsidiaries:Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents)(10,616)(10,616)-(10,616)--Fixed assets, net (net of payables for fixed assets)370,598370,598-370,598--Long-term liabilities(323,431)(323,431)-(323,431)--Long-term loans granted(13,357)(13,357)-(13,357)--Minority interest(981)(981)-(981)--Investment in affiliate(5,493)(5,493)-(5,493)--Receivables for realization of investments in subsidiaries(54,195)(77,787)-(77,787)--Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net79,68560,307-60,307--42,210(760)-(760)--(c)Acquisition of companies initially consolidated by the proportionate consolidation method:Working capital (excluding cash and cash equivalents)430---3,872701Fixed assets, net (16,584)---(62,678)(11,340)Investments in affiliates(38)-----Deferred charges(470)-----Long-term liabilities12,548---33,9276,138Payables for acquisition--(2,827)---Minority interest----(219)(40)Deferred taxes1,080---19736(3,034)-(2,827)-(24,901)(4,505)  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (d)Acquisition of subsidiary previously included by the proportionate method and sale of property:Working capital (excluding cash and cash equivalents)--19,306-19,3063,493Receivables fro sale of property--(28,055)-(28,055)(5,075)Investment in affiliate--(8,892)-(8,892)(1,609)Property--15,257-15,2572,760Capital gain--2,931-2,931530--547-54799(e)Significant non-cash activities: Sale of activity54,19577,787-77,787--Conversion of debentures into shares3,7776637,55866330,5565,528Purchase of fixed assets and real estate on credit6,8032,6906,3262,6906,3261,145Sale of property for credit--28,055-28,0555,076  The accompanying note is an integral part of the interim consolidated financial statements.   NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of June 30, 2005 and for the six months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.527). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.   - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC6-short.DOC 1   1 -  15  -  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[14]=new Array("about/FinancialReport0605.pdf","Microsoft Word - FinancialReport0605.DOC","DRAFT: 6.9.05  B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF JUNE 30, 2005  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 9 10 - 14 15  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of June 30, 2005 and 2004, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the six and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2004 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel August 18, 2005 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 Audited  June 30, Unaudited Reported NIS 2004  2005  Convenience translation (Note 1) June 30, 2005 Unaudited Euro  (In thousands)  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of a previously consolidated company and property Inventories of contracts in progress and buildings for construction  INVENTORY OF LAND LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables Investments in affiliates and other companies  35,903 1,181 1,779 11,587 59,026 13,990 123,466 58,476 20,587 1,476 63,574 3,821 89,458 38,356 26,296 2,047 7,666 13,328 59,056 16,748 125,141 116,252 4,758 370 1,387 2,411 10,686 3,030 22,642 21,033  49,346 1,694 9,861 9,253 70,154 51,602 33,210 7,258 92,070 34,886 1,520 104 21,499 58,009 6,312 275 19 3,890 10,496  FIXED ASSETS: Cost Less - accumulated depreciation  OTHER ASSETS AND DEFERRED CHARGES, NET  285,287 17,055 268,232 7,596 527,924 237,199 12,466 224,733 6,946 451,563 265,606 17,723 247,883 6,716 554,001 48,056 3,207 44,849 1,215 100,235  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 Audited  June 30, Unaudited Reported NIS 2004  2005  Convenience translation (Note 1) June 30, 2005 Unaudited Euro  (In thousands)  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables and other accounts payable  17,378 48,753 66,131 19,368 55,243 74,611 41,180 35,468 76,648 7,451 6,417 13,868  LONG-TERM LIABILITIES: Convertible debentures - related parties Convertible debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  29,274 95,695 171,745 2,897 65 5,296 304,972 1,105 155,716 527,924 28,978 73,026 137,164 1,931 1,192 242,291 38 134,623 451,563 98,491 204,527 2,755 108 5,226 311,107 1,602 164,644 554,001 17,820 37,004 498 20 946 56,288 290 29,789 100,235  The accompanying note is an integral part of the interim consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income after taxes on income Minority interest in losses (earnings) of subsidiaries, net Net income  305,537 246,111 42,457 257,897 69,270 12,533  193,890 111,647 23,145 88,502 7,902 54 80,654 28,411 52,243 (475) 51,768 170,553 75,558 10,224 65,334 5,191 (56) 60,087 25,232 34,855 (630) 34,225 28,997 13,460 4,179 9,281 5,631 (3) 3,647 281 3,366 (644) 2,722 174,012 83,885 13,517 70,368 9,848 (56) 60,464 26,587 33,877 380 34,257 47,439 21,831 7,843 13,988 10,702 70 3,356 (1,419) 4,775 (756) 4,019 8,583 3,950 1,419 2,531 1,937 13 607 (257) 864 (137) 727  Net earnings per NIS 1 par value of Ordinary shares: Basic net earnings  598 566 25 589 54 10  Diluted net earnings 378 255 21 286 52 9  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Year ended December 31, 2004 (audited) Foreign currency translation  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at the beginning of the year Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Public issuance of stock options (1) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Net income Capital split and reduction Balance at the end of the year 22,673 743 (23,182) 234 106,277 9,329 400 2,366 27 (3,994) 23,182 137,587 3,092 (2,066) 2,224 3,250 758 758  adjustments for autonomous entities Reported NIS (In thousands) 20,525 18,601 39,126  Retained earnings (accumulated deficit)  Less - shares held by the Company and subsidiary  Less - loans to employees and former employees for acquisition of Company shares  Total  (8,665) (22,300) 51,768 20,803 (50,924) 1,147 3,377 358 (46,042) (3,967) (27) 3,994 89,769 9,153 3,777 18,601 2,224 2,724 (22,300) 51,768 155,716  (1) Net of issuance expenses.  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended June 30, 2004 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities Retained earnings (accumulated deficit)  Less - shares held by subsidiary  Total  Reported NIS (In thousands)  758 758 20,438 (678) 19,760 Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Net income Balance at the end of the period 22,952 124 23,076 109,157 1,611 21 110,789 4,049 (624) 3,425 (8,633) 34,225 25,592 (50,566) 1,147 642 (48,777) 98,155 2,258 663 (678) 34,225 134,623  Three months ended June 30, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  758 758 29,801 (4,324) 25,477 Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Net income Balance at the end of the period 235 4 239 133,502 3,543 (2,201) 134,844 3,208 (331) 2,877 5,500 2,722 8,222 (18,395) 863 9,759 (7,773) 154,609 4,079 7,558 (4,324) 2,722 164,644  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2004 (unaudited) Foreign currency translation  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Public issuance of stock options (1) Sale of Company shares held by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Net income Balance at the end of the period 22,673 403 23,076 106,277 6,092 21 2,366 27 (3,994) 110,789 3,092 (1,891) 2,224 3,425 758 758  adjustments for autonomous entities Reported NIS (In thousands) 20,525 (765) 19,760  Retained earnings (accumulated deficit)  Less - shares held by the Company and subsidiary  Less - loans to employees and former employees for acquisition of Company shares  Total  (8,665) 34,257 25,592 (50,924) 1,147 642 358 (48,777) (3,967) (27) 3,994 89,769 5,751 663 (765) 2,224 2,724 34,257 134,623  (1) Net of issuance expenses.  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  758 758 39,126 (13,649) 25,477 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Net income Balance at the end of the period 234 5 239 137,587 3,951 (6,694) 134,844 3,250 (373) 2,877 20,803 (16,600) 4,019 8,222  -  (46,042) 1,019 37,250 (7,773) 155,716 4,602 30,556 (13,649) (16,600) 4,019 164,644  Convenience translation into Euro (Note 1) (In thousands)  588 (67) 521 137 137 7,079 (2,470) 4,609 3,764 (3,003) 727 1,488 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend declared Net income Balance at the end of the period 42 1 43 24,894 715 (1,212) 24,397  -  (8,330) 184 6,740 (1,406) 28,174 833 5,528 (2,470) (3,003) 727 29,789  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities (a) Net cash provided by (used in) operating activities Cash flows from investing activities: Proceeds from realization of investment in deconsolidated subsidiaries (b) Repayment of debt in respect of sale of investment in previous year Collection of debt in respect of realization of investment in the previous year Acquisition of companies initially consolidated (c) Full consolidation of company previously included by the proportionate method and sale of property (d) Loans granted and investment in long-term deposits Collection of loans and withdrawal of longterm deposits Investment in affiliates Investment in fixed assets and real estate Proceeds from sale of fixed assets Withdrawal of (investment in) short-term deposits, net Net cash used in investing activities  51,768 34,225 2,722 34,257 4,019 727  (44,699) (35,686) 531 (31,357) (513) (93)  7,069 (1,461) 3,253 2,900 3,506 634  42,210 (3,034) (760) (15,580) (2,827) (760) (15,580) 37,821 (24,901) (2,819) 6,843 (4,505)  (20,721) 11,074 (4,986) (136,918) 87 31,641 (80,647)  *) (10,814)  *)  2,719 (1,765) (67,965) 32,812 (45,773)  547 (2,482) 10,197 (3,879) (5,337) (590) (19,951) (7,376) (1,765) (95,544) 32,812 (72,633) 547 (6,189) 11,461 (3,879) (19,704) (1,115) (21,539) 99 (1,120) 2,074 (702) (3,565) (202) (3,897)  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  Cash flows from financing activities: Issuance of stock options into convertible debentures Issuance of stock options into shares, net Exercise of stock options into shares Conversion of stock options into convertible debentures and their sale by subsidiary, net Dividend paid Redemption of debentures to related parties Issuance of convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt of advances from tenants, net Sale of Company shares held by the Company and by subsidiary, net Short-term credit from banks and others, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  1,325 2,224 9,568 27,078 (22,300) (1,257) 52,044 88,510 (39,845) 2,967 2,724 (39,081) 2,258 34 52,316 (15,035) 1,767 (38,569) 4,079 (16,600) 32,960 (21,000) 40 1,325 2,224 6,166 34 52,044 59,678 (24,774) 3,427 2,724 (36,310) 4,602 (16,600) 48,171 (26,981) 25 833 (3,003) 8,716 (4,882) 5 -  83,957 2,771 (521) 66,538 9,217 1,669  1,925 134 (279) 183 (791) (144)  12,304 23,599 35,903 (44,329) 64,916 20,587 (17,498) 43,794 26,296 (3,012) 23,599 20,587 (9,607) 35,903 26,296 (1,738) 6,496 4,758  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by (used in) operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Depreciation and amortization Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus Capital gain from sale of fixed assets, net Increase in accrued severance pay Erosion of loans granted and short-term deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  475 *)11,537 630 *) 4,882 644 1,583 (380) *) 6,664 756 3,316 137 600  (77,878) (11) 19 (4,890) (58,793) (1,741) (5,008) 23 (527) (58,793) (3,290) (6,036) 43 (888) (1,092) 8 (161)  (5,092) 690 (75,150) 487 (4,781) (59,316) 4,028 1,270 2,013 1,510 (4,317) (58,606) 7,124 (530) 3,785 1,289 (96) 685  Changes in asset and liability items: Increase in trade receivables (including long-term) Increase in other accounts receivable Decrease (increase) in inventories of contracts in progress Increase (decrease) in trade payables and other accounts payable  (6,361) (3,085) *) (3,338) 43,235 30,451 (44,699) (5,628) (5,503) *) (514) 35,275 23,630 (35,686) (2,225) (1,758) 2,705 (204) (1,482) 531 (6,179) (2,494) *) (456) 36,378 27,249 (31,357) (5,811) (2,995) 8,777 (4,269) (4,298) (513) (1,051) (542) 1,587 (772) (778) (93)  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  (b)  Proceeds from realization of investments in deconsolidated subsidiaries: Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net  (10,616) 370,598 (323,431) (13,357) (981) (5,493) (54,195) (10,616) 370,598 (323,431) (13,357) (981) (5,493) (77,787) (10,616) 370,598 (323,431) (13,357) (981) (5,493) (77,787) -  79,685 42,210 60,307 (760) 60,307 (760) -  (c)  Acquisition of companies initially consolidated by the proportionate consolidation method: Working capital (excluding cash and cash equivalents) Fixed assets, net Investments in affiliates Deferred charges Long-term liabilities Payables for acquisition Minority interest Deferred taxes  430 (16,584) (38) (470) 12,548 1,080 (3,034) (2,827) (2,827) 3,872 (62,678) 33,927 (219) 197 (24,901) 701 (11,340) 6,138 (40) 36 (4,505)  The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended June 30, 2004 2005 Six months ended June 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2005 Unaudited Euro  (d)  Acquisition of subsidiary previously included by the proportionate method and sale of property: Working capital (excluding cash and cash equivalents) Receivables fro sale of property Investment in affiliate Property Capital gain  19,306 (28,055) (8,892) 15,257 2,931 547 19,306 (28,055) (8,892) 15,257 2,931 547 3,493 (5,075) (1,609) 2,760 530 99  (e)  Significant non-cash activities: Sale of activity  54,195 77,787 77,787 -  Conversion of debentures into shares 3,777 663 7,558 663 30,556 5,528  Purchase of fixed assets and real estate on credit Sale of property for credit  6,803 2,690 6,326 2,690 6,326 1,145  28,055 28,055 5,076  The accompanying note is an integral part of the interim consolidated financial statements.  - 14 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of June 30, 2005 and for the six months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.527). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC6-short.DOC  - 15 -   ","null","null","");arrFiles[15]=new Array("about/FinancialReport0606.doc","FinancialReport0606.doc","  B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2006 UNAUDITED   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 9Consolidated Statements of Cash Flows 10 - 14Note to Interim Consolidated Financial Statements15  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax:   972-3-5622555   The Board of Directors B.S.R Europe Ltd.  Dear Sirs, The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of June 30, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the six and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERER30 August, 2006A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,June 30,June 30,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents189,20126,296122,88121,774Short-term deposits 1,3472,04722,0763,912Trade receivables9,5247,66610,8621,925Other accounts receivable 12,82011,917 45,3708,039Receivable for sale of a previously consolidated companies33,27659,0561,129200Inventories of contracts in progress and buildings for construction, net57,86016,74883,17214,738304,028123,730285,49050,588INVENTORIES OF REAL ESTATE164,979131,145  347,16961,517LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 22,28334,88635,7796,340Long-term deposits 1,6931,5201,495265Long-term receivables and trade receivables1361047313Investments in affiliates and other companies33,06221,49936,2186,41857,17458,00973,56513,036FIXED ASSETS:Cost116,872251,489 102,89418,232Less - accumulated depreciation5,24317,7234,003711111,629233,76698,89117,521OTHER ASSETS10,0256,7161,239220647,835553,366806,354142,882  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,June 30,June 30,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others50,58941,180125,57022,250Trade payables 21,5529,84419,3183,423Other accounts payable28,78924,989 39,2446,953100,93076,013184,13232,626LONG-TERM LIABILITIES:Debentures and convertible debentures182,13398,491164,72029,188Loans from banks and others181,762204,527273,09848,392Deposits from tenants 5412,755468Accrued severance pay9410813324Deferred taxes5,2055,2264,339769369,735311,107442,33678,381MINORITY INTEREST6931,602--SHAREHOLDERS \' EQUITY*) 176,477164,644179,88631,875647,835553,366806,354142,882  *) Restated. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands, except per share amounts) Revenues from lease, sales, construction of buildings and apartments and services 177,77942,45738,51069,27072,34212,818Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services121,62328,99731,26947,43957,57710,202Gross profit56,15613,4607,24121,83114,7652,616General and administrative expenses*) 17,8724,1794,5487,8439,2721,643Operating income38,2849,2812,69313,9885,493973Financial expenses, net17,2415,6312,43610,7022,968526Other income (expenses)87(3)-70--Income before taxes on income*) 21,1303,6472573,3562,525447Taxes on income1,301281525(1,419)1,834325Income (loss) after taxes on income19,8293,366(268)4,775691122Equity in losses of affiliates--(24)-(177)(31)Minority interest in losses (earnings) of subsidiaries, net230(644)636(756)781138Net income *) 20,0592,7223444,0191,295229Net earnings per share:Basic net earnings *)   1.80*) 0.290.03*) 0.410.120.02Diluted net earnings *)   1.54 *) 0.25(0.02)*) 0.38  0.100.01  *) Restated. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Year ended December 31, 2005 (audited)Share capitalShare premiumReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the year234138,3453,250-39,12620,803(46,042)155,716Exercise of stock options into shares 75,581(499)---1,0196,108Conversion of convertible debentures-(6,694)----37,25030,556Purchase of Company shares by the Company------(665)(665)Foreign currency translation adjustments for autonomous entities----(18,718)--(18,718)Dividend paid-----(16,600)-(16,600)Share-based payment cost *)---*) 21---21Net income-----*) 20,059-20,059Balance at the end of the year241137,2322,7512120,40824,262(8,438)176,477  *) Restated. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended June 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account of stock optionsForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period235134,2603,20829,8015,500(18,395)154,609Exercise of stock options into shares 43,543(331)--8634,079Conversion of convertible debentures-(2,201)---9,7597,558Foreign currency translation adjustments for autonomous entities---(4,324)--(4,324)Net income----2,722-2,722Balance at the end of the period239135,6022,87725,4778,222(7,773)164,644  Three months ended June 30, 2005 (unaudited)Share capitalShare premiumBeneficial conversion featureReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period243136,7732732,73716827,43425,213(5,759)187,082Exercise of stock options into shares 12,380-(349)---1,1793,211Conversion of convertible debentures712,172-----15112,330Foreign currency translation adjustments for autonomous entities-----(229)--(229)Dividend paid------(23,000)-(23,000)Share-based payment cost----148---148Net income------344-344Balance at the end of the period251151,3252732,38831627,2052,557(4,429)179,886 The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account of stock optionsForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period (audited)234138,3453,25039,12620,803(46,042)155,716-Exercise of stock options into shares 53,951(373)--1,0194,602Conversion of convertible debentures-(6,694)---37,25030,556Foreign currency translation adjustments for autonomous entities---(13,649)--(13,649)Dividend paid----(16,600)-(16,600)Net income----4,019-4,019Balance at the end of the period239135,6022,87725,4778,222(7,773)164,644  The accompanying note is an integral part of the interim consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2006 (unaudited)Share capitalShare premiumBeneficial conversion featureReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period241137,232-2,751*) 2120,408  *) 24,262(8,438)176,477Split of beneficial conversion feature of convertible debentures less issuance expenses--273-----273Exercise of stock options into shares 22,558-(363)---1,1793,376Conversion of convertible debentures811,535-----2,83014,373Foreign currency translation adjustments for autonomous entities-----6,797-- 6,797Dividend paid------(23,000)-(23,000)Share-based payment cost----295---295Net income------1,295-1,295Balance at the end of the period251151,3252732,38831627,2052,557(4,429)179,886 Convenience translation into Euro (Note 1)(In thousands)Balance at the beginning of the period4324,317-487*) 43,617*) 4,300(1,496)31,272Split of beneficial conversion feature of convertible debentures less issuance expenses--48-----48Exercise of stock options into shares 453-(64)---209598Conversion of convertible debentures12,044-----5022,547Foreign currency translation adjustments for autonomous entities-----1,204-- 1,204Dividend paid------(4,075)-(4,075)Share-based payment cost----52---52Net income------229-229Balance at the end of the period4426,81448423564,821454(785)31,875 *) Restated. The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from operating activities:Net income20,0592,7223444,0191,295229Adjustments to reconcile net income to net cash provided by operating activities (a)(9,888)6282,175(382)7,7531,374Net cash provided by operating activities10,1713,3502,5193,6379,0481,603Cash flows from investing activities:Proceeds from realization of investment in fully and proportionately consolidated companies that were deconsolidated (b)40,516-2,734-2,694477Tax payment for investment that was sold last year(15,580)(15,580)-(15,580)--Acquisition of fully and proportionately consolidated companies (c)(28,690)(2,827)-(24,901)(9,738)(1,726)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d)23,969547-547--Debt collection for realization of investment in subsidiaries58,552-6,82337,82131,8095,636Grant of loans and deposit of long-term deposits(18,120)(2,482)(12,954)(6,189)(13,782)(2,442)Collection of loans and withdrawal of long-term deposits51,16210,19748011,461932165Investment in affiliates(15,243)(3,879)(2,308)(3,879)(3,687)(653)Investment in fixed assets and real estate (76,081)(5,434)(151,173)(19,835)(181,057)(32,082)Payment of VAT for purchase of real estate --(25,249)-(25,249)(4,474)Proceeds from sale of fixed assets73-----Deposit of short-term deposits, net(218)(590)(771)(1,115)(20,858)(3,696)Net cash provided by (used in) investing activities20,340(20,048)(182,418)(21,670)(218,936)(38,795)  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from financing activities:Purchase of Company shares by the Company(665)-----Exercise of stock options into shares6,1084,0793,2114,6023,376598Dividend paid(16,600)(16,600)(23,000)(16,600)(23,000)(4,075)Issuance of debentures and convertible debentures (net of issuance expenses)94,661-----Prepaid issuance expenses in subsidiary--(3,516)-(3,516)(623)Receipt of long-term loans and other liabilities114,54532,960143,89948,171182,05032,258Repayment of long-term loans and other liabilities (73,450)(21,000)(9,590)(26,981)(16,431)(2,911)Receipt (refund) of advances from tenants, net11140925(508)(90)Net cash provided by (used in) financing activities124,710(521)111,0139,217141,97125,157Effect of exchange rate differences from cash balances of autonomous entities(1,923)(279)(674)(791)1,597283Increase (decrease) in cash and cash equivalents153,298(17,498)(69,560)(9,607)(66,320)(11,752)Cash and cash equivalents at beginning of period35,90343,794192,44135,903189,20133,526Cash and cash equivalents at end of period189,20126,296122,88126,296122,88121,774  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net(230)644(636)756(781)(138)Equity in losses of affiliates--24-17731Share-based payment cost*) 21-148-29552Depreciation and amortization5,9351,5833453,316935166Gain from sale of real estate, deconsolidated companies and realization of capital surplus(25,241)(5,008)-(6,036)(2,836)(503)Capital gain from sale of fixed assets, net(10)-----Increase (decrease) in accrued severance pay2923(4)43397Erosion (revaluation) of loans granted and short-term deposits(1,495)(527)(80)(888)5710Accrued interest and revaluation of debentures and long-term loans, net10,8104,0281,1707,1242,547451Deferred taxes, net6371,270250(530)31957(9,544)2,0131,2173,785752133Changes in asset and liability items:Decrease (increase) in trade receivables (including long-term)(6,599)(2,225)(2,959)(5,811)874155Increase in other accounts receivable(5,318)(2,296)  (505)(3,499)  (1,000)(177)Decrease in inventories of contracts in progress and buildings for construction9,8432,7057,4128,7776,8911,221Increase (decrease) in trade payables and other accounts payable1,730431  (2,990)(3,634)  23642(344)(1,385)958(4,167)7,0011,241(9,888)6282,175(382)7,7531,374  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (b)Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated:Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents)1,676---(1,042)(186)Fixed assets, net (net of payables for fixed assets)137,893---17,5123,103Long-term liabilities(75,492)---(15,763)(2,793)Long-term loans granted(18,360)-----Deposits from tenants (2,302)-----Deferred taxes(554)---(849)(150)Receivables for realization of investments in subsidiaries(21,336)-2,734---Capital gain from sale of investments in consolidated companies, realization of capital surplus and sale of activity, net18,991---2,83650340,516-2,734-2,694477(c)Acquisition of fully and proportionately consolidated companies (1):Working capital (excluding cash and cash equivalents)3,836--3,8724,527801Fixed assets, net (82,289)--(62,678)(30,200)(5,351)Long-term loans1,425---13624Long-term liabilities47,975--33,92714,0412,488Investment in affiliate----1,563277Payables for acquisition363(2,827)----Minority interest---(219)(153)(27)Deferred taxes---19734862(28,690)(2,827)-(24,901)(9,738)(1,726)  (1) In 2006, includes full consolidation of affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended June 30, Six months ended June 30, Six months  ended June 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (d)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate:Working capital (excluding cash and cash equivalents)17,84219,306-19,306--Investment in affiliate(9,551)(8,892)-(8,892)--Real estate and fixed assets5,40215,257-15,257--Long-term liabilities6,686-----Capital gain 3,5902,931-2,931--Receivables for sale of property-(28,055)-(28,055)--23,969547-547--(e)Significant non-cash activities: Conversion of debentures into shares30,5567,55812,33030,55614,3732,547Purchase of fixed assets and real estate by credit19,1106,32615,6446,32621,2643,768  The accompanying note is an integral part of the interim consolidated financial statements.   NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of June 30, 2006 and for the six months then ended have been translated into Euro using the representative exchange rate as of that date (€ 1 = NIS 5.6435). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.   - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC6-SHORT.DOC 1   1 -  2  -  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[16]=new Array("about/FinancialReport0606.pdf","Microsoft Word - FinancialReport0606.doc","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF JUNE 30, 2006  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 9 10 - 14 15  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of June 30, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the six and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel 30 August, 2006 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  June 30, Unaudited Reported NIS 2005  2006  Convenience translation (Note 1) June 30, 2006 Unaudited Euro  (In thousands)  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of a previously consolidated companies Inventories of contracts in progress and buildings for construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables and trade receivables Investments in affiliates and other companies  189,201 1,347 9,524 12,820 33,276 57,860 304,028 164,979 26,296 2,047 7,666 11,917 59,056 16,748 123,730 131,145 122,881 22,076 10,862 45,370 1,129 83,172 285,490 347,169 21,774 3,912 1,925 8,039 200 14,738 50,588 61,517  22,283 1,693 136 33,062 57,174 34,886 1,520 104 21,499 58,009 35,779 1,495 73 36,218 73,565 6,340 265 13 6,418 13,036  FIXED ASSETS: Cost Less - accumulated depreciation  OTHER ASSETS  116,872 5,243 111,629 10,025 647,835 251,489 17,723 233,766 6,716 553,366 102,894 4,003 98,891 1,239 806,354 18,232 711 17,521 220 142,882  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  June 30, Unaudited Reported NIS 2005  2006  Convenience translation (Note 1) June 30, 2006 Unaudited Euro  (In thousands)  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable  50,589 21,552 28,789 100,930 41,180 9,844 24,989 76,013 125,570 19,318 39,244 184,132 22,250 3,423 6,953 32,626  LONG-TERM LIABILITIES: Debentures and convertible debentures Loans from banks and others Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  182,133 181,762 541 94 5,205 369,735 693 *) 176,477 647,835 98,491 204,527 2,755 108 5,226 311,107 1,602 164,644 553,366 164,720 273,098 46 133 4,339 442,336 179,886 806,354 29,188 48,392 8 24 769 78,381 31,875 142,882  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income (loss) after taxes on income Equity in losses of affiliates Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per share: Basic net earnings Diluted net earnings  177,779 42,457 38,510 69,270 72,342 12,818  121,623 56,156 *) 17,872 38,284 17,241 87 *) 21,130 1,301 19,829 230 *) 20,059 28,997 13,460 4,179 9,281 5,631 (3) 3,647 281 3,366 (644) 2,722 31,269 7,241 4,548 2,693 2,436 257 525 (268) (24) 636 344 47,439 21,831 7,843 13,988 10,702 70 3,356 (1,419) 4,775 (756) 4,019 57,577 14,765 9,272 5,493 2,968 2,525 1,834 691 (177) 781 1,295 10,202 2,616 1,643 973 526 447 325 122 (31) 138 229  *) *) 1.80 1.54 *) 0.29 *) 0.25 0.03 (0.02) *) 0.41 *) 0.38 0.12 0.10 0.02 0.01  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Year ended December 31, 2005 (audited) Foreign currency translation  Receipts on account of stock options  Capital surplus, share-based payment adjustments for autonomous entities  Share capital Share premium Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  *) 21 21 39,126 (18,718) 20,408 Balance at the beginning of the year Exercise of stock options into shares Conversion of convertible debentures Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Dividend paid Share-based payment cost *) Net income Balance at the end of the year 234 7 241 138,345 5,581 (6,694) 137,232 3,250 (499) 2,751 20,803 (16,600) *) 20,059 24,262 (46,042) 1,019 37,250 (665) (8,438) 155,716 6,108 30,556 (665) (18,718) (16,600) 21 20,059 176,477  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended June 30, 2005 (unaudited) Foreign currency translation adjustments  Receipts on account of stock options  Retained earnings Share capital Share premium  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Net income Balance at the end of the period 235 4 239 134,260 3,543 (2,201) 135,602 3,208 (331) 2,877  for autonomous entities Reported NIS (In thousands) 29,801 (4,324) 25,477  Less - shares held by the Company and subsidiary  Total  5,500 2,722 8,222 (18,395) 863 9,759 (7,773) 154,609 4,079 7,558 (4,324) 2,722 164,644  Three months ended June 30, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  adjustments for autonomous entities  Share capital Share premium  Beneficial conversion feature  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Share-based payment cost Net income Balance at the end of the period 243 1 7 251 136,773 2,380 12,172 151,325 273 273 2,737 (349) 2,388  Capital surplus, share-based payment Reported NIS (In thousands) 168 148 316  Retained earnings  Less - shares held by the Company and subsidiary  Total  27,434 (229) 27,205 25,213 (23,000) 344 2,557 (5,759) 1,179 151 (4,429) 187,082 3,211 12,330 (229) (23,000) 148 344 179,886  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2005 (unaudited) Foreign currency translation adjustments  Receipts on account of stock options  Retained earnings Share capital Share premium  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the period 234 5 239 138,345 3,951 (6,694) 135,602 3,250 (373) 2,877  for autonomous entities Reported NIS (In thousands) 39,126 (13,649) 25,477  Less - shares held by the Company and subsidiary  Total  20,803 (16,600) 4,019 8,222  -  (46,042) 1,019 37,250 (7,773) 155,716 4,602 30,556 (13,649) (16,600) 4,019 164,644  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Six months ended June 30, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options  adjustments for autonomous entities  Share capital Share premium  Beneficial conversion feature  Balance at the beginning of the period Split of beneficial conversion feature of convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Share-based payment cost Net income Balance at the end of the period  241 137,232 2,751  Capital surplus, share-based payment Reported NIS (In thousands) *) 21  Retained earnings  Less - shares held by the Company and subsidiary  Total  20,408 *) 24,262 (8,438) 176,477  2 8 251 2,558 11,535 151,325 273 273 (363) 2,388 295 316 6,797 27,205 (23,000) 1,295 2,557 1,179 2,830 (4,429) 273 3,376 14,373 6,797 (23,000) 295 1,295 179,886  Convenience translation into Euro (Note 1) (In thousands) 487 *) 4 3,617  Balance at the beginning of the period Split of beneficial conversion feature of convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Share-based payment cost Net income Balance at the end of the period *) Restated.  43 24,317 *) 4,300 (1,496) 31,272  1 44 453 2,044 26,814 48 48 (64) 423 52 56 1,204 4,821 (4,075) 229 454 209 502 (785) 48 598 2,547 1,204 (4,075) 52 229 31,875  The accompanying note is an integral part of the interim consolidated financial statements. - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investment in fully and proportionately consolidated companies that were deconsolidated (b) Tax payment for investment that was sold last year Acquisition of fully and proportionately consolidated companies (c) Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d) Debt collection for realization of investment in subsidiaries Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of longterm deposits Investment in affiliates Investment in fixed assets and real estate Payment of VAT for purchase of real estate Proceeds from sale of fixed assets Deposit of short-term deposits, net Net cash provided by (used in) investing activities  20,059 (9,888) 10,171 2,722 628 3,350 344 2,175 2,519 4,019 (382) 3,637 1,295 7,753 9,048 229 1,374 1,603  40,516 (15,580) (28,690) (15,580) (2,827) 2,734 (15,580) (24,901) 2,694 (9,738) 477 (1,726)  23,969 58,552 (18,120) 51,162 (15,243) (76,081) 73 (218) 547 (2,482) 10,197 (3,879) (5,434) (590) 6,823 (12,954) 480 (2,308) (151,173) (25,249) (771) 547 37,821 (6,189) 11,461 (3,879) (19,835) (1,115) 31,809 (13,782) 932 (3,687) (181,057) (25,249) (20,858) 5,636 (2,442) 165 (653) (32,082) (4,474) (3,696)  20,340 (20,048) (182,418) (21,670) (218,936) (38,795)  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  Cash flows from financing activities: Purchase of Company shares by the Company Exercise of stock options into shares Dividend paid Issuance of debentures and convertible debentures (net of issuance expenses) Prepaid issuance expenses in subsidiary Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt (refund) of advances from tenants, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  (665) 6,108 (16,600) 94,661 114,545 (73,450) 111 4,079 (16,600) 32,960 (21,000) 40 3,211 (23,000) (3,516) 143,899 (9,590) 9 4,602 (16,600) 48,171 (26,981) 25 3,376 (23,000) (3,516) 182,050 (16,431) (508) 598 (4,075) (623) 32,258 (2,911) (90)  124,710 (521) 111,013 9,217 141,971 25,157  (1,923) (279) (674) (791) 1,597 283  153,298 35,903 189,201 (17,498) 43,794 26,296 (69,560) 192,441 122,881 (9,607) 35,903 26,296 (66,320) 189,201 122,881 (11,752) 33,526 21,774  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates Share-based payment cost Depreciation and amortization Gain from sale of real estate, deconsolidated companies and realization of capital surplus Capital gain from sale of fixed assets, net Increase (decrease) in accrued severance pay Erosion (revaluation) of loans granted and short-term deposits Accrued interest and revaluation of debentures and long-term loans, net Deferred taxes, net  (230) *) 21 5,935 644 1,583 (636) 24 148 345 756 3,316 (781) 177 295 935 (138) 31 52 166  (25,241) (10) 29 (1,495) 10,810 637 (9,544) (5,008) 23 (527) 4,028 1,270 2,013 (4) (80) 1,170 250 1,217 (6,036) 43 (888) 7,124 (530) 3,785 (2,836) 39 57 2,547 319 752 (503) 7 10 451 57 133  Changes in asset and liability items: Decrease (increase) in trade receivables (including long-term) Increase in other accounts receivable Decrease in inventories of contracts in progress and buildings for construction Increase (decrease) in trade payables and other accounts payable  (6,599) (5,318) 9,843 1,730 (344) (9,888) (2,225) (2,296) 2,705 431 (1,385) 628 (2,959) (505) 7,412 (2,990) 958 2,175 (5,811) (3,499) 8,777 (3,634) (4,167) (382) 874 (1,000) 6,891 236 7,001 7,753 155 (177) 1,221 42 1,241 1,374  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated: Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Deposits from tenants Deferred taxes Receivables for realization of investments in subsidiaries Capital gain from sale of investments in consolidated companies, realization of capital surplus and sale of activity, net  1,676 137,893 (75,492) (18,360) (2,302) (554) (21,336) 2,734 (1,042) 17,512 (15,763) (849) (186) 3,103 (2,793) (150) -  18,991 40,516 2,734 2,836 2,694 503 477  (c)  Acquisition of fully and proportionately consolidated companies (1): Working capital (excluding cash and cash equivalents) Fixed assets, net Long-term loans Long-term liabilities Investment in affiliate Payables for acquisition Minority interest Deferred taxes  3,836 (82,289) 1,425 47,975 363 (28,690) (2,827) (2,827) 3,872 (62,678) 33,927 (219) 197 (24,901) 4,527 (30,200) 136 14,041 1,563 (153) 348 (9,738) 801 (5,351) 24 2,488 277 (27) 62 (1,726)  (1) In 2006, includes full consolidation of affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended June 30, 2005 2006 Six months ended June 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Six months ended June 30, 2006 Unaudited Euro  (d)  Full consolidation of previously consolidated companies by the proportionate method while realizing real estate: Working capital (excluding cash and cash equivalents) Investment in affiliate Real estate and fixed assets Long-term liabilities Capital gain Receivables for sale of property  17,842 (9,551) 5,402 6,686 3,590 23,969 19,306 (8,892) 15,257 2,931 (28,055) 547 19,306 (8,892) 15,257 2,931 (28,055) 547 -  (e)  Significant non-cash activities: Conversion of debentures into shares Purchase of fixed assets and real estate by credit  30,556 7,558 12,330 30,556 14,373 2,547  19,110 6,326 15,644 6,326 21,264 3,768  The accompanying note is an integral part of the interim consolidated financial statements.  - 14 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of June 30, 2006 and for the six months then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.6435). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC6-SHORT.DOC  - 15 -   ","null","null","");arrFiles[17]=new Array("about/FinancialReport0905.doc","FinancialReport0905.doc","DRAFT: 1.12.05   B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2005 UNAUDITED   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 9Consolidated Statements of Cash Flows 10 - 14Note to Interim Consolidated Financial Statements15  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax:   972-3-5622555   The Board of Directors B.S.R Europe Ltd.  Dear Sirs, The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of September 30, 2005 and 2004, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the nine and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2004 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERNovember 27, 2005A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,September 30,September 30,2004200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents35,90382,76550,5859,152Short-term deposits 1,181-5,173936Trade receivables1,7792,0148,7111,576Other accounts receivable 10,942*) 28,84513,1232,374Receivable for sale of a previously consolidated company 59,02612,33111,1992,026Inventories of contracts in progress and buildings for construction13,99013,98343,6677,900122,821139,938132,45823,964INVENTORY OF LAND70,602*) 51,291113,75120,579LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 49,346 50,24531,8885,769Long-term deposits 1,694-1,564283Long-term receivables9,86135,4529517Investments in affiliates and other companies9,2537,28730,0365,43470,15492,98463,58311,503FIXED ASSETS:Cost273,806  *)  234,759258,99646,856Less - accumulated depreciation17,05513,28818,8353,408256,751221,471240,16143,448OTHER ASSETS AND DEFERRED CHARGES, NET7,5966,2505,7071,032527,924511,934555,660100,526  *) Reclassified. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,September 30,September 30,2004200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Current maturities of debentures-1,24419,2163,476Credit from banks and others17,37816,17932,9035,953Trade payables and other accounts payable48,753*)  49,52141,2257,456Dividend declared-22,291--66,13189,23593,34416,885LONG-TERM LIABILITIES:Convertible debentures - related parties29,27429,141--Convertible debentures95,69598,65281,69314,779Long-term loans171,745159,069204,91437,072Deposits from tenants 2,8971,9542,750498Accrued severance pay65*)   609317Deferred taxes5,2961,5404,270773304,972290,416293,72053,139MINORITY INTEREST1,105991,325240SHAREHOLDERS \' EQUITY155,716132,184167,27130,262527,924511,934555,660100,526  *) Reclassified. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands, except per share amounts)Revenues from lease, sales, construction of buildings and apartments and services 305,53728,70818,848286,60588,11815,943Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services193,89012,55810,868186,57058,30710,549Gross profit111,64716,1507,980100,03529,8115,394General and administrative expenses23,1454,1774,12717,69411,9702,166Operating income88,50211,9733,85382,34117,8413,228Financial expenses, net(7,902)(2,238)(1,980)(12,086)(12,682)(2,295)Other income (expenses)5471(20)15509Income before taxes on income80,6549,8061,85370,2705,209942Taxes on income28,411(84)13126,503(1,288)(233)Income after taxes on income52,2439,8901,72243,7676,4971,175Minority interest in losses (earnings) of subsidiaries, net(475)(31)386349(370)(67)Net income 51,7689,8592,10844,1166,1271,108Net earnings per NIS 1 par value of Ordinary shares:Basic net earnings 598156227076011Diluted net earnings 37880213565710  The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Year ended December 31, 2004 (audited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by the  Company  and  subsidiaryLess - loans to employees  and former employees  for acquisition of Company sharesTotalReported NIS (In thousands)Balance at the beginning of the year22,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares 7439,329(2,066)---1,147-9,153Conversion of convertible debentures-400----3,377-3,777Foreign currency translation adjustments for autonomous entities----18,601---18,601Public issuance of stock options (1)--2,224-----2,224Sale of Company shares held by the Company and by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Dividend paid-----(22,300)--(22,300)Net income-----51,768--51,768Capital split and reduction(23,182)23,182-------Balance at the end of the year234137,5873,25075839,12620,803(46,042)-155,716  (1) Net of issuance expenses. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Three months ended September 30, 2004 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period23,076110,7893,42575819,76025,592(48,777)134,623Exercise of stock options into shares 3403,237(175)----3,402Conversion of convertible debentures-379----2,6833,062Foreign currency translation adjustments for autonomous entities----3,529--3,529Net income-----9,859-9,859Dividend proposed for payment-----(22,291)-(22,291)Balance at the end of the period23,416114,4053,25075823,28913,160(46,094)132,184 Three months ended September 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the  Company  and  subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period239134,8442,87775825,4778,222(7,773)164,644Exercise of stock options into shares -134(10)----124Repurchase of shares------(357)(357)Foreign currency translation adjustments for autonomous entities----752--752Net income-----2,108-2,108Balance at the end of the period239134,9782,86775826,22910,330(8,130)167,271  The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Nine months ended September 30, 2004 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by  subsidiaryLess - loans to employees  and former employees  for acquisition of Company sharesTotalReported NIS (In thousands)Balance at the beginning of the period (audited)22,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares 7439,329(2,066)---1,147-9,153Conversion of convertible debentures-400----3,325-3,725Foreign currency translation adjustments for autonomous entities----2,764---2,764Public issuance of stock options (1)--2,224-----2,224Sale of Company shares held by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Net income-----44,116--44,116Dividend proposed for payment-----(22,291)--(22,291)Balance at the end of the period23,416114,4053,25075823,28913,160(46,094)-132,184  (1) Net of issuance expenses. The accompanying note is an integral part of the interim consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Nine months ended September 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account  of stock optionsCapital surplusForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the  Company  and  subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period (audited)234137,5873,25075839,12620,803(46,042)155,716Exercise of stock options into shares 54,085(383)---1,0194,726Conversion of convertible debentures-(6,694)----37,25030,556Repurchase of shares------(357)(357)Foreign currency translation adjustments for autonomous entities----(12,897)--(12,897)Dividend paid-----(16,600)-(16,600)Net income-----6,127-6,127Balance at the end of the period239134,9782,86775826,22910,330(8,130)167,271 Convenience translation into Euro (Note 1)(In thousands)Balance at the beginning of the period (audited)4224,8915881377,0783,765(8,329)28,172Exercise of stock options into shares 1739(69)---184855Conversion of convertible debentures-(1,211)----6,7395,528Repurchase of shares------(65)(65)Foreign currency translation adjustments for autonomous entities----(2,333)--(2,333)Dividend paid-----(3,003)-(3,003)Net income-----1,108-1,108Balance at the end of the period4324,4195191374,7451,870(1,471)30,262  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from operating activities:Net income51,7689,8592,10844,1166,1271,108Adjustments to reconcile net income to net cash provided by operating activities (a)(44,635)(8,095)1,990(39,180)1,608291Net cash provided by operating activities7,1331,7644,0984,9367,7351,399Cash flows from investing activities:Proceeds from realization of investments in deconsolidated subsidiaries (b)42,21042,970-42,210--Payment of tax in respect of investment realized in previous year----(15,580)(2,819)Collection of debt in respect of realization of investment in subsidiary--20,346-58,16710,523Acquisition of companies initially included by the proportionate consolidation method (c)(3,034)---(24,901)(4,505)Full consolidation of company previously included by the proportionate method and sale of property (d)--28,055-28,6025,174Loans granted and investment in long-term deposits(20,721)*) (10,102)(550)*) (21,011)(6,739)(1,219)Collection of loans and withdrawal of long-term deposits11,074*)   2441,907*)  3,77713,3682,418Investment in affiliates(4,986)-(8,210)(1,765)(12,089)(2,187)Investment in fixed assets and property*) (136,982)*) (20,937)(9,358)*) (116,753)(29,193)(5,281)Proceeds from sale of fixed assets87-----Withdrawal of (investment in) short-term deposits, net31,641-(2,958)32,812(4,073)(737)Net cash provided by (used in) investing activities(80,711)12,17529,232(60,730)7,5621,367  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from financing activities:Issuance of stock options into convertible debentures1,325--1,325--Issuance of stock options into shares, net2,224--2,224--Exercise of stock options into shares9,5683,4021249,5684,726855Conversion of stock options into convertible debentures and their sale by subsidiary, net27,07827,044-27,078--Repurchase of shares --(357)-(357)(65)Dividend paid(22,300)---(16,600)(3,003)Redemption of debentures to related parties(1,257)-----Issuance of convertible debentures (net of issuance expenses)52,044--52,044--Receipt of long-term loans and other liabilities88,51024,95315,85684,63164,02711,583Repayment of long-term loans and other liabilities (39,845)(7,293)(24,750)(32,067)(51,731)(9,359)Receipt of advances from tenants, net2,967(114)(34)3,313(9)(2)Sale of Company shares held by the Company and by subsidiary, net2,724--2,724--Short-term credit from banks and others, net(39,081)(391)-(36,701)--Net cash provided by (used in) financing activities83,95747,601(9,161)114,139569Effect of exchange rate differences from cash balances of autonomous entities1,925638120821(671)(121)Increase in cash and cash equivalents12,30462,17824,28959,16614,6822,654Cash and cash equivalents at beginning of period23,59920,58726,29623,59935,9036,498Cash and cash equivalents at end of period35,90382,76550,58582,76550,5859,152  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net47531(386)(349)37067Depreciation and amortization*)  11,537*)  2,0561,313*)  8,7204,629837Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus(77,878)(11,499)(1,366)(70,292)(7,402)(1,339)Capital gain from sale of fixed assets, net(11)-----Increase (decrease) in accrued severance pay19*)    5(15)15285Revaluation of loans granted and short-term deposits(4,890)(2,236)(213)(5,536)(1,101)(199)Accrued interest and revaluation (erosion) of debentures and long-term loans, net(5,092)(3,683)981(2,173)8,1051,466Deferred taxes, net690(71)43(4,388)(487)(88)(75,150)(15,397)357(74,003)4,142749Changes in asset and liability items:Increase in trade receivables (including long-term receivables)(6,361)(464)(937)(6,643)(6,748)(1,221)Decrease (increase) in other accounts receivable*) (3,021)*) (3,961)1,615*) (6,183)(1,884)(341)Decrease (increase) in inventories of contracts in progress*) (3,338)*) (1,091)1,253*) (1,547)10,0301,815Increase (decrease) in trade payables and other accounts payable43,23512,818(298)49,196(3,932)(711)30,5157,3021,63334,823(2,534)(458)(44,635)(8,095)1,990(39,180)1,608291  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (b)Proceeds from realization of investments in deconsolidated subsidiaries:Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents)(10,616)--(10,616)--Fixed assets, net (net of payables for fixed assets)370,598--370,598--Long-term liabilities(323,431)--(323,431)--Long-term loans granted(13,357)--(13,357)--Minority interest(981)--(981)--Investment in affiliate(5,493)--(5,493)--Receivables for realization of investments in subsidiaries(54,195)37,742-(40,045)--Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net79,6855,228-65,535--42,21042,970-42,210--(c)Acquisition of companies initially included by the proportionate consolidation method:Working capital (excluding cash and cash equivalents)430---3,872700Fixed assets, net (16,584)---(62,678)(11,339)Investments in affiliates(38)-----Deferred charges(470)-----Long-term liabilities12,548---33,9276,138Minority interest----(219)(40)Deferred taxes1,080---19736(3,034)---(24,901)(4,505)  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200420042005200420052005AuditedUnauditedUnauditedReported NISEuro(In thousands) (d)Full consolidation of company previously included by the proportionate method and sale of property:Working capital (excluding cash and cash equivalents)----19,3063,493Receivables for sale of property--28,055---Investment in affiliate----(9,551)(1,728)Property----15,2572,760Capital gain----3,590649--28,055-28,6025,174(e)Significant non-cash activities: Sale of activity54,195--38,250--Conversion of debentures into shares3,7773,062-3,72530,5565,528Purchase of fixed assets and property on credit6,8035,7917,8815,7917,8811,426  The accompanying note is an integral part of the interim consolidated financial statements.   NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of September 30, 2005 and for the nine months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.5275). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.   - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC9-short.DOC 1   1 -  2  -  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[18]=new Array("about/FinancialReport0905.pdf","Microsoft Word - 9.05.DOC","DRAFT: 1.12.05  B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF SEPTEMBER 30, 2005  UNAUDITED  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 9 10 - 14 15  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of September 30, 2005 and 2004, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the nine and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2004 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel November 27, 2005 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 Audited  September 30,  2004 Reported NIS Unaudited (In thousands) 2005  Convenience translation (Note 1) September 30, 2005 Unaudited Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of a previously consolidated company Inventories of contracts in progress and buildings for construction  INVENTORY OF LAND LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables Investments in affiliates and other companies  35,903 1,181 1,779 10,942 59,026 13,990 122,821 70,602  *)  *)  82,765 2,014 28,845 12,331 13,983 139,938 51,291 50,585 5,173 8,711 13,123 11,199 43,667 132,458 113,751 9,152 936 1,576 2,374 2,026 7,900 23,964 20,579  49,346 1,694 9,861 9,253 70,154 50,245 35,452 7,287 92,984 31,888 1,564 95 30,036 63,583 5,769 283 17 5,434 11,503  FIXED ASSETS: Cost Less - accumulated depreciation  OTHER ASSETS AND DEFERRED CHARGES, NET  273,806 17,055 256,751 7,596 527,924 *) 234,759 13,288 221,471 6,250 511,934 258,996 18,835 240,161 5,707 555,660 46,856 3,408 43,448 1,032 100,526  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 Audited  September 30,  2004 Reported NIS Unaudited (In thousands) 2005  Convenience translation (Note 1) September 30, 2005 Unaudited Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Current maturities of debentures Credit from banks and others Trade payables and other accounts payable Dividend declared  17,378 48,753 66,131 1,244 16,179 *) 49,521 22,291 89,235 19,216 32,903 41,225 93,344 3,476 5,953 7,456 16,885  LONG-TERM LIABILITIES: Convertible debentures - related parties Convertible debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  29,274 95,695 171,745 2,897 65 5,296 304,972 1,105 155,716 527,924  29,141 98,652 159,069 1,954  *)  60 1,540  290,416 99 132,184 511,934  81,693 204,914 2,750 93 4,270 293,720 1,325 167,271 555,660 14,779 37,072 498 17 773 53,139 240 30,262 100,526  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income after taxes on income Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per NIS 1 par value of Ordinary shares: Basic net earnings Diluted net earnings  305,537 28,708 18,848 286,605 88,118 15,943  193,890 111,647 23,145 88,502 (7,902) 54 80,654 28,411 52,243 (475) 51,768 12,558 16,150 4,177 11,973 (2,238) 71 9,806 (84) 9,890 (31) 9,859 10,868 7,980 4,127 3,853 (1,980) (20) 1,853 131 1,722 386 2,108 186,570 100,035 17,694 82,341 (12,086) 15 70,270 26,503 43,767 349 44,116 58,307 29,811 11,970 17,841 (12,682) 50 5,209 (1,288) 6,497 (370) 6,127 10,549 5,394 2,166 3,228 (2,295) 9 942 (233) 1,175 (67) 1,108  598 378 156 80 22 21 707 356 60 57 11 10  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Year ended December 31, 2004 (audited) Foreign currency translation adjustments  Capital surplus  Retained earnings (deficit)  Balance at the beginning of the year Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Public issuance of stock options (1) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Net income Capital split and reduction Balance at the end of the year 22,673 743 (23,182) 234 106,277 9,329 400 2,366 27 (3,994) 23,182 137,587 3,092 (2,066) 2,224 3,250 758 758  for autonomous entities Reported NIS (In thousands) 20,525 18,601 39,126  Less - shares held by the Company and subsidiary  Less - loans to employees and former employees for acquisition of Company shares  Total  (8,665) (22,300) 51,768 20,803 (50,924) 1,147 3,377 358 (46,042) (3,967) (27) 3,994 89,769 9,153 3,777 18,601 2,224 2,724 (22,300) 51,768 155,716  (1) Net of issuance expenses.  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended September 30, 2004 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities  Retained earnings  Less - shares held by subsidiary  Total  Reported NIS (In thousands)  758 758 19,760 3,529 23,289 Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Net income Dividend proposed for payment Balance at the end of the period 23,076 340 23,416 110,789 3,237 379 114,405 3,425 (175) 3,250 25,592 9,859 (22,291) 13,160 (48,777) 2,683 (46,094) 134,623 3,402 3,062 3,529 9,859 (22,291) 132,184  Three months ended September 30, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  758 758 25,477 752 26,229 Balance at the beginning of the period Exercise of stock options into shares Repurchase of shares Foreign currency translation adjustments for autonomous entities Net income Balance at the end of the period 239 239 134,844 134 134,978 2,877 (10) 2,867 8,222 2,108 10,330 (7,773) (357) (8,130) 164,644 124 (357) 752 2,108 167,271  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Nine months ended September 30, 2004 (unaudited) Foreign currency translation adjustments  Capital surplus  Retained earnings (deficit) Less - shares held by subsidiary  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Public issuance of stock options (1) Sale of Company shares held by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Net income Dividend proposed for payment Balance at the end of the period 22,673 743 23,416 106,277 9,329 400 2,366 27 (3,994) 114,405 3,092 (2,066) 2,224 3,250 758 758  for autonomous entities Reported NIS (In thousands) 20,525 2,764 23,289  Less - loans to employees and former employees for acquisition of Company shares  Total  (8,665) 44,116 (22,291) 13,160 (50,924) 1,147 3,325 358 (46,094) (3,967) (27) 3,994 89,769 9,153 3,725 2,764 2,224 2,724 44,116 (22,291) 132,184  (1) Net of issuance expenses.  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Nine months ended September 30, 2005 (unaudited) Foreign currency translation  Receipts on account of stock options  Share capital Share premium Capital surplus  adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  758 758 39,126 (12,897) 26,229 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Repurchase of shares Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the period 234 5 239 137,587 4,085 (6,694) 134,978 3,250 (383) 2,867 20,803 (16,600) 6,127 10,330 (46,042) 1,019 37,250 (357) (8,130) 155,716 4,726 30,556 (357) (12,897) (16,600) 6,127 167,271  Convenience translation into Euro (Note 1) (In thousands)  588 (69) 519 137 137 7,078 (2,333) 4,745 3,765 (3,003) 1,108 1,870 Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Repurchase of shares Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the period 42 1 43 24,891 739 (1,211) 24,419 (8,329) 184 6,739 (65) (1,471) 28,172 855 5,528 (65) (2,333) (3,003) 1,108 30,262  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investments in deconsolidated subsidiaries (b) Payment of tax in respect of investment realized in previous year Collection of debt in respect of realization of investment in subsidiary Acquisition of companies initially included by the proportionate consolidation method (c) Full consolidation of company previously included by the proportionate method and sale of property (d) Loans granted and investment in long-term deposits Collection of loans and withdrawal of longterm deposits Investment in affiliates Investment in fixed assets and property Proceeds from sale of fixed assets Withdrawal of (investment in) short-term deposits, net Net cash provided by (used in) investing activities  51,768 (44,635) 7,133 9,859 (8,095) 1,764 2,108 1,990 4,098 44,116 (39,180) 4,936 6,127 1,608 7,735 1,108 291 1,399  42,210 (3,034) 42,970 20,346 42,210 (15,580) 58,167 (24,901) (2,819) 10,523 (4,505)  (20,721) 11,074 (4,986) *) (136,982) 87 31,641  *) (10,102)  *)  244 -  *) (20,937) -  28,055 (550) 1,907 (8,210) (9,358) (2,958)  *) *)  (21,011) 3,777 (1,765)  *) (116,753) 32,812  28,602 (6,739) 13,368 (12,089) (29,193) (4,073) 5,174 (1,219) 2,418 (2,187) (5,281) (737)  (80,711) 12,175 29,232 (60,730) 7,562 1,367  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  Cash flows from financing activities: Issuance of stock options into convertible debentures Issuance of stock options into shares, net Exercise of stock options into shares Conversion of stock options into convertible debentures and their sale by subsidiary, net Repurchase of shares Dividend paid Redemption of debentures to related parties Issuance of convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt of advances from tenants, net Sale of Company shares held by the Company and by subsidiary, net Short-term credit from banks and others, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  1,325 2,224 9,568 27,078 (22,300) (1,257) 52,044 88,510 (39,845) 2,967 2,724 (39,081) 3,402 27,044 24,953 (7,293) (114) (391) 124 (357) 15,856 (24,750) (34) 1,325 2,224 9,568 27,078 52,044 84,631 (32,067) 3,313 2,724 (36,701) 4,726 (357) (16,600) 64,027 (51,731) (9) 855 (65) (3,003) 11,583 (9,359) (2) -  83,957 47,601 (9,161) 114,139 56 9  1,925 12,304 23,599 35,903 638 62,178 20,587 82,765 120 24,289 26,296 50,585 821 59,166 23,599 82,765 (671) 14,682 35,903 50,585 (121) 2,654 6,498 9,152  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Depreciation and amortization Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus Capital gain from sale of fixed assets, net Increase (decrease) in accrued severance pay Revaluation of loans granted and shortterm deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  475 *) 11,537 31 *) 2,056 (386) 1,313 (349) *) 8,720 370 4,629 67 837  (77,878) (11) 19 (4,890) (11,499) *) 5 (2,236) (1,366) (15) (213) (70,292) 15 (5,536) (7,402) 28 (1,101) (1,339) 5 (199)  (5,092) 690 (75,150) (3,683) (71) (15,397) 981 43 357 (2,173) (4,388) (74,003) 8,105 (487) 4,142 1,466 (88) 749  Changes in asset and liability items: Increase in trade receivables (including long-term receivables) Decrease (increase) in other accounts receivable Decrease (increase) in inventories of contracts in progress Increase (decrease) in trade payables and other accounts payable  (6,361) *) (3,021) *) (3,338) 43,235 30,515 (44,635) (464) *) (3,961) *) (1,091) 12,818 7,302 (8,095) (937) 1,615 1,253 (298) 1,633 1,990 (6,643) *) (6,183) *) (1,547) 49,196 34,823 (39,180) (6,748) (1,884) 10,030 (3,932) (2,534) 1,608 (1,221) (341) 1,815 (711) (458) 291  *) Reclassified.  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  (b)  Proceeds from realization of investments in deconsolidated subsidiaries: Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net  (10,616) 370,598 (323,431) (13,357) (981) (5,493) (54,195) 37,742 (10,616) 370,598 (323,431) (13,357) (981) (5,493) (40,045) -  79,685 42,210 5,228 42,970 65,535 42,210 -  (c)  Acquisition of companies initially included by the proportionate consolidation method: Working capital (excluding cash and cash equivalents) Fixed assets, net Investments in affiliates Deferred charges Long-term liabilities Minority interest Deferred taxes  430 (16,584) (38) (470) 12,548 1,080 (3,034) 3,872 (62,678) 33,927 (219) 197 (24,901) 700 (11,339) 6,138 (40) 36 (4,505)  The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2004 Audited  Three months ended September 30, 2004 2005 Nine months ended September 30, 2004 2005  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2005 Unaudited Euro  (d)  Full consolidation of company previously included by the proportionate method and sale of property: Working capital (excluding cash and cash equivalents) Receivables for sale of property Investment in affiliate Property Capital gain  28,055 28,055 19,306 (9,551) 15,257 3,590 28,602 3,493 (1,728) 2,760 649 5,174  (e)  Significant non-cash activities: Sale of activity Conversion of debentures into shares Purchase of fixed assets and property on credit  54,195 3,777 3,062 38,250 3,725 30,556 5,528  6,803 5,791 7,881 5,791 7,881 1,426  The accompanying note is an integral part of the interim consolidated financial statements.  - 14 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of September 30, 2005 and for the nine months then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.5275). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC9-short.DOC  - 15 -   ","null","null","");arrFiles[19]=new Array("about/FinancialReport0906.doc","FinancialReport0906.doc","  B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2006 UNAUDITED   INDEX PageAuditors \' Letter2Consolidated ghngh3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 9Consolidated Statements of Cash Flows 10 - 14Note to Interim Consolidated Financial Statements15  - - - - - - - * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax:   972-3-5622555   The Board of Directors B.S.R Europe Ltd.  Dear Sirs, The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of September 30, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the nine and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERNovember 27, 2006A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,September 30,September 30,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents189,20150,585152,31327,921Short-term deposits 1,3475,17342,5667,803Trade receivables9,5248,71123,8044,364Other accounts receivable 12,82013,12326,9584,942Receivable for sale of previously consolidated companies33,27611,199818150Inventories of contracts in progress and buildings under construction, net57,86043,66796,87117,758304,028132,458343,33062,938INVENTORIES OF REAL ESTATE164,979113,751381,38169,911LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 22,28331,88843,5477,983Long-term deposits 1,6931,56427651Long-term receivables and trade receivables13695336Investments in affiliates and other companies33,06230,03635,5666,52057,17463,58379,42214,560FIXED ASSETS:Cost116,872258,99659,10210,831Less - accumulated depreciation5,24318,8353,072563111,629240,16156,03010,268OTHER ASSETS10,0255,7071,630299647,835555,660861,793157,976  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED BALANCE SHEETS Conveniencetranslation(Note 1)December 31,September 30,September 30,2005200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others50,589*) 52,11969,28712,701Trade payables *) 24,459*) 17,65528,0485,142Other accounts payable*) 25,882*) 23,57053,1639,745100,93093,344150,49827,588LONG-TERM LIABILITIES:Debentures and convertible debentures182,13381,693161,58929,621Loans from banks and others181,762204,914294,68754,019Deposits from tenants 5412,750448Accrued severance pay949314727Deferred taxes5,2054,2704,717865369,735293,720461,18484,540MINORITY INTEREST6931,3251,914351SHAREHOLDERS \' EQUITY**) 176,477167,271248,19745,497647,835555,660861,793157,976  *) Reclassified. **) Restated. The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF INCOME Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands, except per share amounts) Revenues from lease, sales of apartments and services 177,77918,84842,30288,118114,64421,016Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services121,62310,86828,59858,30786,17515,797Gross profit56,1567,98013,70429,81128,4695,219General and administrative expenses*) 17,8724,1275,82111,97015,0932,767Operating income38,2843,8537,88317,84113,3762,452Financial expenses, net17,2411,9801,56112,6824,529830Other income (expenses)87(20)-50--Income before taxes on income*) 21,1301,8536,3225,2098,8471,622Taxes on income1,301131726(1,288)2,560469Income after taxes on income19,8291,7225,5966,4976,2871,153Equity in losses of affiliates--(112)-(289)(53)Minority interest in losses (earnings) of subsidiaries, net230386(435)(370)34663Net income *) 20,0592,1085,0496,1276,3441,163Net earnings per share:Basic net earnings **)   1.80**) 0.170.46**) 0.570.610.11Diluted net earnings **)   1.54**) 0.150.39**) 0.490.530.10  *) Restated.  **) Restated. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Year ended December 31, 2005 (audited)Share capitalShare premiumReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the year234138,3453,250-39,12620,803(46,042)155,716Exercise of stock options into shares 75,581(499)---1,0196,108Conversion of convertible debentures-(6,694)----37,25030,556Purchase of Company shares by the Company------(665)(665)Foreign currency translation adjustments for autonomous entities----(18,718)--(18,718)Dividend paid-----(16,600)-(16,600)Cost of share-based payment *)---*) 21---21Net income-----*) 20,059-20,059Balance at the end of the year241137,2322,7512120,40824,262(8,438)176,477  *) Restated. The accompanying note is an integral part of the interim consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Three months ended September 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account of stock optionsForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period239135,6022,87725,4778,222(7,773)164,644Exercise of stock options into shares -134(10)---124Purchase of Company shares by the Company-----(357)(357)Foreign currency translation adjustments for autonomous entities---752--752Net income----2,108-2,108Balance at the end of the period239135,7362,86726,22910,330(8,130)167,271  Three months ended September 30, 2006 (unaudited)Share capitalShare premiumBeneficial conversion feature in convertible debenturesReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period251151,3252732,38831627,2052,557(4,429)179,886Exercise of stock options into shares 146,913-(721)----6,206Conversion of convertible debentures4266,237(253)-----66,026Foreign currency translation adjustments for autonomous entities-----(9,120)--(9,120)Cost of share-based payment----150---150Net income------5,049-5,049Balance at the end of the period307224,475201,66746618,0857,606(4,429)248,197 The accompanying note is an integral part of the interim consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Nine months ended September 30, 2005 (unaudited)Share capitalShare premiumReceipts  on account of stock optionsForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period (audited)234138,3453,25039,12620,803(46,042)155,716Exercise of stock options into shares 54,085(383)--1,0194,726Conversion of convertible debentures-(6,694)---37,25030,556Purchase of Company shares by the Company-----(357)(357)Foreign currency translation adjustments for autonomous entities---(12,897)--(12,897)Dividend paid----(16,600)-(16,600)Net income----6,127-6,127Balance at the end of the period239135,7362,86726,22910,330(8,130)167,271  The accompanying note is an integral part of the interim consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Nine months ended September 30, 2006 (unaudited)Share capitalShare premiumBeneficial conversion feature in convertible debenturesReceipts  on account of stock optionsCapital surplus,  share-based paymentForeign currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and subsidiaryTotalReported NIS (In thousands)Balance at the beginning of the period (audited)241137,232-2,751*) 2120,408*) 24,262(8,438)176,477Split of beneficial conversion feature in convertible debentures less issuance expenses--273-----273Exercise of stock options into shares 169,471-(1,084)---1,1799,582Conversion of convertible debentures5077,772(253)----2,83080,399Foreign currency translation adjustments for autonomous entities-----(2,323)--(2,323)Dividend paid------(23,000)-(23,000)Cost of share-based payment ----445---445Net income------6,344-6,344Balance at the end of the period307224,475201,66746618,0857,606(4,429)248,197 Convenience translation into Euro (Note 1)(In thousands)Balance at the beginning of the period (audited)4425,157-505*) 33,741*) 4,447(1,547)32,350Split of beneficial conversion feature in convertible debentures less issuance expenses--50-----50Exercise of stock options into shares 31,736-(199)---2161,756Conversion of convertible debentures914,256(46)----51914,738Foreign currency translation adjustments for autonomous entities-----(426)--(426)Dividend paid------(4,216)-(4,216)Cost of share-based payment ----82---82Net income------1,163-1,163Balance at the end of the period5641,1494306853,3151,394(812)45,497 *) Restated. The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from operating activities:Net income20,0592,1085,0496,1276,3441,163Adjustments to reconcile net income to net cash provided by operating activities (a)(9,888)1,990(170)1,6087,5831,390Net cash provided by operating activities10,1714,0984,8797,73513,9272,553Cash flows from investing activities:Proceeds from realization of investment in fully and proportionately consolidated companies that were deconsolidated (b)40,516-27,167-29,8615,474Tax payment for investment that was sold last year(15,580)--(15,580)--Acquisition of fully and proportionately consolidated companies (c)(28,690)-(30,184)(24,901)(39,922)(7,318)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d)23,96928,055-28,602--Debt collection for realization of investment in subsidiaries58,55220,346-58,16731,8095,831Grant of loans and deposit of long-term deposits(18,120)(550)(15,150)(6,739)(28,932)(5,304)Collection of loans and withdrawal of long-term deposits51,1621,9073,32413,3684,256780Investment in affiliates(15,243)(8,210)(658)(12,089)(4,345)(796)Investment in fixed assets and real estate (76,081)(9,358)(23,607)(29,193)(204,664)(37,517)Payment of VAT for purchase of real estate --25,249---Proceeds from sale of fixed assets73-----Deposit of short-term deposits, net(218)(2,958)(18,820)(4,073)(39,678)(7,273)Net cash provided by (used in) investing activities20,34029,232(32,679)7,562(251,615)(46,123)  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) Cash flows from financing activities:Purchase of Company shares by the Company(665)(357)-(357)--Exercise of stock options into shares6,1081246,2064,7269,5821,756Dividend paid(16,600)--(16,600)(23,000)(4,216)Issuance of debentures (net of issuance expenses)94,661-51,637-51,6379,466Prepaid issuance expenses in subsidiary--(685)-(4,201)(770)Receipt of long-term loans and other liabilities114,54515,85638,37064,027220,42040,405Redemption of debentures--(2,458)-(2,458)(451)Repayment of long-term loans and other liabilities (73,450)(24,750)(33,969)(51,731)(50,400)(9,239)Receipt (refund) of advances from tenants, net111(34)13(9)(495)(91)Net cash provided by (used in) financing activities124,710(9,161)59,11456201,08536,860Effect of exchange rate differences from cash balances of autonomous entities(1,923)120(1,882)(671)(285)(52)Increase (decrease) in cash and cash equivalents153,29824,28929,43214,682(36,888)(6,762)Cash and cash equivalents at beginning of period35,90326,296122,88135,903189,20134,683Cash and cash equivalents at end of period189,20150,585152,31350,585152,31327,921  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net(230)(386)435370(346)(63)Equity in losses of affiliates--112-28953Cost of share-based payment21  *)-150-44582Depreciation and amortization5,9351,3134674,6291,402257Gain from sale of real estate, deconsolidated companies and realization of capital reserves(25,241)(1,366)(5,368)(7,402)(8,204)(1,504)Capital gain from sale of fixed assets, net(10)-----Increase (decrease) in accrued severance pay29(15)14285310Revaluation of loans granted and short-term deposits(1,495)(213)(1,900)(1,101)(1,843)(338)Accrued interest and revaluation of debentures and long-term loans, net10,810981(2,179)8,10536867Deferred taxes, net637431,192(487)1,511277(9,544)357(7,077)4,142(6,325)(1,159)Changes in asset and liability items:Increase in trade receivables (including long-term)(6,599)(937)(13,222)(6,748)(12,348)(2,264)Decrease (increase) in other accounts receivable(5,318)1,615(3,052)(1,884)(4,052)(743)Decrease (increase) in inventories of contracts in progress and buildings under construction9,8431,253(7,748)10,030(857)(157)Increase (decrease) in trade payables and other accounts payable1,730(298)30,929(3,932)31,1655,713(344)1,6336,907(2,534)13,9082,549(9,888)1,990(170)1,6087,5831,390  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (b)Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated:Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents)1,676-(431)-(1,473)(270)Fixed assets, net (net of payables for fixed assets)137,893-43,025-60,53711,097Long-term liabilities(75,492)-(22,104)-(37,867)(6,941)Long-term loans granted(18,360)-----Deposits from tenants (2,302)-----Deferred taxes(554)-(431)-(1,280)(235)Minority interest--1,740-1,740319Receivables for realization of investments in subsidiaries(21,336)-----Capital gain from sale of investments in subsidiaries and sale of activity, net18,991-5,368-8,2041,50440,516-27,167-29,8615,474(c)Acquisition of fully and proportionately consolidated companies (1):Working capital (excluding cash and cash equivalents)3,836-2953,8724,958908Fixed assets, inventories of contracts in progress and inventories of real estate, net (82,289)-(48,633)(62,678)(78,833)(14,451)Long-term loans1,425-----Long-term liabilities47,975--33,92714,0412,574Investment in affiliate-- --1,563287Payables for acquisition363-18,449-18,4493,382Minority interest---(219)(153)(28)Deferred taxes--(295)1975310(28,690)-(30,184)(24,901)(39,922)(7,318)  (1) In 2006, includes increase in consolidation of affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Three months ended September 30, Nine months ended September 30, Nine months  ended September 30, 200520052006200520062006AuditedUnauditedUnauditedReported NISEuro(In thousands) (d)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate:Working capital (excluding cash and cash equivalents)17,842--19,306--Investment in affiliate(9,551)--(9,551)--Real estate and fixed assets5,402--15,257--Long-term liabilities6,686-----Capital gain 3,590--3,590--Receivables for sale of real estate-28,055----23,96928,055-28,602--(e)Significant non-cash activities: Conversion of convertible debentures30,556-66,02630,55680,39914,738Purchase of fixed assets and real estate by credit19,1107,881-7,881--  The accompanying note is an integral part of the interim consolidated financial statements.   NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of September 30, 2006 and for the nine months then ended have been translated into Euro using the representative exchange rate as of that date (€ 1 = NIS 5.4552). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.   - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC9-SHORT.DOC 1   1 -  2  -  B.S.R EUROPE LTD.  B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[20]=new Array("about/FinancialReport0906.pdf","Microsoft Word - FinancialReport0906.doc","B.S.R EUROPE LTD.  CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS  AS OF SEPTEMBER 30, 2006  UNAUDITED  INDEX  Auditors \' Letter Consolidated ghngh Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Note to Interim Consolidated Financial Statements  Page 2 3 - 4 5 6 - 9 10 - 14 15  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  The accompanying condensed consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") as of September 30, 2006 and 2005, and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the nine and three months then ended are derived from the unaudited financial statements of the Company. The accompanying condensed consolidated balance sheet of the Company as of December 31, 2005 and the related condensed consolidated statements of income, changes in shareholders \' equity and cash flows for the year then ended are derived from the audited financial statements of the Company.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the accompanying financial statements, they might influence the user \'s conclusions about the consolidated financial position, results of operations and cash flows of the Company. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel November 27, 2006 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  September 30,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) September 30, 2006 Unaudited Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of previously consolidated companies Inventories of contracts in progress and buildings under construction, net  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables and trade receivables Investments in affiliates and other companies  189,201 1,347 9,524 12,820 33,276 57,860 304,028 164,979 50,585 5,173 8,711 13,123 11,199 43,667 132,458 113,751 152,313 42,566 23,804 26,958 818 96,871 343,330 381,381 27,921 7,803 4,364 4,942 150 17,758 62,938 69,911  22,283 1,693 136 33,062 57,174 31,888 1,564 95 30,036 63,583 43,547 276 33 35,566 79,422 7,983 51 6 6,520 14,560  FIXED ASSETS: Cost Less - accumulated depreciation  OTHER ASSETS  116,872 5,243 111,629 10,025 647,835 258,996 18,835 240,161 5,707 555,660 59,102 3,072 56,030 1,630 861,793 10,831 563 10,268 299 157,976  The accompanying note is an integral part of the interim consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 Audited  September 30,  2005 Reported NIS Unaudited (In thousands) 2006  Convenience translation (Note 1) September 30, 2006 Unaudited Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable  *) *)  50,589 24,459 25,882 100,930 *) 52,119 *) 17,655 *) 23,570 93,344 69,287 28,048 53,163 150,498 12,701 5,142 9,745 27,588  LONG-TERM LIABILITIES: Debentures and convertible debentures Loans from banks and others Deposits from tenants Accrued severance pay Deferred taxes  MINORITY INTEREST SHAREHOLDERS \' EQUITY  182,133 181,762 541 94 5,205 369,735 693 **) 176,477 647,835 81,693 204,914 2,750 93 4,270 293,720 1,325 167,271 555,660 161,589 294,687 44 147 4,717 461,184 1,914 248,197 861,793 29,621 54,019 8 27 865 84,540 351 45,497 157,976  *) **) Reclassified. Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands, except per share amounts)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  Revenues from lease, sales of apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income after taxes on income Equity in losses of affiliates Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per share: Basic net earnings Diluted net earnings  177,779 18,848 42,302 88,118 114,644 21,016  121,623 56,156 *) 17,872 38,284 17,241 87 *) 21,130 1,301 19,829 230 *) 20,059 10,868 7,980 4,127 3,853 1,980 (20) 1,853 131 1,722 386 2,108 28,598 13,704 5,821 7,883 1,561 6,322 726 5,596 (112) (435) 5,049 58,307 29,811 11,970 17,841 12,682 50 5,209 (1,288) 6,497 (370) 6,127 86,175 28,469 15,093 13,376 4,529 8,847 2,560 6,287 (289) 346 6,344 15,797 5,219 2,767 2,452 830 1,622 469 1,153 (53) 63 1,163  **) **) 1.80 1.54 **) 0.17 **) 0.15 0.46 0.39 **) 0.57 **) 0.49 0.61 0.53 0.11 0.10  *) **) Restated. Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Year ended December 31, 2005 (audited) Foreign currency translation  Receipts on account of stock options  Capital surplus, share-based payment adjustments for autonomous entities  Share capital Share premium Retained earnings  Less - shares held by the Company and subsidiary  Total  Reported NIS (In thousands)  *) 21 21 39,126 (18,718) 20,408 Balance at the beginning of the year Exercise of stock options into shares Conversion of convertible debentures Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment *) Net income Balance at the end of the year 234 7 241 138,345 5,581 (6,694) 137,232 3,250 (499) 2,751 20,803 (16,600) *) 20,059 24,262 (46,042) 1,019 37,250 (665) (8,438) 155,716 6,108 30,556 (665) (18,718) (16,600) 21 20,059 176,477  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Three months ended September 30, 2005 (unaudited) Foreign currency translation adjustments  Receipts on account of stock options  Retained earnings Share capital Share premium  Balance at the beginning of the period Exercise of stock options into shares Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Net income Balance at the end of the period 239 239 135,602 134 135,736 2,877 (10) 2,867  for autonomous entities Reported NIS (In thousands) 25,477 752 26,229  Less - shares held by the Company and subsidiary  Total  8,222 2,108 10,330 (7,773) (357) (8,130) 164,644 124 (357) 752 2,108 167,271  Share capital Share premium  Beneficial conversion feature in convertible debentures  Three months ended September 30, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options  adjustments for autonomous entities  Balance at the beginning of the period Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Cost of share-based payment Net income Balance at the end of the period 251 14 42 307 151,325 6,913 66,237 224,475 273 (253) 20 2,388 (721) 1,667  Capital surplus, share-based payment Reported NIS (In thousands) 316 150 466  Retained earnings  Less - shares held by the Company and subsidiary  Total  27,205 (9,120) 18,085 2,557 5,049 7,606 (4,429) (4,429) 179,886 6,206 66,026 (9,120) 150 5,049 248,197  The accompanying note is an integral part of the interim consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Nine months ended September 30, 2005 (unaudited) Foreign currency translation adjustments  Receipts on account of stock options  Retained earnings Share capital Share premium  Balance at the beginning of the period (audited) Exercise of stock options into shares Conversion of convertible debentures Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at the end of the period 234 5 239 138,345 4,085 (6,694) 135,736 3,250 (383) 2,867  for autonomous entities Reported NIS (In thousands) 39,126 (12,897) 26,229  Less - shares held by the Company and subsidiary  Total  20,803 (16,600) 6,127 10,330 (46,042) 1,019 37,250 (357) (8,130) 155,716 4,726 30,556 (357) (12,897) (16,600) 6,127 167,271  The accompanying note is an integral part of the interim consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Nine months ended September 30, 2006 (unaudited) Foreign currency translation  Receipts on account of stock options  adjustments for autonomous entities  Balance at the beginning of the period (audited) Split of beneficial conversion feature in convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period  241 137,232 2,751  Capital surplus, share-based payment Reported NIS (In thousands) *) 21  Retained earnings  Less - shares held by the Company and subsidiary  Total  20,408 *) 24,262 (8,438) 176,477  16 50 307 9,471 77,772 224,475 273 (253) 20 (1,084) 1,667 445 466 (2,323) 18,085 (23,000) 6,344 7,606 1,179 2,830 (4,429) 273 9,582 80,399 (2,323) (23,000) 445 6,344 248,197  Convenience translation into Euro (Note 1) (In thousands) 505 *) 3 3,741  Balance at the beginning of the period (audited) Split of beneficial conversion feature in convertible debentures less issuance expenses Exercise of stock options into shares Conversion of convertible debentures Foreign currency translation adjustments for autonomous entities Dividend paid Cost of share-based payment Net income Balance at the end of the period *) Restated.  44 25,157 *) 4,447 (1,547) 32,350  3 9 56 1,736 14,256 41,149 50 (46) 4 (199) 306 82 85 (426) 3,315 (4,216) 1,163 1,394 216 519 (812) 50 1,756 14,738 (426) (4,216) 82 1,163 45,497  The accompanying note is an integral part of the interim consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investment in fully and proportionately consolidated companies that were deconsolidated (b) Tax payment for investment that was sold last year Acquisition of fully and proportionately consolidated companies (c) Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d) Debt collection for realization of investment in subsidiaries Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of longterm deposits Investment in affiliates Investment in fixed assets and real estate Payment of VAT for purchase of real estate Proceeds from sale of fixed assets Deposit of short-term deposits, net Net cash provided by (used in) investing activities  20,059 (9,888) 10,171 2,108 1,990 4,098 5,049 (170) 4,879 6,127 1,608 7,735 6,344 7,583 13,927 1,163 1,390 2,553  40,516 (15,580) (28,690) 27,167 (30,184) (15,580) (24,901) 29,861 (39,922) 5,474 (7,318)  23,969 58,552 (18,120) 51,162 (15,243) (76,081) 73 (218) 28,055 20,346 (550) 1,907 (8,210) (9,358) (2,958) (15,150) 3,324 (658) (23,607) 25,249 (18,820) 28,602 58,167 (6,739) 13,368 (12,089) (29,193) (4,073) 31,809 (28,932) 4,256 (4,345) (204,664) (39,678) 5,831 (5,304) 780 (796) (37,517) (7,273)  20,340 29,232 (32,679) 7,562 (251,615) (46,123)  The accompanying note is an integral part of the interim consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  Cash flows from financing activities: Purchase of Company shares by the Company Exercise of stock options into shares Dividend paid Issuance of debentures (net of issuance expenses) Prepaid issuance expenses in subsidiary Receipt of long-term loans and other liabilities Redemption of debentures Repayment of long-term loans and other liabilities Receipt (refund) of advances from tenants, net Net cash provided by (used in) financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period  (665) 6,108 (16,600) 94,661 114,545 (73,450) 111 (357) 124 15,856 (24,750) (34) 6,206 51,637 (685) 38,370 (2,458) (33,969) 13 (357) 4,726 (16,600) 64,027 (51,731) (9) 9,582 (23,000) 51,637 (4,201) 220,420 (2,458) (50,400) (495) 1,756 (4,216) 9,466 (770) 40,405 (451) (9,239) (91)  124,710 (9,161) 59,114 56 201,085 36,860  (1,923) 120 (1,882) (671) (285) (52)  153,298 35,903 189,201 24,289 26,296 50,585 29,432 122,881 152,313 14,682 35,903 50,585 (36,888) 189,201 152,313 (6,762) 34,683 27,921  The accompanying note is an integral part of the interim consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of affiliates Cost of share-based payment Depreciation and amortization Gain from sale of real estate, deconsolidated companies and realization of capital reserves Capital gain from sale of fixed assets, net Increase (decrease) in accrued severance pay Revaluation of loans granted and shortterm deposits Accrued interest and revaluation of debentures and long-term loans, net Deferred taxes, net  (230) 21 *) 5,935 (386) 1,313 435 112 150 467 370 4,629 (346) 289 445 1,402 (63) 53 82 257  (25,241) (10) 29 (1,495) 10,810 637 (9,544) (1,366) (15) (213) 981 43 357 (5,368) 14 (1,900) (2,179) 1,192 (7,077) (7,402) 28 (1,101) 8,105 (487) 4,142 (8,204) 53 (1,843) 368 1,511 (6,325) (1,504) 10 (338) 67 277 (1,159)  Changes in asset and liability items: Increase in trade receivables (including long-term) Decrease (increase) in other accounts receivable Decrease (increase) in inventories of contracts in progress and buildings under construction Increase (decrease) in trade payables and other accounts payable  (6,599) (5,318) (937) 1,615 (13,222) (3,052) (6,748) (1,884) (12,348) (4,052) (2,264) (743)  9,843 1,730 (344) (9,888) 1,253 (298) 1,633 1,990 (7,748) 30,929 6,907 (170) 10,030 (3,932) (2,534) 1,608 (857) 31,165 13,908 7,583 (157) 5,713 2,549 1,390  *) Restated.  The accompanying note is an integral part of the interim consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  (b)  Proceeds from realization of investments in fully and proportionately subsidiaries that were deconsolidated: Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Deposits from tenants Deferred taxes Minority interest Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries and sale of activity, net  1,676 137,893 (75,492) (18,360) (2,302) (554) (21,336) 18,991 40,516 (431) 43,025 (22,104) (431) 1,740 5,368 27,167 (1,473) 60,537 (37,867) (1,280) 1,740 8,204 29,861 (270) 11,097 (6,941) (235) 319 1,504 5,474  (c)  Acquisition of fully and proportionately consolidated companies (1): Working capital (excluding cash and cash equivalents) Fixed assets, inventories of contracts in progress and inventories of real estate, net Long-term loans Long-term liabilities Investment in affiliate Payables for acquisition Minority interest Deferred taxes  3,836 295 3,872 4,958 908  (82,289) 1,425 47,975 363 (28,690) (48,633) 18,449 (295) (30,184) (62,678) 33,927 (219) 197 (24,901) (78,833) 14,041 1,563 18,449 (153) 53 (39,922) (14,451) 2,574 287 3,382 (28) 10 (7,318)  (1) In 2006, includes increase in consolidation of affiliate.  The accompanying note is an integral part of the interim consolidated financial statements.  - 13 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Year ended December 31, 2005 Audited  Three months ended September 30, 2005 2006 Nine months ended September 30, 2005 2006  Unaudited Reported NIS (In thousands)  Convenience translation (Note 1) Nine months ended September 30, 2006 Unaudited Euro  (d)  Full consolidation of previously consolidated companies by the proportionate method while realizing real estate: Working capital (excluding cash and cash equivalents) Investment in affiliate Real estate and fixed assets Long-term liabilities Capital gain Receivables for sale of real estate  17,842 (9,551) 5,402 6,686 3,590 23,969 28,055 28,055 19,306 (9,551) 15,257 3,590 28,602 -  (e)  Significant non-cash activities: Conversion of convertible debentures Purchase of fixed assets and real estate by credit  30,556 66,026 30,556 80,399 14,738  19,110 7,881 7,881 -  The accompanying note is an integral part of the interim consolidated financial statements.  - 14 -   B.S.R EUROPE LTD.  NOTE TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of September 30, 2006 and for the nine months then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.4552). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC9-SHORT.DOC  - 15 -   ","null","null","");arrFiles[21]=new Array("about/FinancialReport1204.doc","FinancialReport1204.doc","DRAFT: 16.4.05   B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2004   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Operations5Statements of Changes in Shareholders \' Equity6 - 8Consolidated Statements of Cash Flows 9 - 12Notes to Consolidated Financial Statements13 - 25  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax: 972-3-5622555  B.S.R Europe Ltd.    We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of operations, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2004. Based on our audits, in our report dated March 20, 2005, we expressed an unqualified opinion on those statements.    The financial statements as of the dates and for the reported periods subsequent to December 31, 2003, are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The financial statements as of the dates and for the reported periods until the aforementioned date are presented in values that were adjusted until that date according to the changes in the general purchasing power of the Israeli currency, in accordance with pronouncements of the Institute of Certified Public Accountants in Israel.    The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERApril 18, 2005A Member of Ernst & Young Global  CONSOLIDATED BALANCE SHEETS Convenience translation (Note 1)December 31,December 31,200320042004N I SEuroNoteAdjustedReported(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents223,59935,9036,109Short-term deposits 31,6111,181201Trade receivables31,2821,779303Other accounts receivable 417,46311,5871,972Receivable for sale of a company4a-59,02610,044Inventories of contracts in progress7*) 3,66013,9902,38177,615123,46621,010INVENTORIES OF REAL ESTATE7*) 36,60358,4769,950LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 528,54349,3468,397Long-term deposits -1,694288Long-term receivables2049,8611,678Investments in affiliates and other companies6-9,2531,57428,74770,15411,937FIXED ASSETS:8Cost525,078285,28748,544Less - accumulated depreciation27,47617,0552,902497,602268,23245,642OTHER ASSETS AND DEFERRED CHARGES, NET98,8647,5961,293649,431527,92489,832  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED BALANCE SHEETS Convenience translation (Note 1)December 31,December 31,200320042004N I SEuroNoteAdjustedReported(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others10216,00217,3782,957Other accounts payable and trade payables11*)  28,59048,7538,296244,59266,13111,253LONG-TERM LIABILITIES:Convertible debentures to related parties12*)  28,54829,2744,981Convertible debentures12*)  16,78495,69516,284Long-term loans13253,027171,74529,224Deposits from tenants 1412,0132,897493Accrued severance pay*)   466511Deferred taxes3,3405,296901313,758304,97251,894MINORITY INTEREST 1,3121,105188CONTINGENT LIABILITIES, COMMITMENTS AND CHARGESSHAREHOLDERS \' EQUITY1689,769155,71626,497649,431527,92489,832  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF OPERATIONS Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2002200320042004N I SEuroNoteAdjustedReported(In thousands, except per share amounts) Revenues from lease, sales, construction of buildings and apartments and services 17a88,29463,120305,53751,990Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services17b47,53225,016193,89032,992Gross profit40,76238,104111,64718,998General and administrative expenses17c12,855 14,50123,1453,938Operating income27,90723,60388,50215,060Financial expenses, net17d18,50123,1807,9021,345Other income--549Income before taxes on income9,40642380,65413,724Taxes on income153,1104,24728,4114,834Income (loss) after taxes on income6,296(3,824)52,2438,890Minority interest in losses (earnings) of subsidiaries, net203769(475)(81)Net income (loss) 6,499(3,055)51,7688,809Net earnings (loss) per NIS 1 par value of Ordinary shares:18Basic net earnings (loss)116(48)598102Diluted net earnings (loss)105(48)37864  The accompanying notes are an integral part of the consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesDeficitLess - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (3)TotalAdjusted NIS(In thousands)Balance at January 1, 200220,31073,1004,5247581,859(12,109)(18,160)(3,650)66,632Exercise of stock options into shares (1)4564,910(2,412)---6,331-9,285Public issuance of stock options, net (2) (4)--371-----371Exercise of stock options by subsidiary1,0169,665----(10,681)--Sale of stock options held by subsidiary--384-----384Conversion of debentures into shares by the Company (1)85817,753----(18,611)--Foreign currency translation adjustments for autonomous entities (5)----11,639---11,639Interest accrued on loans to employees-167-----(167)-Net income -----6,499--6,499Balance at December 31, 200222,640105,5952,86775813,498(5,610)(41,121)(3,817)94,810Exercise of stock options into shares (1)33532(150)-----415Repurchase of shares (1)------(9,803)-(9,803)Private placement of stock options (6)--375-----375Foreign currency translation adjustments for autonomous entities (5)----7,027---7,027Interest accrued on loans to employees-150-----(150)-Loss-----(3,055)--(3,055)Balance at December 31, 200322,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769  (1) See Notes 12 and 16.  (2) Net of issuance expenses. (3) Including interest accrued on loans to employees.  (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b.  The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (3)TotalReported NIS(In thousands)Balance at January 1, 200422,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares (1)7439,329(2,066)---1,147-9,153Conversion of convertible debentures (1)-400----3,377-3,777Foreign currency translation adjustments for autonomous entities (5)----18,601---18,601Public issuance of stock options (6)--2,224-----2,224Sale of Company shares held by the Company and by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Dividend paid-----(22,300)--(22,300)Net income-----51,768--51,768Split and capital reduction (7)(23,182)23,182-------Balance at December 31, 2004234137,5873,25075839,12620,803(46,042)-155,716  (1) See Notes 12 and 16.  (2) Net of issuance expenses. (3) Including interest accrued on loans to employees.  (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b. (7) See Note 16a. The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (3)TotalConvenience translation into Euro (Note 1)(In thousands)Balance at January 1, 20043,85818,0845271293,493(1,474)(8,666)(675)15,276Exercise of stock options into shares (1)1271,587(352)---195-1,557Conversion of convertible debentures (1)-68----575-643Foreign currency translation adjustments for autonomous entities (5)----3,165---3,165Public issuance of stock options (6)--378-----378Sale of Company shares held by the Company and by subsidiary-403----61-464Interest accrued on loans to employees-5-----(5)-Abandonment of loans to employees for acquisition of Company shares -(680)-----680-Dividend paid-----(3,795)--(3,795)Net income-----8,809--8,809Split and capital reduction (7)(3,945)3,945-------Balance at December 31, 20044023,4125531296,6583,540(7,835)-26,497  (1) See Notes 12 and 16.  (2) Net of issuance expenses. (3) Including interest accrued on loans to employees.  (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b. (7) See Note 16a. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2002200320042004N I SEuroAdjustedReported(In thousands) Cash flows from operating activities:Net income (loss) 6,499(3,055)51,7688,809Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (a)(3,342)(245)(44,699)(7,606)Net cash provided by (used in) operating activities3,157(3,300)7,0691,203Cash flows from investing activities:Proceeds from realization of investment in deconsolidated subsidiaries (b)9,68514,78742,2107,182Acquisition of companies initially consolidated by the proportionate method (c)--(3,034)(516)Repayment of debts in respect of sale of investment in subsidiary -5,641--Long-term loans granted and deposit of long-term deposits*) (15,859)(18,699)(20,721)(3,526)Collection of long-term loans and withdrawal of long-term deposits*)  14,52033,66511,0741,884Investment in affiliates--(4,986)(848)Proceeds from sale of a building26,493---Investment in fixed assets and real estate (102,185)(129,315)(136,918)(23,298)Proceeds from sale of fixed assets--8715Withdrawal (deposit) of short-term deposits, net(9,976)(16,640)31,6415,384Net cash used in investing activities(77,322)(110,561)(80,647)(13,723)  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2002200320042004N I SEuroAdjustedReported(In thousands) Cash flows from financing activities:Issuance of stock options into convertible debentures--1,325225Issuance of stock options into shares, net7553752,224378Repurchase of shares-(9,803)--Exercise of stock options into shares9,285-9,5681,628Conversion of stock options into convertible debentures and their sale by subsidiary, net--27,0784,608Dividend paid--(22,300)(3,795)Redemption of debentures to related parties(1,183)(1,205)(1,257)(214)Issuance of convertible debentures (net of issuance expenses)2,74412,63352,0448,856Receipt of long-term loans and other liabilities68,47670,56688,51015,061Repayment of long-term loans and other liabilities (15,927)(84,232)(39,845)(6,780)Receipt of advances from tenants, net4,0062,1332,967505Sale of Company shares held by the Company and by subsidiary, net--2,724464Short-term credit from banks and other, net17,881128,238(39,081)(6,650)Net cash provided by financing activities86,037118,70583,95714,286Effect of exchange rate differences from cash balances of autonomous entities9836881,925328Increase in cash and cash equivalents12,8555,53212,3042,094Cash and cash equivalents at beginning of year5,21218,06723,5994,015Cash and cash equivalents at end of year18,06723,59935,9036,109  The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2002200320042004N I SEuroAdjustedReported(In thousands) (a)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net(203)(769)47581Depreciation and amortization7,7347,9238,1991,395Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus(12,340)(5,690)(77,878)(13,252)Capital gain from sale of fixed assets, net--(11)(2)Decrease (increase) in accrued severance pay43(96)193Revaluation (erosion) of loans granted and short-term deposits(330)2,601(4,890)(832)Accrued interest and revaluation (erosion) of debentures and long-term loans, net2,353876(5,092)(866)Deferred taxes, net533(2,058)690117(2,210)2,787(78,488)(13,356)Changes in asset and liability items:Decrease (increase) in trade receivables (including long-term)(883)1,397(6,361)(1,082)Decrease (increase) in other accounts receivable1,021(11,283)(3,085)(525)Increase (decrease) in other accounts payable and trade payables(1,270)6,85443,2357,357(1,132)(3,032)33,7895,750(3,342)(245)(44,699)(7,606)  The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2002200320042004N I SEuroAdjustedReported(In thousands) (b)Proceeds from realization of investment in deconsolidated subsidiaries (1):Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents)(1,370)(3,001)(10,616)(1,806)Long-term investments1,561---Fixed assets, net (net of payables for fixed assets)20,68312,186370,59863,061Long-term liabilities(8,992)(1,173)(323,431)(55,035)Long-term loans granted--(13,357)(2,273)Minority interest-424(981)(167)Investment in affiliate--(5,493)(935)Capital surplus for autonomous entities(713)---Waive on subsidiary \'s debt(5,001)---Receivables for realization of investments in subsidiaries(5,641)-(54,195)(9,222)Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net9,1586,35179,68513,5599,68514,78742,2107,182(c)Acquisition of companies initially consolidated by the proportionate method:Working capital (excluding cash and cash equivalents)--43073Fixed assets, net --(16,584)(2,822)Investments in affiliates--(38)(6)Deferred charges--(470)(80)Long-term liabilities--12,5482,135Deferred taxes--1,080184--(3,034)(516)(d)Significant non-cash activities: Sale of activity--54,1959,222Conversion of debentures into shares--3,777643Convertible debentures converted into shares by the Company (*)18,611---Purchase of fixed assets and real estate by loans4,1245,8416,8031,158Exercise of stock options into shares -415--  (1) In 2004, includes sale of activity and assets.  *) See Note 12a. The accompanying notes are an integral part of the consolidated financial statements.  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2004 and for the year then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.8768). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements. NOTE 2:- CASH AND CASH EQUIVALENTS December 31,20032004NIS in thousandsAdjustedReportedIn NIS103814In U.S. dollars8,7892,137In Euro6,28027,966In Swiss Francs7414In Slovakian Corona2,882297In Hungarian Forint6773,410In Polish Zloty3,650692Other (mainly Czech Corona)47758323,59935,903  NOTE 3:- TRADE RECEIVABLES  Open accounts and accrued income, net1,2821,779Net of allowance for doubtful accounts15947  NOTE 4:- OTHER ACCOUNTS RECEIVABLE  December 31,20032004NIS in thousandsAdjustedReportedEmployees (1)-527Government authorities (2)11,5784,821Deferred taxes440962Prepaid expenses3,8292,180Subsidiaries and jointly controlled entities303-Accrued income-1,052Other1,313 2,04517,46311,587 (1) The loans are linked to the Israeli CPI and bear annual interest at the rate of 4%. (2) As of December 31, 2004, the balance includes claims for VAT refunds in Polish and Czech companies. As of December 31, 2003, the balance includes a claim of approximately NIS 7.4 million for VAT refund in a Slovakian company and a claim of approximately NIS 2.5 million for purchase tax refund in an Hungarian company which were refunded in 2004.  NOTE 4a:- RECEIVABLE FOR SALE OF A COMPANY  The balance includes a receivable in Euro of approximately NIS 44.5 million as a result of realization of investment in a Slovakian company which was sold and deconsolidated and shareholders \' loans of approximately NIS 14.5 million which were given to the Slovakian company which was sold. Subsequent to the balance sheet date and until the date of the approval of the financial statements, an amount of approximately NIS 38 million was received. The balance is forecasted to be received based on the percentage of the lease of the property.  NOTE 5:- LONG-TERM LOANS  December 31, 2003Linked to  $+10%Linked to Euro, interest freeLinked to Euro+ Eurobor+ 3%-5%TotalAdjusted NIS in thousandsLoans to jointly controlled entities (1)12,071-16,47228,543 December 31, 2004Linked to  $+Libor+ 2.5%-5.5%Linked to CZK+Libor+5%Linked to Euro+ Eurobor+ 3%-5%TotalReported NIS in thousandsLoans to jointly controlled entities (1)21,04011,39816,90849,346 (1) The loans are without repayment dates, however not before January 1, 2005.  NOTE 6:- INVESTMENTS IN AFFILIATES AND OTHER COMPANIES  a. An amount of NIS 5,794 thousand represents an investment at the rate of 15% in a Slovakian company, an amount of NIS 1,710 thousand represents an investment in a Czech company which was made in the context of a master agreement with Kanaf 2000 Financial Ltd. ( \"Kanaf 2000 \") and an amount of NIS 1,749 thousand represents other investments. b. Equity in the financial statements items of jointly controlled entities: December 31,20032004NIS in thousandsAdjustedReportedCurrent assets11,15272,221Non-current assets165,580213,738Current liabilities49,64323,049Long-term liabilities 86,205221,311 Year ended December 31, 200220032004NIS in thousandsAdjustedReportedRevenues11,17746,03142,096Expenses11,95839,41323,041 NOTE 7:- INVENTORIES OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN PROGRESS December 31,20032004NIS in thousandsAdjustedReportedCost of real estate and buildings under construction55,00389,806Less - costs carried to the statement of operations (1)14,74017,34040,26372,466Sales agreements entered into during the year21,29431,876Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year5,3709,166Customer advances (2)1,2974,482 (1) Costs carried to the statement of operations: Subcontractors 8,61710,357Land3,0463,063Financing1,2121,506Salary443473Planning and consulting760815Other6621,12614,74017,340 (2) Shown as a deduction from the amount of real estate and buildings under construction.  NOTE 8:- FIXED ASSETS a. Composition: Payments on account of building under constructionReal estate and buildings for rentFurniture and equipment for rent (1) (2)VehiclesTotalReported NIS in thousands (except 2003)Cost:Balance at January 1, 200414,674494,28515,425694525,078Additions during the year764103,683333115104,895Foreign currency translation adjustments for autonomous entities 84027,3441,3473829,569Additions for newly consolidated company-17,423606-18,029Disposals during the year-(169,192)(13,051)(211)(182,454)Disposals for deconsolidation-(209,822)(8)-(209,830)Balance at December 31, 200416,278263,7214,652636285,287Accumulated depreciation:Balance at January 1, 2004-23,4253,77028127,476Additions during the year-6,133224966,453Foreign currency translation adjustments for autonomous entities -2,532296112,839Additions for newly consolidated company-1,119326-1,445Disposals during the year-(16,093)(3,608)(119)(19,820)Disposals for deconsolidation-(1,338)--(1,338)Balance at December 31, 2004-15,7781,00826917,055Depreciated cost at December 31, 200416,278247,9433,644367268,232Depreciated cost at December 31, 2003 (adjusted NIS in thousands)14,674470,86011,655413497,602 (1) Including computers and peripheral equipment. (2) Including for internal use.   NOTE 8:- FIXED ASSETS (Cont.)  b. Cost of fixed assets, including capitalization of accrued expenses, is as follows: December 31,20032004NIS in thousandsAdjustedReportedProfessional consulting and accompaniment of projects7,5794,340Financial expenses4,9904,381Total capitalization of accrued expenses 12,5698,721  NOTE 9:- OTHER ASSETS AND DEFERRED CHARGES  Expenses relating to the issuance of convertible debentures and to obtaining loans: Original amount7,91912,823Less - accumulated amortization3,5116,7604,4086,063Deferred tax4,4561,5338,8647,596  NOTE 10:- CREDIT FROM BANKS AND OTHERS December 31, 2003December 31, 2004In orIn orWeightedlinked to Linked tolinked to Linked tointerestforeignthe Israeliforeignthe IsraeliratecurrencyCPIUnlinkedTotalcurrencyCPIUnlinkedTotal%Adjusted NIS in thousandsAdjusted NIS in thousandsShort-term credit from banks (1)4.5185,130  -7185,137----Current maturities of long-term loans and debentures29,6611,204-30,86517,378  --17,378214,7911,2047216,00217,378--17,378 (1) Mainly to the Euro and the dollar.  NOTE 11:- OTHER ACCOUNTS PAYABLE AND TRADE PAYABLES  December 31,20032004NIS in thousandsAdjustedReportedOpen accounts and notes payable7,78810,578Deferred revenues7,0781,656Government authorities (1)*)  10,16920,896Related parties (2)9677,803Accrued expenses1,4375,523Employees*)  349392Other8021,90528,59048,753 (1) The balance as of December 31, 2004, includes net liabilities of approximately NIS 19 million for payment of tax to the tax authorities in Slovakia. The balance as of December 31, 2003, includes a provision of NIS 5,372 thousand for a tax settlement with the tax authority. (2) The balance as of December 31, 2004, includes an amount of NIS 7,013 thousand for annual bonus grants to the Company CEO and the co-controlling shareholders in the Company, NIS 737 thousand for annual management fees to the co-controlling shareholders in the Company. *) Reclassified.  NOTE 12:- DEBENTURES  a. Convertible debentures:  1. Composition: December 31,20032004NIS in thousandsAdjustedReportedConvertible debentures (series B)10,25910,403Convertible debentures (series E)21,53518,871Convertible debentures (series F)13,53813,641Convertible debentures (series G)-82,05445,332124,969 2. The redemption dates subsequent to the balance sheet date are as follows: December 31, 2004Reported NIS in thousandsFirst year-Second year48,923Third year26,813Fourth year16,411Fifth year16,411Sixth year16,411124,969 b. Debentures: Composition: December 31,20032004NIS in thousandsAdjustedReportedDebentures (series D)1,204-Less - current maturities1,204---  NOTE 13:- LONG-TERM LOANS a. Composition: December 31,20032004Weighted interestTotalLinked to dollarLinked to EuroTotalrateNIS in thousands%AdjustedReportedFrom banks4.5248,69939,64293,315132,957From others633,98931,64724,51956,166282,68871,289117,834189,123Less - current maturities 29,6617,07210,30617,378253,02764,217107,528171,745 b. The maturity dates subsequent to the balance sheet date are as follows: December 31, 2004Reported NIS in thousandsFirst year (current maturities)17,378Second year16,972Third year11,031Fourth year8,286Fifth year8,480Sixth year126,976171,745189,123 c. The subsidiaries liabilities to banks are non-recourse type loans.  NOTE 14:- DEPOSITS FROM TENANTS December 31, 20032004Linked to CZKLinked to SITLinked to EuroTotalLinked to CZKLinked to EuroTotalNIS in thousandsAdjusted ReportedDeposits from tenants 7208,0953,19812,0131,0581,8392,897  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of operations: Year ended December 31, 200220032004NIS in thousandsAdjustedReportedCurrent taxes1,9515,25326,873Deferred taxes533(2,058)690Taxes in respect of previous years (1)6261,0528483,1104,24728,411 (1) Mainly in respect of a tax arrangement.  NOTE 16:- SHARE CAPITAL a. Composition of share capital: December 31, December 31, 2003200420032004AuthorizedIssued and outstandingNumber of sharesOrdinary shares of NIS 1 par value each15,000,000-8,813,539-Ordinary shares of NIS 0.01 par value each-5,000,000,000-9,589,039 The Ordinary shares are traded on the Tel Aviv Stock Exchange. b. Stock options:  Stock options issued by the Company are as follows: December 31,20032004Number of optionsStock options (series A)278,500-Stock options (series B)124,000-Stock options (series C)53,700-Stock options (series 2) - listed for trade2,662,5002,322,500Stock options (series 3)250,000250,000Stock options (series 4) - listed for trade-800,000Stock options to the CEO and employees-650,0003,368,7004,022,500 NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF OPERATIONS ITEMS  Year ended December 31, 200220032004NIS in thousandsAdjustedReporteda.Revenues from lease, sales, construction of buildings and apartments and services :Lease40,23640,25639,354Sale of apartments for dwelling-15,92422,710Sale of building and sold companies47,1856,049241,734Services provided8738911,73988,29463,120305,537b.Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and servicesDepreciation and amortization6,3407,1297,789Maintenance and repairs3,4251,9552,012Building of apartments for dwelling-14,74017,340Cost of building and sold companies34,845(1) (175)162,742Other expenses2,9221,3674,00747,53225,016193,890c.General and administrative expenses: Salaries and payroll accruals2,9175,0685,175Maintenance and office expenses1,2661,9391,812Consulting and management expenses*)  3,8214,6195,319Annual bonus grants to related parties (2)*)   843*)  377,013Other*)  4,008*) 2,8383,82612,85514,50123,145d.Financial expenses, net (3):Financial expenses in respect of short-term credit and other, net7367,5971,710Financial expenses in respect of debentures and long-term loans, net17,76515,5836,19218,50123,1807,902 *) Reclassified. (1) Represents a shareholders \' deficiency in sold company. (2) Annual bonus grants to the Company \'s CEO and co-controlling shareholders. (3) Net of capitalized financial expenses.   NOTE 18:- NET EARNINGS (LOSS) PER NIS 1 PAR VALUE OF SHARES Details pertaining to the number of shares and income (loss) used in the computation of earnings (loss) per share:  Year ended December 31, 200220032004Weighted number of sharesNet  incomeWeighted number of sharesLossWeighted number of sharesNet  incomeIn thousandsAdjusted NIS in thousandsIn thousandsAdjusted NIS in thousandsIn thousandsReported NIS in thousandsNumber of shares and net income (loss), according to the statement of operations6,1766,4995,551(3,055)6,62551,768Effect of convertible securities whose conversion during the year is probable-6623122392,3221,709Number of shares and basic net income (loss)6,1767,1615,863(2,816)8,94753,477Effect of convertible securities whose conversion is not probable1,481860--7,0086,973Number of shares and diluted net income (loss)7,6578,0215,863(2,816)15,95560,450  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\04 \\EC12.DOC  1   1 -  2  -  B.S.R EUROPE LTD. B.S.R EUROPE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[22]=new Array("about/FinancialReport1204.pdf","Microsoft Word - FinancialReport1204.DOC","DRAFT: 16.4.05  B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  AS OF DECEMBER 31, 2004  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Operations Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements  Page 2 3 - 4 5 6 - 8 9 - 12 13 - 25  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  B.S.R Europe Ltd.  We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of operations, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2004. Based on our audits, in our report dated March 20, 2005, we expressed an unqualified opinion on those statements.  The financial statements as of the dates and for the reported periods subsequent to December 31, 2003, are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The financial statements as of the dates and for the reported periods until the aforementioned date are presented in values that were adjusted until that date according to the changes in the general purchasing power of the Israeli currency, in accordance with pronouncements of the Institute of Certified Public Accountants in Israel.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel April 18, 2005 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31,  2003 Adjusted  2004 Reported (In thousands) N I S  Note  Convenience translation (Note 1) December 31, 2004 Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of a company Inventories of contracts in progress  2 3 4 4a 7  *)  23,599 31,611 1,282 17,463 3,660 77,615  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables Investments in affiliates and other companies  7 *) 36,603  35,903 1,181 1,779 11,587 59,026 13,990 123,466 58,476 6,109 201 303 1,972 10,044 2,381 21,010 9,950  5  6  28,543 204 28,747 49,346 1,694 9,861 9,253 70,154 8,397 288 1,678 1,574 11,937  FIXED ASSETS: Cost Less - accumulated depreciation 8  525,078 27,476 497,602 285,287 17,055 268,232 48,544 2,902 45,642  OTHER ASSETS AND DEFERRED CHARGES, NET  9  8,864 649,431 7,596 527,924 1,293 89,832  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31,  2003 Adjusted  2004 Reported (In thousands) N I S  Note  Convenience translation (Note 1) December 31, 2004 Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Other accounts payable and trade payables  10 11  216,002 *) 28,590 244,592 17,378 48,753 66,131 2,957 8,296 11,253  LONG-TERM LIABILITIES: Convertible debentures to related parties Convertible debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  12 12 13 14 *) 28,548 *) 16,784 253,027 12,013  *)  46 3,340 313,758 1,312  MINORITY INTEREST CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES SHAREHOLDERS \' EQUITY  29,274 95,695 171,745 2,897 65 5,296 304,972 1,105 4,981 16,284 29,224 493 11 901 51,894 188  16  89,769 649,431 155,716 527,924 26,497 89,832  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF OPERATIONS  2002  Note  Year ended December 31, 2003 N I S Adjusted  2004 Reported  Convenience translation (Note 1) Year ended December 31, 2004 Euro  (In thousands, except per share amounts)  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income Income before taxes on income Taxes on income Income (loss) after taxes on income Minority interest in losses (earnings) of subsidiaries, net Net income (loss) Net earnings (loss) per NIS 1 par value of Ordinary shares: Basic net earnings (loss) Diluted net earnings (loss)  17a 88,294 63,120 305,537 51,990  17b  17c  17d  15  47,532 40,762 12,855 27,907 18,501 9,406 3,110 6,296 203 6,499 25,016 38,104 14,501 23,603 23,180 423 4,247 (3,824) 769 (3,055) 193,890 111,647 23,145 88,502 7,902 54 80,654 28,411 52,243 (475) 51,768 32,992 18,998 3,938 15,060 1,345 9 13,724 4,834 8,890 (81) 8,809  18  116 105 (48) (48) 598 378 102 64  The accompanying notes are an integral part of the consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at January 1, 2002 Exercise of stock options into shares (1) Public issuance of stock options, net (2) (4) Exercise of stock options by subsidiary Sale of stock options held by subsidiary Conversion of debentures into shares by the Company (1) Foreign currency translation adjustments for autonomous entities (5) Interest accrued on loans to employees Net income Balance at December 31, 2002 Exercise of stock options into shares (1) Repurchase of shares (1) Private placement of stock options (6) Foreign currency translation adjustments for autonomous entities (5) Interest accrued on loans to employees Loss Balance at December 31, 2003 20,310 456 1,016 858 22,640 33 22,673 73,100 4,910 9,665 17,753 167 105,595 532 150 106,277 4,524 (2,412) 371 384 2,867 (150) 375 3,092 758 758 758  Foreign currency translation adjustments for autonomous entities Adjusted NIS (In thousands) 1,859 11,639 13,498 7,027 20,525  Deficit  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (3)  Total  (12,109) 6,499 (5,610) (3,055) (8,665) (18,160) 6,331 (10,681) (18,611) (41,121) (9,803) (50,924) (3,650) (167) (3,817) (150) (3,967) 66,632 9,285 371 384 11,639 6,499 94,810 415 (9,803) 375 7,027 (3,055) 89,769  (1) (2) (3) (4) (5) (6) See Notes 12 and 16. Net of issuance expenses. Including interest accrued on loans to employees. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b.  The accompanying notes are an integral part of the consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at January 1, 2004 Exercise of stock options into shares (1) Conversion of convertible debentures (1) Foreign currency translation adjustments for autonomous entities (5) Public issuance of stock options (6) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Net income Split and capital reduction (7) Balance at December 31, 2004 22,673 743 (23,182) 234 106,277 9,329 400 2,366 27 (3,994) 23,182 137,587 3,092 (2,066) 2,224 3,250 758 758  Foreign currency translation adjustments for autonomous entities Reported NIS (In thousands) 20,525 18,601 39,126  Retained earnings (deficit)  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (3)  Total  (8,665) (22,300) 51,768 20,803 (50,924) 1,147 3,377 358 (46,042) (3,967) (27) 3,994 89,769 9,153 3,777 18,601 2,224 2,724 (22,300) 51,768 155,716  (1) (2) (3) (4) (5) (6) (7) See Notes 12 and 16. Net of issuance expenses. Including interest accrued on loans to employees. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b. See Note 16a.  The accompanying notes are an integral part of the consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Foreign currency translation adjustments for autonomous entities  Retained earnings (deficit)  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (3)  Total  Convenience translation into Euro (Note 1) (In thousands)  129 129 3,493 3,165 6,658 (1,474) (3,795) 8,809 3,540 Balance at January 1, 2004 Exercise of stock options into shares (1) Conversion of convertible debentures (1) Foreign currency translation adjustments for autonomous entities (5) Public issuance of stock options (6) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Net income Split and capital reduction (7) Balance at December 31, 2004 3,858 127 (3,945) 40 18,084 1,587 68 403 5 (680) 3,945 23,412 527 (352) 378 553 (8,666) 195 575 61 (7,835) (675) (5) 680 15,276 1,557 643 3,165 378 464 (3,795) 8,809 26,497  (1) (2) (3) (4) (5) (6) (7) See Notes 12 and 16. Net of issuance expenses. Including interest accrued on loans to employees. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b. See Note 16a.  The accompanying notes are an integral part of the consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2002  Year ended December 31, 2003 N I S Adjusted  2004 Reported (In thousands)  Convenience translation (Note 1) Year ended December 31, 2004 Euro  Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (a) Net cash provided by (used in) operating activities Cash flows from investing activities: Proceeds from realization of investment in deconsolidated subsidiaries (b) Acquisition of companies initially consolidated by the proportionate method (c) Repayment of debts in respect of sale of investment in subsidiary Long-term loans granted and deposit of long-term deposits Collection of long-term loans and withdrawal of longterm deposits Investment in affiliates Proceeds from sale of a building Investment in fixed assets and real estate Proceeds from sale of fixed assets Withdrawal (deposit) of short-term deposits, net Net cash used in investing activities  6,499 (3,342) 3,157 (3,055) (245) (3,300) 51,768 (44,699) 7,069 8,809 (7,606) 1,203  *) *)  9,685 (15,859) 14,520 26,493 (102,185) (9,976) (77,322) 14,787 5,641 (18,699) 33,665 (129,315) (16,640) (110,561) 42,210 (3,034) (20,721) 11,074 (4,986) (136,918) 87 31,641 (80,647) 7,182 (516) (3,526) 1,884 (848) (23,298) 15 5,384 (13,723)  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2002  Year ended December 31, 2003 N I S Adjusted  2004 Reported (In thousands)  Convenience translation (Note 1) Year ended December 31, 2004 Euro  Cash flows from financing activities: Issuance of stock options into convertible debentures Issuance of stock options into shares, net Repurchase of shares Exercise of stock options into shares Conversion of stock options into convertible debentures and their sale by subsidiary, net Dividend paid Redemption of debentures to related parties Issuance of convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt of advances from tenants, net Sale of Company shares held by the Company and by subsidiary, net Short-term credit from banks and other, net Net cash provided by financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year  755 9,285 (1,183) 2,744 68,476 (15,927) 4,006 17,881 86,037 375 (9,803) (1,205) 12,633 70,566 (84,232) 2,133 128,238 118,705 1,325 2,224 9,568 27,078 (22,300) (1,257) 52,044 88,510 (39,845) 2,967 2,724 (39,081) 83,957 225 378 1,628 4,608 (3,795) (214) 8,856 15,061 (6,780) 505 464 (6,650) 14,286  983 12,855 5,212 18,067 688 5,532 18,067 23,599 1,925 12,304 23,599 35,903 328 2,094 4,015 6,109  The accompanying notes are an integral part of the consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2002  Year ended December 31, 2003 N I S Adjusted  2004 Reported (In thousands)  Convenience translation (Note 1) Year ended December 31, 2004 Euro  (a)  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Depreciation and amortization Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus Capital gain from sale of fixed assets, net Decrease (increase) in accrued severance pay Revaluation (erosion) of loans granted and shortterm deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  (203) 7,734 (12,340) 43 (330) 2,353 533 (2,210) (769) 7,923 (5,690) (96) 2,601 876 (2,058) 2,787 475 8,199 (77,878) (11) 19 (4,890) (5,092) 690 (78,488) 81 1,395 (13,252) (2) 3 (832) (866) 117 (13,356)  Changes in asset and liability items: Decrease (increase) in trade receivables (including long-term) Decrease (increase) in other accounts receivable Increase (decrease) in other accounts payable and trade payables  (883) 1,021 (1,270) (1,132) (3,342) 1,397 (11,283) 6,854 (3,032) (245) (6,361) (3,085) 43,235 33,789 (44,699) (1,082) (525) 7,357 5,750 (7,606)  The accompanying notes are an integral part of the consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2002  Year ended December 31, 2003 N I S Adjusted  2004 Reported (In thousands)  Convenience translation (Note 1) Year ended December 31, 2004 Euro  (b)  Proceeds from realization of investment in deconsolidated subsidiaries (1): Assets and liabilities of the subsidiaries at date of sale: Working capital (excluding cash and cash equivalents) Long-term investments Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Capital surplus for autonomous entities Waive on subsidiary \'s debt Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net  (1,370) 1,561 20,683 (8,992) (713) (5,001) (5,641) (3,001) 12,186 (1,173) 424 (10,616) 370,598 (323,431) (13,357) (981) (5,493) (54,195) (1,806) 63,061 (55,035) (2,273) (167) (935) (9,222)  9,158 9,685 6,351 14,787 79,685 42,210 13,559 7,182  (c)  Acquisition of companies initially consolidated by the proportionate method: Working capital (excluding cash and cash equivalents) Fixed assets, net Investments in affiliates Deferred charges Long-term liabilities Deferred taxes  430 (16,584) (38) (470) 12,548 1,080 (3,034) 73 (2,822) (6) (80) 2,135 184 (516)  (d)  Significant non-cash activities: Sale of activity Conversion of debentures into shares Convertible debentures converted into shares by the Company (*) Purchase of fixed assets and real estate by loans Exercise of stock options into shares  18,611 4,124 5,841 415 54,195 3,777 6,803 9,222 643 1,158 -  (1) *) In 2004, includes sale of activity and assets. See Note 12a.  The accompanying notes are an integral part of the consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2004 and for the year then ended have been translated into Euro using the representative exchange rate as of that date (Euro 1 = NIS 5.8768). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  NOTE 2:CASH AND CASH EQUIVALENTS  December 31, 2003 2004 NIS in thousands  Adjusted 103 8,789 6,280 741 2,882 677 3,650 477 23,599 Reported 814 2,137 27,966 4 297 3,410 692 583 35,903  In NIS In U.S. dollars In Euro In Swiss Francs In Slovakian Corona In Hungarian Forint In Polish Zloty Other (mainly Czech Corona)  NOTE 3:-  TRADE RECEIVABLES Open accounts and accrued income, net Net of allowance for doubtful accounts  1,282 159 1,779 47  - 13 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 4:OTHER ACCOUNTS RECEIVABLE  December 31, 2003 2004 NIS in thousands  Adjusted 11,578 440 3,829 303 1,313 17,463 Reported 527 4,821 962 2,180 1,052 2,045 11,587  Employees (1) Government authorities (2) Deferred taxes Prepaid expenses Subsidiaries and jointly controlled entities Accrued income Other  (1) (2)  The loans are linked to the Israeli CPI and bear annual interest at the rate of 4%. As of December 31, 2004, the balance includes claims for VAT refunds in Polish and Czech companies. As of December 31, 2003, the balance includes a claim of approximately NIS 7.4 million for VAT refund in a Slovakian company and a claim of approximately NIS 2.5 million for purchase tax refund in an Hungarian company which were refunded in 2004.  NOTE 4a:- RECEIVABLE FOR SALE OF A COMPANY The balance includes a receivable in Euro of approximately NIS 44.5 million as a result of realization of investment in a Slovakian company which was sold and deconsolidated and shareholders \' loans of approximately NIS 14.5 million which were given to the Slovakian company which was sold. Subsequent to the balance sheet date and until the date of the approval of the financial statements, an amount of approximately NIS 38 million was received. The balance is forecasted to be received based on the percentage of the lease of the property.  - 14 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 5:LONG-TERM LOANS  December 31, 2003 Linked to  Linked to Euro, interest free Euro+ Eurobor+ 3%-5%  Linked to $+10%  Total  Adjusted NIS in thousands - 16,472 December 31, 2004 Linked to  Linked to CZK+Libor +5% Euro+ Eurobor+ 3%-5%  Loans to jointly controlled entities (1) 12,071 28,543  Linked to $+Libor+ 2.5%-5.5%  Total  Reported NIS in thousands 11,398 16,908  Loans to jointly controlled entities (1)  (1)  21,040 49,346  The loans are without repayment dates, however not before January 1, 2005.  NOTE 6:INVESTMENTS IN AFFILIATES AND OTHER COMPANIES  a.  b.  An amount of NIS 5,794 thousand represents an investment at the rate of 15% in a Slovakian company, an amount of NIS 1,710 thousand represents an investment in a Czech company which was made in the context of a master agreement with Kanaf 2000 Financial Ltd. ( \"Kanaf 2000 \") and an amount of NIS 1,749 thousand represents other investments. Equity in the financial statements items of jointly controlled entities: December 31, 2003 2004 NIS in thousands  Current assets Non-current assets Current liabilities Long-term liabilities  Adjusted 11,152 165,580 49,643 86,205 Reported 72,221 213,738 23,049 221,311  Year ended December 31,  2002  2003 NIS in thousands Adjusted  Revenues Expenses 11,177 11,958 46,031 39,413  2004 Reported 42,096 23,041  - 15 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 7:-  INVENTORIES PROGRESS OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN  December 31, 2003 2004 NIS in thousands  Adjusted 55,003 14,740 40,263 21,294 Reported 89,806 17,340 72,466 31,876  Cost of real estate and buildings under construction Less - costs carried to the statement of operations (1)  Sales agreements entered into during the year Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year Customer advances (2)  (1)  Costs carried to the statement of operations: Subcontractors Land Financing Salary Planning and consulting Other  5,370 1,297 9,166 4,482  8,617 3,046 1,212 443 760 662 14,740 10,357 3,063 1,506 473 815 1,126 17,340  (2) Shown as a deduction from the amount of real estate and buildings under construction.  - 16 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 8:-  FIXED ASSETS a. Composition:  Payments on account of building under construction  Real estate and buildings for rent  Furniture and equipment for rent (1) (2)  Vehicles Total  Reported NIS in thousands (except 2003)  Cost: Balance at January 1, 2004 Additions during the year Foreign currency translation adjustments for autonomous entities Additions for newly consolidated company Disposals during the year Disposals for deconsolidation Balance at December 31, 2004 Accumulated depreciation: Balance at January 1, 2004 Additions during the year Foreign currency translation adjustments for autonomous entities Additions for newly consolidated company Disposals during the year Disposals for deconsolidation Balance at December 31, 2004 Depreciated cost at December 31, 2004 Depreciated cost at December 31, 2003 (adjusted NIS in thousands)  (1) (2)  14,674 764 840 16,278 494,285 103,683 27,344 17,423 (169,192) (209,822) 263,721 15,425 333 1,347 606 (13,051) (8) 4,652 694 115 38 (211) 636 525,078 104,895 29,569 18,029 (182,454) (209,830) 285,287  23,425 6,133 2,532 1,119 (16,093) (1,338) 15,778 3,770 224 296 326 (3,608) 1,008 281 96 11 (119) 269 27,476 6,453 2,839 1,445 (19,820) (1,338) 17,055  16,278 247,943 3,644 367 268,232  14,674 470,860 11,655 413 497,602  Including computers and peripheral equipment. Including for internal use.  - 17 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 8:FIXED ASSETS (Cont.)  b.  Cost of fixed assets, including capitalization of accrued expenses, is as follows: December 31, 2003 2004 NIS in thousands Adjusted Reported  Professional consulting and accompaniment of projects Financial expenses Total capitalization of accrued expenses  7,579 4,990 12,569 4,340 4,381 8,721  NOTE 9:-  OTHER ASSETS AND DEFERRED CHARGES Expenses relating to the issuance of convertible debentures and to obtaining loans: Original amount Less - accumulated amortization  Deferred tax  7,919 3,511 4,408 4,456 8,864 12,823 6,760 6,063 1,533 7,596  - 18 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 10:- CREDIT FROM BANKS AND OTHERS  Weighted interest rate %  In or linked to foreign currency  December 31, 2003 Linked to the Israeli CPI Unlinked Adjusted NIS in thousands  Total  In or linked to foreign currency  December 31, 2004 Linked to the Israeli CPI Unlinked Adjusted NIS in thousands  Total  Short-term credit from banks (1) Current maturities of long-term loans and debentures  4.5 185,130 7 185,137 -  29,661 214,791 1,204 1,204 7 30,865 216,002 17,378 17,378 17,378 17,378  (1) Mainly to the Euro and the dollar.  - 19 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 11:- OTHER ACCOUNTS PAYABLE AND TRADE PAYABLES  December 31, 2003 2004 NIS in thousands  Adjusted 7,788 7,078 *) 10,169 967 1,437  *)  349 802 28,590  Reported 10,578 1,656 20,896 7,803 5,523 392 1,905 48,753  Open accounts and notes payable Deferred revenues Government authorities (1) Related parties (2) Accrued expenses Employees Other  (1)  (2)  *)  The balance as of December 31, 2004, includes net liabilities of approximately NIS 19 million for payment of tax to the tax authorities in Slovakia. The balance as of December 31, 2003, includes a provision of NIS 5,372 thousand for a tax settlement with the tax authority. The balance as of December 31, 2004, includes an amount of NIS 7,013 thousand for annual bonus grants to the Company CEO and the co-controlling shareholders in the Company, NIS 737 thousand for annual management fees to the co-controlling shareholders in the Company. Reclassified.  - 20 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 12:- DEBENTURES a. Convertible debentures: 1. Composition:  December 31, 2003 2004 NIS in thousands  Adjusted 10,259 21,535 13,538 45,332 Reported 10,403 18,871 13,641 82,054 124,969  Convertible debentures (series B) Convertible debentures (series E) Convertible debentures (series F) Convertible debentures (series G)  2.  The redemption dates subsequent to the balance sheet date are as follows: December 31, 2004 Reported NIS in thousands  First year Second year Third year Fourth year Fifth year Sixth year  48,923 26,813 16,411 16,411 16,411 124,969  b.  Debentures: Composition:  December 31, 2003 2004 NIS in thousands  Adjusted 1,204 1,204 Reported -  Debentures (series D) Less - current maturities  - 21 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 13:- LONG-TERM LOANS a. Composition:  From banks From others  Weighted interest rate % 4.5 6  Less - current maturities  2003 Total Adjusted 248,699 33,989 282,688 29,661 253,027  December 31, 2004  Linked to dollar Linked to Euro  Total  NIS in thousands Reported  39,642 31,647 71,289 7,072 64,217 93,315 24,519 117,834 10,306 107,528 132,957 56,166 189,123 17,378 171,745  b.  The maturity dates subsequent to the balance sheet date are as follows: December 31, 2004 Reported NIS in thousands  First year (current maturities) Second year Third year Fourth year Fifth year Sixth year  17,378 16,972 11,031 8,286 8,480 126,976 171,745 189,123  c. The subsidiaries liabilities to banks are non-recourse type loans.  NOTE 14:- DEPOSITS FROM TENANTS  December 31,  2003  Linked to SIT Linked to Euro Linked to CZK  Total NIS in thousands  Linked to CZK  Deposits from tenants 720  Adjusted 8,095  3,198 12,013 1,058  2004 Linked to Euro Reported 1,839  Total  2,897  - 22 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of operations:  Year ended December 31,  2002  2003 NIS in thousands Adjusted  Current taxes Deferred taxes Taxes in respect of previous years (1)  1,951 533 626 3,110 5,253 (2,058) 1,052 4,247  2004 Reported 26,873 690 848 28,411  (1) Mainly in respect of a tax arrangement.  NOTE 16:- SHARE CAPITAL a. Composition of share capital:  2003  December 31, Authorized  2004  December 31, Issued and outstanding 2003  2004  Number of shares  Ordinary shares of NIS 1 par value each Ordinary shares of NIS 0.01 par value each  15,000,000 8,813,539 -  5,000,000,000 9,589,039  b.  The Ordinary shares are traded on the Tel Aviv Stock Exchange. Stock options: Stock options issued by the Company are as follows:  December 31, 2003 2004 Number of options 278,500 124,000 53,700  2,662,500 250,000 3,368,700  Stock options (series A) Stock options (series B) Stock options (series C) Stock options (series 2) - listed for trade Stock options (series 3) Stock options (series 4) - listed for trade Stock options to the CEO and employees  2,322,500 250,000 800,000 650,000 4,022,500  - 23 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF OPERATIONS ITEMS Year ended December 31,  2002  2003 NIS in thousands Adjusted 2004 Reported  a.  Revenues from lease, sales, construction of buildings and apartments and services : Lease Sale of apartments for dwelling Sale of building and sold companies Services provided  40,236 47,185 873 88,294 40,256 15,924 6,049 891 63,120 39,354 22,710 241,734 1,739 305,537  b.  Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Depreciation and amortization Maintenance and repairs Building of apartments for dwelling Cost of building and sold companies Other expenses  6,340 3,425 34,845 2,922 47,532 7,129 1,955 14,740 (1) (175) 1,367 25,016 7,789 2,012 17,340 162,742 4,007 193,890  c.  General and administrative expenses: Salaries and payroll accruals Maintenance and office expenses Consulting and management expenses Annual bonus grants to related parties (2) Other  2,917 1,266 *) 3,821 *) 843 *) 4,008 12,855  *)  5,068 1,939 4,619 37  *) 2,838 14,501  5,175 1,812 5,319 7,013 3,826 23,145  d.  Financial expenses, net (3): Financial expenses in respect of short-term credit and other, net Financial expenses in respect of debentures and long-term loans, net  736 17,765 18,501 7,597 15,583 23,180 1,710 6,192 7,902  *) (1) (2) (3) Reclassified. Represents a shareholders \' deficiency in sold company. Annual bonus grants to the Company \'s CEO and co-controlling shareholders. Net of capitalized financial expenses.  - 24 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 18:- NET EARNINGS (LOSS) PER NIS 1 PAR VALUE OF SHARES Details pertaining to the number of shares and income (loss) used in the computation of earnings (loss) per share: Year ended December 31,  2002 number of Weighted shares In  thousands  Net income Adjusted NIS in thousands  2003 number of Weighted shares In  thousands  Loss Adjusted NIS in thousands  2004 number of Weighted shares In  thousands  Net income Reported NIS in thousands  Number of shares and net income (loss), according to the statement of operations Effect of convertible securities whose conversion during the year is probable Number of shares and basic net income (loss) Effect of convertible securities whose conversion is not probable Number of shares and diluted net income (loss)  6,176 6,499 5,551 (3,055) 6,625 51,768  662 312 239 2,322 1,709  6,176 7,161 5,863 (2,816) 8,947 53,477  1,481 860 7,008 6,973  7,657 8,021 5,863 (2,816) 15,955 60,450  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\04 \\EC12.DOC  - 25 -   ","null","null","");arrFiles[23]=new Array("about/FinancialReport1205.doc","FinancialReport1205.doc","  B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2005   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Operations5Statements of Changes in Shareholders \' Equity6 - 8Consolidated Statements of Cash Flows 9 - 12Notes to Consolidated Financial Statements13 - 25  - - - - - - -  * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax: 972-3-5622555  B.S.R Europe Ltd.    We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2005 and 2004, and the related consolidated statements of operations, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2005. Based on our audits, in our report dated March 29, 2006, we expressed an unqualified opinion on those statements.    The financial statements as of the dates and for the reported periods subsequent to December 31, 2003, are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The financial statements for the year ended December 31, 2003, are presented in values that were adjusted until that date according to the changes in the general purchasing power of the Israeli currency, in accordance with pronouncements of the Institute of Certified Public Accountants in Israel.    The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERXXX, 2006A Member of Ernst & Young Global  CONSOLIDATED BALANCE SHEETS  Convenience translation (Note 1)December 31,December 31,200420052005NoteReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents235,903189,20134,738Short-term deposits 1,1811,347247Trade receivables3*)   2,8319,5241,749Other accounts receivable 4*)   9,89012,8202,354Receivable for sale of previously consolidated companies4a59,02633,2766,110Inventories of contracts in progress and buildings under construction7*) 13,99057,86010,623122,821304,02855,821INVENTORIES OF REAL ESTATE7*) 70,602164,97930,291LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans 549,34622,2834,091Long-term deposits 1,6941,693311Long-term receivables9,86113625Investments in affiliates and other companies69,25333,0626,07070,15457,17410,497FIXED ASSETS:8Cost*) 273,806116,87221,458Less - accumulated depreciation17,0555,243963*) 256,751111,62920,495OTHER ASSETS AND DEFERRED CHARGES, NET97,59610,0251,841527,924647,835118,945  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED BALANCE SHEETS  Convenience translation (Note 1)December 31,December 31,200420052005NoteReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others1017,37850,5899,288Other accounts payable and trade payables1148,75350,3419,24466,131100,93018,532LONG-TERM LIABILITIES:Convertible debentures - related parties1229,274--Convertible debentures and debentures1295,695182,13333,440Long-term loans13171,745181,76233,372Deposits from tenants 142,89754199Accrued severance pay659417Deferred taxes5,2965,205956304,972369,73567,884MINORITY INTEREST 1,105693127CONTINGENT LIABILITIES, COMMITMENTS AND CHARGESSHAREHOLDERS \' EQUITY16155,716176,47732,402527,924647,835118,945  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF OPERATIONS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2003200420052005N I SEuroNoteAdjustedReported(In thousands, except per share amounts)Revenues from lease, sales, construction of buildings and apartments and services 17a63,120305,537177,77932,642Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services17b25,016193,890121,62322,330Gross profit38,104111,64756,15610,312General and administrative expenses17c14,501  23,14517,8513,278Operating income23,60388,50238,3057,034Financial expenses, net17d23,1807,90217,2413,166Other income-548716Income before taxes on income42380,65421,1513,884Taxes on income154,24728,4111,301239Income (loss) after taxes on income(3,824)52,24319,8503,645Minority interest in losses (earnings) of subsidiaries, net769(475)23042Net income (loss) (3,055)51,76820,0803,687Net earnings (loss) per NIS 1 par value of Ordinary shares:18Basic net earnings (loss)(48)59817833Diluted net earnings (loss)(48)37816230  The accompanying notes are an integral part of the consolidated financial statements. STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesDeficitLess - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (3)TotalAdjusted NIS(In thousands)Balance at January 1, 200322,640105,5952,86775813,498(5,610)(41,121)(3,817)94,810Exercise of stock options into shares (1)33532(150)-----415Repurchase of shares (1)------(9,803)-(9,803)Private placement of stock options (6)--375-----375Foreign currency translation adjustments for autonomous entities (5)----7,027---7,027Interest accrued on loans to employees-150-----(150)-Loss-----(3,055)--(3,055)Balance at December 31, 200322,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769  (1) See Notes 12 and 16.  (2) Net of issuance expenses. (3) Including interest accrued on loans to employees.  (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b.  The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (3)TotalReported NIS(In thousands)Balance at January 1, 200422,673106,2773,09275820,525(8,665)(50,924)(3,967)89,769Exercise of stock options into shares (1)7439,329(2,066)---1,147-9,153Conversion of convertible debentures (1)-400----3,377-3,777Foreign currency translation adjustments for autonomous entities (5)----18,601---18,601Public issuance of stock options (6)--2,224-----2,224Sale of Company shares held by the Company and by subsidiary-2,366----358-2,724Interest accrued on loans to employees-27-----(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)-----3,994-Dividend paid-----(22,300)--(22,300)Capital split and reduction (7)(23,182)23,182-------Net income-----51,768--51,768Balance at December 31, 2004234137,5873,25075839,12620,803(46,042)-155,716  (1) See Notes 12 and 16.  (2) Net of issuance expenses. (3) Including interest accrued on loans to employees.  (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b. (7) See Note 16a. The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Share capitalShare premiumReceipts  on account of stock optionsCapital surplusForeign  currency translation adjustments for autonomous entitiesRetained earnings Less - shares held by the Company and by subsidiaryTotalReported NIS(In thousands)Balance at January 1, 2005234137,5873,25075839,12620,803(46,042)155,716Exercise of stock options into shares (1)75,581(499)---1,0196,108Conversion of convertible debentures (2)-(6,694)----37,25030,556Foreign currency translation adjustments for autonomous entities ------(665)(665)Repurchase of shares----(18,718)--(18,718)Dividend paid-----(16,600)-(16,600)Net income-----20,080-20,080Balance at December 31, 2005241136,4742,75175820,40824,283(8,438)176,477  Convenience translation into Euro (Note 1)(In thousands)Balance at January 1, 20054325,2615971397,1843,819(8,452)28,591Exercise of stock options into shares (1)11,025(92)---1871,121Conversion of convertible debentures (2)-(1,229)----6,8395,610Foreign currency translation adjustments for autonomous entities ------(122)(122)Repurchase of shares----(3,437)--(3,437)Dividend paid-----(3,048)-(3,048)Net income-----3,687-3,687Balance at December 31, 20054425,0575051393,7474,458(1,548)32,402  (1) See Note 16. (2) See Note 12. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2003200420052005N I SEuroAdjustedReported(In thousands) Cash flows from operating activities:Net income (loss) (3,055)51,76820,0803,687Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (a)(245)(44,699)(9,909)(1,819)Net cash provided by (used in) operating activities(3,300)7,06910,1711,868Cash flows from investing activities:Proceeds from realization of investment in deconsolidated companies (b)14,78742,21040,5167,439Payment of tax in respect of investment realized previous year--(15,580)(2,861)Acquisition of companies initially included by the proportionate and full consolidation method (c)-(3,034)(28,690)(5,268)Full consolidation of company previously included by the proportionate method and sale of property (d)--23,9694,401Collection of debt in respect of realization of investment in subsidiary 5,641-58,55210,750Loans granted and investment in long-term deposits(18,699)(20,721)(18,120)(3,327)Collection of loans and withdrawal of long-term deposits33,66511,07451,1629,394Investment in affiliates-(4,986)(15,243)(2,799)Investment in fixed assets and property(129,315)(136,918)(76,081)(13,969)Proceeds from sale of fixed assets-877313Withdrawal of (deposit in) short-term deposits, net(16,640)31,641(218)(40)Net cash provided by (used in) investing activities(110,561)(80,647)20,3403,733  The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2003200420052005N I SEuroAdjustedReported(In thousands) Cash flows from financing activities:Issuance of stock options into convertible debentures-1,325--Issuance of stock options into shares, net3752,224--Repurchase of shares(9,803)-(665)(122)Exercise of stock options into shares-9,5686,1081,121Conversion of stock options into convertible debentures and their sale by subsidiary, net-27,078--Dividend paid-(22,300)(16,600)(3,048)Redemption of debentures to related parties(1,205)(1,257)--Issuance of debentures and convertible debentures (net of issuance expenses)12,63352,04494,66117,380Receipt of long-term loans and other liabilities70,56688,510114,54521,031Repayment of long-term loans and other liabilities (84,232)(39,845)(73,450)(13,486)Receipt of advances from tenants, net2,1332,96711120Sale of Company shares held by the Company and by subsidiary, net-2,724--Short-term credit from banks and other, net128,238(39,081)--Net cash provided by financing activities118,70583,957124,71022,896Effect of exchange rate differences from cash balances of autonomous entities6881,925(1,923)(353)Increase in cash and cash equivalents5,53212,304153,29828,144Cash and cash equivalents at beginning of year18,06723,59935,9036,594Cash and cash equivalents at end of year23,59935,903189,20134,738  The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2003200420052005N I SEuroAdjustedReported(In thousands) (a)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net(769)475(230)(42)Depreciation and amortization7,923*)  11,5375,9351,090Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus(5,690)(77,878)(25,241)(4,634)Capital gain from sale of fixed assets, net-(11)(10)(2)Increase (decrease) in accrued severance pay(96)19295Revaluation (erosion) of loans granted and short-term deposits2,601(4,890)(1,495)(274)Accrued interest and revaluation (erosion) of debentures and long-term loans, net876(5,092)10,8101,985Deferred taxes, net(2,058)6906371172,787(75,150)(9,565)(1,755)Changes in asset and liability items:Decrease (increase) in trade receivables (including long-term)1,397(6,361)(6,599)(1,212)Increase in other accounts receivable(11,283)(3,085)(5,318)(976)Decrease (increase) in inventories of contracts in progress and buildings under construction -*) (3,338)9,8431,807Increase in other accounts payable and trade payables6,85443,2351,730317(3,032)30,451(344)(64)(245)(44,699)(9,909)(1,819)  *) Reclassified. The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2003200420052005N I SEuroAdjustedReported(In thousands)(b)Proceeds from realization of investment in deconsolidated companies (1):Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents)(3,001)(10,616)1,676308Fixed assets, net (net of payables for fixed assets)12,186370,598137,89325,318Long-term liabilities(1,173)(322,551)(75,492)(13,861)Long-term loans granted-(13,357)(18,360)(3,371)Minority interest424(981)--Investment in affiliate-(5,493)--Deposits from tenants--(2,302)(423)Deferred taxes-(880)(554)(102)Receivables for realization of investments in subsidiaries-(54,195)(21,336)(3,917)Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net6,35179,68518,9913,48714,78742,21040,5167,439(c)Acquisition of companies initially included by the proportionate and full consolidation method:Working capital (excluding cash and cash equivalents)-4303,836704Fixed assets, net -(16,584)(82,289)(15,109)Long-term loans--1,425262Investments in affiliates-(38)--Deferred charges-(470)--Long-term liabilities-12,54847,9758,808Deferred taxes-1,08036367-(3,034)(28,690)(5,268)(d)Full consolidation of companies previously included by the proportionate method and sale of property:Working capital (excluding cash and cash equivalents)--17,8423,276Investments in affiliate--(9,551)(1,754)Property and fixed assets --5,402992Long-term liabilities--6,6861,228Capital gain--3,590659--23,9694,401(e)Significant non-cash activities: Sale of activity-54,195--Conversion of debentures into shares-3,77730,5565,610Purchase of fixed assets and real estate by loans5,8416,80319,1103,509Exercise of stock options into shares 415--- (1) In 2004, includes sale of activity and assets. The accompanying notes are an integral part of the consolidated financial statements.  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2005 and for the year then ended have been translated into Euro using the representative exchange rate as of that date (€ 1 = NIS 5.4465). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements. NOTE 2:- CASH AND CASH EQUIVALENTS December 31,20042005Reported NIS in thousandsIn Euro27,966154,263In NIS81414,320In U.S. dollars2,1379,107In Hungarian Forint3,410680In Polish Zloty6928,143Other (mainly Czech Corona)8842,68835,903189,201  NOTE 3:- TRADE RECEIVABLES  Open accounts and accrued income, net2,8319,524Net of allowance for doubtful accounts47-  NOTE 4:- OTHER ACCOUNTS RECEIVABLE Employees (1)527178Government authorities (2)4,8217,644Deferred taxes962574Prepaid expenses*) 1,5351,099Subsidiaries and jointly controlled entities--Other2,0453,325*) 9,89012,820  *) Reclassified. (1) The loans are linked to the Israeli CPI and bear annual interest at the rate of 4%. (2) As of December 31, 2005, the balance includes claims for VAT refunds in a Latvian, Czech and Polish companies (as of December 31, 2004, the balance includes claims for VAT refunds in Czech and Polish companies).   NOTE 4a:- RECEIVABLE FOR SALE OF PREVIOUSLY CONSOLIDATED COMPANIES  As of December 31, 2005, the balance includes a receivable in Euro of approximately NIS 12 million as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated and a receivable of approximately NIS 21 million as a result of realization of investment in an Hungarian company which was sold on December 29, 2005 and deconsolidated. The payment was received during February 2006. As of December 31, 2004, the balance includes a receivable in Euro of approximately NIS 44.5 million as a result of realization of investment in a Slovakian company which was sold and deconsolidated and shareholders \' loans of approximately NIS 14.5 million which were given to the Slovakian company which was sold. During 2005, an amount of approximately NIS 58.5 million was received and all such shareholders \' loans were repaid.  NOTE 5:- LONG-TERM LOANS  December 31, 2004Linked to  dollar + Freebor+ 2.5%-5.5%Linked to CZK+ Freebor+ 5%Linked to Euro+ Eurobor+ 3%-5%TotalReported NIS in thousandsLoans to jointly controlled entities (1)21,04011,39816,90849,346 December 31, 2005Linked to  dollar + Libor+ 2.5%-5.5%Linked to Euro+ Eurobor+ 3%-5%TotalReported NIS in thousandsLoans to jointly controlled entities (1)8,38813,89522,283 (1) The loans are without repayment dates, however not before January 1, 2007.  NOTE 6:- INVESTMENTS IN AFFILIATES AND OTHER COMPANIES  a. An amount of NIS 5.8 million represents an investment at the rate of 15% in a Slovakian company, an amount of NIS 1.6 million represents an investment in a Czech company which was made in the context of a master agreement with Kanaf 2000 Financial Ltd. ( \"Kanaf 2000 \"), an amount of NIS 12.1 million represents an investment at the rate of 46.67% in a Cypriote company and an amount of NIS 13.5 million represents an investment in a Hungarian company. b. Equity in the financial statements items of jointly controlled entities: December 31,20042005Reported NIS in thousandsCurrent assets72,221166,923Non-current assets213,73842,751Current liabilities23,04962,248Long-term liabilities 221,311108,239 Year ended December 31, 200320042005NIS in thousandsAdjustedReportedRevenues46,03142,096117,032Expenses39,41323,041103,263 NOTE 7:- INVENTORIES OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN PROGRESS AND BUILDINGS UNDER CONSTRUCTION  December 31,20042005Reported NIS in thousandsCost of real estate and buildings under construction*) 101,932280,526Less - costs carried to the statement of operations (1)17,34057,687*)  84,592222,839Sales agreements entered into during the year31,876139,552Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year9,16670,867Customer advances (2)4,48210,094 (1) Costs carried to the statement of operations: Subcontractors 10,35737,108Land3,0639,806Financing1,5064,372Salary4732,307Planning and consulting8152,684Other1,1261,41017,34057,687 (2) Shown as a deduction from the amount of real estate and buildings under construction and as deferred revenues in payables.  *) Reclassified.  NOTE 8:- FIXED ASSETS a. Composition: Real estate and buildings  for rentFurniture and equipment for rent (1) (2)VehiclesTotalReported NIS in thousands Cost:Balance at January 1, 2005268,5184,652636*) 273,806Additions during the year14,20154213514,878Foreign currency translation adjustments for autonomous entities (14,295)(168)(21)(14,484)Additions for newly consolidated company12,491653-13,144Disposals during the year(60)(42)(189)(291)Disposals for deconsolidation(170,069)(112)-(170,181)Balance at December 31, 2005110,7865,525561116,872Accumulated depreciation:Balance at January 1, 200515,7781,00826917,055Additions during the year3,5193571424,018Foreign currency translation adjustments for autonomous entities (1,114)(72)(16)(1,202)Additions for newly consolidated company501192-693Disposals during the year(60)(23)(113)(196)Disposals for deconsolidation(15,065)(60)-(15,125)Balance at December 31, 20053,5591,4022825,243Depreciated cost at December 31, 2005107,2274,123279111,629Depreciated cost at December 31, 2004 252,7403,644367256,751  *) Reclassified. (1) Including computers and peripheral equipment. (2) Including for internal use. b. Cost of fixed assets, including capitalization of accrued expenses, is as follows: December 31,20042005Reported NIS in thousandsProfessional consulting and accompaniment of projects2,7982,368Financial expenses2,1122,512Total capitalization of accrued expenses 4,9104,880  NOTE 9:- OTHER ASSETS AND DEFERRED CHARGES  December 31,20042005Reported NIS in thousandsExpenses relating to the issuance of convertible debentures and to obtaining loans: Original amount12,82318,798Less - accumulated amortization6,76010,0436,0638,755Deferred tax1,5331,2707,59610,025  NOTE 10:- CREDIT FROM BANKS AND OTHERS December 31, 2004December 31, 2005In orIn orlinked to Linked tolinked to Linked toforeignthe Israeliforeignthe IsraelicurrencyCPIUnlinkedTotalcurrencyCPIUnlinkedTotalReported NIS in thousandsCurrent maturities of long-term loans 17,378  --17,37831,260--31,260Current maturities of debentures----17,8491,480-19,32917,378--17,37849,1091,480-50,589   NOTE 11:- OTHER ACCOUNTS PAYABLE AND TRADE PAYABLES  December 31,20042005Reported NIS in thousandsOpen accounts and notes payable (1)10,57821,552Deferred revenues (2)1,6569,844Government authorities (3)20,8962,357Related parties (4)7,8032,636Accrued expenses5,52311,465Employees392873Other1,9051,61448,75350,341 (1) Mainly open balances with contractors in residential complexes in Poland, Riga and Czech. The debts are financed by working capital and/or loans from banks. (2) The balance as of December 31, 2005 includes an amount of approximately NIS 8.7 million in respect of advances from buyers of residential complexes in Poland and Latvia which are not considered as sales and yet not recognized as revenues. (3) The balance as of December 31, 2004, includes net liabilities of approximately NIS 19 million for payment of tax to the tax authorities in Slovakia which was settled in 2005.  (4) The balance as of December 31, 2005, includes an amount of NIS 1,531 thousand for annual bonus grants to the CEO of the Company and B.S.R. engineering and NIS 1,105 thousand for annual management fees to B.S.R. Engineering. The balance as of December 31, 2004 was repaid during 2005.  NOTE 12:- DEBENTURES  a. Convertible debentures:  December 31,20042005Reported NIS in thousandsConvertible debentures (series E)18,871-Convertible debentures (series B)10,40310,736Convertible debentures (series F)13,6411,480Convertible debentures (series G)82,05489,246124,969101,462Less - current maturities-19,329124,96982,133 b. Debentures:  December 31,20042005Reported NIS in thousandsConvertible debentures (series H)-100,000 c. The redemption dates of debentures and convertible debentures subsequent to the balance sheet date are as follows: December 31, 2005Reported NIS in thousandsFirst year (current maturities)19,329Second year28,585Third year37,849Fourth year37,849Fifth year37,849Sixth year and thereafter40,000201,462  NOTE 13:- LONG-TERM LOANS a. Composition: December 31,Weighted20042005interest rateTotalDollarEuroPolish  ZlotyCzech CoronaHungarian ForintTotal%Reported NIS in thousandsFrom banks5 - 5.5132,95711,101104,61826,56216,26527,306185,852From others656,1664,21320,8987301,329-27,170189,12315,314125,51627,29217,59427,306213,022Less - current maturities 17,37882025,888 2,925 1,627 -31,260171,74514,49499,62824,36715,96727,306181,762 b. The maturity dates subsequent to the balance sheet date are as follows: December 31, 2005Reported NIS in thousandsFirst year (current maturities)31,260Second year56,977Third year38,607Fourth year16,265Fifth year8,000Sixth year and thereafter61,913181,762213,022 c. The subsidiaries liabilities to banks are non-recourse type loans.   NOTE 14:- DEPOSITS FROM TENANTS December 31, 20042005Czech CoronaEuroTotalPolish  ZlotyEuroTotalReported NIS in thousandsDeposits from tenants 1,0581,8392,897131410541  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of operations:  Year ended December 31, 200320042005NIS in thousandsAdjustedReportedCurrent taxes5,25326,8732,226Deferred taxes(2,058)690637Taxes in respect of previous years 1,052848(1,562)4,24728,4111,301  NOTE 16:- SHARE CAPITAL a. Composition of share capital:  December 31, December 31, 2004200520042005AuthorizedIssued and outstandingNumber of sharesOrdinary shares of NIS 0.01 par value each5,000,000,000 5,000,000,000 9,589,03911,088,371 The Ordinary shares are traded on the Tel Aviv Stock Exchange. b. Stock options:  Stock options issued by the Company are as follows:  December 31,20042005Number of optionsStock options (series 2) - listed for trade2,322,5001,576,914Stock options (series 3)250,000176,025Stock options (series 4) - listed for trade800,000800,000Stock options 11/04650,000250,000Stock options to employees 11/05-265,0004,022,5003,067,939 NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF OPERATIONS ITEMS  Year ended December 31, 200320042005NIS in thousandsAdjustedReporteda.Revenues from lease, sales, construction of buildings and apartments and services:Lease40,25639,35425,201Sale of apartments for dwelling15,92422,71068,685Sale of building and sold companies6,049241,73482,260Services provided8911,7391,63363,120305,537177,779b.Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and servicesDepreciation and amortization7,1297,7895,147Maintenance and repairs1,9552,0122,179Building of apartments for dwelling14,74017,34057,687Cost of building and sold companies(175)162,74253,724Other expenses1,3674,0072,886 25,016193,890121,623c.General and administrative expenses: Salaries and payroll accruals5,0685,1755,485Maintenance and office expenses1,9391,8122,256Consulting and management expenses4,6195,3195,812Annual bonus grants to related parties (1)*)  377,0131,531Other*) 2,8383,8262,76714,50123,14517,851d.Financial expenses, net (2):Financial expenses in respect of short-term credit and other, net7,5971,7102,629Financial expenses in respect of debentures, convertible debentures and long-term loans, net15,5836,19214,61223,1807,90217,241  *) Reclassified. (1) Annual bonus grants to the Company \'s CEO and controlling shareholders. (2) Net of capitalized financial expenses.   NOTE 18:- NET EARNINGS (LOSS) PER NIS 1 PAR VALUE OF SHARES Details pertaining to the number of shares and income (loss) used in the computation of earnings (loss) per share:  Year ended December 31, 200320042005Weighted number of sharesLossWeighted number of sharesNet  incomeWeighted number of sharesNet  incomeIn thousandsAdjusted NIS in thousandsIn thousandsReported NIS in thousandsIn thousandsReported NIS in thousandsNumber of shares and net income (loss), according to the statement of operations5,551(3,055)6,62551,76810,35220,080Effect of convertible securities whose conversion during the year is probable3122392,3221,7091,5771,159Number of shares and basic net income (loss)5,863(2,816)8,94753,47711,92921,239Effect of convertible securities whose conversion is not probable and whose effect is dilutive--7,0086,9731,248151Number of shares and diluted net income (loss)5,863(2,816)15,95560,45013,17721,390  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC12-short.DOC  1   1 -  2  -  B.S.R EUROPE LTD. B.S.R EUROPE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[24]=new Array("about/FinancialReport1205.pdf","Microsoft Word - FinancialReport1205.doc","B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  AS OF DECEMBER 31, 2005  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Operations Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements  Page 2 3 - 4 5 6 - 8 9 - 12 13 - 25  - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  B.S.R Europe Ltd.  We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2005 and 2004, and the related consolidated statements of operations, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2005. Based on our audits, in our report dated March 29, 2006, we expressed an unqualified opinion on those statements.  The financial statements as of the dates and for the reported periods subsequent to December 31, 2003, are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The financial statements for the year ended December 31, 2003, are presented in values that were adjusted until that date according to the changes in the general purchasing power of the Israeli currency, in accordance with pronouncements of the Institute of Certified Public Accountants in Israel.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel XXX, 2006 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 2005 Reported NIS (In thousands)  Note  Convenience translation (Note 1) December 31, 2005 Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of previously consolidated companies Inventories of contracts in progress and buildings under construction  2 3 4 4a 7  *) *)  *)  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Long-term loans Long-term deposits Long-term receivables Investments in affiliates and other companies  7 *)  35,903 1,181 2,831 9,890 59,026 13,990 122,821 70,602 189,201 1,347 9,524 12,820 33,276 57,860 304,028 164,979 34,738 247 1,749 2,354 6,110 10,623 55,821 30,291  5  6  49,346 1,694 9,861 9,253 70,154 22,283 1,693 136 33,062 57,174 4,091 311 25 6,070 10,497  FIXED ASSETS: Cost Less - accumulated depreciation 8  *) 273,806 17,055 *) 256,751 116,872 5,243 111,629 21,458 963 20,495  OTHER ASSETS AND DEFERRED CHARGES, NET  9  7,596 527,924 10,025 647,835 1,841 118,945  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2004 2005 Reported NIS (In thousands)  Note  Convenience translation (Note 1) December 31, 2005 Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Other accounts payable and trade payables  10 11  17,378 48,753 66,131 50,589 50,341 100,930 9,288 9,244 18,532  LONG-TERM LIABILITIES: Convertible debentures - related parties Convertible debentures and debentures Long-term loans Deposits from tenants Accrued severance pay Deferred taxes  12 12 13 14  MINORITY INTEREST CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES SHAREHOLDERS \' EQUITY  29,274 95,695 171,745 2,897 65 5,296 304,972 1,105 182,133 181,762 541 94 5,205 369,735 693 33,440 33,372 99 17 956 67,884 127  16  155,716 527,924 176,477 647,835 32,402 118,945  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF OPERATIONS  Note  2003 Adjusted  Year ended December 31, 2004 N I S Reported  2005  Convenience translation (Note 1) Year ended December 31, 2005 Euro  (In thousands, except per share amounts)  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income Income before taxes on income Taxes on income Income (loss) after taxes on income Minority interest in losses (earnings) of subsidiaries, net Net income (loss) Net earnings (loss) per NIS 1 par value of Ordinary shares: Basic net earnings (loss) Diluted net earnings (loss)  17a 63,120 305,537 177,779 32,642  17b  17c  17d  15  25,016 38,104 14,501 23,603 23,180 423 4,247 (3,824) 769 (3,055) 193,890 111,647 23,145 88,502 7,902 54 80,654 28,411 52,243 (475) 51,768 121,623 56,156 17,851 38,305 17,241 87 21,151 1,301 19,850 230 20,080 22,330 10,312 3,278 7,034 3,166 16 3,884 239 3,645 42 3,687  18  (48) (48) 598 378 178 162 33 30  The accompanying notes are an integral part of the consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at January 1, 2003 Exercise of stock options into shares (1) Repurchase of shares (1) Private placement of stock options (6) Foreign currency translation adjustments for autonomous entities (5) Interest accrued on loans to employees Loss Balance at December 31, 2003 22,640 33 22,673 105,595 532 150 106,277 2,867 (150) 375 3,092 758 758  Foreign currency translation adjustments for autonomous entities Adjusted NIS (In thousands) 13,498 7,027 20,525  Deficit  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (3)  Total  (5,610) (3,055) (8,665) (41,121) (9,803) (50,924) (3,817) (150) (3,967) 94,810 415 (9,803) 375 7,027 (3,055) 89,769  (1) (2) (3) (4) (5) (6) See Notes 12 and 16. Net of issuance expenses. Including interest accrued on loans to employees. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b.  The accompanying notes are an integral part of the consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at January 1, 2004 Exercise of stock options into shares (1) Conversion of convertible debentures (1) Foreign currency translation adjustments for autonomous entities (5) Public issuance of stock options (6) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Capital split and reduction (7) Net income Balance at December 31, 2004 22,673 743 (23,182) 234 106,277 9,329 400 2,366 27 (3,994) 23,182 137,587 3,092 (2,066) 2,224 3,250 758 758  Foreign currency translation adjustments for autonomous entities Reported NIS (In thousands) 20,525 18,601 39,126  Retained earnings (deficit)  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (3)  Total  (8,665) (22,300) 51,768 20,803 (50,924) 1,147 3,377 358 (46,042) (3,967) (27) 3,994 89,769 9,153 3,777 18,601 2,224 2,724 (22,300) 51,768 155,716  (1) (2) (3) (4) (5) (6) (7) See Notes 12 and 16. Net of issuance expenses. Including interest accrued on loans to employees. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b. See Note 16a.  The accompanying notes are an integral part of the consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Receipts on account of stock options  Capital surplus  Balance at January 1, 2005 Exercise of stock options into shares (1) Conversion of convertible debentures (2) Foreign currency translation adjustments for autonomous entities Repurchase of shares Dividend paid Net income Balance at December 31, 2005 234 7 241 137,587 5,581 (6,694) 136,474 3,250 (499) 2,751 758 758  Foreign currency translation adjustments for autonomous entities Reported NIS (In thousands) 39,126 (18,718) 20,408  Retained earnings  Less - shares held by the Company and by subsidiary  Total  20,803 (16,600) 20,080 24,283 (46,042) 1,019 37,250 (665) (8,438) 155,716 6,108 30,556 (665) (18,718) (16,600) 20,080 176,477  Convenience translation into Euro (Note 1) (In thousands)  139 139 7,184 (3,437) 3,747 3,819 (3,048) 3,687 4,458 Balance at January 1, 2005 Exercise of stock options into shares (1) Conversion of convertible debentures (2) Foreign currency translation adjustments for autonomous entities Repurchase of shares Dividend paid Net income Balance at December 31, 2005 43 1 44 25,261 1,025 (1,229) 25,057 597 (92) 505 (8,452) 187 6,839 (122) (1,548) 28,591 1,121 5,610 (122) (3,437) (3,048) 3,687 32,402  (1) (2) See Note 16. See Note 12.  The accompanying notes are an integral part of the consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2003 Adjusted  Year ended December 31, 2004 N I S Reported  2005  Convenience translation (Note 1) Year ended December 31, 2005 Euro  (In thousands)  Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (a) Net cash provided by (used in) operating activities Cash flows from investing activities: Proceeds from realization of investment in deconsolidated companies (b) Payment of tax in respect of investment realized previous year Acquisition of companies initially included by the proportionate and full consolidation method (c) Full consolidation of company previously included by the proportionate method and sale of property (d) Collection of debt in respect of realization of investment in subsidiary Loans granted and investment in long-term deposits Collection of loans and withdrawal of long-term deposits Investment in affiliates Investment in fixed assets and property Proceeds from sale of fixed assets Withdrawal of (deposit in) short-term deposits, net Net cash provided by (used in) investing activities  (3,055) (245) (3,300) 51,768 (44,699) 7,069 20,080 (9,909) 10,171 3,687 (1,819) 1,868  14,787 5,641 (18,699) 33,665 (129,315) (16,640) (110,561) 42,210 (3,034) (20,721) 11,074 (4,986) (136,918) 87 31,641 (80,647) 40,516 (15,580) (28,690) 23,969 58,552 (18,120) 51,162 (15,243) (76,081) 73 (218) 20,340 7,439 (2,861) (5,268) 4,401 10,750 (3,327) 9,394 (2,799) (13,969) 13 (40) 3,733  The accompanying notes are an integral part of the consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2003 Adjusted  Year ended December 31, 2004 N I S Reported  2005  Convenience translation (Note 1) Year ended December 31, 2005 Euro  (In thousands)  Cash flows from financing activities: Issuance of stock options into convertible debentures Issuance of stock options into shares, net Repurchase of shares Exercise of stock options into shares Conversion of stock options into convertible debentures and their sale by subsidiary, net Dividend paid Redemption of debentures to related parties Issuance of debentures and convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt of advances from tenants, net Sale of Company shares held by the Company and by subsidiary, net Short-term credit from banks and other, net Net cash provided by financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year  375 (9,803) (1,205) 12,633 70,566 (84,232) 2,133 128,238 118,705 1,325 2,224 9,568 27,078 (22,300) (1,257) 52,044 88,510 (39,845) 2,967 2,724 (39,081) 83,957 (665) 6,108 (16,600) 94,661 114,545 (73,450) 111 124,710 (122) 1,121 (3,048) 17,380 21,031 (13,486) 20 22,896  688 5,532 18,067 23,599 1,925 12,304 23,599 35,903 (1,923) 153,298 35,903 189,201 (353) 28,144 6,594 34,738  The accompanying notes are an integral part of the consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2003 Adjusted  Year ended December 31, 2004 N I S Reported  2005  Convenience translation (Note 1) Year ended December 31, 2005 Euro  (In thousands)  (a)  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Depreciation and amortization Gain from sale of real estate, deconsolidated subsidiaries and recognition of capital surplus Capital gain from sale of fixed assets, net Increase (decrease) in accrued severance pay Revaluation (erosion) of loans granted and short-term deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  (769) 7,923 (5,690) (96) 2,601 876 (2,058) 2,787 475 *) 11,537 (77,878) (11) 19 (4,890) (5,092) 690 (75,150) (230) 5,935 (25,241) (10) 29 (1,495) 10,810 637 (9,565) (42) 1,090 (4,634) (2) 5 (274) 1,985 117 (1,755)  Changes in asset and liability items: Decrease (increase) in trade receivables (including long-term) Increase in other accounts receivable Decrease (increase) in inventories of contracts in progress and buildings under construction Increase in other accounts payable and trade payables  1,397 (11,283) 6,854 (3,032) (245) (6,361) (3,085) *) (3,338) 43,235 30,451 (44,699) (6,599) (5,318) 9,843 1,730 (344) (9,909) (1,212) (976) 1,807 317 (64) (1,819)  *) Reclassified.  The accompanying notes are an integral part of the consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2003 Adjusted  Year ended December 31, 2004 N I S Reported  2005  Convenience translation (Note 1) Year ended December 31, 2005 Euro  (In thousands)  (b)  Proceeds from realization of investment in deconsolidated companies (1): Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Deposits from tenants Deferred taxes Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries, recognition of capital surplus and sale of activity, net  (3,001) 12,186 (1,173) 424 (10,616) 370,598 (322,551) (13,357) (981) (5,493) (880) (54,195) 1,676 137,893 (75,492) (18,360) (2,302) (554) (21,336) 308 25,318 (13,861) (3,371) (423) (102) (3,917)  6,351 14,787 79,685 42,210 18,991 40,516 3,487 7,439  (c)  Acquisition of companies initially included by the proportionate and full consolidation method: Working capital (excluding cash and cash equivalents) Fixed assets, net Long-term loans Investments in affiliates Deferred charges Long-term liabilities Deferred taxes  430 (16,584) (38) (470) 12,548 1,080 (3,034) 3,836 (82,289) 1,425 47,975 363 (28,690) 704 (15,109) 262 8,808 67 (5,268)  (d)  Full consolidation of companies previously included by the proportionate method and sale of property: Working capital (excluding cash and cash equivalents) Investments in affiliate Property and fixed assets Long-term liabilities Capital gain  17,842 (9,551) 5,402 6,686 3,590 23,969 3,276 (1,754) 992 1,228 659 4,401  (e)  (1)  Significant non-cash activities: Sale of activity Conversion of debentures into shares Purchase of fixed assets and real estate by loans Exercise of stock options into shares In 2004, includes sale of activity and assets.  5,841 415 54,195 3,777 6,803 30,556 19,110 5,610 3,509 -  The accompanying notes are an integral part of the consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2005 and for the year then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.4465). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  NOTE 2:CASH AND CASH EQUIVALENTS  December 31, 2004 2005 Reported NIS in thousands  27,966 814 2,137 3,410 692 884 35,903 154,263 14,320 9,107 680 8,143 2,688 189,201 In Euro In NIS In U.S. dollars In Hungarian Forint In Polish Zloty Other (mainly Czech Corona)  NOTE 3:-  TRADE RECEIVABLES Open accounts and accrued income, net Net of allowance for doubtful accounts  2,831 47 9,524 -  NOTE 4:-  OTHER ACCOUNTS RECEIVABLE Employees (1) Government authorities (2) Deferred taxes Prepaid expenses Subsidiaries and jointly controlled entities Other  527 4,821 962 *) 1,535 2,045 *) 9,890 178 7,644 574 1,099 3,325 12,820  *) (1) (2)  Reclassified. The loans are linked to the Israeli CPI and bear annual interest at the rate of 4%. As of December 31, 2005, the balance includes claims for VAT refunds in a Latvian, Czech and Polish companies (as of December 31, 2004, the balance includes claims for VAT refunds in Czech and Polish companies). - 13 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 4a:- RECEIVABLE FOR SALE OF PREVIOUSLY CONSOLIDATED COMPANIES As of December 31, 2005, the balance includes a receivable in Euro of approximately NIS 12 million as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated and a receivable of approximately NIS 21 million as a result of realization of investment in an Hungarian company which was sold on December 29, 2005 and deconsolidated. The payment was received during February 2006. As of December 31, 2004, the balance includes a receivable in Euro of approximately NIS 44.5 million as a result of realization of investment in a Slovakian company which was sold and deconsolidated and shareholders \' loans of approximately NIS 14.5 million which were given to the Slovakian company which was sold. During 2005, an amount of approximately NIS 58.5 million was received and all such shareholders \' loans were repaid.  NOTE 5:LONG-TERM LOANS  December 31, 2004  Linked to CZK+ Freebor+ 5% Linked to Euro+ Eurobor+ 3%-5% Linked to dollar + Freebor+ 2.5%-5.5%  Total  Reported NIS in thousands  11,398 Loans to jointly controlled entities (1) 21,040  Linked to dollar + Libor+ 2.5%-5.5%  16,908 December 31, 2005 Linked to Euro+ Eurobor+ 3%-5%  49,346  Total  Reported NIS in thousands 8,388 13,895  Loans to jointly controlled entities (1)  (1)  22,283  The loans are without repayment dates, however not before January 1, 2007.  - 14 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 6:INVESTMENTS IN AFFILIATES AND OTHER COMPANIES  a.  b.  An amount of NIS 5.8 million represents an investment at the rate of 15% in a Slovakian company, an amount of NIS 1.6 million represents an investment in a Czech company which was made in the context of a master agreement with Kanaf 2000 Financial Ltd. ( \"Kanaf 2000 \"), an amount of NIS 12.1 million represents an investment at the rate of 46.67% in a Cypriote company and an amount of NIS 13.5 million represents an investment in a Hungarian company. Equity in the financial statements items of jointly controlled entities: December 31, 2004 2005 Reported NIS in thousands  Current assets Non-current assets Current liabilities Long-term liabilities 72,221 213,738 23,049 221,311 166,923 42,751 62,248 108,239  Year ended December 31,  2003 Adjusted 46,031 39,413  2004 NIS in thousands 2005  Revenues Expenses  Reported  42,096 23,041 117,032 103,263  - 15 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 7:INVENTORIES OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN  PROGRESS AND BUILDINGS UNDER CONSTRUCTION  December 31, 2004 2005 Reported NIS in thousands  *) 101,932 17,340 *) 84,592 31,876 280,526 57,687 222,839 139,552  Cost of real estate and buildings under construction Less - costs carried to the statement of operations (1)  Sales agreements entered into during the year Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year Customer advances (2)  (1)  Costs carried to the statement of operations: Subcontractors Land Financing Salary Planning and consulting Other  9,166 4,482 70,867 10,094  10,357 3,063 1,506 473 815 1,126 17,340 37,108 9,806 4,372 2,307 2,684 1,410 57,687  (2)  *)  Shown as a deduction from the amount of real estate and buildings under construction and as deferred revenues in payables. Reclassified.  - 16 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 8:-  FIXED ASSETS a. Composition:  Real estate and buildings for rent  Furniture and equipment for rent (1) (2)  Vehicles Total  Reported NIS in thousands  Cost: Balance at January 1, 2005 Additions during the year Foreign currency translation adjustments for autonomous entities Additions for newly consolidated company Disposals during the year Disposals for deconsolidation Balance at December 31, 2005 Accumulated depreciation: Balance at January 1, 2005 Additions during the year Foreign currency translation adjustments for autonomous entities Additions for newly consolidated company Disposals during the year Disposals for deconsolidation Balance at December 31, 2005 Depreciated cost at December 31, 2005 Depreciated cost at December 31, 2004  *) (1) (2) Reclassified. Including computers and peripheral equipment. Including for internal use.  268,518 14,201 (14,295) 12,491 (60) (170,069) 110,786 4,652 542 (168) 653 (42) (112) 5,525 636 135 (21) (189) 561 *) 273,806 14,878 (14,484) 13,144 (291) (170,181) 116,872  15,778 3,519 (1,114) 501 (60) (15,065) 3,559 107,227 252,740 1,008 357 (72) 192 (23) (60) 1,402 4,123 3,644 269 142 (16) (113) 282 279 367 17,055 4,018 (1,202) 693 (196) (15,125) 5,243 111,629 256,751  b.  Cost of fixed assets, including capitalization of accrued expenses, is as follows: December 31, 2004 2005 Reported NIS in thousands  Professional consulting and accompaniment of projects Financial expenses Total capitalization of accrued expenses  2,798 2,112 4,910 2,368 2,512 4,880  - 17 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 9:OTHER ASSETS AND DEFERRED CHARGES  December 31, 2004 2005 Reported NIS in thousands  Expenses relating to the issuance of convertible debentures and to obtaining loans: Original amount Less - accumulated amortization  Deferred tax  12,823 6,760 6,063 1,533 7,596 18,798 10,043 8,755 1,270 10,025  - 18 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 10:- CREDIT FROM BANKS AND OTHERS  In or linked to foreign currency  December 31, 2004 Linked to the Israeli CPI Unlinked  Total  In or linked to foreign currency  December 31, 2005 Linked to the Israeli CPI Unlinked  Total  Reported NIS in thousands  17,378 17,378 31,260 17,849 49,109 Current maturities of long-term loans Current maturities of debentures 17,378 17,378 1,480 1,480 31,260 19,329 50,589  - 19 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 11:- OTHER ACCOUNTS PAYABLE AND TRADE PAYABLES  December 31, 2004 2005 Reported NIS in thousands  10,578 1,656 20,896 7,803 5,523 392 1,905 48,753 21,552 9,844 2,357 2,636 11,465 873 1,614 50,341 Open accounts and notes payable (1) Deferred revenues (2) Government authorities (3) Related parties (4) Accrued expenses Employees Other  (1)  (2)  (3)  (4)  Mainly open balances with contractors in residential complexes in Poland, Riga and Czech. The debts are financed by working capital and/or loans from banks. The balance as of December 31, 2005 includes an amount of approximately NIS 8.7 million in respect of advances from buyers of residential complexes in Poland and Latvia which are not considered as sales and yet not recognized as revenues. The balance as of December 31, 2004, includes net liabilities of approximately NIS 19 million for payment of tax to the tax authorities in Slovakia which was settled in 2005. The balance as of December 31, 2005, includes an amount of NIS 1,531 thousand for annual bonus grants to the CEO of the Company and B.S.R. engineering and NIS 1,105 thousand for annual management fees to B.S.R. Engineering. The balance as of December 31, 2004 was repaid during 2005.  - 20 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 12:- DEBENTURES a. Convertible debentures:  December 31, 2004 2005 Reported NIS in thousands  18,871 10,403 13,641 82,054 124,969 124,969 10,736 1,480 89,246 101,462 19,329 82,133  Convertible debentures (series E) Convertible debentures (series B) Convertible debentures (series F) Convertible debentures (series G)  Less - current maturities  b. Debentures:  December 31, 2004 2005 Reported NIS in thousands - 100,000  Convertible debentures (series H)  c.  The redemption dates of debentures and convertible debentures subsequent to the balance sheet date are as follows: December 31, 2005 Reported NIS in thousands  First year (current maturities) Second year Third year Fourth year Fifth year Sixth year and thereafter  19,329 28,585 37,849 37,849 37,849 40,000 201,462  - 21 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 13:- LONG-TERM LOANS a. Composition:  From banks From others  Weighted interest rate % 5 - 5.5 6  2004 Total  Dollar Euro  Less - current maturities  132,957 56,166 189,123 17,378 171,745 11,101 4,213 15,314 820 14,494 104,618 20,898 125,516 25,888 99,628  December 31, 2005 Polish Zloty Reported NIS in thousands 26,562 730 27,292 2,925 24,367  Czech Corona Hungarian Forint  Total  16,265 1,329 17,594 1,627 15,967 27,306 27,306 27,306 185,852 27,170 213,022 31,260 181,762  b.  The maturity dates subsequent to the balance sheet date are as follows: December 31, 2005 Reported NIS in thousands  First year (current maturities) Second year Third year Fourth year Fifth year Sixth year and thereafter  31,260 56,977 38,607 16,265 8,000 61,913 181,762 213,022  c. The subsidiaries liabilities to banks are non-recourse type loans.  - 22 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 14:- DEPOSITS FROM TENANTS  Czech Corona  2004 Euro  December 31, Polish Total Zloty Reported NIS in thousands 2,897 131  2005 Euro  Total  Deposits from tenants 1,058 1,839 410 541  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of operations:  Year ended December 31,  2003 Adjusted 5,253 (2,058) 1,052 4,247 2004 NIS in thousands Reported 26,873 690 848 28,411  2005  Current taxes Deferred taxes Taxes in respect of previous years  2,226 637 (1,562) 1,301  NOTE 16:- SHARE CAPITAL a. Composition of share capital:  2004  December 31, Authorized  2005  December 31, Issued and outstanding 2004  2005  Number of shares  Ordinary shares of NIS 0.01 par value each  5,000,000,000 5,000,000,000 9,589,039 11,088,371  b.  The Ordinary shares are traded on the Tel Aviv Stock Exchange. Stock options: Stock options issued by the Company are as follows: 2004  December 31, Number of options  2005  2,322,500 250,000 800,000 650,000 4,022,500 1,576,914 176,025 800,000 250,000 265,000 3,067,939 Stock options (series 2) - listed for trade Stock options (series 3) Stock options (series 4) - listed for trade Stock options 11/04 Stock options to employees 11/05  - 23 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF OPERATIONS ITEMS Year ended December 31,  2003 Adjusted 2004 NIS in thousands 2005  Reported  a.  Revenues from lease, sales, construction of buildings and apartments and services: Lease Sale of apartments for dwelling Sale of building and sold companies Services provided  40,256 15,924 6,049 891 63,120 39,354 22,710 241,734 1,739 305,537 25,201 68,685 82,260 1,633 177,779  b.  Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Depreciation and amortization Maintenance and repairs Building of apartments for dwelling Cost of building and sold companies Other expenses  7,129 1,955 14,740 (175) 1,367 25,016 7,789 2,012 17,340 162,742 4,007 193,890 5,147 2,179 57,687 53,724 2,886 121,623  c.  General and administrative expenses: Salaries and payroll accruals Maintenance and office expenses Consulting and management expenses Annual bonus grants to related parties (1) Other  *)  5,068 1,939 4,619 37  *) 2,838 14,501  5,175 1,812 5,319 7,013 3,826 23,145 5,485 2,256 5,812 1,531 2,767 17,851  d.  Financial expenses, net (2): Financial expenses in respect of short-term credit and other, net Financial expenses in respect of debentures, convertible debentures and long-term loans, net  7,597 1,710 2,629  15,583 23,180 6,192 7,902 14,612 17,241  *) (1) (2) Reclassified. Annual bonus grants to the Company \'s CEO and controlling shareholders. Net of capitalized financial expenses.  - 24 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 18:- NET EARNINGS (LOSS) PER NIS 1 PAR VALUE OF SHARES Details pertaining to the number of shares and income (loss) used in the computation of earnings (loss) per share: Year ended December 31,  2003 number of Weighted shares In  thousands  Loss Adjusted NIS in thousands  2004 number of Weighted shares In  thousands  Net income Reported NIS in thousands  2005 number of Weighted shares In  thousands  Net income Reported NIS in thousands  Number of shares and net income (loss), according to the statement of operations Effect of convertible securities whose conversion during the year is probable Number of shares and basic net income (loss) Effect of convertible securities whose conversion is not probable and whose effect is dilutive Number of shares and diluted net income (loss)  5,551 (3,055) 6,625 51,768 10,352 20,080  312 239 2,322 1,709 1,577 1,159  5,863 (2,816) 8,947 53,477 11,929 21,239  7,008 6,973 1,248 151  5,863 (2,816) 15,955 60,450 13,177 21,390  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\05 \\EC12-short.DOC  - 25 -   ","null","null","");arrFiles[25]=new Array("about/FinancialReport1206.doc","FinancialReport1206.doc","  B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2006   INDEX PageAuditors \' Letter2Consolidated Balance Sheets3 - 4Consolidated Statements of Income5Statements of Changes in Shareholders \' Equity6 - 8Consolidated Statements of Cash Flows 9 - 12Notes to Consolidated Financial Statements13 - 24  - - - - - - - - - - - - - - - - * Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel * Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs, We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2006 and 2005, and the related consolidated statements of income, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2006. Based on our audits, in our report dated March 21, 2007, we expressed an unqualified opinion on those statements. The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board. The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.   Tel-Aviv, IsraelKOST FORER GABBAY & KASIERERMarch 21, 2007A Member of Ernst & Young Global CONSOLIDATED BALANCE SHEETS  Convenience translation (Note 1)December 31,December 31,200520062006NoteReported NISEuro(In thousands)ASSETSCURRENT ASSETS:Cash and cash equivalents2189,201187,52433,701Short-term deposits 1,3476,6671,198Trade receivables39,52419,2263,455Other accounts receivable 412,82028,1885,066Receivable for sale of previously consolidated companies4a33,27644580Inventories of contracts in progress and buildings under construction757,860118,74821,341304,028360,79864,841INVENTORIES OF REAL ESTATE7164,979249,05744,760LONG-TERM INVESTMENTS AND LOANS: Loans 522,28341,2147,407Deposits 1,829--Investments in affiliates 633,062125,94422,63457,174167,15830,041FIXED ASSETS:8Cost116,87262,29111,196Less - accumulated depreciation5,2433,186573111,62959,10510,623OTHER ASSETS AND DEFERRED CHARGES, NET910,0252,517452647,835838,635150,717 The accompanying notes are an integral part of the consolidated financial statements.  March 21, 2007Date of approval of theKalman SofinNahshon KivitiAssaf Razfinancial statementsChairman of the BoardCEO and DirectorCFO CONSOLIDATED BALANCE SHEETS  Convenience translation (Note 1)December 31,December 31,200520062006NoteReported NISEuro(In thousands) LIABILITIES AND SHAREHOLDERS \' EQUITYCURRENT LIABILITIES:Credit from banks and others1050,589128,36523,069Trade payables24,45923,9114,297Other accounts payable1125,88245,9398,256100,930198,21535,622LONG-TERM LIABILITIES:Convertible debentures1282,1331,406253Debentures12100,000145,45526,141Loans13181,762185,41233,322Deposits from tenants 14541--Accrued severance pay9415428Deferred taxes5,2058,9811,614369,735341,40861,358MINORITY INTEREST 6932,667479CONTINGENT LIABILITIES, COMMITMENTS AND CHARGESSHAREHOLDERS \' EQUITY16176,477296,34553,258647,835838,635150,717 March 21, 2007Date of approval of theKalman SofinNahshon KivitiAssaf Razfinancial statementsChairman of the BoardCEO and DirectorCFO The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF INCOME  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2004200520062006NoteReported NISEuro(In thousands, except per share amounts)Revenues from lease, sales, construction of buildings and apartments and services 17a305,537177,779198,37135,650Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services17b193,890121,623126,74022,777Gross profit111,64756,15671,63112,873General and administrative expenses17c23,14517,87221,6173,885Operating income88,50238,28450,0148,988Financial expenses, net17d7,90217,2415,5811,003Other income (expenses)17e5487(4,201)(755)Income before taxes on income80,65421,13040,2327,230Taxes on income1528,4111,3017,5181,351Income after taxes on income52,24319,82932,7145,879Equity in losses of affiliates--(529)(95)Minority interest in losses (earnings) of subsidiaries, net(475)23024043Net income 51,76820,05932,4255,827Net earnings per share:18Basic net earnings 8.231.802.440.43Diluted net earnings 4.311.541.830.33   The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY Share capitalShare premiumBeneficial conversion feature in convertible debenturesReceipts  on account of stock optionsCapital surplus, share-based paymentForeign  currency translation adjustments for autonomous entitiesRetained earnings (deficit)Less - shares held by the Company and by subsidiaryLess - loans to employees  and former employees  for acquisition of Company shares (4)TotalReported NIS(In thousands)Balance at January 1, 200422,673107,035  -3,092-20,525(8,665)  (50,924)(3,967)89,769Exercise of stock options into shares (1)7439,329-(2,066)---1,147-9,153Conversion of convertible debentures (1) (2)-400-----3,377-3,777Foreign currency translation adjustments for autonomous entities (5)-----18,601---18,601Public issuance of stock options (3) (6)---2,224-----2,224Sale of Company shares held by the Company and by subsidiary-2,366-----358-2,724Interest accrued on loans to employees-27------(27)-Abandonment of loans to employees for acquisition of Company shares -(3,994)------3,994-Dividend paid------(22,300)--(22,300)Capital split and reduction (7)(23,182)23,182--------Net income------51,768--51,768Balance at December 31, 2004234138,345  -3,250-39,12620,803  (46,042)-155,716  (1) See Note 16.  (2) See Note 12.  (3) Net of issuance expenses. (4) Net of stock options held by subsidiary.  (5) Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. (6) See Note 16b. (7) See Note 16a. The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capitalShare premiumBeneficial conversion feature in convertible debenturesReceipts  on account of stock optionsCapital surplus, share-based paymentForeign  currency translation adjustments for autonomous entitiesRetained earningsLess - shares held by the Company and by subsidiaryTotalReported NIS(In thousands)Balance at December 31, 2004234138,345 -3,250-39,12620,803(46,042)155,716Cost of share-based payment ----21---21Exercise of stock options into shares (1)75,581-(499)---1,0196,108Conversion of convertible debentures (2)-(6,694)-----37,25030,556Purchase of Company shares by the Company-------(665)(665)Foreign currency translation adjustments for autonomous entities -----(18,718)--(18,718)Dividend paid------(16,600)-(16,600)Net income------20,059-20,059Balance at December 31, 2005241137,232 -2,7512120,40824,262(8,438)176,477Cost of share-based payment ----594---594Split of beneficial conversion feature in convertible debentures, net of issuance expenses--273-----273Exercise of stock options into shares (1)1910,924-(1,084)(297)--1,17910,741Conversion of convertible debentures (2)5288,133(267)----6,59494,512Foreign currency translation adjustments for autonomous entities -----4,323--4,323Dividend paid(23,000)-(23,000)Net income------32,425-32,425Balance at December 31, 2006312236,28961,66731824,73133,687(665)296,345 (1) See Note 16.  (2) See Note 12. The accompanying notes are an integral part of the consolidated financial statements.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capitalShare premiumBeneficial conversion feature in convertible debenturesReceipts  on account of stock optionsCapital surplus, share-based paymentForeign  currency translation adjustments for autonomous entitiesRetained earningsLess - shares held by the Company and by subsidiaryTotalConvenience translation into Euro (Note 1)(In thousands)Balance at January 1, 20064424,663 -49533,6684,360(1,517)31,716Cost of share-based payment ----107---107Split of beneficial conversion feature in convertible debentures, net of issuance expenses--49-----49Exercise of stock options into shares (1)31,963-(195)(53)--2121,930Conversion of convertible debentures (2)915,839(48)----1,18516,985Foreign currency translation adjustments for autonomous entities -----777--777Dividend paid(4,133)-(4,133)Net income------5,827-5,827Balance at December 31, 20065642,4651300574,4456,054(120)53,258  (1) See Note 16.  (2) See Note 12. The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2004200520062006Reported NISEuro(In thousands) Cash flows from operating activities:Net income51,76820,05932,4255,827Adjustments to reconcile net income to net cash provided by operating activities (a)(44,699)10(9,888)(22,100)(3,972)Net cash provided by operating activities7,06910,17110,3251,855Cash flows from investing activities:Proceeds from realization of investment in jointly controlled entities that were deconsolidated (b)42,21040,516111,69620,074Tax payment for investment that was sold last year-(15,580)--Acquisition of fully and proportionately consolidated companies (c)(3,034)(28,690)(58,371)(10,490)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d)-23,969--Debt collection for realization of investment in subsidiary-58,55231,8095,717Grant of loans and deposit of long-term deposits(20,721)(18,120)(41,788)(7,510)Collection of loans and withdrawal of long-term deposits11,07451,1628,4521,519Investment in affiliates(4,986)(15,243)(79,247)(14,242)Investment in fixed assets and real estate (136,918)(76,081)(234,772)(42,193)Proceeds from sale of fixed assets8773--Withdrawal (deposit) of short-term deposits, net31,641(218)(4,184)(752)Net cash provided by (used in) investing activities(80,647)20,340(266,405)(47,877)  The accompanying notes are an integral part of the consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2004200520062006Reported NISEuro(In thousands) Cash flows from financing activities:Issuance of stock options into convertible debentures1,325---Issuance of stock options into shares, net2,224---Purchase of Company shares by the Company-(665)--Exercise of stock options into shares9,5686,1089,5841,722Issuance expenses in subsidiary--(4,201)(755)Conversion of stock options into convertible debentures and their sale by subsidiary, net27,078---Dividend paid(22,300)(16,600)(23,000)(4,133)Redemption of debentures(1,257)-(2,458)(442)Issuance of debentures and convertible debentures (net of issuance expenses)52,04494,66151,6379,280Receipt of long-term loans and other liabilities88,510114,545278,57950,065Repayment of long-term loans and other liabilities (39,845)(73,450)(56,141)(10,089)Receipt (refund) of deposits from tenants, net2,967111(554)(100)Sale of Company shares held by the Company and by subsidiary, net2,724---Short-term credit from banks and other, net(39,081)---Net cash provided by financing activities83,957124,710253,44645,548Effect of exchange rate differences from cash balances of autonomous entities1,925(1,923)957172Increase (decrease) in cash and cash equivalents12,304153,298(1,677)(302)Cash and cash equivalents at beginning of year23,59935,903189,20134,003Cash and cash equivalents at end of year35,903189,201187,52433,701  The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2004200520062006Reported NISEuro(In thousands) (a)Adjustments to reconcile net income to net cash provided by operating activities:Income and expenses not involving cash flows:Minority interest in earnings (losses) of subsidiaries, net475(230)(240)(43)Equity in losses of investees--52995Depreciation and amortization11,537  5,9351,862335Gain from sale of real estate, deconsolidated companies and realization of capital reserves(77,878)(25,241)(48,811)(8,772)Capital gain from sale of fixed assets, net(11)(10)--Cost of share-based payment-21594107Increase in accrued severance pay19296011Revaluation of loans granted and short-term deposits(4,890)(1,495)(1,031)(185)Accrued interest and revaluation (erosion) of debentures and long-term loans, net(5,092)10,810(3,098)(557)Deferred taxes, net690637(941)(169)(75,150)(9,544)(51,076)(9,178)Changes in asset and liability items:Increase in trade receivables (including long-term)(6,361)(6,599)(7,530)(1,353)Increase in other accounts receivable(3,085)(5,318)(6,158)(1,107)Decrease (increase) in inventories of contracts in progress and buildings under construction (3,338)  9,8433,252584Increase in other accounts payable and trade payables43,2351,73039,4127,08230,451(344)28,9765,206(44,699)(9,888)(22,100)(3,972)   The accompanying notes are an integral part of the consolidated financial statements.  CONSOLIDATED STATEMENTS OF CASH FLOWS  Conveniencetranslation(Note 1)Year ended December 31,Year ended December 31,2004200520062006Reported NISEuro(In thousands)(b)Proceeds from realization of investment in jointly controlled entities that were deconsolidated:Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents)(10,616)1,676(1,239)(222)Fixed assets and real estate, net (net of payables for fixed assets)370,598137,893208,77337,520Long-term liabilities(322,551)(75,492)(142,700)(25,646)Long-term loans granted(13,357)(18,360)11,0591,987Minority interest(981)-1,740313Investment in affiliate(5,493)-(13,468)(2,420)Deposits from tenants -(2,302)--Deferred taxes(880)  (554)(1,280)(230)Receivables for realization of investments in subsidiaries(54,195)(21,336)--Capital gain from sale of investments in subsidiaries and sale of activity, net79,68518,99148,8118,77242,21040,516111,69620,074(c)Acquisition of fully and proportionately consolidated companies:Working capital (excluding cash and cash equivalents)4303,8364,958891Fixed assets and real estate, net(16,584)(82,289)(83,576)(15,020)Long-term loans-1,425--Investments in affiliates(38)-1,563281Deferred charges(470)---Minority interest--(153)(27)Long-term liabilities12,54847,97514,0412,523Deferred taxes1,0803634,796862(3,034)(28,690)(58,371)(10,490)(d)Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (see Note 18):Working capital (excluding cash and cash equivalents)-17,842--Investment in affiliate-(9,551)--Real estate and fixed assets-5,402--Long-term liabilities-6,686--Capital gain -3,590---23,969--(e)Significant non-cash activities: Sale of activity54,195---Conversion of convertible debentures3,77730,55694,51216,985Purchase of fixed assets and real estate by credit6,80319,1103,795682Exercise of stock options into shares --1,157208 (1) In 2006 and 2004, includes sale of activity and assets. The accompanying notes are an integral part of the consolidated financial statements.  NOTE 1:- CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2006 and for the year then ended have been translated into Euro using the representative exchange rate as of that date (€ 1 = NIS 5.5643). The translation was made solely for the convenience of the reader.  The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements. NOTE 2:- CASH AND CASH EQUIVALENTS December 31,20052006Reported NIS in thousandsIn Euro154,263137,755In NIS14,32011,942In U.S. dollars9,10743In Hungarian Forint2,40216,018In Polish Zloty8,14318,389Other (mainly Czech Corona)9663,377189,201187,524  NOTE 3:- TRADE RECEIVABLES  Open accounts and accrued income, net9,52419,226  NOTE 4:- OTHER ACCOUNTS RECEIVABLE  December 31,20052006Reported NIS in thousandsEmployees (1)1781,157Government authorities (2)7,6447,550Deferred taxes574572Prepaid expenses1,0996,704Loans (3)-6,871Other3,3255,33412,82028,188 (1) As of December 31, 2006, includes a debt which was paid to the Company in January 2, 2007 and as of December 31, 2005, included a loan linked to the Israeli CPI with annual interest at the rate of 4% which had been repaid in the second quarter of 2006. (2) As of December 31, 2006, the balance - consolidated - includes claims for VAT refunds in Latvian, Bulgarian and Spanish companies. As of December 31, 2005, the balance includes claims for VAT refunds in Latvian, Czech and Polish companies. (3) Includes a loan of approximately NIS 4.6 million to an Hungarian company the holdings in which were sold in June 2006 and approximately NIS 0.7 million in respect of a loan that the Spanish company gave to the Company \'s partner in the Spanish company.  NOTE 4a:- RECEIVABLE FOR SALE OF PREVIOUSLY CONSOLIDATED COMPANIES  As of December 31, 2006, the balance includes a receivable in Euro of approximately NIS 445 thousand as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated. The amount is presented net of allowance for doubtful accounts of approximately NIS 1 million. As of December 31, 2005, the balance includes a receivable in Euro of approximately NIS 12 million as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated and a receivable of approximately NIS 21 million as a result of realization of investment in an Hungarian company which was sold on December 29, 2005 and deconsolidated. The payment was received during February 2006.  NOTE 5:- LONG-TERM LOANS  December 31, 2005Linked to  dollar + Libor+ 2.5%-5.5%Linked to Euro+ Eurobor+ 3%-5%TotalReported NIS in thousandsLoans to jointly controlled entities (1)8,38813,89522,283 December 31, 2006Linked to  dollar + Libor+ 2.5%-5.5%Linked to Euro+ Eurobor+ 3%-5%TotalReported NIS in thousandsLoans to jointly controlled entities (1)3,39837,81641,214 (1) The loans are without repayment dates, however not before January 1, 2007.  NOTE 6:- INVESTMENTS IN AFFILIATES  Equity in the financial statements items of jointly controlled entities: December 31,20052006Reported NIS in thousandsCurrent assets166,923254,405Non-current assets42,75113,989Current liabilities62,248104,086Long-term liabilities 108,23984,004 Year ended December 31, 200420052006Reported NIS in thousandsRevenues42,096117,032115,631Expenses23,041103,263105,655 NOTE 7:- INVENTORIES OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN PROGRESS AND BUILDINGS UNDER CONSTRUCTION  December 31,20052006Reported NIS in thousandsCost of real estate and buildings under construction280,526467,974Less - costs carried to the statement of income (1)57,687100,169222,839367,805Sales agreements entered into during the year139,552278,020Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year70,867158,761Customer advances (2)10,09444,896 (1) Costs carried to the statement of income: Subcontractors 37,10867,113Land9,80614,524Financing4,3726,527Salary2,3073,607Planning and consulting2,6844,107Other1,4104,29157,687100,169 (2) Shown as a deduction from the amount of real estate and buildings under construction and as deferred revenues in payables.  NOTE 8:- FIXED ASSETS a. Composition: Real estate and buildings  for rentFurniture and equipment for rent (1) (2)VehiclesTotalReported NIS in thousands Cost:Balance at January 1, 2006110,7865,525561116,872Additions during the year22,6141,12435124,089Foreign currency translation adjustments for autonomous entities 1,579 41101,630Disposals during the year(16,466)(68)-(16,534)Disposals for deconsolidation(63,159)(607)-(63,766)Balance at December 31, 200655,3546,01592262,291Accumulated depreciation:Balance at January 1, 20063,5591,4022825,243Additions during the year1,323442971,862Foreign currency translation adjustments for autonomous entities 91178116Disposals during the year(2,141)(144)-(2,285)Disposals for deconsolidation(1,697)(53)-(1,750)Balance at December 31, 20061,1351,6643873,186Depreciated cost at December 31, 200654,2194,35153559,105Depreciated cost at December 31, 2005 107,2274,123279111,629 (1) Including computers and peripheral equipment. (2) Including for internal use. b. Cost of fixed assets, including capitalization of accrued expenses in Israel, is as follows: December 31,20052006Reported NIS in thousandsProfessional consulting and accompaniment of projects - related parties2,368929Financial expenses2,5121,090Total capitalization of accrued expenses 4,8802,019  NOTE 9:- OTHER ASSETS AND DEFERRED CHARGES  December 31,20052006Reported NIS in thousandsExpenses relating to the issuance of convertible debentures and to obtaining loans: Original amount18,798-Less - accumulated amortization10,043-8,755-Deferred tax1,2702,51710,0252,517  NOTE 10:- CREDIT FROM BANKS AND OTHERS December 31, 2005December 31, 2006In orIn orlinked to Linked tolinked to foreignthe IsraeliforeigncurrencyCPITotalcurrencyTotalReported NIS in thousandsCurrent maturities of long-term loans 31,260-31,260127,887127,887Current maturities of debentures (1)17,8491,48019,32947847849,1091,48050,589128,365128,365 (1) In 2006, includes NIS 478 thousand in respect of debentures (series G), linked to the U.S. dollar (in 2005 - includes approximately NIS 17,849 thousand in respect of debentures (series G)).  NOTE 11:- OTHER ACCOUNTS PAYABLE December 31,20052006Reported NIS in thousandsDeferred revenues (1)9,84419,356Government authorities (2)2,3578,732Related parties (3)2,6363,249Accrued expenses and open balances8,5589,505Employees873623Other (4)1,6144,47425,88245,939 (1) The balance as of December 31, 2006 includes an amount of approximately NIS 16.5 million in respect of advances from buyers of residential complexes in Poland and Latvia which are not considered as sales and yet not recognized as revenues (as of December 31, 2005 - approximately - NIS 8.7 million). (2) The balance as of December 31, 2006, includes mainly provision for tax.  (3) The balance as of December 31, 2006, includes an amount of NIS 1,568 thousand for annual bonus grant to B.S.R. Engineering and NIS 1,681 thousand for management fees to B.S.R. Engineering. The balance as of December 31, 2005 was repaid during 2006. (4) The balance as of December 31, 2006, includes an amount of approximately NIS 3.8 million in respect of commitment to invest in real estate in Romania (which has been paid subsequent to the balance sheet date).  NOTE 12:- DEBENTURES  a. Convertible debentures:  December 31,20052006Reported NIS in thousandsConvertible debentures (series B)10,736-Convertible debentures (series F)1,480-Convertible debentures (series G)89,2461,884101,4621,884Less - current maturities19,32947882,1331,406 b. Debentures:  December 31,20052006Reported NIS in thousandsConvertible debentures (series H)100,000145,455 c. The redemption dates of debentures and convertible debentures subsequent to the balance sheet date are as follows: December 31, 2006Reported NIS in thousandsFirst year (current maturities)478Second year29,581Third year29,581Fourth year29,581Fifth year29,059Sixth year and thereafter29,059147,339  NOTE 13:- LONG-TERM LOANS a. Composition: December 31,Weighted20052006interest rateTotalEuroPolish  ZlotyCzech CoronaSlovakian CoronaTotal%Reported NIS in thousandsFrom banksEurobor + 1.7 - 4.15185,852134,38435,06448,05430,760248,262From othersEurobor + 2.5 - 427,17061,3276663,044-65,037213,022195,71135,73051,09830,760313,299Less - current maturities 31,26071,0318,80248,054-127,887181,762124,68026,9283,04430,760185,412 b. The maturity dates subsequent to the balance sheet date are as follows: December 31, 2006Reported NIS in thousandsFirst year (current maturities)127,887Second year75,301Third year54,836Fourth year34,507Fifth year8,270Sixth year and thereafter12,498185,412313,299 c. The subsidiaries liabilities to banks are non-recourse type loans.   NOTE 14:- DEPOSITS FROM TENANTS December 31, 20052006Polish  ZlotyEuroTotalPolish  ZlotyEuroTotalReported NIS in thousandsDeposits from tenants 131410541---  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of income: Year ended December 31, 200420052006Reported NIS in thousandsCurrent taxes26,8732,2268,459Deferred taxes690637(941)Taxes in respect of previous years 848(1,562)-28,4111,3017,518  NOTE 16:- SHARE CAPITAL a. Composition of share capital: December 31, December 31, 2005200620052006AuthorizedIssued and outstandingNumber of sharesOrdinary shares of NIS 0.01 par value each5,000,000,0005,000,000,000 11,088,37118,220,431 The Ordinary shares are traded on the Tel Aviv Stock Exchange. b. Stock options:  Stock options issued by the Company and not exercised as of the balance sheet date are as follows:  December 31,20052006Number of optionsStock options (series 2) - listed for trade1,576,914-Stock options (series 3)176,025-Stock options (series 4) - listed for trade800,000800,000Stock options 11/04250,000-Stock options to employees 11/05265,000174,9003,067,939974,900 NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME ITEMS  Year ended December 31, 200420052006Reported NIS in thousandsa.Revenues from lease, sales, construction of buildings and apartments and services:Lease39,35425,2016,682Sale of apartments for dwelling22,71068,685120,879Sale of building and sold companies241,73482,26068,241Services provided1,7391,6332,569305,537177,779198,371b.Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services:Depreciation and amortization7,7895,1471,430Maintenance and repairs2,0122,1791,054Building of apartments for dwelling17,34057,687100,169Cost of building and sold companies162,74253,72420,986Other expenses4,0072,8863,101 193,890121,623126,740c.General and administrative expenses: Salaries and payroll accruals5,1755,5066,030Maintenance and office expenses1,8122,2562,394Consulting and management expenses5,3195,8126,066Annual bonus grants to related parties (1)7,0131,5311,568Expenses relating to VAT on input--1,731Other3,8262,7673,82823,14517,87221,617d.Financial expenses, net (2):Financial expenses (income) in respect of short-term credit and other, net1,7102,629(2,195)Financial expenses in respect of debentures, convertible debentures and long-term loans, net6,19214,6127,7767,90217,2415,581  (1) Annual bonus grants to the Company \'s controlling shareholders and former CEO. (2) Net of capitalized financial expenses.   NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME ITEMS (Cont.)  Year ended December 31, 200420052006Reported NIS in thousandse.Other income (expenses):Capital gain5487-Issuance expenses in subsidiary--(4,201)5487(4,201)  NOTE 18:- NET EARNINGS PER SHARE  Details pertaining to the number of shares and income used in the computation of net earnings per share:  Year ended December 31, 200420052006Weighted number of sharesNet  incomeWeighted number of sharesNet  incomeWeighted number of sharesNet  incomeIn thousandsReported NIS in thousandsIn thousandsReported NIS in thousandsIn thousandsReported NIS in thousandsWeighted average number of Ordinary shares and net income, according to the statement of income8,81451,7689,27420,05910,43132,425Effect of exercise of options481-417-636-Effect of conversion of convertible debentures159-2,111-2,221-Treasury shares(3,164)-(659)-(14)-Number of shares and basic income6,29051,76811,14320,05913,27432,425Effect of options1,259-1,363-1,202-Convertible debentures5,7455,5161,2851,1643,8741,083Number of shares and diluted net income 13,29457,28413,79121,22318,35033,508  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC12-SHORT.DOC 1   1 -  24  -  B.S.R EUROPE LTD. B.S.R EUROPE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  ","null","null","");arrFiles[26]=new Array("about/FinancialReport1206.pdf","Microsoft Word - FinancialReport1206.doc","B.S.R EUROPE LTD.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  AS OF DECEMBER 31, 2006  INDEX  Auditors \' Letter Consolidated Balance Sheets Consolidated Statements of Income Statements of Changes in Shareholders \' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements  Page 2 3 - 4 5 6 - 8 9 - 12 13 - 24  - - - - - - - - - - - - - - - -   Kost Forer Gabbay & Kasierer 3 Aminadav St. Tel-Aviv 67067, Israel Phone: 972-3-6232525 Fax: 972-3-5622555  The Board of Directors B.S.R Europe Ltd.  Dear Sirs,  We have audited, in accordance with generally accepted auditing standards in Israel, the consolidated balance sheets of B.S.R Europe Ltd. ( \"the Company \") and subsidiaries as of December 31, 2006 and 2005, and the related consolidated statements of income, changes in shareholders \' equity and cash flows for each of the three years in the period ended December 31, 2006. Based on our audits, in our report dated March 21, 2007, we expressed an unqualified opinion on those statements.  The financial statements are presented in reported amounts, in conformity with Accounting Standards of the Israel Accounting Standards Board.  The accompanying financial statements are condensed financial statements and do not include disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user \'s conclusions about the financial position, results of operations and cash flows of the Company and subsidiaries. Accordingly, the accompanying financial statements are not designed for those who are not informed about such matters.  Tel-Aviv, Israel March 21, 2007 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global  - 2 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 2006 Reported NIS (In thousands)  Note  Convenience translation (Note 1) December 31, 2006 Euro  ASSETS CURRENT ASSETS: Cash and cash equivalents Short-term deposits Trade receivables Other accounts receivable Receivable for sale of previously consolidated companies Inventories of contracts in progress and buildings under construction  2 3 4 4a 7  INVENTORIES OF REAL ESTATE LONG-TERM INVESTMENTS AND LOANS: Loans Deposits Investments in affiliates  7  189,201 1,347 9,524 12,820 33,276 57,860 304,028 164,979 187,524 6,667 19,226 28,188 445 118,748 360,798 249,057 33,701 1,198 3,455 5,066 80 21,341 64,841 44,760  5 6  22,283 1,829 33,062 57,174 41,214 125,944 167,158 7,407 22,634 30,041  FIXED ASSETS: Cost Less - accumulated depreciation 8  116,872 5,243 111,629 62,291 3,186 59,105 11,196 573 10,623  OTHER ASSETS AND DEFERRED CHARGES, NET  9  10,025 647,835 2,517 838,635 452 150,717  The accompanying notes are an integral part of the consolidated financial statements.  March 21, 2007 Date of approval of the financial statements  Kalman Sofin Chairman of the Board Nahshon Kiviti CEO and Director Assaf Raz CFO  - 3 -   B.S.R EUROPE LTD.  CONSOLIDATED BALANCE SHEETS  December 31, 2005 2006 Reported NIS (In thousands)  Note  Convenience translation (Note 1) December 31, 2006 Euro  LIABILITIES AND SHAREHOLDERS \' EQUITY CURRENT LIABILITIES: Credit from banks and others Trade payables Other accounts payable  10 11  50,589 24,459 25,882 100,930 128,365 23,911 45,939 198,215 23,069 4,297 8,256 35,622  LONG-TERM LIABILITIES: Convertible debentures Debentures Loans Deposits from tenants Accrued severance pay Deferred taxes  12 12 13 14  MINORITY INTEREST CONTINGENT LIABILITIES, COMMITMENTS AND CHARGES SHAREHOLDERS \' EQUITY  82,133 100,000 181,762 541 94 5,205 369,735 693 1,406 145,455 185,412 154 8,981 341,408 2,667 253 26,141 33,322 28 1,614 61,358 479  16  176,477 647,835 296,345 838,635 53,258 150,717  March 21, 2007 Date of approval of the financial statements  Kalman Sofin Chairman of the Board Nahshon Kiviti CEO and Director Assaf Raz CFO  The accompanying notes are an integral part of the consolidated financial statements.  - 4 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF INCOME  2004  Note  Year ended December 31, 2005 Reported NIS  2006  Convenience translation (Note 1) Year ended December 31, 2006 Euro  (In thousands, except per share amounts)  Revenues from lease, sales, construction of buildings and apartments and services Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services Gross profit General and administrative expenses Operating income Financial expenses, net Other income (expenses) Income before taxes on income Taxes on income Income after taxes on income Equity in losses of affiliates Minority interest in losses (earnings) of subsidiaries, net Net income Net earnings per share: Basic net earnings Diluted net earnings  17a 305,537 177,779 198,371 35,650  17b  17c  17d 17e  15  193,890 111,647 23,145 88,502 7,902 54 80,654 28,411 52,243 (475) 51,768 121,623 56,156 17,872 38,284 17,241 87 21,130 1,301 19,829 230 20,059 126,740 71,631 21,617 50,014 5,581 (4,201) 40,232 7,518 32,714 (529) 240 32,425 22,777 12,873 3,885 8,988 1,003 (755) 7,230 1,351 5,879 (95) 43 5,827  18  8.23 4.31 1.80 1.54 2.44 1.83 0.43 0.33  The accompanying notes are an integral part of the consolidated financial statements.  - 5 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Receipts on account of stock options Capital surplus, share-based payment  Foreign currency translation adjustments for autonomous entities  Retained earnings (deficit)  Less - shares held by the Company and by subsidiary  Less - loans to employees and former employees for acquisition of Company shares (4)  Total  Reported NIS (In thousands)  20,525 18,601 39,126 Balance at January 1, 2004 Exercise of stock options into shares (1) Conversion of convertible debentures (1) (2) Foreign currency translation adjustments for autonomous entities (5) Public issuance of stock options (3) (6) Sale of Company shares held by the Company and by subsidiary Interest accrued on loans to employees Abandonment of loans to employees for acquisition of Company shares Dividend paid Capital split and reduction (7) Net income Balance at December 31, 2004 22,673 743 (23,182) 234 107,035 9,329 400 2,366 27 (3,994) 23,182 138,345 3,092 (2,066) 2,224 3,250 (8,665) (22,300) 51,768 20,803 (50,924) 1,147 3,377 358 (46,042) (3,967) (27) 3,994 89,769 9,153 3,777 18,601 2,224 2,724 (22,300) 51,768 155,716  (1) (2) (3) (4) (5) (6) (7) See Note 16. See Note 12. Net of issuance expenses. Net of stock options held by subsidiary. Including recognition of capital surplus as a result of sale of investment or repayment of long-term loan granted to investee. See Note 16b. See Note 16a.  The accompanying notes are an integral part of the consolidated financial statements.  - 6 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Receipts on account of stock options  Balance at December 31, 2004 Cost of share-based payment Exercise of stock options into shares (1) Conversion of convertible debentures (2) Purchase of Company shares by the Company Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at December 31, 2005 Cost of share-based payment Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares (1) Conversion of convertible debentures (2) Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at December 31, 2006 234 7 241 19 52 312 138,345 5,581 (6,694) 137,232 10,924 88,133 236,289 273 (267) 6 3,250 (499) 2,751 (1,084) 1,667  Capital surplus, share-based payment Reported NIS (In thousands) 21 21 594 (297) 318  Foreign currency translation adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and by subsidiary  Total  39,126 (18,718) 20,408 4,323 24,731 20,803 (16,600) 20,059 24,262 (23,000) 32,425 33,687 (46,042) 1,019 37,250 (665) (8,438) 1,179 6,594 (665) 155,716 21 6,108 30,556 (665) (18,718) (16,600) 20,059 176,477 594 273 10,741 94,512 4,323 (23,000) 32,425 296,345  (1) (2) See Note 16. See Note 12.  The accompanying notes are an integral part of the consolidated financial statements.  - 7 -   B.S.R EUROPE LTD.  STATEMENTS OF CHANGES IN SHAREHOLDERS \' EQUITY  Share capital Share premium  Beneficial conversion feature in convertible debentures  Receipts on account of stock options Capital surplus, share-based payment  Foreign currency translation adjustments for autonomous entities  Retained earnings  Less - shares held by the Company and by subsidiary  Total  Convenience translation into Euro (Note 1) (In thousands)  495 (195) 300 3 107 (53) 57 3,668 777 4,445 Balance at January 1, 2006 Cost of share-based payment Split of beneficial conversion feature in convertible debentures, net of issuance expenses Exercise of stock options into shares (1) Conversion of convertible debentures (2) Foreign currency translation adjustments for autonomous entities Dividend paid Net income Balance at December 31, 2006 44 3 9 56 24,663 1,963 15,839 42,465 49 (48) 1 4,360 (4,133) 5,827 6,054 (1,517) 212 1,185 (120) 31,716 107 49 1,930 16,985 777 (4,133) 5,827 53,258  (1) (2) See Note 16. See Note 12.  The accompanying notes are an integral part of the consolidated financial statements.  - 8 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2004  Year ended December 31, 2005 Reported NIS  2006 (In thousands)  Convenience translation (Note 1) Year ended December 31, 2006 Euro  Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities (a) Net cash provided by operating activities Cash flows from investing activities: Proceeds from realization of investment in jointly controlled entities that were deconsolidated (b) Tax payment for investment that was sold last year Acquisition of fully and proportionately consolidated companies (c) Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (d) Debt collection for realization of investment in subsidiary Grant of loans and deposit of long-term deposits Collection of loans and withdrawal of long-term deposits Investment in affiliates Investment in fixed assets and real estate Proceeds from sale of fixed assets Withdrawal (deposit) of short-term deposits, net Net cash provided by (used in) investing activities  51,768 (44,699) 7,069 20,059 10(9,888) 10,171 32,425 (22,100) 10,325 5,827 (3,972) 1,855  42,210 (3,034) (20,721) 11,074 (4,986) (136,918) 87 31,641 (80,647) 40,516 (15,580) (28,690) 23,969 58,552 (18,120) 51,162 (15,243) (76,081) 73 (218) 20,340 111,696 (58,371) 31,809 (41,788) 8,452 (79,247) (234,772) (4,184) (266,405) 20,074 (10,490) 5,717 (7,510) 1,519 (14,242) (42,193) (752) (47,877)  The accompanying notes are an integral part of the consolidated financial statements.  - 9 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2004  Year ended December 31, 2005 Reported NIS  2006 (In thousands)  Convenience translation (Note 1) Year ended December 31, 2006 Euro  Cash flows from financing activities: Issuance of stock options into convertible debentures Issuance of stock options into shares, net Purchase of Company shares by the Company Exercise of stock options into shares Issuance expenses in subsidiary Conversion of stock options into convertible debentures and their sale by subsidiary, net Dividend paid Redemption of debentures Issuance of debentures and convertible debentures (net of issuance expenses) Receipt of long-term loans and other liabilities Repayment of long-term loans and other liabilities Receipt (refund) of deposits from tenants, net Sale of Company shares held by the Company and by subsidiary, net Short-term credit from banks and other, net Net cash provided by financing activities Effect of exchange rate differences from cash balances of autonomous entities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year  1,325 2,224 9,568 27,078 (22,300) (1,257) 52,044 88,510 (39,845) 2,967 2,724 (39,081) 83,957 (665) 6,108 (16,600) 94,661 114,545 (73,450) 111 124,710 9,584 (4,201) (23,000) (2,458) 51,637 278,579 (56,141) (554) 253,446 1,722 (755) (4,133) (442) 9,280 50,065 (10,089) (100) 45,548  1,925 12,304 23,599 35,903 (1,923) 153,298 35,903 189,201 957 (1,677) 189,201 187,524 172 (302) 34,003 33,701  The accompanying notes are an integral part of the consolidated financial statements.  - 10 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2004  Year ended December 31, 2005 Reported NIS  2006 (In thousands)  Convenience translation (Note 1) Year ended December 31, 2006 Euro  (a)  Adjustments to reconcile net income to net cash provided by operating activities: Income and expenses not involving cash flows: Minority interest in earnings (losses) of subsidiaries, net Equity in losses of investees Depreciation and amortization Gain from sale of real estate, deconsolidated companies and realization of capital reserves Capital gain from sale of fixed assets, net Cost of share-based payment Increase in accrued severance pay Revaluation of loans granted and short-term deposits Accrued interest and revaluation (erosion) of debentures and long-term loans, net Deferred taxes, net  475 11,537 (77,878) (11) 19 (4,890) (5,092) 690 (75,150) (230) 5,935 (25,241) (10) 21 29 (1,495) 10,810 637 (9,544) (240) 529 1,862 (48,811) 594 60 (1,031) (3,098) (941) (51,076) (43) 95 335 (8,772) 107 11 (185) (557) (169) (9,178)  Changes in asset and liability items: Increase in trade receivables (including long-term) Increase in other accounts receivable Decrease (increase) in inventories of contracts in progress and buildings under construction Increase in other accounts payable and trade payables  (6,361) (3,085) (3,338) 43,235 30,451 (44,699) (6,599) (5,318) 9,843 1,730 (344) (9,888) (7,530) (6,158) 3,252 39,412 28,976 (22,100) (1,353) (1,107) 584 7,082 5,206 (3,972)  The accompanying notes are an integral part of the consolidated financial statements.  - 11 -   B.S.R EUROPE LTD.  CONSOLIDATED STATEMENTS OF CASH FLOWS  2004  Year ended December 31, 2005 Reported NIS  2006 (In thousands)  Convenience translation (Note 1) Year ended December 31, 2006 Euro  (b)  Proceeds from realization of investment in jointly controlled entities that were deconsolidated: Assets and liabilities of the consolidated companies at date of sale: Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net (net of payables for fixed assets) Long-term liabilities Long-term loans granted Minority interest Investment in affiliate Deposits from tenants Deferred taxes Receivables for realization of investments in subsidiaries Capital gain from sale of investments in subsidiaries and sale of activity, net  (10,616) 370,598 (322,551) (13,357) (981) (5,493) (880) (54,195) 79,685 42,210 1,676 137,893 (75,492) (18,360) (2,302) (554) (21,336) 18,991 40,516 (1,239) 208,773 (142,700) 11,059 1,740 (13,468) (1,280) 48,811 111,696 (222) 37,520 (25,646) 1,987 313 (2,420) (230) 8,772 20,074  (c)  Acquisition of fully and proportionately consolidated companies: Working capital (excluding cash and cash equivalents) Fixed assets and real estate, net Long-term loans Investments in affiliates Deferred charges Minority interest Long-term liabilities Deferred taxes  430 (16,584) (38) (470) 12,548 1,080 (3,034) 3,836 (82,289) 1,425 47,975 363 (28,690) 4,958 (83,576) 1,563 (153) 14,041 4,796 (58,371) 891 (15,020) 281 (27) 2,523 862 (10,490)  (d)  Full consolidation of previously consolidated companies by the proportionate method while realizing real estate (see Note 18): Working capital (excluding cash and cash equivalents) Investment in affiliate Real estate and fixed assets Long-term liabilities Capital gain  17,842 (9,551) 5,402 6,686 3,590 23,969 -  (e)  Significant non-cash activities: Sale of activity Conversion of convertible debentures Purchase of fixed assets and real estate by credit Exercise of stock options into shares  54,195 3,777 6,803 30,556 19,110 94,512 3,795 1,157 16,985 682 208  (1) In 2006 and 2004, includes sale of activity and assets.  The accompanying notes are an integral part of the consolidated financial statements.  - 12 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1:-  CONVENIENCE TRANSLATION INTO EURO The financial statements as of December 31, 2006 and for the year then ended have been translated into Euro using the representative exchange rate as of that date ( 1 = NIS 5.5643). The translation was made solely for the convenience of the reader. The amounts presented in these financial statements should not be construed to represent amounts receivable or payable in Euro or convertible into Euro, unless otherwise indicated in these financial statements.  NOTE 2:CASH AND CASH EQUIVALENTS  December 31, 2005 2006 Reported NIS in thousands  154,263 14,320 9,107 2,402 8,143 966 189,201 137,755 11,942 43 16,018 18,389 3,377 187,524 In Euro In NIS In U.S. dollars In Hungarian Forint In Polish Zloty Other (mainly Czech Corona)  NOTE 3:-  TRADE RECEIVABLES Open accounts and accrued income, net  9,524 19,226  - 13 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 4:OTHER ACCOUNTS RECEIVABLE  December 31, 2005 2006 Reported NIS in thousands  178 7,644 574 1,099 3,325 12,820 1,157 7,550 572 6,704 6,871 5,334 28,188 Employees (1) Government authorities (2) Deferred taxes Prepaid expenses Loans (3) Other  (1)  (2)  (3)  As of December 31, 2006, includes a debt which was paid to the Company in January 2, 2007 and as of December 31, 2005, included a loan linked to the Israeli CPI with annual interest at the rate of 4% which had been repaid in the second quarter of 2006. As of December 31, 2006, the balance - consolidated - includes claims for VAT refunds in Latvian, Bulgarian and Spanish companies. As of December 31, 2005, the balance includes claims for VAT refunds in Latvian, Czech and Polish companies. Includes a loan of approximately NIS 4.6 million to an Hungarian company the holdings in which were sold in June 2006 and approximately NIS 0.7 million in respect of a loan that the Spanish company gave to the Company \'s partner in the Spanish company.  NOTE 4a:- RECEIVABLE FOR SALE OF PREVIOUSLY CONSOLIDATED COMPANIES As of December 31, 2006, the balance includes a receivable in Euro of approximately NIS 445 thousand as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated. The amount is presented net of allowance for doubtful accounts of approximately NIS 1 million. As of December 31, 2005, the balance includes a receivable in Euro of approximately NIS 12 million as a result of realization of investment in a Slovakian company (Agemo) which was sold in 2004 and deconsolidated and a receivable of approximately NIS 21 million as a result of realization of investment in an Hungarian company which was sold on December 29, 2005 and deconsolidated. The payment was received during February 2006.  - 14 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 5:LONG-TERM LOANS  Linked to dollar + Libor+ 2.5%-5.5%  December 31, 2005 Linked to Euro+ Eurobor+ 3%-5%  Total  Reported NIS in thousands  8,388 Loans to jointly controlled entities (1)  Linked to dollar + Libor+ 2.5%-5.5%  13,895 December 31, 2006 Linked to Euro+ Eurobor+ 3%-5%  22,283  Total  Reported NIS in thousands 3,398 37,816  Loans to jointly controlled entities (1)  (1)  41,214  The loans are without repayment dates, however not before January 1, 2007.  NOTE 6:-  INVESTMENTS IN AFFILIATES Equity in the financial statements items of jointly controlled entities:  December 31, 2005 2006 Reported NIS in thousands  166,923 42,751 62,248 108,239 254,405 13,989 104,086 84,004 Current assets Non-current assets Current liabilities Long-term liabilities  Year ended December 31, 2004 2005 2006 Reported NIS in thousands  42,096 23,041 117,032 103,263 115,631 105,655 Revenues Expenses  - 15 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 7:INVENTORIES OF REAL ESTATE AND INVENTORIES OF CONTRACTS IN  PROGRESS AND BUILDINGS UNDER CONSTRUCTION  December 31, 2005 2006 Reported NIS in thousands  280,526 57,687 222,839 139,552 467,974 100,169 367,805 278,020  Cost of real estate and buildings under construction Less - costs carried to the statement of income (1)  Sales agreements entered into during the year Part of accrued amount of sales agreements not yet recognized as revenue until end of reported year Customer advances (2)  (1)  Costs carried to the statement of income: Subcontractors Land Financing Salary Planning and consulting Other  70,867 10,094 158,761 44,896  37,108 9,806 4,372 2,307 2,684 1,410 57,687 67,113 14,524 6,527 3,607 4,107 4,291 100,169  (2)  Shown as a deduction from the amount of real estate and buildings under construction and as deferred revenues in payables.  - 16 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 8:-  FIXED ASSETS a. Composition:  Real estate and buildings for rent  Furniture and equipment for rent (1) (2)  Vehicles Total  Reported NIS in thousands  Cost: Balance at January 1, 2006 Additions during the year Foreign currency translation adjustments for autonomous entities Disposals during the year Disposals for deconsolidation Balance at December 31, 2006 Accumulated depreciation: Balance at January 1, 2006 Additions during the year Foreign currency translation adjustments for autonomous entities Disposals during the year Disposals for deconsolidation Balance at December 31, 2006 Depreciated cost at December 31, 2006 Depreciated cost at December 31, 2005  (1) (2)  110,786 22,614 1,579 (16,466) (63,159) 55,354 5,525 1,124 41 (68) (607) 6,015 561 351 10 922 116,872 24,089 1,630 (16,534) (63,766) 62,291  3,559 1,323 91 (2,141) (1,697) 1,135 54,219 107,227 1,402 442 17 (144) (53) 1,664 4,351 4,123 282 97 8 387 535 279 5,243 1,862 116 (2,285) (1,750) 3,186 59,105 111,629  Including computers and peripheral equipment. Including for internal use.  b.  Cost of fixed assets, including capitalization of accrued expenses in Israel, is as follows: December 31, 2005 2006 Reported NIS in thousands  Professional consulting and accompaniment of projects - related parties Financial expenses Total capitalization of accrued expenses  2,368 2,512 4,880 929 1,090 2,019  - 17 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 9:OTHER ASSETS AND DEFERRED CHARGES  December 31, 2005 2006 Reported NIS in thousands  Expenses relating to the issuance of convertible debentures and to obtaining loans: Original amount Less - accumulated amortization  Deferred tax  18,798 10,043 8,755 1,270 10,025 2,517 2,517  NOTE 10:- CREDIT FROM BANKS AND OTHERS December 31, 2005 In or  linked to foreign currency Linked to the Israeli CPI  December 31, 2006 In or linked to foreign currency Total  Total  Reported NIS in thousands  Current maturities of long-term loans Current maturities of debentures (1)  31,260 17,849 49,109 1,480 1,480 31,260 19,329 50,589 127,887 478 128,365 127,887 478 128,365  (1)  In 2006, includes NIS 478 thousand in respect of debentures (series G), linked to the U.S. dollar (in 2005 - includes approximately NIS 17,849 thousand in respect of debentures (series G)).  - 18 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 11:- OTHER ACCOUNTS PAYABLE  December 31, 2005 2006 Reported NIS in thousands  9,844 2,357 2,636 8,558 873 1,614 25,882 19,356 8,732 3,249 9,505 623 4,474 45,939 Deferred revenues (1) Government authorities (2) Related parties (3) Accrued expenses and open balances Employees Other (4)  (1)  (2) (3)  (4)  The balance as of December 31, 2006 includes an amount of approximately NIS 16.5 million in respect of advances from buyers of residential complexes in Poland and Latvia which are not considered as sales and yet not recognized as revenues (as of December 31, 2005 approximately - NIS 8.7 million). The balance as of December 31, 2006, includes mainly provision for tax. The balance as of December 31, 2006, includes an amount of NIS 1,568 thousand for annual bonus grant to B.S.R. Engineering and NIS 1,681 thousand for management fees to B.S.R. Engineering. The balance as of December 31, 2005 was repaid during 2006. The balance as of December 31, 2006, includes an amount of approximately NIS 3.8 million in respect of commitment to invest in real estate in Romania (which has been paid subsequent to the balance sheet date).  - 19 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 12:- DEBENTURES a. Convertible debentures:  December 31, 2005 2006 Reported NIS in thousands  10,736 1,480 89,246 101,462 19,329 82,133 1,884 1,884 478 1,406  Convertible debentures (series B) Convertible debentures (series F) Convertible debentures (series G)  Less - current maturities  b. Debentures:  December 31, 2005 2006 Reported NIS in thousands 100,000 145,455  Convertible debentures (series H)  c.  The redemption dates of debentures and convertible debentures subsequent to the balance sheet date are as follows: December 31, 2006 Reported NIS in thousands  First year (current maturities) Second year Third year Fourth year Fifth year Sixth year and thereafter  478 29,581 29,581 29,581 29,059 29,059 147,339  - 20 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 13:- LONG-TERM LOANS a. Composition:  From banks From others  Weighted interest rate % Eurobor + 1.7 - 4.15 Eurobor + 2.5 - 4  2005 Total  December 31, 2006  Polish Zloty Czech Corona  Euro  Slovakian Corona  Total  Reported NIS in thousands  Less - current maturities  185,852 27,170 213,022 31,260 181,762 134,384 61,327 195,711 71,031 124,680 35,064 666 35,730 8,802 26,928 48,054 3,044 51,098 48,054 3,044 30,760 30,760 30,760 248,262 65,037 313,299 127,887 185,412  b.  The maturity dates subsequent to the balance sheet date are as follows: December 31, 2006 Reported NIS in thousands  First year (current maturities) Second year Third year Fourth year Fifth year Sixth year and thereafter  127,887 75,301 54,836 34,507 8,270 12,498 185,412 313,299  c. The subsidiaries liabilities to banks are non-recourse type loans.  - 21 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 14:- DEPOSITS FROM TENANTS  Polish Zloty  2005 Euro  December 31, Polish Total Zloty Reported NIS in thousands 541 -  2006 Euro  Total  Deposits from tenants 131 410 -  NOTE 15:- TAXES ON INCOME Taxes on income included in the statements of income:  Year ended December 31, 2004 2005 2006 Reported NIS in thousands  26,873 690 848 28,411 2,226 637 (1,562) 1,301 8,459 (941) 7,518 Current taxes Deferred taxes Taxes in respect of previous years  NOTE 16:- SHARE CAPITAL a. Composition of share capital:  2005  December 31, Authorized  2006  December 31, Issued and outstanding 2005  2006  Number of shares  Ordinary shares of NIS 0.01 par value each  5,000,000,000 5,000,000,000 11,088,371 18,220,431  b.  The Ordinary shares are traded on the Tel Aviv Stock Exchange. Stock options: Stock options issued by the Company and not exercised as of the balance sheet date are as follows: December 31, 2005 2006  Stock options (series 2) - listed for trade Stock options (series 3) Stock options (series 4) - listed for trade Stock options 11/04 Stock options to employees 11/05  Number of options 1,576,914 176,025  800,000 250,000 265,000 3,067,939  800,000 174,900 974,900  - 22 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME ITEMS Year ended December 31, 2004 2005 2006 Reported NIS in thousands  a.  Revenues from lease, sales, construction of buildings and apartments and services: Lease Sale of apartments for dwelling Sale of building and sold companies Services provided  39,354 22,710 241,734 1,739 305,537 25,201 68,685 82,260 1,633 177,779 6,682 120,879 68,241 2,569 198,371  b.  Cost of maintenance of leased buildings, construction of buildings and apartments and cost of sales and services: Depreciation and amortization Maintenance and repairs Building of apartments for dwelling Cost of building and sold companies Other expenses  7,789 2,012 17,340 162,742 4,007 193,890 5,147 2,179 57,687 53,724 2,886 121,623 1,430 1,054 100,169 20,986 3,101 126,740  c.  General and administrative expenses: Salaries and payroll accruals Maintenance and office expenses Consulting and management expenses Annual bonus grants to related parties (1) Expenses relating to VAT on input Other  5,175 1,812 5,319 7,013 3,826 23,145 5,506 2,256 5,812 1,531 2,767 17,872 6,030 2,394 6,066 1,568 1,731 3,828 21,617  d.  Financial expenses, net (2): Financial expenses (income) in respect of short-term credit and other, net Financial expenses in respect of debentures, convertible debentures and long-term loans, net  1,710 2,629 (2,195)  6,192 7,902 14,612 17,241 7,776 5,581  (1) (2) Annual bonus grants to the Company \'s controlling shareholders and former CEO. Net of capitalized financial expenses.  - 23 -   B.S.R EUROPE LTD.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  NOTE 17:- SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED STATEMENTS OF INCOME ITEMS (Cont.) Year ended December 31, 2004 2005 2006 Reported NIS in thousands  e.  Other income (expenses): Capital gain Issuance expenses in subsidiary  54 54 87 87 (4,201) (4,201)  NOTE 18:- NET EARNINGS PER SHARE Details pertaining to the number of shares and income used in the computation of net earnings per share: Year ended December 31,  2004 number of Weighted shares In  thousands  Net income Reported NIS in thousands  2005 number of Weighted shares In  thousands  Net income Reported NIS in thousands  2006 number of Weighted shares In  thousands  Net income Reported NIS in thousands  Weighted average number of Ordinary shares and net income, according to the statement of income Effect of exercise of options Effect of conversion of convertible debentures Treasury shares Number of shares and basic income Effect of options Convertible debentures Number of shares and diluted net income  8,814 481 159 (3,164) 51,768 9,274 417 2,111 (659) 20,059 10,431 636 2,221 (14) 32,425 -  6,290 1,259 5,745 51,768 5,516 11,143 1,363 1,285 20,059 1,164 13,274 1,202 3,874 32,425 1,083  13,294 57,284 13,791 21,223 18,350 33,508  - - - - - - - - - - - - - - - -  F: \\W2000 \\w2000 \\4745 \\M \\06 \\EC12-SHORT.DOC  - 24 -   ","null","null","");arrFiles[27]=new Array("about/FinancialReports.html","BSR Europe | About | Financial Reports","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	Reports	Print Format	The company	Financial Reports	Financial Reports 2007	September 30, 2007	PDF Format 30/09/2007	June 30, 2007	PDF Format 30/06/2007	March 31, 2007	PDF Format 30/03/2007	Financial Reports 2006	December 31, 2006	PDF Format 31/12/2006	September 30, 2006	PDF Format 30/09/2006	June 30, 2006	PDF Format 30/06/2006	March 31, 2006	PDF Format 31/03/2006	Financial Reports 2005	December 31, 2005	PDF Format 31/12/2005	WORD Format 31/12/2005	September 30, 2005	PDF Format 30/09/2005	WORD Format 30/09/2005	June 30, 2005	PDF Format 30/06/2005	WORD Format 30/06/2005 Financial Reports 2004	December 30, 2004	PDF Format 31/12/2004	WORD Format 31/12/2004	--	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[28]=new Array("about/management old.html","BSR Europe | About | Management","Presentation	--	Search	The Company	Projects--	Projects	News & Press	Contact	Site Map	Home	Profile	Management	Vision	Reports	Print Format	The company	Management	Headquarter in Israel	Headquarter in The Netherlands	Subsidiaries	Shachar LemkinCEO	Guy ShayaBusiness DevelopmentManager	Avi SchwartzChief Engineer	Idan MargolinSenior Personal Assistantto the CEO & Legal counsel	Assaf RazCFO	Amir SternController	Manou Van MoorselGeneral Manager, Gibor-B.S.R. Europe BV	Doron ShamirDirector, Gibor-B.S.R. Europe BV	Edward QuittGeneral Manager of,Slovakia and 4D Centerproject Prague,Czeck Republic	Tommy KleinManaging Director,Bes-Net PraguePragueCzeck Republic	Yoram KedemGeneral Manager, Latvia	Michael SaidovGeneral Manager, Hungary	Adam PoznerGeneral Manager,Poland	Shachar Lemkin - CEO, B.S.R. Europe Ltd.	Mr. Lemkin, 35, joined B.S.R Europe Ltd. as its CEO in 2000. Prior to his current position Mr. Lemkin ran a private law practice, that specialized in real-estate, for four years. Mr. Lemkin holds a L.L.B degree from the Tel-Aviv College of Management, and a L.L.M degree from the University of Buckingham in England.	Guy Shaya - Business Development Manager	Mr. Shaya, 35, joined BSR Europe Ltd. as its Business Development Manager in July 2002. Prior to his current position, Mr. Shaya practiced law with one of the leading commercial law offices in Israel. Mr. Shaya holds a L.L.B. degree from Bar-Ilan University, Ramat-Gan, Israel.	Assaf Raz - Chief Financial Officer	Mr. Raz, 35, joined BSR Europe Ltd. as CFO at the beginning of 2004. Prior to his current position, Mr. Raz was a senior manager with Ernst & Young, Israel. Mr. Raz has a degree in Economics and Accounting from Tel Aviv University, Israel.	Avi Schwartz - Chief Engineer	Mr. Schwartz, 38, joined BSR Europe Ltd. as Chief Engineer in 2001. Prior to his current position, Mr. Schwartz was the Deputy Manager of the Engineering Dept. of Paz Oil Company, the largest energy company in Israel, for over 6 years. Mr. Schwartz has a second Degree (M.Sc) in Civil Engineering, with specialty in Project Management from the Technion, Haifa, Israel.	Idan Margolin - Senior Personal Assistant to the CEO & legal Counsel	Mr. Margolin, 30, joined BSR Europe Ltd. as Personal assistant to the CEO & Legal Counsel in 2005. Prior to his current position, Mr. Margolin practiced real estate law in one of the leading commercial law offices in Israel. Mr. Margolin holds a LL.B degree and a B.A. in Business Administration with a major in real estate, both from the Interdisciplinary Center (IDC), Herzliya, Israel.	Amir Stern - Controller	Mr. Stern, 30, joined BSR Europe Ltd as its Controller in mid 2004. Prior to his current position, Mr. Stern worked for two years and a half in KPMG in AABS Department. Mr. Stern has a degree in accounting and economics from the University of Tel Aviv, Israel	Manou Van Moorsel - General Manager of Gibor - B.S.R Europe B.V.	Ms. Van Moorsel, 31, joined Gibor - B.S.R Europe BV as general-manager in 2001. Prior to her current position, Ms. Van Moorsel worked in Adecco as a project coordinator for two years, during which she was in charge of new client acquisition and controlling contracts. Prior to that, Ms. Van Moorsel was assistant to the HR manager of RET for 3 years. Ms Van Moorsel holds a L.L.B degree from the University of Utrecht, The Netherlands.	Michael Saidov - General Manager, Hungary	Micky Saidov, 37, joined BSR in 2004 as general manager of the Hungarian activity of BSR. Prior to his current position, between 1997 and 2004, Mr. Saidov was a financial manager of CEE \'s International activities in Africa Israel Investments Ltd. Mr. Saidov is a CPA (Isr.) and holds a bachelor degree in Accounting and Economics from the Tel-Aviv University, Israel.	Adam Pozner - General Manager, Poland	Mr. Pozner, 56, joined BSR as general manager of the Polish subsidiary in 2001. Prior to his current position, between 1999 and 2001, Mr. Pozner was the founder and vice-president of the Polish subsidiary of Ituran, a global company engaged in theft prevention and personal security. Prior to that he was a general partner and vice-president of Callsec Ltd. for three years. Mr. Pozner holds a civil engineering degree from Ort college, Israel.	Tommy Klein - Managing Director , Bes-Net Prague, Prague, Czech Republic	Mr. Klein, 57 , joined B.S.R group as Managing director of Bes-Net Prague in 1995. Prior to his current position, Mr. Klein worked in Tadiran, a leading company engaged in electricity products as a marketing and sales manager. From 1992, Mr. Klein deals with Real estate in the Czech Republic.	Yoram Kedem - General Manager, Latvia	Mr. Kedem, 34, joined B.S.R. Group in 2005. He was previously legal counsel for El Al Airlines (since 2001), responsible for Corporate Secretary duties and the entire portfolio of El Al \'s real estate assets in over 20 countries. Mr. Kedem holds an LLB degree from UWCC, England.	Edward Quitt - General Manager of Slovakia and 4D Center project in Prague, Czeck Republic	Mr. Quitt, 58, joined BSR in 2002. Mr. Quitt was born in Czechoslovakia, and has M.Sc. in Civil Engineering from London University, Imperial College, London, England.	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[29]=new Array("about/management.html","BSR Europe | About | Management","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	Reports	Print Format	The company	Management	Headquarter in Israel	Headquarter in The Netherlands	Subsidiaries	Kalman SufrinChairman of the board	Nachshon KivityCEO and Director	Benny GoldsteinVice President Engineering	Assaf RazCFO	Guy ShayaVice President business development	Guy MatarassoChief OperatingOfficer	Idan MargolinLegal counsel	--	Amir AzariaSenior Engineer	Yael EdriController	Manou Van MoorselDirector	Doron ShamirDirector	Eduard QuittGeneral Manager of,Slovakia and Czeck Republic	Eduard QuittGeneral Manager of,Slovakia and Czeck Republic	Krassimir NikoltchevGeneral ManagerBulgaria	Yoram KedemGeneral Manager, Latvia	Moshe EytamGeneral Manager, Hungary	Adam PoznerGeneral Manager,Poland	Moshe AgaviGeneral Manager, Romania	--	Kalman Sufrin - Chairman of the Board	Civil Engineer. 1968 \'s graduate of \"Technion Israel Instituteof Technology \"	Founder of the B.S.R Group	Personally manage the B.S.R Group activities through all the years	Over 38 years of experience in development, project management, and planning of various projects (residential, commercial & public) in Israel, Europe and the USA	Received the 1987 \'s Kaplan Prize award for his achievements (a prestigious award for project management presented by the President of the State of Israel)	Nachshon Kivity - CEO and Director	Civil Engineer, 1981 \'s graduate of \"Technion - Israel Institute of Technology \"	Joined the B.S.R. Group in 1981	Personally manage the B.S.R Group activities	Over 25 years of experience in development, construction and of various projects (residential, commercial & public) in Israel, Europe and the USA	Benny Goldstein - Vice President Engineering	Mr. Goldstein (58), Civil Engineer, Joined BSR Europe Ltd. as VP Operations on April 2007.	Prior to his current position, Mr. Goldstein was employed, for over 5 years, as the Caribbean Regional Manager of Ashtrom International.	Mr. Goldstein graduated the Technion (Haifa) in 1974 and since then served as Construction Manager of major residential, commercial & Civil Engineering projects.	Assaf Raz - Chief Financial Officer	Mr. Raz, 36, joined BSR Europe Ltd. as CFO at the beginning of 2004. Prior to his current position, Mr. Raz was a senior manager with Ernst & Young, Israel. Mr. Raz has a degree in Economics and Accounting from the university of Tel Aviv, Israel.	Guy Shaya - Vice President of Business Development	Mr. Shaya, 36, joined BSR Europe Ltd. as its Business Development Manager in July 2002. Prior to his current position, Mr. Shaya practiced law with one of the leading commercial law offices in Israel. Mr. Shaya holds a L.L.B. degree from the university of Bar-Ilan, Ramat-Gan, Israel.	Avi Schwartz - Chief Engineer	Mr. Schwartz, 38, joined BSR Europe Ltd. as Chief Engineer in 2001. Prior to his current position, Mr. Schwartz was the Deputy Manager of the Engineering Dept. of Paz Oil Company, the largest energy company in Israel, for over 6 years. Mr. Schwartz has a second Degree (M.Sc) in Civil Engineering, with specialty in Project Management from the Technion, Haifa, Israel.	Idan Margolin - Legal Counsel	Mr. Margolin, 30, joined BSR Europe Ltd. as Personal assistant to the CEO & Legal Counsel in 2005. Prior to his current position, Mr. Margolin practiced real estate law in one of the leading commercial law offices in Israel. Mr. Margolin holds a LL.B degree and a B.A. in Business Administration with a major in real estate, both from the Interdisciplinary Center (IDC), Herzliya, Israel.	--	Amir Azaria - Senior Engineer	Mr. Azaria (35), Joined BSR Europe Ltd. as operational engineer on February 2006.	Prior to his current position, Mr. Azaria was employed, for several years, as a site engineer and project manger in Tidhar group.	Mr. Azaria has a degree in civil engineer from the Technion - \"Israel Institute	of Technology \" ,Mr. Azaria also holds a master in business and administration.	Yael Edri - Controller	Ms. Edri, 28, joined BSR Europe Ltd as its Controller in 2006. Prior to her current position, Ms. Edri worked for 3 years in KPMG in AABS Department. Ms. Edri has a degree in accounting and economics from the Hebrew University of Jerusalem, Israel.	Guy Matarasso - Chief Operating Officer Mr. Matarasso (32) joined BSR Europe Ltd. as a Projects Manager in March 2006. Prior to his current position, Mr. Matarasso practiced real estate law in one of the leading commercial law offices in Israel. Mr. Matarasso holds a LL.B degree and a B.A. in Business Administration with a major in marketing, both from the Interdisciplinary Center (IDC), Herzliya, Israel.	Manou Van Moorsel - Director	Ms. Van Moorsel, 31, joined Gibor - B.S.R Europe BV as general-manager in 2001. Prior to her current position, Ms. Van Moorsel worked in Adecco as a project coordinator for two years, during which she was in charge of new client acquisition and controlling contracts. Prior to that, Ms. Van Moorsel was assistant to the HR manager of RET for 3 years. Ms Van Moorsel holds a L.L.B degree from the University of Utrecht, The Netherlands.	Yoram Kedem - General Manager, Latvia	Mr. Kedem, 34, joined B.S.R. Group in 2005. He was previously legal counsel for El Al Airlines (since 2001), responsible for Corporate Secretary duties and the entire portfolio of El Al \'s real estate assets in over 20 countries. Mr. Kedem holds an LLB degree from UWCC, England.	Adam Pozner - General Manager, Poland	Mr. Pozner, 56, joined BSR as general manager of the Polish subsidiary in 2001. Prior to his current position, between 1999 and 2001, Mr. Pozner was the founder and vice-president of the Polish subsidiary of Ituran, a global company engaged in theft prevention and personal security. Prior to that he was a general partner and vice-president of Callsec Ltd. for three years. Mr. Pozner holds a civil engineering degree from Ort college, Israel.	Krassimir Nikoltchev- General Manager, Bulgaria	Mr. Nikoltchev, 59, joined BSR Group in 2006 as general manager in Bulgaria, Prior to his current position Mr. Nikoltchev was the manager of a design and consulting company. He was Chief architect of Sofia airport and for about 4 years he is a member of the steering committee of BACEA-Bulgarian Association of Consultants Engineers and Architects. Mr. Nikoltchev has M.Sc. of Architecture from Sofia University (UACEG) and B.Sc. in Economics.	--	Eduard Quitt M.Sc.(Civ.Eng.), General Manger in Czech Republic, in Slovak Republic and a Chief Engineer in Bulgaria	Mr. Quitt (59), joined the B.S.R. Group on the beginning of 2002. He was born in former Czechoslovak Republic, holds a B.Sc. and an M.Sc.degrees in Civil Engineering from Imperial College, University of London in England. Mr. Quitt previously worked for Uri Dori Ltd., one of the largest Israeli contractor and developer, as a Tender & Budget departmental manager. Prior to that he was, for a period of 10 years, a co-owner and a GM of a medium sized contractor \'s company in Haifa, Israel and also worked in various engineering and managering positions in Construction industry in Israel, Iran, England, Nigeria and in the former Czechoslovak Republic.	Moshe Eytam - General Manager, Hungary	Mr. Eytam, 46, joined BSR group in 2005 as general manager in Hungary, Prior to his current position Mr. Eytam was the chief engineer of Plaza Centers for about 4 years and previous own his management company for over 5 years. Mr. Eytam has B.Sc. In Civil Engineering, with specialty in Project Management from the Technion, Haifa, Israel and an MBA degree from Edinburgh Business School, Heriot Watt University.	Moshe Agavi - General Manager, Romania	Mr. Agavi, 49, joined BSR group in 2006 as general manager in Romania, Prior to his current position Mr. Agavi was the Deputy CEO of Mercantile Discount Bank and member of the management committee of the bank for over 11 years. Mr. Agavi holds an L.L.B degree from Tel Aviv University, Israel.	--	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[30]=new Array("about/PrintManagement.html","BSR Europe | About | Management | Print Format","The Company	Management	Print	Kalman Sufrin - Chairman of the Board	Civil Engineer. 1968 \'s graduate of \"Technion Israel Instituteof Technology \"	Founder of the B.S.R Group	Personally manage the B.S.R Group activities through all the years	Over 38 years of experience in development, project management, and planning of various projects (residential, commercial & public) in Israel, Europe and the USA	Received the 1987 \'s Kaplan Prize award for his achievements (a prestigious award for project management presented by the President of the State of Israel)	Nachshon Kivity - CEO and Director	Civil Engineer, 1981 \'s graduate of \"Technion - Israel Institute of Technology \"	Joined the B.S.R. Group in 1981	Personally manage the B.S.R Group activities	Over 25 years of experience in development, construction and of various projects (residential, commercial & public) in Israel, Europe and the USA	Benny Goldstein - Vice President Engineering	Mr. Goldstein (58), Civil Engineer, Joined BSR Europe Ltd. as VP Operations on April 2007.	Prior to his current position, Mr. Goldstein was employed, for over 5 years, as the Caribbean Regional Manager of Ashtrom International.	Mr. Goldstein graduated the Technion (Haifa) in 1974 and since then served as Construction Manager of major residential, commercial & Civil Engineering projects.	Assaf Raz - Chief Financial Officer	Mr. Raz, 36, joined BSR Europe Ltd. as CFO at the beginning of 2004. Prior to his current position, Mr. Raz was a senior manager with Ernst & Young, Israel. Mr. Raz has a degree in Economics and Accounting from the university of Tel Aviv, Israel.	Guy Shaya - Vice President of Business Development	Mr. Shaya, 36, joined BSR Europe Ltd. as its Business Development Manager in July 2002. Prior to his current position, Mr. Shaya practiced law with one of the leading commercial law offices in Israel. Mr. Shaya holds a L.L.B. degree from the university of Bar-Ilan, Ramat-Gan, Israel.	Avi Schwartz - Chief Engineer	Mr. Schwartz, 38, joined BSR Europe Ltd. as Chief Engineer in 2001. Prior to his current position, Mr. Schwartz was the Deputy Manager of the Engineering Dept. of Paz Oil Company, the largest energy company in Israel, for over 6 years. Mr. Schwartz has a second Degree (M.Sc) in Civil Engineering, with specialty in Project Management from the Technion, Haifa, Israel.	Idan Margolin - Legal Counsel	Mr. Margolin, 30, joined BSR Europe Ltd. as Personal assistant to the CEO & Legal Counsel in 2005. Prior to his current position, Mr. Margolin practiced real estate law in one of the leading commercial law offices in Israel. Mr. Margolin holds a LL.B degree and a B.A. in Business Administration with a major in real estate, both from the Interdisciplinary Center (IDC), Herzliya, Israel.	--	Amir Azaria - Senior Engineer	Mr. Azaria (35), Joined BSR Europe Ltd. as operational engineer on February 2006.	Prior to his current position, Mr. Azaria was employed, for several years, as a site engineer and project manger in Tidhar group.	Mr. Azaria has a degree in civil engineer from the Technion - \"Israel Institute	of Technology \" ,Mr. Azaria also holds a master in business and administration.	Yael Edri - Controller	Ms. Edri, 28, joined BSR Europe Ltd as its Controller in 2006. Prior to her current position, Ms. Edri worked for 3 years in KPMG in AABS Department. Ms. Edri has a degree in accounting and economics from the Hebrew University of Jerusalem, Israel.	Guy Matarasso - Chief Operating Officer Mr. Matarasso (32) joined BSR Europe Ltd. as a Projects Manager in March 2006. Prior to his current position, Mr. Matarasso practiced real estate law in one of the leading commercial law offices in Israel. Mr. Matarasso holds a LL.B degree and a B.A. in Business Administration with a major in marketing, both from the Interdisciplinary Center (IDC), Herzliya, Israel.	Manou Van Moorsel - Director	Ms. Van Moorsel, 31, joined Gibor - B.S.R Europe BV as general-manager in 2001. Prior to her current position, Ms. Van Moorsel worked in Adecco as a project coordinator for two years, during which she was in charge of new client acquisition and controlling contracts. Prior to that, Ms. Van Moorsel was assistant to the HR manager of RET for 3 years. Ms Van Moorsel holds a L.L.B degree from the University of Utrecht, The Netherlands.	Yoram Kedem - General Manager, Latvia	Mr. Kedem, 34, joined B.S.R. Group in 2005. He was previously legal counsel for El Al Airlines (since 2001), responsible for Corporate Secretary duties and the entire portfolio of El Al \'s real estate assets in over 20 countries. Mr. Kedem holds an LLB degree from UWCC, England.	Adam Pozner - General Manager, Poland	Mr. Pozner, 56, joined BSR as general manager of the Polish subsidiary in 2001. Prior to his current position, between 1999 and 2001, Mr. Pozner was the founder and vice-president of the Polish subsidiary of Ituran, a global company engaged in theft prevention and personal security. Prior to that he was a general partner and vice-president of Callsec Ltd. for three years. Mr. Pozner holds a civil engineering degree from Ort college, Israel.	Krassimir Nikoltchev- General Manager, Bulgaria	Mr. Nikoltchev, 59, joined BSR Group in 2006 as general manager in Bulgaria, Prior to his current position Mr. Nikoltchev was the manager of a design and consulting company. He was Chief architect of Sofia airport and for about 4 years he is a member of the steering committee of BACEA-Bulgarian Association of Consultants Engineers and Architects. Mr. Nikoltchev has M.Sc. of Architecture from Sofia University (UACEG) and B.Sc. in Economics.	--	Eduard Quitt M.Sc.(Civ.Eng.), General Manger in Czech Republic, in Slovak Republic and a Chief Engineer in Bulgaria	Mr. Quitt (59), joined the B.S.R. Group on the beginning of 2002. He was born in former Czechoslovak Republic, holds a B.Sc. and an M.Sc.degrees in Civil Engineering from Imperial College, University of London in England. Mr. Quitt previously worked for Uri Dori Ltd., one of the largest Israeli contractor and developer, as a Tender & Budget departmental manager. Prior to that he was, for a period of 10 years, a co-owner and a GM of a medium sized contractor \'s company in Haifa, Israel and also worked in various engineering and managering positions in Construction industry in Israel, Iran, England, Nigeria and in the former Czechoslovak Republic.	Moshe Eytam - General Manager, Hungary	Mr. Eytam, 46, joined BSR group in 2005 as general manager in Hungary, Prior to his current position Mr. Eytam was the chief engineer of Plaza Centers for about 4 years and previous own his management company for over 5 years. Mr. Eytam has B.Sc. In Civil Engineering, with specialty in Project Management from the Technion, Haifa, Israel and an MBA degree from Edinburgh Business School, Heriot Watt University.	Moshe Agavi - General Manager, Romania	Mr. Agavi, 49, joined BSR group in 2006 as general manager in Romania, Prior to his current position Mr. Agavi was the Deputy CEO of Mercantile Discount Bank and member of the management committee of the bank for over 11 years. Mr. Agavi holds an L.L.B degree from Tel Aviv University, Israel.	--","null","null","");arrFiles[31]=new Array("about/PrintProfile old.html","BSR Europe | About | Profile | Print Format","The Company	Profile	Print	B.S.R. Europe Ltd. is a member of the B.S.R. Group and is quoted on the Tel- Aviv stock exchange.	The B.S.R Group has over five decades of experience in international real estate development and project management. The Group promotes and develops large-scale luxury residential complexes, office and high-tech buildings, as well as commercial centers. In addition, the Group provides project management and engineering services.	The Group is currently involved in various projects representing a total investment of $2.4 billion.	Mr. Kalman Sufrin	Mr. Nachshon Kivity	--	The B.S.R. Group \'s holding company, B.S.R. Engineering & Development Ltd., is controlled by Mr. Kalman Sufrin and Mr. Nachshon Kivity, who lend their extensive experience to each B.S.R. project.	Alony Hets bought in March 2005, a 12% holding stake in BSR Europe. Alony Hets is a real estate investment company focusing on long-term yielding real estate investments.	B.S.R. Europe Ltd. is one of the most dynamic real estate companies in the CEE regioun. It operates in eight Central European countries: The Czech Republic, Slovakia, Poland, Hungary, Latvia, Romania, Bulgaria, and Cyprus.	B.S.R. Europe Ltd. has acquired properties and rights in 23 real estate projects with a total investment of over Euro 550 million under management .	The company has already concluded six successful assets disposals for Euro 100 million, including a Euro 90 million sale of its two Bratislava Business Centers to Heitman Investment Fund, one of the regions leading international real estate investors.","null","null","");arrFiles[32]=new Array("about/PrintProfile.html","BSR Europe | About | Profile | Print Format","The Company	Profile	Print	B.S.R. Europe Ltd. is a member of the B.S.R. Group and is quoted on the Tel- Aviv Stock	Exchange.	The B.S.R. Group has over four decades of experience in international real estate	development and project management. The Group promotes and develops large-scale	luxury residential complexes, office and high-tech buildings, as well as commercial centers.	In addition, the Group provides project management and engineering services.	The Group is currently involved in various projects representing a total investment of $3.5	billion.	The B.S.R. Group \'s holding company, B.S.R. Engineering & Development Ltd., is	controlled by Mr. Kalman Sufrin and Mr. Nachshon Kivity, who lend their extensive	experience to each B.S.R. project.	B.S.R. Europe Ltd. is one of the most dynamic real estate companies in the CEE region. It has been operating in ten Central and Eastern European countries: The Czech Republic, The Slovak Republic, Poland, Hungary, Latvia, Romania, Bulgaria, The Georgian Republic, Spain and Cyprus.	B.S.R. Europe Ltd. has acquired properties and participations in 18 real estate projects (excluding realized projects) with a total investment of over Euro 1.3 Billion under management.	The company has already concluded twelve successful asset disposals for Euro 200 million including a Euro 90 million sale of its two Bratislava Business Centers to Heitman	Investment Fund, one of the region \'s leading international real estate investment financial funds.	Currently the company is in process of selling 12 of its participations in owned assets for a total proceeds of over Euro 120M, generating a pre tax profit of over Euro 80M.","null","null","");arrFiles[33]=new Array("about/PrintReport.html","BSR Europe | About | Reports | Print Format","The Company	Reports	Print	Financial Reports 2007	September 30, 2007	PDF Format 30/09/2007	June 30, 2007	PDF Format 30/06/2007	March 31, 2007	PDF Format 30/03/2007	Financial Reports 2006	December 31, 2006	PDF Format 31/12/2006	September 30, 2006	PDF Format 30/09/2006	June 30, 2006	PDF Format 30/06/2006	March 31, 2006	PDF Format 31/03/2006	Financial Reports 2005	December 31, 2005	PDF Format 31/12/2005	WORD Format 31/12/2005	September 30, 2005	PDF Format 30/09/2005	WORD Format 30/09/2005	June 30, 2005	PDF Format 30/06/2005	WORD Format 30/06/2005 Financial Reports 2004	December 30, 2004	PDF Format 31/12/2004	WORD Format 31/12/2004	--","null","null","");arrFiles[34]=new Array("about/PrintVision.html","BSR Europe | About | Vision & Goals | Print Format","The Company	Vision & Goals	Print	BSR \'s target is to leverage the vast experience and remarkable track record of its founders and existing shareholders to identify and develop high profit real estate projects, and aims to continue as a leading real estate company in the CEE region.	The company \'s goal is to expand it \'s portfolio beyond EUR 2.0 billion, in the coming years.	The Company will continue to focus on accomplishing three main goals:	1.	Increase the development activity, mainly in residential, offices and retail sectors, whilecontinuing to look for high value enhancement potential properties, with a view to doubling the Company \'s portfolio (attaining a portfolio value critical mass of €2.0 billion), and achieving efficient utilization of its region wide deployment	2.	Continue increasing the value of its yielding properties, through improved occupancy rates and lease contracts, executing renovation plans and realization at optimal price--	2.	Increase collaboration with international partners	3.	Execute construction plans and market projects which are currently under development","null","null","");arrFiles[35]=new Array("about/profile old.html","BSR Europe | About | Company Profile","Presentation	--	Search	The Company	Projects--	Projects	News & Press	Contact	Site Map	Home	Profile	Management	Vision	Reports	Print Format	The company	Profile	B.S.R. Europe Ltd. is a member of the B.S.R. Group and is quoted on the Tel- Aviv stock exchange.	The B.S.R Group has over four decades of experience in international real estate development and project management. The Group promotes and develops large-scale luxury residential complexes, office and high-tech buildings, as well as commercial centers. In addition, the Group provides project management and engineering services.	The Group is currently involved in various projects representing a total investment of $2.4 billion.	Mr. Kalman Sufrin	Mr. Nachshon Kivity	--	The B.S.R. Group \'s holding company, B.S.R. Engineering & Development Ltd., is controlled by Mr. Kalman Sufrin and Mr. Nachshon Kivity, who lend their extensive experience to each B.S.R. project.	Alony Hets bought in March 2005, a 12% holding stake in BSR Europe. Alony Hets is a real estate investment company focusing on long-term yielding real estate investments.	B.S.R. Europe Ltd. is one of the most dynamic real estate companies in the CEE regioun. It operates in eight Central European countries: The Czech Republic, Slovakia, Poland, Hungary, Latvia, Romania, Bulgaria, and Cyprus.	B.S.R. Europe Ltd. has acquired properties and rights in 23 real estate projects with a total investment of over Euro 550 million under management .	The company has already concluded six successful assets disposals for Euro 100 million, including a Euro 90 million sale of its two Bratislava Business Centers to Heitman Investment Fund, one of the regions leading international real estate investors.	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[36]=new Array("about/profile.html","BSR Europe | About | Company Profile","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	Reports	Print Format	The company	Profile	B.S.R. Europe Ltd. is a member of the B.S.R. Group and is quoted on the Tel- Aviv Stock	Exchange.	The B.S.R. Group has over four decades of experience in international real estate	development and project management. The Group promotes and develops large-scale	luxury residential complexes, office and high-tech buildings, as well as commercial centers.	In addition, the Group provides project management and engineering services.	The Group is currently involved in various projects representing a total investment of $3.5	billion.	The B.S.R. Group \'s holding company, B.S.R. Engineering & Development Ltd., is	controlled by Mr. Kalman Sufrin and Mr. Nachshon Kivity, who lend their extensive	experience to each B.S.R. project.	B.S.R. Europe Ltd. is one of the most dynamic real estate companies in the CEE region. It has been operating in ten Central and Eastern European countries: The Czech Republic, The Slovak Republic, Poland, Hungary, Latvia, Romania, Bulgaria, The Georgian Republic, Spain and Cyprus.	B.S.R. Europe Ltd. has acquired properties and participations in 18 real estate projects (excluding realized projects) with a total investment of over Euro 1.3 Billion under management.	The company has already concluded twelve successful asset disposals for Euro 200 million including a Euro 90 million sale of its two Bratislava Business Centers to Heitman	Investment Fund, one of the region \'s leading international real estate investment financial funds.	Currently the company is in process of selling 12 of its participations in owned assets for a total proceeds of over Euro 120M, generating a pre tax profit of over Euro 80M.	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[37]=new Array("about/vision.html","BSR Europe | About | Vision & Goals","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	Reports	Print Format	The company	Vision & Goals	BSR \'s target is to leverage the vast experience and remarkable track record of its founders and existing shareholders to identify and develop high profit real estate projects, and aims to continue as a leading real estate company in the CEE region.	The company \'s goal is to expand it \'s portfolio beyond EUR 2.0 billion, in the coming years.	The Company will continue to focus on accomplishing three main goals:	1.	Increase the development activity, mainly in residential, offices and retail sectors, whilecontinuing to look for high value enhancement potential properties, with a view to doubling the Company \'s portfolio (attaining a portfolio value critical mass of €2.0 billion), and achieving efficient utilization of its region wide deployment	2.	Continue increasing the value of its yielding properties, through improved occupancy rates and lease contracts, executing renovation plans and realization at optimal price--	2.	Increase collaboration with international partners	3.	Execute construction plans and market projects which are currently under development	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[38]=new Array("files/contact.html","BSR Europe | Contact","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	--	Print Format	Contact	Headquarters:--	Nachshon KivityCEO	Idan Margolin	Senior Personal Assistant to the CEO & Legal Counsel	--	We are at your service at:	Tel. +972 3 611 4410	Fax. +972 3 611 4411	management@bsreurope.com	Netherlands:	Manou Van Moorsel	Tel. +31 20 379 2080	Fax. +31 20 379 2026	Mobile +31 65 2017972	moorsel@gibor-bsr.nl	Slovakia:	Edy Quit	Tel. +421 918 341552	Fax. +421 2 53418773/9	Mobile +421 905 742 244	ivana@bsrbc.sk	The Czech Republic:	Edy Quitt	Tel. +420 2 67153991	Fax. +420 2 67152201	Mobile +420 602 341552	edoquitt@palackodanska.cz	Hungary:	Moshe Eytam	Tel. +36 1 3504010	Fax. +36 1 3504011	Moshe.eytam@bsr.hu	Poland:	Adam Pozner	Tel. +48 12 2627406	Tel. +48 12 2627641	Fax. +48 12 2627558	Mobile +48 604 933553	pozner@pro.onet.pl	Latvia:	Yoram Kedem	Tel. +371 727 7776	Fax. +371 7 846 422	Mobile +371 8346298	yoram@brh.lv	The Czech Republic:	Edy Quitt	Tel. +420 2 67153991	Fax. +420 2 67152201	Mobile +420 602 341552	edoquitt@palackodanska.cz	--	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[39]=new Array("files/PrintContact.html","BSR Europe | Contact | Print Format","Contact	Print	Headquarters:--	Nachshon Kivity	CEO	Idan Margolin	Senior Personal Assistant to the CEO & Legal Counsel	--	We are at your service at:	Tel. +972 3 611 4410	Fax. +972 3 611 4411	management@bsr.co.il	Netherlands:	Manou Van Moorsel	Tel. +31 20 379 2080	Fax. +31 20 379 2026	Mobile +31 65 2017972	moorsel@gibor-bsr.nl	Slovakia:	Edy Quit	Tel. +421 918 341552	Fax. +421 2 53418773/9	Mobile +421 905 742 244	ivana@bsrbc.sk	The Czech Republic:	Edy Quitt	Tel. +420 2 67153991	Fax. +420 2 67152201	Mobile +420 602 341552	edoquitt@palackodanska.cz	Hungary:	Moshe Eytam	Tel. +36 1 3504010	Fax. +36 1 3504011	Moshe.eytam@bsr.hu	Poland:	Adam Pozner	Tel. +48 12 2627406	Tel. +48 12 2627641	Fax. +48 12 2627558	Mobile +48 604 933553	pozner@pro.onet.pl	Latvia:	Yoram Kedem	Tel. +371 727 7776	Fax. +371 7 846 422	Mobile +371 8346298	yoram@brh.lv	The Czech Republic:	Edy Quitt	Tel. +420 2 67153991	Fax. +420 2 67152201	Mobile +420 602 341552	edoquitt@palackodanska.cz	--","null","null","");arrFiles[40]=new Array("files/PrintSiteMap.html","BSR Europe | Site Map | Print Format","Site Map	Print	The Company	Profile	Management	Vision & Goals	Financial Reports	News & Press	News & Press	Press--	Contact	Site Map	Projects	Poland	Marriott Complex	Czech Rep.	Forest Gate Residance	Sunny Gate	Slovakia	BBC VI	Bulgaria	Totleben	Cyprus	Limassol	Relized Projects	BSR Center	M3	4D Center	Besnet Centrum	Baneasa	Duna Office Center	Bratislava Star	BBC III & IV	BBC V	Wilanow1	Osiedle Europejskie	Wawel	Soleville	Metropolia	West Park	Lagera","null","null","");arrFiles[41]=new Array("files/sitemap.html","BSR Europe | Site Map","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Profile	Management	Vision	--	Print Format	Site Map	The Company	Profile	Management	Vision & Goals	Financial Reports	News & Press	News & Press	Press--	Contact	Site Map	Projects	Poland	Marriott Complex	Czech Rep.	Forest Gate Residance	Sunny Gate	Slovakia	BBC VI	Bulgaria	Totleben	Cyprus	Limassol	Relized Projects	BSR Center	M3	4D Center	Besnet Centrum	Baneasa	Duna Office Center	Bratislava Star	BBC III & IV	BBC V	Wilanow1	Osiedle Europejskie	Wawel	Soleville	Metropolia	West Park	Lagera	We are at your service. For any further information - please click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[42]=new Array("news/news.html","BSR Europe | News","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	News	Press	Vision	--	Print Format	NEWS & PRESS SUMMARY	--	News--	January 17, 2008	A Bulgarian subsidiary and partners have signed a MOU to purchase land in central Sophia, Bulgaria covering a total area of 33 dunams ....	November 15, 2007	A Bulgarian subsidiary has signed a final agreement for purchase of four parcels of land in Bulgaria covering an area of 74 dunams. a 50,000-sqm of residential project. According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings ....	October 24, 2007	A Romanian subsidiary has signed a final agreement for purchase of another Romanian company which holds a land of an area of 30 dunams in order to construct a 50,000-sqm of residential project. ....	August 29, 2007 \"Totleben Building \", the Business Center in Prague, has been sold to a third party for € 5.6M (approximately NIS 31M) Expected company profits of approximately NIS 15.8 (Pre-Tax) ....	June 21, 2007	The BSR Center Project in Budapest Hungary, has been sold to A foreign fund for € 6.8M (approximately NIS 38M) Expected company profits of approximately NIS 25NIS (Pre-Tax) ....	June 18, 2007	A residential project in Warsaw, Poland has been sold to AFI Europe. The company \'s share in the consideration is € 26.34M (approximately NIS 146M), Expected company profits of approximately NIS 118.8 (Pre-Tax). ....	May 13, 2007	A residential project in Krakow, Poland has been sold to AFI Europe for € 35.3M (approximately NIS 189M), the company \'s share in the consideration is € 24.4M (approximately NIS 131M), Expected company profits of approximately NIS 106 (Pre-Tax). ....	April 19, 2007	Lagerfield, a residential project in Sophia, Bulgaria has been sold to AFI Europe for € 8.3M (approximately NIS 46M), Expected company profits of approximately NIS 22 NIS (Pre-Tax). ....	March 30, 2007	Projects in Latvia and Romania have been sold for € 39.5M (approximately NIS 220M), Expected company profits of approximately NIS 98 NIS (Pre-Tax). ....	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw. ....	January 17, 2008	A Bulgarian subsidiary and partners have signed a MOU to purchase land in central Sophia, Bulgaria covering a total area of 33 dunams.	The Company is pleased to announce that on January 17, 2008, a company owned by the Company \'s Dutch subsidiary, a highly reputable European investment fund, and additional partners (the Company \'s share in the company being 42.5%) signed a MOU with a third party, unrelated to the Company (hereinafter, \"the Buyer \", \"the MOU \", \"the Seller \" and \"the Parties \" respectively), to purchase land in central Sophia, Bulgaria, covering a total area of 33 dunams (hereinafter, \"the Land \").	If the Buyer notifies the Seller of its desire to purchase the Land, the Parties will enter into an agreement pursuant to which the Buyer will purchase the Land from the Seller for a total of NIS 200 million. As of today, and on the basis of information obtained from the Seller on the Land \'s potential building rights, the Buyer intends to construct a 100,000 sqm project for sale and lease, including office, residential and commercial buildings (hereinafter, \"the Project \"). According to the Company \'s initial estimates, total project costs will be NIS 700 million (including the cost of the Land), and estimated earnings from the project will total NIS 1.05 billion.	UP	November 15, 2007	A Bulgarian subsidiary has signed a final agreement for purchase of four parcels of land in Bulgaria covering an area of 74 dunams. a 50,000-sqm of residential project. According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings.	The Company hereby announced that in November 15, 2007, the Company \'s Dutch subsidiary (hereinafter, \"the Subsidiary \") and its Bulgarian subsidiary (hereinafter, \"the Buyer \") signed an agreement with landowners (hereinafter, \"the Seller \") to purchase four parcels of land in Bulgaria covering an area of 74 dunams in the city of Varna (hereinafter, \"the Land \"). The consideration for the Land is NIS 213 million and VAT. The Buyer is owned by the Subsidiary (42.5%), a highly reputable European investment fund (42.5%) and additional partners.	According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings. Based on an initial estimate, total projects costs will be NIS 1.15 million.	UP	October 24, 2007	A Romanian subsidiary has signed a final agreement for purchase of another Romanian company which holds a land of an area of 30 dunams in order to construct a 50,000-sqm of residential project.	The Company hereby announces that in October 24, 2007, the Company \'s Dutch subsidiary (hereinafter, \"the Subsidiary \") and its romanian subsidiary (hereinafter, \"the Buyer \") signed an agreement to purchase two parcels of land in Brasov, Romania (hereinafter, \"the Land \") covering an area of 30 dunams. The Buyer will pay the landowners (hereinafter, \"the Sellers \") a consideration in the amount of € 5.1 million.	Based on preliminary information which the Subsidiary obtained from the Sellers, a 50,000-sqm residential project may be constructed on the Land. According to initial estimates, total project costs will be € 40 million.	UP	August 29, 2007 \"Totleben Building \", the Business Center in Prague, has been sold to a third party for € 5.6M (approximately NIS 31M) Expected company profits of approximately NIS 15.8 (Pre-Tax)	The Company hereby announces that in August 29, 2007, an agreement was signed between the Company \'s wholly owned Dutch subsidiary (hereinafter, \"the Dutch Subsidiary \") and a third party for the sale of the Dutch Subsidiary \'s entire holdings (100%) in a Bulgarian company that owns the Totleben Building, an income-producing property in Sophia, Bulgaria. The property is valued at €7.25 million. After the deduction of loans from financial institutions, the Company \'s proceeds of this sale will be € 5.6 million (approximately NIS 31 million), including discharge of owners \' loans. Following the completion of this transaction, the Company expects to record earnings, before tax and transaction costs, estimated at € 2.8 million (approximately NIS 15.8 million) which will be charged to the Company \'s financial statements as of December 31, 2007, the cash flows generated by the transaction are estimated at € 5.6 million (app. NIS 31 million).	UP	June 21, 2007	The BSR Center Project in Budapest Hungary, has been sold to A foreign fund for € 6.8M (approximately NIS 38M) Expected company profits of approximately NIS 25NIS (Pre-Tax)	On June 20, 2007, an agreement ( \"Agreement \") was signed between a wholly owned subsidiary of the Company ( \"Subsisdiary \") and a foreign fund ( \"the Fund \") which is the Subsidiary \'s partner in the BSR Center project ( \"the Project \") in Budapest, Hungary (the Subsidiary holds 30% of the local company that owns the Project [ \"the Project Company \"] and the Fund holds 70% of the Project Company). According to the Agreement, the Subsidiary sold its entire holding in the Project Company (30%) to the Fund, for a total consideration of € 6.8 million.	The parties provided that in the framework of the Agreement, the said payment and corresponding transfer of shares in the Project Company made against said payment, will take place on June 29, 2007, subject to approval of the bank that will finance the project (the Fund undertook to obtain the approval of the said bank).	According to the agreements with the Fund, a local subsidiary of the Subsidiary will continue to manage the construction and marketing of the project for a consideration of management fees of an insignificant amount.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the consideration from the Fund, € 4.5 million (NIS 25 million) before tax and after transaction costs, and a cash flow, before tax of € 6.8 million (NIS 38 million).	UP	June 18, 2007	A residential project in Warsaw, Poland has been sold to AFI Europe. The company \'s share in the consideration is € 26.34M (approximately NIS 146M), Expected company profits of approximately NIS 118.8 (Pre-Tax).	On June 18, 2007, a subsidiary of the Company ( \"Subsidiary \") and third parties ( \"the Sellers \") signed an agreement with a member of the Africa Israel Properties Ltd Group ( \"AFI Europe \") to sell the Sellers \' economic rights in the Wilanow project in Warsaw, Poland, to AFI Europe. The Subsidiary \'s share in the consideration is € 26.34 million (NIS 146 million). A total of up to € 6.5 millions (NIS 36 million) of the above consideration ( \"the Deferred Amount \") including interest at an annual rate of EURIBOR+1.5% will be transferred to the Subsidiary within 12 months, subject to the completion of a modification to the zoning plan relating to the project.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 21.4 million (NIS 118.8 million) before tax and transaction costs, and a cash flow, before tax of € 26 million (NIS 144 million).	UP	May 13, 2007	A residential project in Krakow, Poland has been sold to AFI Europe for € 35.3M (approximately NIS 189M), the company \'s share in the consideration is € 24.4M (approximately NIS 131M), Expected company profits of approximately NIS 106 (Pre-Tax).	On Thursday, May 10, 2007, second-tier subsidiaries of the Company ( \"the Sellers \") and a company member of the Africa Israel Properties Ltd Group ( \"AFI Europe \"), signed an agreement for the sale of the Sellers \' economic rights in companies that own a project in Krakow, Poland - the Osiedle Europesjkie project ( \"the Project \"), for a total consideration of € 35.3 million (NIS 189 million) ( \"the Consideration \"). The Company \'s share in the Project is 69% through final concatenation; consequently the Company \'s share in the Consideration is € 24.4 million (NIS 131 million). This consideration, excluding € 6.1 million (NIS 33 million) ( \"the Deferred Amount \") was transferred to the Sellers. The parties agreed that the Deferred Amount would be transferred to the Subsidiary within 12 months, including annual interest at the rate of EURIBOR+1.5%.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 19.8 million (NIS 106 million) before tax, and a cash flow, before tax of € 23 million (NIS 123 million).	UP	April 19, 2007	Lagerfield, a residential project in Sophia, Bulgaria has been sold to AFI Europe for € 8.3M (approximately NIS 46M), Expected company profits of approximately NIS 22 NIS (Pre-Tax).	On April 18, 2007, a wholly owned and controlled subsidiary of the Company ( \"Subsidiary \") and a company member of the Africa Israel Properties Ltd. Group ( \"AFI Europe \") signed an agreement for the sale of its economic rights in a company that owns a project in Sophia, Bulgaria - the Lagerfield Project - for € 8.3 million (NIS 46 million) ( \"the Consideration \"). This consideration, excluding € 2.1 million (NIS 11.5 million) ( \"the Deferred Amount) was received by the Subsidiary on April 18, 2007. The parties agreed that the Deferred Amount would be transferred to the Subsidiary within 12 months, including annual interest at the rate of EURIBOR +1.5% ( \"Deferred Amount Payment Date \").	An amount of € 1 million of the Deferred Amount ( \"the Conditional Amount \") is conditional upon the approval of a city building plan that will allow building permits for a project of the scope set forth in detail in the agreement, and said amount will be paid pursuant to the city building plan approval date.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 4 million (NIS 22 million) before tax, and a cash flow, before tax and, of € 8.3 million (NIS 46 million).	UP	March 30, 2007	Projects in Latvia and Romania have been sold for € 39.5M (approximately NIS 220M), Expected company profits of approximately NIS 98 NIS (Pre-Tax).	On March 29, 2007, a wholly owned subsidiary of the Company ( \"Subsidiary \") and a company member of the Africa Israel Properties Ltd. Group ( \"AFI Europe \") and a partner of the Subsidiary ( \"Partner \") signed a series of agreements as follows:	1. The Subsidiary sold to AFI Europe its economic rights in companies that own two Projects in Riga, Latvia - the Metropolia project and the Soleville project, for a total amount of €18.5 million (NIS 103 million). The above consideration, with the exception of €4.6 million (NIS 25 million) ( \"the Deferred Amount \") was received by the Subsidiary on March 29, 2007. The parties agreed that the Deferred Amount would be transferred to the Subsidiary, including annual interest at a rate of EURIBOR +1.5%, within 12 months.	2. The Subsidiary sold its economic rights in four projects in Romania to the Partner (West Park, Pantalimon, Ploiest and Botanic Gardens) for a total consideration of € 21 million (NIS 117 million).	According to an initial estimate, the Company will record, as a result of the above transactions, NIS 98 million before tax and transaction costs, and a cash flow, before tax and transaction costs, of NIS 219 million.	UP	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw.	B.S.R. Europe has signed a final agreement for the sale of 70% of its holdings in a Polish company, which owns land of an approximate area of 194 dunams in Warsaw.	The buyer is an Australian investment fund of the MacQuarie Global Property Advisors.	Estimated value of sale is €13 million. B.S.R has reported that the gross profit of the deal in the financial reports will reach up to € 7.1 million.	A mechanism was determined for increasing the company \'s consideration for the sale of their shares in the polish company, based on building rights to be obtained in the project, such that if the building rights are modified to residential building rights and the total scope of building rights increases, B.S.R Europe will be entitled for an additional fee at the amount of € 9.7 million. The company estimates that building rights will be increased, as noted above.	At the signing of the agreement, a management and development agreement was signed between B.S.R and the Polish company. It was agreed that B.S.R will be entitled for management fees from the Polish Company in an amount equal to 4% of project costs less the cost of land and financing costs.	According to an initial estimate, the total scope of costs for the project (including cost of land ) will not exceed € 290 million	UP	We are at your service. For any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[43]=new Array("news/news_old.html","BSR Europe | News","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	News	Press	Vision	--	Print Format	NEWS & PRESS SUMMARY	--	News--	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw. ....	May 18, 2006	The Lagera Project - Sophia, Bulgaria ....	May 12, 2006	Letter of Principles Signed with EBRD....	May 7, 2006	Projects in Tbilisi, Georgia....	February 6, 2006	The Wilanow Project - Warsaw, Poland ....	December 7, 2005 \"4D Center \", the Business Center in Prague, has been sold to the International Investment Fund -Orco Property Group for € 24.75M (approximately NIS 135M) Expected company profits of approximately NIS 18.5NIS (Pre-Tax)....	November 17, 2005	A Latvian subsidiary (50% ownership) has signed a final agreement for purchase of another Latvian company which holds a land of an area of 104 dunams in order to construct a 2000-unit residential project....	November 17, 2005	BSR Europe raised NIS 100 Million in bonds. ...	October 10, 2005	Planning to raise approximately NIS 100 million in bonds that have been rated A3 by Midrug ...	October 10, 2005	Wholly-owned Bulgarian subsidiary signed a preliminary agreement with a third party, to purchase real estate in Sophia, Bulgaria ...	An agreement has been signed for purchase of 35% of a land in Bucharest, Romania ...	September 18, 2005	A memorandum of understanding was signed for the sale of BSR \'s share (50%) and the share of its partner (50%) in a Czech corporation (Kodanska) ...	August 21, 2005	BSR Europe published its financial reports today, for Q2 and the first six months of 2005 ...	June 30, 2005	An agreement had been signed with the international real estate fund, Accesion Fund, managed and funded by a partnership of the General Group and Landlease ...	March 2, 2005	A purchase of 100% of the shares in a Latvian company, held in equal shares by BSR Europe and Scorpio Ltd, of the Benny Steinmitz Group. ...	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw.	B.S.R. Europe has signed a final agreement for the sale of 70% of its holdings in a Polish company, which owns land of an approximate area of 194 dunams in Warsaw.	The buyer is an Australian investment fund of the MacQuarie Global Property Advisors.	Estimated value of sale is €13 million. B.S.R has reported that the gross profit of the deal in the financial reports will reach up to € 7.1 million.	A mechanism was determined for increasing the company \'s consideration for the sale of their shares in the polish company, based on building rights to be obtained in the project, such that if the building rights are modified to residential building rights and the total scope of building rights increases, B.S.R Europe will be entitled for an additional fee at the amount of € 9.7 million. The company estimates that building rights will be increased, as noted above.	At the signing of the agreement, a management and development agreement was signed between B.S.R and the Polish company. It was agreed that B.S.R will be entitled for management fees from the Polish Company in an amount equal to 4% of project costs less the cost of land and financing costs.	According to an initial estimate, the total scope of costs for the project (including cost of land ) will not exceed € 290 million	UP	May 18, 2006	The Lagera Project - Sophia, Bulgaria	On May 18, 2006, an agreement was signed by a wholly owned and controlled third-tier subsidiary of the Company ( \"the Buyer \") and a third party unrelated to the Company ( \"the Seller \"), for the purchase of a lot covering an area of 15.7 dunams in consideration for the total amount of €5 M, including transaction and other costs. On May 22, 2006, title to the land was transferred to the Buyer and the consideration was transferred to the Seller.	The Group intends to construct approximately 630 residential units on the lot, with a net sales area estimated at approximately 59,700 sqm.	UP	May 12, 2006	Letter of Principles Signed with EBRD	A Dutch subsidiary, wholly owned and controlled by the Company ( \"the Subsidiary \") signed a Letter of Principles on May 12, 2006, with the European Bank for Reconstruction and Development ( \"EBRD \"), (jointly, \"the Parties \"), according to which the Parties would collaborate in real estate investments and development in Romania, Bulgaria, Russia, Serbia, Ukraine, Croatia, Montenegro, Georgia and Moldavia (hereinafter, \"the Region \"). To the Company \'s best knowledge, EBRD is one of the largest investment banks in Europe that focuses on financing real estate investments in Eastern Europe.	According to the Letter of Principles, EBRD confirmed its interest in participating in investments to be made by the Subsidiary in the Region, in the amount of up to € 35 M. EBRD will have a right of refusal to join, as a partner, each of the Subsidiary \'s investments in the Region, after the Subsidiary purchases, either directly or indirectly, a project in the Region. EBRD \'s said right of refusal shall be in effect for two weeks from the date on which the Subsidiary delivers a partnership offer in the project to EBRD. Investments in the Region shall be made through a unique company ( \"the Joint Company \") in which the Subsidiary and EBRD will be partners. According to the Letter of Principles, EBRD will invest between 20%-35% of the required shareholders \' equity in each project .	Upon completion of each project stage, or upon completion of the entire project, the Subsidiary shall have preference in the distribution of the disposal income provided the project is completed as planned. Thus, in addition to its share of ownership in the project, the Subsidiary shall be entitled to an additional 20% of the positive cash flow, assuming that the refunds will exceed a certain yield. Notably, the Letter of Principles is the first milestone towards signing a detailed collaboration agreement ( \"Partnership Agreement \") between the Parties, and the foundation for the Partnership Agreement.	UP	May 7, 2006	Projects in Tbilisi, Georgia	On May 7, 2006, two agreements were signed between the Company \'s wholly owned and controlled Dutch subsidiary ( \"the Buyer \") and third parties unrelated to the Company ( \"the Developer \") concerning the purchase of land in Tbilisi, Georgia. According to this first agreement, the Buyer will purchase a 50% share in the ownership of the company that will own approximately 20 dunams, from the Developer, for a consideration of approximately USD 2.5 M (USD 1.55 M will be set off in respect of a loan granted to the Developer in January 2006). Approximately 78,000 sqm of residential areas may be constructed on the land. According to the Company \'s initial estimates, total costs of the planned project are USD 64 M.	According to the second agreement, the Buyer will purchase from the Developer a 50% share in ownership of a company that will own approximately 8 dunams, in consideration of approximately USD 2.4 M. On this lot, a residential project of approximately 75,000 sqm may be built. On the basis of the Company \'s initial estimates, total costs of the planned project are USD 75 M.	These companies intend to take steps to obtain external financing for the construction of the two above projects.	UP	February 6, 2006	The Wilanow Project - Warsaw, Poland	A preliminary agreement was signed between a Polish company ( \"the Buyer \") owned by the Company (70%) and third parties (30%), and between a company unrelated to the Company ( \"the Seller \") on February 6, 2006. According to this agreement, the Buyer purchased from the Seller long-term leasing rights (until 2089) in a 194-dunam lot in Warsaw, Poland, for the total consideration of approximately €30 M (and VAT). The Buyer intends to pay the majority of the consideration amount through external financing. The Buyer further intends to take steps to obtain external financing for the project \'s construction. To the Company \'s best knowledge, a residential and commercial complex of approximately 90,000 net sqm (residential) and approximately 47,000 net sqm may be constructed on the lot. Nonetheless, the Buyer intends to take steps to increase the residential building rights of the project to approximately 165,000 sqm (with a corresponding reduction in commercial areas to approximately 22,000 sqm).	UP	December 7, 2005 \"4D Center \", the Business Center in Prague, has been sold to the International Investment Fund -Orco Property Group for € 24.75M (approximately NIS 135M) Expected company profits of approximately NIS 18.5NIS (Pre-Tax)	On Wednesday, 7 December 2005, B.S.R. Europe Group signed a final agreement with a corporation of the Orco Property Group, a leading international investment fund that handles investments, development and management of real estate in Central and Eastern Europe, toward the sale of the \"4D Center \" business complex located in Prague, in the Czech Republic.	The office building complex, purchased in February 2002 for an estimated €12M, was renovated for €4M and designed by the Israeli artist, Yacov Agam, whose unique style granted the buildings an artistic facade painted in 300 different hues.	The office building complex is comprised of approximately 30,000mē of offices in various sizes which, immediately after renovation, were almost all rented (approximately 90% of the office space is rented).	The project \'s selling price was set at €24.75M (approximately NIS135M) and the pre-tax profit for B.S.R. Europe is about NIS18.5M.	UP	UP	November 17, 2005	A Latvian subsidiary (50% ownership) has signed a final agreement for purchase of another Latvian company which holds a land of an area of 104 dunams in order to construct a 2000-unit residential project.	On November 17, a Latvian Company (hereinafter, \"the Buyer Company \"), whose share capital is held in equal shares (50%) by a Dutch Company (wholly controlled and owned by the Company), and by a third party (who is also the Group \'s partner in other projects in Riga and Bucharest), signed a final agreement for the purchase 100% of the issued and paid-in share capital of a second Latvian company (the Latvian Company \").	The Latvian Company is the owner of land of an area of approximately 104 dunams, in respect of which it holds building rights to construct residential apartments of an area of 130,000-170,000 sqm, not including balconies and parking spaces. The Latvian Company plans to construct a 2000-unit residential project on the land. The number of apartments is subject to the final determination of building rights.	The consideration for the shares of the Latvian Company, to be paid on the closing date, shall be determined on the basis of a property value of approximately €15.8 million, after deducting adjustments to the Latvian Company \'s balance sheet on the closing date.	To the best of the Company \'s knowledge, the project is planned to be constructed in six stages, and the total scope of costs, including cost of land, will not exceed €160 million, according to an initial estimate.	UP	November 17, 2005	BSR Europe raised NIS 100 Million in bonds.	On November 10, 2005, the Company published a prospectus offering 100,000,000 bonds (Series H) of NIS 1 par value each to the public, at a price equal to 100% of their par value.	Midrug classified the bonds (Series H) as A3.	The interest rate determined in the tender which took place on November 17, 2005, is 5.5%.	NIS 100,000,000 par value in bonds will be redeemed in 5 equal annual installments (on November 30 of each calendar year), commencing on November 30, 2008 and ending on November 30, 2012, linked to the CPI (in respect of October 2005).	The net proceeds from the offering, after deduction of underwriting fees of NIS 4.1 million, are approximately NIS 95.9 million.	UP	October 10, 2005	Planning to raise approximately NIS 100 million in bonds that have been rated A3 by Midrug	BSR Europe plans to raise approximately NIS 100 million in bonds that have been rated A3 by Midrug. The bonds will be issued to finance the company \'s business operations, including the expansion of its investments in development and income-yielding projects.	UP	October 10, 2005	Wholly-owned Bulgarian subsidiary signed a preliminary agreement with a third party, to purchase real estate in Sophia, Bulgaria	BSR Europe announced that its wholly-owned Bulgarian subsidiary signed a preliminary agreement with a third party, to purchase real estate in Sophia, Bulgaria. The subsidiary plans to construct a 450-unit residential project on the land, priced at €2.25 million. The purchase is subject to a final survey of the land and approval of a construction plan. The final closing date is scheduled for January 15, 2006.	An agreement has been signed for purchase of 35% of a land in Bucharest, Romania	BSR Europe announced that a Romanian company, 35% of its shares are owned by BSR Europe \'s wholly-owned Dutch subsidiary, and 65% by a partner, signed an agreement to purchase 34,500 square meters of land in Bucharest, Romania from a third party. The Romanian company plans to construct a 1500-unit residential project. The sale is subject to several preliminary conditions imposed on the sellers. The major preliminary condition is that the sellers obtain the required approvals for a building plan, allowing for the construction of no less than 150,000 square meters in residential (excluding balconies and underground structures) uses on the site. The sales price, set at € 13.7 million, will be paid on the closing date. The company estimates that the total scope of the project, including cost of land, will total approximately € 120 million. The Romanian company intends to obtain financing from banking institutions to cover 75%-85% of the project \'s costs.	UP	September 18, 2005	A memorandum of understanding was signed for the sale of BSR \'s share (50%) and the share of its partner (50%) in a Czech corporation (Kodanska)	BSR Europe announced that a memorandum of understanding was signed between its wholly-owned Dutch subsidiary and a foreign REIT, for the sale of BSR \'s share (50%) and the share of its partner (50%) in a Czech corporation. The Czech corporation owns a three-building office complex in Prague known as 4D Center (Kodanska).The cosideration for the project was set at at € 2.25 million, although the sale is subject to a due diligence examination by the REIT, estimated to be completed within 4 weeks. Upon completion of the due diligence, the REIT will pay a deposit of 10% of the sales price. The parties have undertaken to invest their utmost efforts to close the sale by October 31, 2005.BSR anticipates a pre-tax profit of approximately NIS 23.2 million from the sale, and a potential positive cashflow of NIS 50 million in the future, including proceeds in respect of repayment of owners \' loans in the amount of approximately NIS 22.7 million, by owners of the Czech corporation to the Dutch subsidiary.	UP	August 21, 2005	BSR Europe published its financial reports today, for Q2 and the first six months of 2005	BSR Europe published its financial reports today, for Q2 and the first six months of 2005. At the end of Q2, the company signed an agreement to establish a joint company with the international real estate Accesion Fund, established by the Generali Group and EBRD (European Bank for Reconstruction and Development), and together construct a NIS 180 million office building project in Hungary (BSR Center). The company \'s income for the period amounted to approximately NIS 42.5 million, with net profits in Q2 of approximately NIS 2.7 million.	UP	June 30, 2005	An agreement had been signed with the international real estate fund, Accesion Fund, managed and funded by a partnership of the General Group and Landlease	BSR Europe announced today that an agreement was signed for the establishment of a joint company with the international real estate fund, Accesion Fund, managed and funded by GLL Real Estate Partners (a partner of the General Group and Landlease). The joint company (in which BSR Europe holds 30% and Accession holds 70%) is expected to develop an NIS 180 million office building project in Hungary.The project is planned as building complex of 40,000 square meters of office and commercial spaces in four 5-7 story buildings, and 370 parking spaces. Construction is scheduled to commence in Q4 of 2005 and project completion is anticipated within two years. The joint company signed a project finance agreement to cover approximately 80% of total project costs.The joint company purchased the land for the project, with building permits in effect, from a sister company (50% owned by BSR Europe) for NIS 39 million (approximately € 7.1 million). Pre-tax income from the sale of the land, including building permits, is estimated at approximately NIS 4.3 milllion (€ 0.8 million), and will be reflected in the company \'s Q2/2005 results.The company \'s subsidiary will also render management and supervision services to the project for a fee of approximately NIS 5.5 million.	UP	March 2, 2005	A purchase of 100% of the shares in a Latvian company, held in equal shares by BSR Europe and Scorpio Ltd, of the Benny Steinmitz Group.	BSR Europe continues in the expansion of its operations in Eastern Europe, and reports the purchase of 100% of the shares in a Latvian company, held in equal shares by BSR Europe and Scorpio Ltd, of the Benny Steinmitz Group.The acquired company owns 22.5 dunams of land, including building plans and permits for 5 18-story buildings, as well as building permits for the construction of 2 residential towers and 3 additional residential towers on the site. As of the date of this announcement, the construction has commenced on the first two towers. The first tower is in the skeleton stage (10th floor), while foundation works have been completed on the second tower. A total of 572 units covering a net area of 45,000 meters are planned for sale. To date, 87 units have been sold. Control (100%) of the Latvian company was purchased for the price of approximately € 4.4 million. Total project costs including land acquisition costs, are estimated at approximately € 36 million.	UP	We are at your service. For any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[44]=new Array("news/PrintNews.html","BSR Europe | News & Press | Print Format","News & Press Summary	Print	January 17, 2008	A Bulgarian subsidiary and partners have signed a MOU to purchase land in central Sophia, Bulgaria covering a total area of 33 dunams ....	November 15, 2007	A Bulgarian subsidiary has signed a final agreement for purchase of four parcels of land in Bulgaria covering an area of 74 dunams. a 50,000-sqm of residential project. According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings ....	October 24, 2007	A Romanian subsidiary has signed a final agreement for purchase of another Romanian company which holds a land of an area of 30 dunams in order to construct a 50,000-sqm of residential project. ....	August 29, 2007 \"Totleben Building \", the Business Center in Prague, has been sold to a third party for € 5.6M (approximately NIS 31M) Expected company profits of approximately NIS 15.8 (Pre-Tax) ....	June 21, 2007	The BSR Center Project in Budapest Hungary, has been sold to A foreign fund for € 6.8M (approximately NIS 38M) Expected company profits of approximately NIS 25NIS (Pre-Tax) ....	June 18, 2007	A residential project in Warsaw, Poland has been sold to AFI Europe. The company \'s share in the consideration is € 26.34M (approximately NIS 146M), Expected company profits of approximately NIS 118.8 (Pre-Tax). ....	May 13, 2007	A residential project in Krakow, Poland has been sold to AFI Europe for € 35.3M (approximately NIS 189M), the company \'s share in the consideration is € 24.4M (approximately NIS 131M), Expected company profits of approximately NIS 106 (Pre-Tax). ....	April 19, 2007	Lagerfield, a residential project in Sophia, Bulgaria has been sold to AFI Europe for € 8.3M (approximately NIS 46M), Expected company profits of approximately NIS 22 NIS (Pre-Tax). ....	March 30, 2007	Projects in Latvia and Romania have been sold for € 39.5M (approximately NIS 220M), Expected company profits of approximately NIS 98 NIS (Pre-Tax). ....	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw. ....	January 17, 2008	A Bulgarian subsidiary and partners have signed a MOU to purchase land in central Sophia, Bulgaria covering a total area of 33 dunams.	The Company is pleased to announce that on January 17, 2008, a company owned by the Company \'s Dutch subsidiary, a highly reputable European investment fund, and additional partners (the Company \'s share in the company being 42.5%) signed a MOU with a third party, unrelated to the Company (hereinafter, \"the Buyer \", \"the MOU \", \"the Seller \" and \"the Parties \" respectively), to purchase land in central Sophia, Bulgaria, covering a total area of 33 dunams (hereinafter, \"the Land \").	If the Buyer notifies the Seller of its desire to purchase the Land, the Parties will enter into an agreement pursuant to which the Buyer will purchase the Land from the Seller for a total of NIS 200 million. As of today, and on the basis of information obtained from the Seller on the Land \'s potential building rights, the Buyer intends to construct a 100,000 sqm project for sale and lease, including office, residential and commercial buildings (hereinafter, \"the Project \"). According to the Company \'s initial estimates, total project costs will be NIS 700 million (including the cost of the Land), and estimated earnings from the project will total NIS 1.05 billion.	UP	November 15, 2007	A Bulgarian subsidiary has signed a final agreement for purchase of four parcels of land in Bulgaria covering an area of 74 dunams. a 50,000-sqm of residential project. According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings.	The Company hereby announced that in November 15, 2007, the Company \'s Dutch subsidiary (hereinafter, \"the Subsidiary \") and its Bulgarian subsidiary (hereinafter, \"the Buyer \") signed an agreement with landowners (hereinafter, \"the Seller \") to purchase four parcels of land in Bulgaria covering an area of 74 dunams in the city of Varna (hereinafter, \"the Land \"). The consideration for the Land is NIS 213 million and VAT. The Buyer is owned by the Subsidiary (42.5%), a highly reputable European investment fund (42.5%) and additional partners.	According to the approved City Building Plan, the envisioned project will contain 230,000 sqm of residential, office and commercial buildings. Based on an initial estimate, total projects costs will be NIS 1.15 million.	UP	October 24, 2007	A Romanian subsidiary has signed a final agreement for purchase of another Romanian company which holds a land of an area of 30 dunams in order to construct a 50,000-sqm of residential project.	The Company hereby announces that in October 24, 2007, the Company \'s Dutch subsidiary (hereinafter, \"the Subsidiary \") and its romanian subsidiary (hereinafter, \"the Buyer \") signed an agreement to purchase two parcels of land in Brasov, Romania (hereinafter, \"the Land \") covering an area of 30 dunams. The Buyer will pay the landowners (hereinafter, \"the Sellers \") a consideration in the amount of € 5.1 million.	Based on preliminary information which the Subsidiary obtained from the Sellers, a 50,000-sqm residential project may be constructed on the Land. According to initial estimates, total project costs will be € 40 million.	UP	August 29, 2007 \"Totleben Building \", the Business Center in Prague, has been sold to a third party for € 5.6M (approximately NIS 31M) Expected company profits of approximately NIS 15.8 (Pre-Tax)	The Company hereby announces that in August 29, 2007, an agreement was signed between the Company \'s wholly owned Dutch subsidiary (hereinafter, \"the Dutch Subsidiary \") and a third party for the sale of the Dutch Subsidiary \'s entire holdings (100%) in a Bulgarian company that owns the Totleben Building, an income-producing property in Sophia, Bulgaria. The property is valued at €7.25 million. After the deduction of loans from financial institutions, the Company \'s proceeds of this sale will be € 5.6 million (approximately NIS 31 million), including discharge of owners \' loans. Following the completion of this transaction, the Company expects to record earnings, before tax and transaction costs, estimated at € 2.8 million (approximately NIS 15.8 million) which will be charged to the Company \'s financial statements as of December 31, 2007, the cash flows generated by the transaction are estimated at € 5.6 million (app. NIS 31 million).	UP	June 21, 2007	The BSR Center Project in Budapest Hungary, has been sold to A foreign fund for € 6.8M (approximately NIS 38M) Expected company profits of approximately NIS 25NIS (Pre-Tax)	On June 20, 2007, an agreement ( \"Agreement \") was signed between a wholly owned subsidiary of the Company ( \"Subsisdiary \") and a foreign fund ( \"the Fund \") which is the Subsidiary \'s partner in the BSR Center project ( \"the Project \") in Budapest, Hungary (the Subsidiary holds 30% of the local company that owns the Project [ \"the Project Company \"] and the Fund holds 70% of the Project Company). According to the Agreement, the Subsidiary sold its entire holding in the Project Company (30%) to the Fund, for a total consideration of € 6.8 million.	The parties provided that in the framework of the Agreement, the said payment and corresponding transfer of shares in the Project Company made against said payment, will take place on June 29, 2007, subject to approval of the bank that will finance the project (the Fund undertook to obtain the approval of the said bank).	According to the agreements with the Fund, a local subsidiary of the Subsidiary will continue to manage the construction and marketing of the project for a consideration of management fees of an insignificant amount.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the consideration from the Fund, € 4.5 million (NIS 25 million) before tax and after transaction costs, and a cash flow, before tax of € 6.8 million (NIS 38 million).	UP	June 18, 2007	A residential project in Warsaw, Poland has been sold to AFI Europe. The company \'s share in the consideration is € 26.34M (approximately NIS 146M), Expected company profits of approximately NIS 118.8 (Pre-Tax).	On June 18, 2007, a subsidiary of the Company ( \"Subsidiary \") and third parties ( \"the Sellers \") signed an agreement with a member of the Africa Israel Properties Ltd Group ( \"AFI Europe \") to sell the Sellers \' economic rights in the Wilanow project in Warsaw, Poland, to AFI Europe. The Subsidiary \'s share in the consideration is € 26.34 million (NIS 146 million). A total of up to € 6.5 millions (NIS 36 million) of the above consideration ( \"the Deferred Amount \") including interest at an annual rate of EURIBOR+1.5% will be transferred to the Subsidiary within 12 months, subject to the completion of a modification to the zoning plan relating to the project.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 21.4 million (NIS 118.8 million) before tax and transaction costs, and a cash flow, before tax of € 26 million (NIS 144 million).	UP	May 13, 2007	A residential project in Krakow, Poland has been sold to AFI Europe for € 35.3M (approximately NIS 189M), the company \'s share in the consideration is € 24.4M (approximately NIS 131M), Expected company profits of approximately NIS 106 (Pre-Tax).	On Thursday, May 10, 2007, second-tier subsidiaries of the Company ( \"the Sellers \") and a company member of the Africa Israel Properties Ltd Group ( \"AFI Europe \"), signed an agreement for the sale of the Sellers \' economic rights in companies that own a project in Krakow, Poland - the Osiedle Europesjkie project ( \"the Project \"), for a total consideration of € 35.3 million (NIS 189 million) ( \"the Consideration \"). The Company \'s share in the Project is 69% through final concatenation; consequently the Company \'s share in the Consideration is € 24.4 million (NIS 131 million). This consideration, excluding € 6.1 million (NIS 33 million) ( \"the Deferred Amount \") was transferred to the Sellers. The parties agreed that the Deferred Amount would be transferred to the Subsidiary within 12 months, including annual interest at the rate of EURIBOR+1.5%.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 19.8 million (NIS 106 million) before tax, and a cash flow, before tax of € 23 million (NIS 123 million).	UP	April 19, 2007	Lagerfield, a residential project in Sophia, Bulgaria has been sold to AFI Europe for € 8.3M (approximately NIS 46M), Expected company profits of approximately NIS 22 NIS (Pre-Tax).	On April 18, 2007, a wholly owned and controlled subsidiary of the Company ( \"Subsidiary \") and a company member of the Africa Israel Properties Ltd. Group ( \"AFI Europe \") signed an agreement for the sale of its economic rights in a company that owns a project in Sophia, Bulgaria - the Lagerfield Project - for € 8.3 million (NIS 46 million) ( \"the Consideration \"). This consideration, excluding € 2.1 million (NIS 11.5 million) ( \"the Deferred Amount) was received by the Subsidiary on April 18, 2007. The parties agreed that the Deferred Amount would be transferred to the Subsidiary within 12 months, including annual interest at the rate of EURIBOR +1.5% ( \"Deferred Amount Payment Date \").	An amount of € 1 million of the Deferred Amount ( \"the Conditional Amount \") is conditional upon the approval of a city building plan that will allow building permits for a project of the scope set forth in detail in the agreement, and said amount will be paid pursuant to the city building plan approval date.	According to an initial estimate, the Company will record, as a result of the above transactions, and subject to the receipt of the balance of the Consideration (the Deferred Amount), € 4 million (NIS 22 million) before tax, and a cash flow, before tax and, of € 8.3 million (NIS 46 million).	UP	March 30, 2007	Projects in Latvia and Romania have been sold for € 39.5M (approximately NIS 220M), Expected company profits of approximately NIS 98 NIS (Pre-Tax).	On March 29, 2007, a wholly owned subsidiary of the Company ( \"Subsidiary \") and a company member of the Africa Israel Properties Ltd. Group ( \"AFI Europe \") and a partner of the Subsidiary ( \"Partner \") signed a series of agreements as follows:	1. The Subsidiary sold to AFI Europe its economic rights in companies that own two Projects in Riga, Latvia - the Metropolia project and the Soleville project, for a total amount of €18.5 million (NIS 103 million). The above consideration, with the exception of €4.6 million (NIS 25 million) ( \"the Deferred Amount \") was received by the Subsidiary on March 29, 2007. The parties agreed that the Deferred Amount would be transferred to the Subsidiary, including annual interest at a rate of EURIBOR +1.5%, within 12 months.	2. The Subsidiary sold its economic rights in four projects in Romania to the Partner (West Park, Pantalimon, Ploiest and Botanic Gardens) for a total consideration of € 21 million (NIS 117 million).	According to an initial estimate, the Company will record, as a result of the above transactions, NIS 98 million before tax and transaction costs, and a cash flow, before tax and transaction costs, of NIS 219 million.	UP	November 16, 2006	A gross profit of € 7.1 million in the sale of 70% of B.S.R \'s holding in a residential project in Warsaw.	B.S.R. Europe has signed a final agreement for the sale of 70% of its holdings in a Polish company, which owns land of an approximate area of 194 dunams in Warsaw.	The buyer is an Australian investment fund of the MacQuarie Global Property Advisors.	Estimated value of sale is €13 million. B.S.R has reported that the gross profit of the deal in the financial reports will reach up to € 7.1 million.	A mechanism was determined for increasing the company \'s consideration for the sale of their shares in the polish company, based on building rights to be obtained in the project, such that if the building rights are modified to residential building rights and the total scope of building rights increases, B.S.R Europe will be entitled for an additional fee at the amount of € 9.7 million. The company estimates that building rights will be increased, as noted above.	At the signing of the agreement, a management and development agreement was signed between B.S.R and the Polish company. It was agreed that B.S.R will be entitled for management fees from the Polish Company in an amount equal to 4% of project costs less the cost of land and financing costs.	According to an initial estimate, the total scope of costs for the project (including cost of land ) will not exceed € 290 million	UP","null","null","");arrFiles[45]=new Array("projects/PrintProjects.html","BSR Europe | Projects | Print Format","Projects	Print	B.S.R. Europe Ltd. is one of the most dynamic and experianced real estate companies in the CEE region. It operates in ten Central European countries main focused countries:	* Realized Projects	The Czech Republic	Forest Gate Residence	Sunny Gate	*4D Center	*Besnet Centrum	Slovakia	BBC VI	*Bratislava Star	*BBCIII & IV	*BBC V	Poland	*Wilanow 1	*Osiedle Europejskie	*Wawel	Marriott Complex	Latvia	*Soleville	*Metropolia	Romania	*West Park	*Baneasa	Bulgaria	*Lagera	Totleben	Hungary	*BSR Center	*M3	*Duna Office Center	Cyprus	Limassol	Bulgaria	Totleben	--","null","null","");arrFiles[46]=new Array("projects/projects.html","BSR Europe | Projects","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Poland	Czech Rep.	Slovakia	Poland	Hungary	Latvia	Romania	Bulgaria	Cyprus	Realized Projects	--	Print Format	Projects	B.S.R. Europe Ltd. is one of the most dynamic and experianced real estate companies in the CEE region. It operates in ten Central European countries main focused countries:	Projects list	* Realized Projects	The Czech Republic	Forest Gate Residence	Sunny Gate	*4D Center	*Besnet Centrum	Slovakia	BBC VI	*Bratislava Star	*BBCIII & IV	*BBC V	Poland	Marriott Tower	Marriott Complex	Wawel	*Wilanow 1	*Osiedle Europejskie	Latvia	*Soleville	*Metropolia	Romania	Naturalis	Arcadia	*West Park	*Baneasa	Bulgaria	Varna	*Lagera	*Totleben	Hungary	*BSR Center	*M3	*Duna Office Center	Cyprus	Limassol	Spain	Torrijos	Bulgaria	Totleben	--	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[47]=new Array("projects/search.html","BSR Europe | Search Results","Presentation	--	Search	The Company	Projects--	Projects	News & Press	Contact	Site Map	Home	Profile	Management	Vision	--	Search Results	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Group All Rights reserved	Site byVision","null","null","");arrFiles[48]=new Array("projects/bulgaria/PrintVarna.html","BSR Europe | Projects | Bulgary | Varna | Print Format","Projects	Varna	Print	Bulgary | Varna	--	Description	A new residential and commercial neighborhood built as gated community.	It is located at the entrance of Varna (on the way from the airport).	Land size: 74,000 sq. m	1,500 apartments in 7 buildings comprise: kindergartens	Offices center - 4 towers on a commercial lobby.	Estimated initiation: 2008	Estimated completion: 2013","null","null","");arrFiles[49]=new Array("projects/bulgaria/Varna.html","BSR Europe | Projects | Bulgaria | Varna","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Poland	Czech Rep.	Slovakia	Poland	Hungary	Latvia	Romania	Bulgaria	Cyprus	Realized Projects	--	Print Format	VARNA	RESIDENTIAL	Previous / Next	Description	A new residential and commercial neighborhood built as gated community.	It is located at the entrance of Varna (on the way from the airport).	Land size: 74,000 sq. m	1,500 apartments in 7 buildings comprise: kindergartens	Offices center - 4 towers on a commercial lobby.	Estimated initiation: 2008	Estimated completion: 2013	The project web site	Location Map--	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[50]=new Array("projects/bulgaria/images/VarnaA.html","Untitled","Untitled	Picture will be available soon.	Previous	/	Next Pic	Zoom	--","null","null","");arrFiles[51]=new Array("projects/bulgaria/images/VarnaAZoom.html","Bulgaria | Totleben","null","null","null","");arrFiles[52]=new Array("projects/cyprus/Limassol.html","BSR Europe | Projects | Cyprus | Limassol","DHTML Menu, (c)2004 Apycom	Presentation	--	Search	The Company	Projects	Projects	News & Press	Contact	Site Map	Home	--	Poland	Czech Rep.	Slovakia	Poland	Hungary	Latvia	Romania	Bulgaria	Cyprus	Realized Projects	--	Print Format	LIMASSOL	SHOPPING MALL	Previous / Next	Description	The first shopping mall development in Limassol, located near Limassol \'s port.	2 floors	1,000 aboveground parking spaces	Leasable area: 27,000 sq. m	Estimated commencement: 2006	Estimated completion: 2008	The project web site--	Location Map	We are at your service, in case you need any further information - click here	Copyright 2005 BSR Europe All Rights reserved	Site byVision","null","null","");arrFiles[53]=new Array("projects/cyprus/PrintLimassol.html","BSR Europe | Projects | Bulgary | Totleben | Print Format","Projects	Limassol	Print	Cyprus | Limassol	Description	The first shopping mall development in Limassol, located near Limassol \'s port.	2 floors	1,000 aboveground parking spaces	Leasable area: 27,000 sq. m	Estimated commencement: 2006	Estimated completion: 2008","null","null","");arrFiles[54]=new Array("projects/cyprus/images/LimassolA.html","Untitled","Unt