Bank Leumi Signed an Agreement to Acquire Banque Safdié SA for CHF177 Million

TEL AVIV, Israel, February 10, 2011 - Bank Leumi announced today that it signed an agreement in
Geneva with the owners of Banque Safdié SA under which it will acquire the
entire outstanding share capital of the bank.

According to the acquisition agreement, the basic
consideration (before adjustments) will be composed of the Net Asset Value
(NAV) of the bank being acquired plus a multiple of the bank's assets under
management at closing, such that the total consideration is estimated at
CHF177 million (excluding the Geneva building and the international
operations that will remain in the hands of the Safdié family) based on the
bank's current figures, subject to additional adjustments before and after
closing as detailed in the acquisition agreement.

Bank Leumi plans to combine the private banking activities of
Bank Leumi Switzerland and those of Banque Safdié under one roof, which will
strengthen Bank Leumi Switzerland and make it a leading private banking brand
among Israeli banks active in Switzerland, with assets under management of c.
CHF10 billion.

Group CEO Mrs. Galia Maor and Head of the Private and
International Banking Division Mr. Zvi Itskovitch signed the contract on
behalf of Bank Leumi. In addition, Bank Leumi Switzerland CEO Mr. Amnon
Zaidenberg, and the Management team played an active role in the
negotiations. To effect the transaction, Leumi was assisted by Goldman Sachs
as its financial advisor, Bär & Karrer AG and Kantor, Elhanani, Tal & Co. as
legal advisors, and by the accounting firm PricewaterhouseCoopers.

Following the signing, Leumi CEO, Mrs. Galia Maor said that
the transaction reflects the clear international strategy formulated by the
Bank's Board of Directors and Management, pursuant to which Leumi is
strengthening its activities in areas where it already operates, and seeks to
follow its customers to places where they operate. "The acquisition of Banque
Safdié strengthens and significantly contributes to our private and
international banking operations, which are a central pillar in the Leumi
Group's business strategy. For some time we have sought an attractive
acquisition in Switzerland, which would suit Leumi's nature, size and style,
and I believe that the combination of the two banks' platforms will create
optimal synergies, which will allow for the expression of the professionalism
, wealth of experience and excellent geographic presence in key international
markets," said Maor.

Banque Safdié SA founder Mr. Edmundo Safdié said, "The Safdié
Family has taken a strategic decision to focus its efforts in wealth
management with Safdié DTVM Ltda. in Brazil and in the private equity and
real estate sectors. We are convinced that Bank Leumi will be an excellent
partner for our clients and employees and that it will continue the Safdié
family tradition of service excellence in international private banking. With
its global reach and wide service offering, we truly believe that Bank Leumi
will constitute an excellent home for our clients and employees."

Closing of the transaction is expected to occur during the
second half of 2011, subject to receipt of regulatory approvals from the
Israeli and Swiss banking supervisory authorities. Bank Leumi intends to
finance this acquisition with its internal resources.

About Bank Leumi (Switzerland) Ltd.:

Bank Leumi Switzerland was founded in 1953 and is subject to
the banking laws of Switzerland and the Swiss regulatory authorities. Mrs.
Galia Maor serves as Chairperson of the bank and Mr. Amnon Zaidenberg serves
as CEO. The bank's headquarters are located in Zurich and the bank operates
through branch in Geneva as well as representative offices in Israel. The
bank provides private banking services to thousands of wealthy clients active
internationally in 70 countries, including investment advice, portfolio
management, discretionary account management, securities and foreign exchange
trading, and lending (Lombard) to clients. The bank's Assets under Management
amounted to more than CHF5 billion, as of September 2010.

About Banque Safdié SA:

Banque Safdié was founded by Mr. Edmundo Safdié in the late
1960s, and members of the Safdié Family are the shareholders of the bank. As
a bank that specializes in private banking, its primary focus is on managing
assets for Banque Safdié's clients worldwide. The bank's headquarters are
located in Geneva and the bank engages in private banking through offices in
Zurich, Lugano, Israel and Latin America.

    For further information contact:

    Roni Shefi, Prometheus
    +972-54-7997356
    roni@prometheus-cs.com

For further information contact: Roni Shefi, Prometheus, +972-54-7997356, roni at prometheus-cs.com .