Israel Land Administration Reforms Underway
(Communicated by the Prime Minister's Media Adviser)

The reforms in the Israel Land Administration, which have been declared by
Prime Minister Benjamin Netanyahu, are now underway.

The reforms are designed to reduce bureaucratic impediments for homeowners
who wish to enlarge their homes and the involvement of the Government in the
real estate market, and enable the ILA to focus on developing and marketing
state lands, as opposed to dealing with leased residential units.

The reforms are due to create a greater supply of residential units,
encourage better construction in developed areas, and provide housing
solutions for young couples and discharged soldiers. Housing prices are
expected to decline as a result of the increased supply.

The reforms constitute a significant growth engine for the economy due to
the expected increase in construction starts. In the framework of the
reforms, hundreds of thousands of families will receive genuine title to
their apartments. Letters will soon be sent to 40,000 families, in which
the ILA will inform homeowners regarding the transfer of title and what the
reforms mean for their assets. Additional letters will be sent to hundreds
of thousands of homeowners around the country in the near future.

The beginning of the implementation of the reforms will be accompanied by a
television and radio advertising campaign.

The ILA reforms are an important component in the group of reforms - along
with the reform of the planning and building committees and the reforms
regarding highway and rail infrastructures - that Prime Minister Netanyahu
intends to lead.