-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 PGkpl5ecQgWTCVrZiyGkcUAtHdtpG4uFuDCxdjKRIkkJaQGvaU1TT11238x1+lBX
 gkWoHRWVlvoBRZdZh3to2g==

<SEC-DOCUMENT>0001178913-04-000396.txt : 20040331
<SEC-HEADER>0001178913-04-000396.hdr.sgml : 20040331
<ACCEPTANCE-DATETIME>20040331090232
ACCESSION NUMBER:		0001178913-04-000396
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		31
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040331

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NUR MACROPRINTERS LTD
		CENTRAL INDEX KEY:			0000946394
		STANDARD INDUSTRIAL CLASSIFICATION:	PRINTING TRADES MACHINERY & EQUIPMENT [3555]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26498
		FILM NUMBER:		04703852

	BUSINESS ADDRESS:	
		STREET 1:		5 DAVID NAVON STREET
		STREET 2:		MOSHAV MAGSHIMIM
		CITY:			PETAH-TIKVA ISRAEL
		STATE:			L3
		ZIP:			00000
		BUSINESS PHONE:		01197239087676

	MAIL ADDRESS:	
		STREET 1:		P O BOX 8440
		STREET 2:		MOSHAV MAGSHIMIM
		CITY:			ISRAEL
		STATE:			L3
		ZIP:			00000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NUR ADVANCED TECHNOLOGIES LTD
		DATE OF NAME CHANGE:	19950607
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>d40596.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
</HEAD>

<BODY><IMG height=50 src="logo.jpg" width=127>
<HR style="MARGIN-TOP: -2px" noShade SIZE=4>

<HR style="MARGIN-TOP: -10px" noShade SIZE=1>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=4>UNITED STATES<BR>SECURITIES AND EXCHANGE
 COMMISSION</FONT></B></FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=4><B>Washington, D.C. 20549</B></FONT></P>

<HR align=center width=200 SIZE=1>

<P align=center><FONT face="Times New Roman, Times, Serif" size=4><B>Form 20-F</B></FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2><B>(Mark One)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=48><FONT face=Wingdings size=3>o</FONT><FONT face="Times New Roman, Times, Serif" size=3>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT size=3>&nbsp;</FONT></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=48><FONT face=Wingdings size=3>x</FONT><FONT face="Times New Roman, Times, Serif" size=3>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT size=3>&nbsp;</FONT></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>For the fiscal year ended December 31, 2003</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=48><FONT face=Wingdings size=3>o</FONT><FONT face="Times New Roman, Times, Serif" size=3>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>For the transition period from __________ to _____________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Commission File Number 0-26498</B></FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=4>NUR MACROPRINTERS LTD.<BR></FONT></B></FONT><FONT
 size="2" face="Times New Roman, Times, Serif">(Exact Name of Registrant as specified in its charter)</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=4>ISRAEL<BR></FONT></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Jurisdiction of incorporation or organization)</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>12 Abba Hillel Silver Street<BR>P.O. Box 1281, Lod
 71111, Israel<BR></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Address of principal
 executive offices)</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities registered or to be registered pursuant
 to Section 12(b) of the Act: None</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities registered or to be registered pursuant
 to Section 12(g) of the Act:</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ordinary shares,<BR></FONT><FONT face="Times New Roman, Times, Serif" size=2>NIS 1.0 par value</FONT></P>

<HR align=center width=200 SIZE=1>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Title of Class </FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Securities for which there is a reporting obligation
 pursuant to Section 15(d) of the Act:</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ordinary shares,<BR></FONT><FONT face="Times New Roman, Times, Serif" size=2>NIS 1.0 par value</FONT></P>

<HR align=center width=200 SIZE=1>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Title of Class </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
 the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock as of December
 31, 2003:</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top align=center><FONT face="Times New Roman, Times, Serif" size=2>ordinary shares, <BR>NIS 1.0 par value, 17,414,281 shares </FONT></TD></TR>
<TR>
<TD vAlign=top align=center>
<HR align=center width=250 SIZE=1>
</TD></TR>
<TR>
<TD vAlign=top align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title of Class&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Number of Shares</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
 by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
 that the registrant was required to file such reports), and (2) has been subject to such filing requirements
 for the past 90 days. Yes<FONT size=3> </FONT></FONT><FONT face=Wingdings size=3>x</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No<FONT size=3> </FONT></FONT><FONT face=Wingdings
 size=3>o</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
 by check mark which financial statement item the registrant has elected to follow. Item 17 </FONT><FONT
 size="3" face="Wingdings">o</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Item 18
 </FONT><FONT face=Wingdings size=3>x</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>


<P><FONT face="Times New Roman, Times, Serif" size=2>Table of Contents&nbsp;</FONT></P>

<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="68%">&nbsp;</td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"><strong>Page</strong></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td colspan="3"><font size="2" face="Times New Roman, Times, serif">Forward-Looking
      Statements</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">4</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="11%"><font size="2" face="Times New Roman, Times, serif"><strong>Part
      I</strong></font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="17%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 1:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Identity of Directors,
      Senior Management and Advisers</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 2:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Offer Statistics and
      Expected Timetable</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 3:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Key Information</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">4</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Selected Financial
      Data</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">4</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Risk Factors</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">7</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 4:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Information on NUR</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">12</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">History and Development
      of NUR</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">12</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Business Overview</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">15</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Organizational Structure</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">30</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Property, Plants and
      Equipment</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">30</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 5:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Operating and Financial
      Review and Prospects</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">32</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Operating Results</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">32</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Liquidity and Capital
      Resources</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">40</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Research and Development,
      Patents and Licenses</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">42</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Trend Information</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">43</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Off-balance Sheet
      Arrangements</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">44</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Contractual obligations</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">44</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 6:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Directors, Senior
      Management and Employees</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">45</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Directors and Senior
      Management</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">45</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Compensation of Officers
      and Directors</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">48</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Board Practices</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">53</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Employees Share Ownership</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">55</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Share Ownership</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">55</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 7:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Major Shareholders
      and Related Party Transactions</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">56</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 8:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Financial Information</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 9:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">The Offer and Listing</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">58</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 10:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Additional Information</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">59</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Share Capital</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">59</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Memorandum of Association
      and Amended and Restated Articles of Association</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">59</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Material Contracts</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">62</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Exchange Controls</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">63</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Taxation</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">64</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Dividends and paying
      agents</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>



<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<table width="600" border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td height="21">&nbsp;</td>
    <td>&nbsp;</td>
    <td width="71%">&nbsp;</td>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Statement by experts</font></td>
    <td width="15%" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Documents on display</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">74</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Subsidiary Information</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">74</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">Item 11:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Quantitative and Qualitative
      Disclosures about Market Risk</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">75</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 12:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Description of Securities
      Other than Equity Securities</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"><strong>Part II</strong></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 13:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Defaults, Dividend
      Arrearages and Delinquencies</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">75</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 14:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Material Modifications
      to the Rights of Security Holders and Use of Proceeds</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">76</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 15:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Controls and Procedures</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">76</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">[Reserved]</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">76</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16A:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Audit Committee Financial
      Expert</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">76</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16B:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Code of Ethics</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">76</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16C:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Principal Accountant
      Fees and Services</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">77</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16D:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Exemptions from the
      Listing Standards for Audit Committees</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 16E:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Purchase of Equity
      Securities by the Company and Affiliated Purchasers</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"><strong>Part III</strong></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 17:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Financial Statements</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">Not
      applicable</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 18:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Financial Statements</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">78</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">Item 19:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Exhibits</font></td>
    <td align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">79</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="right" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>


<p align="center"><font size="2">3</font></p>
<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition to historical information, this annual report on Form 20-F contains forward-looking statements.
 The forward-looking statements contained herein are subject to certain risks and uncertainties that
 could cause actual results to differ materially from those reflected in the forward-looking statements.
 Factors that might cause such difference include, but are not limited to, those discussed in &#147;ITEM 3:
 Key Information - Risk Factors&#148; and &#147;ITEM 5: Operating and Financial Review and Prospects.&#148; Readers
 are cautioned not to place undue reliance on these forward-looking statements, which reflect management&#146;s
 analysis as of the date hereof. We undertake no obligation to publicly revise these forward-looking
 statements to reflect events or circumstances that arise after the date hereof. In addition to the disclosure
 contained herein, readers should carefully review any disclosure of risks and uncertainties contained
 in other documents that we file from time to time with the Securities and Exchange Commission.</I></FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART I</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 1: Identity of Directors, Senior Management
 and Advisors</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Not Applicable.</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 2: Offer Statistics and Expected Timetable</B></FONT>
</P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Not Applicable.</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 3: Key Information</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Not Applicable except ITEMS 3.A and 3.D, which are detailed below.</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Selected Financial Data</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following selected consolidated statement of income data for the years ended December 31, 2001, 2002
 and 2003, and the selected consolidated balance sheet data as of December 31, 2002 and 2003, have been
 derived from the audited consolidated financial statements of NUR Macroprinters Ltd., together with
 its subsidiaries. These financial statements have been prepared in accordance with generally accepted
 accounting principles in the United States. The selected consolidated statement of income data for the
 years ended December 31, 1999 and 2000 and the selected consolidated balance sheet data as of December
 31, 1999, 2000 and 2001 have been derived from the NUR&#146;s audited consolidated financial statements not
 included in this Form 20-F and have also been prepared in accordance with generally accepted accounting
 principles in the United States. The selected consolidated financial statements set forth below should
 be read in conjunction with and are qualified by reference to NUR&#146;s consolidated financial statements
 and the related notes as well as &#147;ITEM 5: Operating and Financial Review and Prospects&#148; included elsewhere
 in this Form 20-F.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>4</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Statements of Operations<BR>(in thousands
 of U.S. Dollars except per share and share data)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH>&nbsp;</TH>
<TH colSpan=9><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=1>Year ended December 31,</FONT></B></FONT></TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH></TR>
<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>1999(1)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2000(2)(3)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2001(4)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2002(6)</FONT> </TH>
    <TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2003(7</FONT><font size="1" face="Times New Roman, Times, serif">)
      </font></TH>
  </TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Revenues:</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Sales of printers and related</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>products</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>60,719</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>121,924</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>120,377</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>85,255</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>65,574</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total revenues</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>60,719</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>121,924</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>120,377</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>85,255</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>65,574</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Cost of revenues:</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Cost of sales of printers and related products</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>31,784</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>64,107</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>71,928</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>57,360</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>39,665</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Inventory write-off</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,989</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>975</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13,154</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total cost of revenues</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>31,784</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>64,107</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>75,917</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>58,335</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>52,819</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Gross profit</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>28,935</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>57,817</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>44,460</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>26,920</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12,755</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating expenses</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Research and development</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>5,530</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>15,077</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10,883</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,191</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,233</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Less royalty-bearing grants</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>721</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>451</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>649</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,449</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>687</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Research and development expenses, net</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>4,809</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>14,626</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10,234</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,742</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6,546</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Selling and marketing, net</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,485</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,385</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>18,665</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12,744</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,321</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>General and administrative:</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Ongoing expenses</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6,275</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12,765</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13,321</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,953</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,121</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Doubtful debt expenses resulting from relocation of</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>operations</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,881</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6,694</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Amortization and impairment of goodwill</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>265</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>572</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,836</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Amortization and impairment of technology and other</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>intangible assets</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,187</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,332</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,049</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>118</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Restructuring charges</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,237</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,300</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,001</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total operating expenses</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>15,760</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>31,602</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>48,361</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>49,505</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>37,801</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating income (loss)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8,366</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,589</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(3,901</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(22,585</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(25,046</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Financial expenses, net</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(616</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,423</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(3,336</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,322</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(2,157</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Other income (expenses), net</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>176</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>25</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(324</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(124</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(265</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income (loss) before taxes on income</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,926</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10,191</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(7,561</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(24,031</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(27,468</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Taxes on income (tax benefit)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>798</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,244</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(191</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>34</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>202</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income (loss) after taxes on income</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,128</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8,947</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(7,370</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(24,065</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(27,670</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Minority interest in earnings of a subsidiary</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(28</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Equity in gains (losses) of affiliates, net (5)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>75</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(454</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>154</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net income (loss)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,175</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8,493</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(7,216</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(24,065</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(27,670</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Basic net earnings (loss) per share</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0.64</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0.65</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(0.49</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1.42</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1.60</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Diluted net earnings (loss) per share</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0.56</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0.57</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(0.49</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1.42</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1.60</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Weighted average number of shares used in computing</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>basic net earnings (loss) per share</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,181,137</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13,150,110</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>14,655,048</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,005,606</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,272,089</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Weighted average number of shares used in computing</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=right>&nbsp;</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>diluted net earnings (loss) per share</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12,722,600</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>14,793,327</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>14,655,048</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,005,606</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,272,089</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>5</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=10></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>_______________________</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(1)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific and NUR Germany
      (first six months). We owned 84% of NUR Germany; this subsidiary was sold
      during the third quarter of 1999.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(2)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V, and NUR Japan.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(3)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In July 2000,
      we purchased substantially all of the assets and assumed specified liabilities
      of Salsa Digital, Ltd. and related entities. As part of the asset purchase
      transaction, we also acquired all of the outstanding capital stock of NUR
      Japan.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(4)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V, NUR Japan and Stillachem (last eight
      months).</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(5)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      equity in Stillachem and NUR Pro Engineering. In May 2001, we purchased
      the remaining 49.9% of Stillachem. We previously owned 50.1% of this subsidiary.
      Stillachem&#146;s activities have been merged into the operations of NUR.
      Stillachem was dissolved in March 2003.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(6)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V, NUR Japan and Stillachem.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(7)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V, NUR Japan and Stillachem (first
      three months).</FONT></TD>
  </TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Consolidated Balance Sheet Data<BR>(in thousands
 of U.S. Dollars)</B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=3>&nbsp;</TH>
    <TH colSpan=6><FONT face="Times New Roman, Times, Serif" size=1>At December 31,</FONT></TH>
<TH colSpan=3>&nbsp;</TH>
<TH colSpan=3>&nbsp;</TH>
<TH colSpan=3>&nbsp;</TH></TR>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>1999(1)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2000(2)(3)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2001(4)(5)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2002(6)</FONT> </TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2003(7)</FONT> </TH></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left width="40%"><FONT face="Times New Roman, Times, Serif" size=2>Working capital</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2>15,791</FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>55,186</FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>41,934</FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2>36,711</FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="8%"><FONT face="Times New Roman, Times, Serif" size=2>18,870</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total assets</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>39,648</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>120,006</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>111,096</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>87,895</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>61,944</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total liabilities</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>21,785</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>72,081</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>70,099</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>64,735</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>63,447</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total shareholders' equity (deficiency)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,863</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>47,925</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>40,997</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>23,160</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,503</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=10></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>______________________________</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(1)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific and NUR Germany
      (first 6 months). We owned 84% of NUR Germany; this subsidiary was sold
      during the third quarter of 1999.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(2)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V and NUR Japan.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(3)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In July 2000,
      we purchased substantially all of the assets and assumed specified liabilities
      of Salsa Digital, Ltd. and related entities. As part of the transaction,
      we also acquired all of the outstanding capital stock of NUR Japan.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(4)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V., NUR Japan and Stillachem (last
      eight months).</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(5)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In May 2001,
      we purchased the remaining 49.9% of Stillachem. We previously owned 50.1%
      of this subsidiary. Stillachem&#146;s activities have been merged into NUR.
      Stillachem was dissolved in March 2003.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(6)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V., NUR Japan and Stillachem.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=2></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(7)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents
      financial information for NUR together with our subsidiaries NUR Media Solutions,
      NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers,
      NUR Hungary Trading and Software Licensing Limited Liability Company, NUR
      DO Brazil Ltda., Encre Consumables B.V., NUR Japan and Stillachem (first
      three months).</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>6</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Risk Factors</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing
 in our securities is very risky. You should be able to bear a complete loss of your investment. To understand
 the level of risk, you should carefully consider the following risk factors, as well as the other information
 found in this form.</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 depend on a few key products in a business subject to rapid technological change.</B> &nbsp;&nbsp;We
 are highly dependent upon the sale of our principal products - the NUR Fresco printers, the NUR Ultima
 printers and the NUR Tempo printers and upon the sale of ink products. Rapid changes in technology,
 customer preferences and evolving industry standards continue to characterize the market for our printers.
 Our future financial performance will depend upon our ability to update our current products and develop
 and market new products to keep pace with technological advances in the industry. During 2001, 2002
 and 2003, we invested approximately $10.9 million, $9.2 million and $7.2 million, respectively, in research
 and development projects. Although we plan to continue to invest in research and development, our business
 could seriously suffer if we fail to anticipate or respond adequately to changes in technology and customer
 preferences, or if our products are delayed in their development or introduction. We cannot assure you
 that we will successfully develop any new products. If our competitors introduce new products, the sales
 of our existing products and our financial results could be harmed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 currently have no commitments for additional financing.</B> &nbsp;&nbsp;We have incurred operating losses
 during the last several quarters. We may need additional funds if we seek to expand our operations or
 if we do not meet our expected revenues in future quarters. If we are unable to raise funds through
 public or private financing of debt or equity, we will be unable to increase expenditures that could
 ultimately improve our financial results, such as research and development or the production and marketing
 of our products. The amount of money we may need depends on numerous factors, including the success
 of our marketing and customer service efforts, our research and development activities and the demand
 for our products and services. Other than an amount of $1.5 million that NUR can draw down under a convertible
 loan commitment that was secured by NUR on July 2003 from several investors, we currently have no commitments
 for additional financing. We cannot guarantee that additional financing will be available or that, if
 available, will be obtained on terms we find favorable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 must comply with covenants concerning our bank loans. </B>If we do not meet certain covenants provided
 for in our loan agreements with Bank Hapoalim B.M (&#147;Bank Hapoalim&#148;), Bank Leumi Le Israel Ltd. (&#147;Bank
 Leumi&#148;) and Israel Discount Bank Ltd. (&#147;Bank Discount&#148;), we may be required by the banks to immediately
 repay our debts. In July 2003, we amended the financial ratios governing our loan agreements with Bank
 Hapoalim, Bank Leumi and Bank Discount. During 2003, we failed to meet some of these financial ratios.
 The banks have agreed in writing not to act upon their contractual rights pursuant to our default. Those
 financial ratios were further amended on February 2004. There can be no assurance that we will be able
 to comply with the bank covenants in the future. Our failure to comply with the bank agreements could
 have a material adverse effect on our business and financial results. For more information see &#147;ITEM
 10.C: Material Contracts.&#148;</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 depend on sole source suppliers for the inkjet printheads for our printers.</B> &nbsp;&nbsp;We currently
 purchase all of the inkjet printheads used in our NUR Fresco, NUR Ultima and NUR Tempo printers from
 sole suppliers. If any of these sole suppliers experience problems that result in production delays,
 our sales to new customers and existing customers that rely on our inkjet components to operate their
 printers could be hurt. Production delays could result from fire, flood or other casualty, work stoppages,
 production problems or other unforeseen circumstances. Although we have not experienced any major production
 delays to date, there can be no assurance that such delays will not occur in the future. Because the
 success of our business depends on the sale of our printers, supply problems could have a material adverse
 effect on our financial results. Also, if any of our sole suppliers reduce or change the credit or payment
 terms they extend to us, our business could also be harmed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 rely on subcontractors to help us manufacture our products.</B> &nbsp;&nbsp;We employ a limited number
 of unaffiliated subcontractors to manufacture components for our printers. To date, we have been able
 to obtain adequate supplies of the components and raw materials necessary to produce our printers and
 we have not had any material supply problems with our subcontractors. Because we rely on subcontractors,
 however, we cannot be sure that we will be able to maintain an adequate supply of components or products.
 Moreover, we cannot be sure that any of the components we purchase will satisfy our quality standards
 and be delivered on time. Our business could suffer if we fail to maintain our relationships with our
 subcontractors or fail to develop alternative sources for our printer components. We cannot guarantee
 that we will develop alternative sources of production for our products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
 market for our printers is very competitive.</B> &nbsp;&nbsp;The printing equipment industry is extremely
 competitive and many of our competitors may have greater management, financial, technical, manufacturing,
 marketing, sales, distribution and other resources than we do. We compete against several companies
 that market digital printing systems based on electrostatic, drop-on-demand and continuous drop-on-demand
 inkjet, and other technologies. Three of our principal competitors in the wide format digital printing
 arena are Vutek, Scitex Vision Ltd. and Gandi Innovations. These companies have introduced products
 that compete with the NUR Fresco and NUR Ultima printers, and in certain cases with the NUR Tempo. In
 the market for printers utilizing UV curable ink our main competitors are Durst Phototechnik, Inca Digital
 Printers, 3M Image Graphics Scitex Vision and Vutek. These companies have introduced products that compete
 with the NUR Tempo printer. We have also witnessed continued growth of a local Chinese market where
 approximately 15 local competitors are developing, manufacturing and selling inexpensive printers, mainly
 to the local Chinese market, but these Chinese manufacturers have also begun penetrating the international
 market. Our ability to compete depends on factors both within and outside of our control, including
 the performance and acceptance of our current printers and any products we develop in the future. We
 also face competition from existing conventional wide format and super wide format printing methods,
 including hand painting, screen printing and offset printing. Our competitors could develop new products,
 with existing or new technology, that could be more competitive in our market than our printers. We
 cannot assure you that we can compete effectively with any such products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 face strong competition in the market for printing supplies.</B> &nbsp;&nbsp;We also compete with independent
 manufacturers in the market for printer supplies. In 2001, 2002 and 2003, ink sales accounted for 26.1%,
 25.7% and 26.9% of our total revenues, respectively. We cannot guarantee that we will be able to remain
 the exclusive or even principal ink manufacturer for our printers. We cannot assure you that we will
 be able to compete effectively or achieve significant revenues in the ink business. During 2003, we
 discontinued our operations in the substrate business, a highly competitive market and characterized
 by a large number of suppliers worldwide. In 2001, 2002 and 2003 substrate revenues accounted for 10.4%,
 12.2% and 3.5% of our total sales, respectively. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>8</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 depend on our executive officers and other key employees.</B> &nbsp;&nbsp;Our success depends to a significant
 extent upon the contributions of key personnel, and especially our executive officers. Our senior management
 has recently undergone significant changes. On April 1, 2003, Erez Shachar, our former President and
 Chief Executive Officer resigned his position and was replaced by David Amir. On October 1, 2003, David
 Seligman joined NUR as Chief Financial Officer succeeding Hilel Kremer. During the second and third
 quarters of 2003, new managing directors were appointed for NUR Asia Pacific and NUR Europe and the
 former managing director of NUR Europe relocated to New Jersey to serve as the President of NUR America.
 On December 25, 2003, Roni Zomber joined NUR as VP Operations succeeding Michael Dayan. Our business
 could seriously suffer if one or more of our key personnel were to leave our company. In addition, we
 do not have, and do not contemplate getting, &#147;key-man&#148; life insurance for any of our key employees.
 Our future success will also depend in part on our continuing ability to attract highly qualified employees.
 We cannot assure our continued success in attracting or retaining highly qualified personnel.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 rely on trade secrets, licenses and patents to protect our proprietary rights.</B> &nbsp;&nbsp;We rely
 on a combination of trade secrets, licenses, patents and non-disclosure and confidentiality agreements
 to establish and protect our proprietary rights in our products. We cannot guarantee that our existing
 patents or any future patents will not be challenged, invalidated, or circumvented, or that our competitors
 will not independently develop or patent technologies that are substantially equivalent or superior
 to our technology. We cannot be sure that we will receive further patent protection in Israel, the United
 States, or elsewhere, for existing or new products or applications. Even if we do secure further patent
 protection, we cannot guarantee it will be effective. Also, although we take precautionary measures
 to protect our trade secrets, we cannot guarantee that others will not acquire equivalent trade secrets
 or steal our exclusive technology. For example, in some countries, meaningful patent protection is not
 available. We are not aware of any infringement claims against us involving our proprietary rights.
 Third parties may assert infringement claims against us in the future, however, and the cost of responding
 to such assertions, regardless of their validity, could be significant. In addition, such claims could
 be found to be valid and result in large judgments against us. Even if such claims are not valid, the
 cost to protect our patent rights could be substantial.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 may be subject to environmental related liabilities due to our use of hazardous materials such as methyl
 ethyl-ketone solvent. </B>We mix the ink used in some of our printers with a methyl ethyl-ketone solvent.
 Methyl ethyl-ketone solvent is a hazardous substance and is subject to various government regulations
 relating to its transfer, handling, packaging, use and disposal. We store the ink at warehouses in Europe,
 the United States and Israel, and a shipping company ships it at our direction. We face potential responsibility
 for problems that may arise when we ship the ink to customers. We believe that we are in material compliance
 with all applicable environmental laws and regulations. If we fail to comply with these laws or an accident
 involving our ink waste or methyl ethyl-ketone solvent occurs, however, then our business and financial
 results could be harmed.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>9</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 benefit from government grants, tax benefits and other funding from third parties.</B> &nbsp;&nbsp;We
 benefit from certain Israeli and Belgian Government programs and tax legislation principally related
 to research and development grants and capital investment incentives. Our operations could be adversely
 affected if these funding programs and tax benefits are reduced or eliminated and not replaced with
 equivalent benefits, or if our ability to meet the conditions to benefit from such funding programs
 and tax benefits were significantly reduced. We cannot assure you that favorable tax legislation will
 continue in the future or that the available benefits will not be reduced. In addition, to receive such
 grants and tax benefits, we must comply with a number of conditions. If we fail to comply with these
 conditions, the grants and tax benefits that we receive could be partially or fully canceled and we
 would be forced to refund the amount of the canceled benefits received, in whole or in part, adjusted
 for inflation and interest. We are now near completion of the transfer of a substantial portion of the
 research and development activities conducted by NUR Media Solutions from Belgium to Israel. In addition,
 until recently, NUR supplied substrates for use with our printers and ink through our wholly owned subsidiary
 in Belgium, NUR Media Solutions. In July 2003 we announced our decision to exit the substrate business.
 We believe that prior to and following the cessation of operation of NUR Media Solutions we have operated
 and will continue to operate in compliance with the required conditions mentioned above, although we
 cannot be sure.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Political
 instability in Israel may disrupt important operations and our business.</B> &nbsp;&nbsp;Our headquarters
 and research facilities, operations and some of our subcontractors are located in the State of Israel.
 Although most of our sales are currently made to customers outside of Israel, we are nonetheless directly
 influenced by the political, economic and military conditions affecting Israel. Our business could be
 harmed by any major hostilities involving Israel, the interruption or curtailment of trade between Israel
 and its trading partners, or a significant downturn in the economic condition of Israel. The prospect
 of peace in the Middle East is uncertain and has recently deteriorated due to violent conflicts between
 Israelis and Palestinians. Furthermore, several countries restrict business with Israeli companies.
 We could be adversely affected by further setbacks to the peace process or by restrictive laws or policies
 directed toward Israel or Israeli businesses. In addition, all nonexempt male adult citizens of Israel,
 including some of our officers and employees, are obligated to perform military reserve duty and are
 subject to being called for active duty under emergency circumstances. While we have operated effectively
 under these requirements since our incorporation, we cannot predict the full impact of such conditions
 on us in the future, particularly if emergency circumstances occur. If many of our employees are called
 for active duty, our operations in Israel may be slowed and our business may be harmed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You
 may have difficulty enforcing U.S. judgments against us in Israel.</B> &nbsp;&nbsp;We are organized
 under the laws of Israel and our headquarters are in Israel. Most of our officers and directors reside
 outside of the United States. Therefore, you may not be able to enforce any judgment obtained in the
 U.S. against us or any of such persons. You may not be able to enforce civil actions under U.S. securities
 laws if you file a lawsuit in Israel. However, we have been advised by our Israeli counsel that subject
 to certain limitations, Israeli courts may enforce a final judgment of a U.S. court for liquidated amounts
 in civil matters after a hearing in Israel. If a foreign judgment is enforced by an Israeli court, it
 will be payable in Israeli currency.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our
 operating results fluctuate from period-to-period.</B> &nbsp;&nbsp;The results of our operations for
 any quarter are not necessarily indicative of results to be expected in future periods. Our operating
 results have in the past been, and will continue to be, subject to quarterly fluctuations as a result
 of factors such as the integration of people, operations and products from acquired businesses and/or
 technologies, increased competition in the printing equipment and ink industry, the introduction and
 market acceptance of new technologies and standards, changes in general economic conditions and changes
 in economic conditions specific to our industry. Further, our revenues may vary significantly from quarter
 to quarter as a result of, among other factors, the timing of new product announcements and releases
 by our competitors and us. We do not typically have a material backlog of orders at the beginning of
 each quarter. We generally ship and record a significant portion of our revenues for orders placed within
 the same quarter, primarily in the last month of the quarter. We may not learn of shortfalls in sales
 until late in, or shortly after the end of, such fiscal period. As a result, our quarterly earnings
 may be subject to significant variations.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>10</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our
 business is subject to risks from international operations.</B> &nbsp;&nbsp;We conduct business globally.
 Accordingly, our future results could be materially adversely affected by a variety of uncontrollable
 and changing factors including, among others, foreign currency exchange rates, regulatory, political,
 or economic conditions in a specific country or region, trade protection measures and other regulatory
 requirements, business and government spending patterns, and natural disasters. Any or all of these
 factors could have a material adverse impact on our future international business.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Currency
 fluctuations are a risk we face on a daily basis.</B> &nbsp;&nbsp;Because we generate revenues and expenses
 in various currencies, including the U.S. dollar, the NIS and the Euro, our financial results are subject
 to the effects of fluctuations of currency exchange rates. We cannot predict, however, when exchange
 or price controls or other restrictions on the conversion of foreign currencies could impact our business.
 Currency fluctuations could hurt our profitability.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Our
 stock price may be volatile.</B> &nbsp;&nbsp;Our ordinary shares have experienced substantial price
 volatility, particularly as a result of variations between our anticipated and actual financial results,
 the published expectations of analysts, and announcements by our competitors and us. In addition, the
 stock market has experienced extreme price and volume fluctuations that have negatively affected the
 market price of many technology and manufacturing companies, in particular, and that have often been
 unrelated to the operating performance of these companies. These factors, as well as general economic
 and political conditions, may materially adversely affect the market price of our ordinary shares in
 the future. Additionally, volatility or a lack of positive performance in our stock price may adversely
 affect our ability to retain key employees, all of whom have been granted stock options.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We
 may not comply with The Nasdaq SmallCap Market standards</B>. &nbsp;On March 24, 2004, we received a
 compliance notice from The Nasdaq Stock Market, Inc., stating that we are not in compliance with Marketplace
 Rule 4310(c)(2). The continued listing requirements of The Nasdaq SmallCap Market, Marketplace Rule
 4310(c)(2), require listed companies to meet one of the following three standards to remain listed on
 The Nasdaq SmallCap Market: (i) stockholders&#146; equity equal to a minimum of $2.5 million; (ii) market
 value of listed securities to equal a minimum of $35 million; or (iii) net income from continuing operations
 (in the latest fiscal year or two of the last three fiscal years) to equal a minimum of $500,000. In
 previous years we have fulfilled this requirement because we had stockholders&#146; equity in excess of $2.5
 million. As of December 31, 2003, we have negative stockholders equity of $1.5 million. We have been
 asked to provide&nbsp;a plan&nbsp;to&nbsp;The Nasdaq Stock Market, Inc. by April 7, 2004&nbsp;setting
 forth how we intend to achieve and sustain compliance with The Nasdaq SmallCap Market listing requirements.
 NUR is&nbsp;currently&nbsp;preparing such a plan. If we continue to fail to meet the continued listing
 requirements, any trading in our ordinary shares will be conducted in the over-the-counter market on
 the NASD&#146;s OTC Electronic Bulletin Board or in the &#147;pink sheets.&#148; </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 a result of our ordinary shares being removed from quotation on The Nasdaq SmallCap Market, the liquidity
 of our ordinary shares and the coverage of our ordinary shares by securities analysts and the media
 could be reduced, which could result in lower prices for the ordinary shares than might otherwise prevail
 and larger spreads between the bid and asked prices for our ordinary shares. Additionally, certain investors
 will not purchase securities that are not quoted on The Nasdaq SmallCap Market, which could materially
 impair our ability to raise funds through the issuance of our ordinary shares.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>11</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
 our ordinary shares are removed from quotation on Nasdaq and the trading price of our ordinary shares
 is less than $5.00 per share, trading in our ordinary shares would also be subject to the requirements
 of Rule 15g-9 promulgated under the Securities Exchange Act of 1934, as amended. Pursuant to Rule 15g-9,
 brokers and dealers who recommend such low-priced securities to persons other than established customers
 and accredited investors must satisfy special sales practice requirements, including a requirement that
 they make an individualized written suitability determination for the purchaser and receive the purchaser&#146;s
 written consent prior to the transaction.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Securities Enforcement Remedies and Penny Stock Reform Act of 1990 also requires additional disclosure
 in connection with any trades involving a stock defined as a penny stock (generally, according to recent
 regulations adopted by the Securities and Exchange Commission, any equity security not traded on an
 exchange or quoted on Nasdaq or the OTC Bulletin Board that has a market price of less than $5.00 per
 share, subject to certain exceptions), including the delivery, prior to any penny stock transaction,
 of a disclosure schedule explaining the penny stock market and the risks associated therewith. Such
 requirements could severely limit the market liquidity of our ordinary shares.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 can be no assurance that we can meet the continued listing requirements of The Nasdaq SmallCap Market.
 If we fail to meet such requirements our ordinary shares may be removed from quotation on Nasdaq or
 treated as a penny stock.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 4: Information on NUR</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 History and Development of NUR</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 legal and commercial name is NUR Macroprinters Ltd. The main office is located at 12 Abba Hillel Silver
 Street, P.O. Box 1281, Lod 71111, Israel. The telephone number is (011) 972-8-914-5555. NUR&#146;s registered
 agent in the United States is Continental Stock Transfer &amp; Trust Company, 17 Battery Place New York,
 New York 10004.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 was incorporated as an Israeli corporation on July 29, 1987. On August 1, 1993, the company changed
 its name from NUR Advertising Industry 1987 Ltd. to NUR Advanced Technologies Ltd. and, on November
 16, 1997, it again changed its name from NUR Advanced Technologies Ltd. to NUR Macroprinters Ltd. Our
 corporate governance is controlled by the Israeli Companies Law, 1999.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 ordinary shares were traded on the Nasdaq National Market between October 1995 and July 2003. During
 2002, our ordinary shares closed for a period of 30 consecutive trading days below the minimum bid price
 of $1.00 per share as required for continued listing on The Nasdaq National Market. Accordingly, in
 July 2003, we transferred our securities to the Nasdaq SmallCap Market, whereby we were granted an extension
 of 180 days to meet the minimum requirement of $1.00 per share. NUR regained compliance with this requirement
 in October 2003. Our ordinary shares are currently traded under the symbol &#147;NURM.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 is a leading supplier of wide format and super wide format digital printing systems worldwide. Some
 of NUR&#146;s significant developments are set forth below.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>12</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2000, we acquired substantially all of the assets and assumed specified liabilities of Salsa Digital,
 Ltd. and related entities, previously one of our competitors in the digital printing market. Under the
 terms of our agreement, we acquired the assets for $30 million, which consisted of $20 million in cash
 and 666,667 ordinary shares valued at approximately $10 million, based upon the closing price of the
 ordinary shares on the Nasdaq National Market on May 15, 2000. In 1998 and 1999, the business we acquired
 from Salsa Digital had revenues of $25 million and $33 million, respectively, compared with our revenues
 during the same periods of&nbsp;&nbsp;$36 million and $61 million. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 December 2000, we relocated our main facilities in Israel to a building consisting of approximately
 50,000 square feet in a high-tech industrial zone in Lod, Israel. We use this facility as our headquarters
 and for research and development. We have invested a total of approximately $2 million in building out
 these facilities. The initial five-year lease of the Lod facility, which commenced November 20, 2000,
 provides for monthly rent of approximately $63,000. The lease agreement grants NUR an option to continue
 the lease term for two consecutive periods of 2.5 years each. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 2001, we consolidated our U.S. operations. NUR America, Inc. in Boston, Massachusetts and Salsa Digital
 Printers Ltd. in San Antonio, Texas were integrated into a single facility in San Antonio, Texas. We
 further consolidated and streamlined our ink manufacturing operations. Our ink research and development
 operations, then located in Israel, Belgium and San Antonio, Texas were consolidated into a single facility
 in Louvain-la-Neuve, Belgium. Total restructuring costs in 2001 amounted to $3.2 million. In addition,
 we incurred one-time inventory write-offs of approximately $4.0 million in the first quarter of 2001.
 We associate the inventory write-offs with more efficient product rationalization, such as, among other
 things, the decrease of spare parts inventory.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 January 2002, we raised $7 million through the private placement of 2,333,333 of our ordinary shares
 to the Investment Corp. of United Mizrahi Bank Ltd. at a price of $3.00 per share. The Investment Corp.
 of United Mizrahi Bank Ltd. also received warrants to purchase an additional 612,500 ordinary shares
 at an exercise price of $4.50 per warrant share, exercisable until January 17, 2006.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 May 17, 2002, we filed a tender offer with the Securities and Exchange Commission pursuant to which
 option holders had the right to cancel and exchange certain options granted to them under NUR&#146;s 2000
 Stock Option Plan, 1997 Stock Option Plan and 1995 Israel Stock Option Plan. Pursuant to the terms and
 conditions of the tender offer, the new options were to be granted six months and one day from the date
 the old options were canceled, at an exercise price equal to the market price on the date of the new
 grant. In order to receive the new options, option holders were required to continue to have a service
 relationship with NUR or any of its subsidiaries until the new grant date. 2,027,166 ordinary shares,
 representing 93% of the outstanding options under NUR&#146;s 2000 Stock Option Plan, 1997 Stock Option Plan
 and 1995 Israel Stock Option Plan, were available for exchange under the tender offer. The tender offer
 expired on June 15, 2002 and resulted in the cancellation of 1,245,316 options with varying exercise
 prices. On December 17, 2002 we fulfilled our obligation to the participants in the tender offer and
 granted 1,219,584 options to purchase our ordinary shares at an exercise price of $0.72 per share.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 November 2002, we appointed the Computer And Sign Technology Co. Ltd (CAST) as our exclusive distributor
 for the NUR Fresco product line in the Peoples Republic of China. Based in Shanghai, CAST is one of
 the largest suppliers of sign materials and digital printing systems in China. As our exclusive distributor
 in China, CAST was responsible for sales and support of the NUR Fresco product line to new customers
 throughout the Chinese market. At the time we appointed CAST, we also transferred our Asia Pacific headquarters
 to Hong Kong consolidating the Shanghai operations into our new headquarters in Hong Kong. This restructuring
 process resulted in the termination of approximately twenty employees, mainly in Shanghai. In year 2003
 we ceased our operations in the Chinese market and the engagement of CAST as an exclusive distributor
 in China was terminated. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>13</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 April 1, 2003, Erez Shachar resigned his position as President and Chief Executive Officer of NUR. David
 Amir, who has been working with NUR as a consultant for over a year, and was responsible for the restructuring
 of our service and support organizations, replaced Erez Shachar. Prior to joining NUR, David Amir served
 in various senior executive positions with Scitex, including Corporate Vice-President for Business Development;
 Vice-President Customer Services of Scitex Europe; and Manager of International Customer Support.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 May 2003, we signed an agreement to acquire the remaining 50% shares of NUR Pro Engineering, our subcontractor
 for the assembly and manufacturing of our printers, from Ogen Dialogix Ltd., for the price of $0.85
 million. Under the terms of the agreement the transfer of the shares will become effective on March
 31, 2004. As of March 2004 the parties fulfilled their material commitments and undertakings under the
 agreement. Upon completion of the transaction, NUR Pro Engineering will become a wholly owned subsidiary
 of NUR. During the third quarter of 2003, we completed a consolidation process of our global machinery
 manufacturing operations of the Salsa Printers in San Antonio, Texas with those of all other NUR printers
 in NUR Pro Engineering, into a single large manufacturing facility in Rosh Ha&#146;Ayin, Israel. For more
 information see &#147;ITEM 10.C: Material Contracts.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2003 we announced our decision to exit the substrate business. As the digital wide format printers
 have become more widespread, substrates have become a low margin commodity that is no longer profitable
 for NUR to resell. We believe terminating this business will allow us to more strongly focus on our
 proprietary specialty inks.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 October 1, 2003, David Seligman joined NUR as Chief Financial Officer succeeding Hilel Kremer. Prior
 to joining NUR, David Seligman served as Chief Financial Officer for RADVISION Ltd. (Nasdaq: RVSN) and
 LanOptics Ltd. (Nasdaq: LNOP).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 July 30, 2003, NUR secured a convertible loan commitment from several investors according to which the
 investors have undertaken to provide NUR with a convertible loan in the aggregate amount of $3.5 million.
 NUR&#146;s chairman and largest shareholder, Dan Purjes, provided $1.3 million of the loan. Under the terms
 of the loan agreement, the loan is convertible at any time into ordinary shares of NUR at a conversion
 rate of $0.62 per share. In consideration for the loan undertaking, NUR agreed to pay a cash commitment
 fee and issue to the investors warrants to purchase ordinary shares of NUR equal to 15% of the loan
 at an exercise price of $0.52 per share exercisable over a five-year period. In the event of a draw
 down of the loan, NUR will issue to the investors additional warrants to purchase ordinary shares in
 the amount equal to 15% of the draw down amount, at an exercise price of $0.52 per share, and exercisable
 for a period of five years from the date of the draw down. On December 31, 2003, the investors elected
 to convert $2 million of the loan into ordinary shares of NUR at the conversion rate of $0.62 per ordinary
 share.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2003, NUR completed its consolidation process of the machinery manufacturing facilities in
 San Antonio, Texas and Rosh Ha&#146;Ayin, Israel. NUR now manufactures all of its printers in a single plant
 located in Rosh Ha&#146;Ayin Israel. The Ink manufacturing facilities, also previously located in San Antonio,
 Texas were relocated to a new manufacturing plant in Ashkelon, Israel. We now produce all of our solvent-based
 inks in a single manufacturing facility in Ashkelon, Israel. We are now near completion of the transfer
 of a substantial portion of the research and development activities from Belgium to Israel.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>14</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 October 2003, NUR announced the opening of its new North American headquarters and training center in
 Moonachie, New Jersey. The 11,000 square feet facility replaces NUR&#146;s former facility in San Antonio,
 Texas. The new headquarters houses NUR&#146;s North American sales, marketing, administrative, and support
 staff and includes a fully equipped training center and demo site.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
 a historical view of our financing activities, including capital expenditures and divestitures, please
 refer to &#147;ITEM 5: Operating and Financial Review and Prospects.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Business Overview</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Macroprinters Ltd. is a leading supplier of wide format and super wide format digital printing systems
 worldwide. We develop, manufacture, sell and service digital color printers for the printing of large
 images such as billboards, posters and banners, point of purchase displays, exhibition and trade show
 displays as well as decorations and backdrops for construction scaffolding covers, showrooms, television
 and film studios, museums and exhibits. We also supply our customers with inks and solvents for use
 with our printers.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 consists of three research and development centers, including facilities for research and development
 of printing equipment in Lod, Israel and a facility for the development of inks in Louvain-la-Neuve,
 Belgium and in Ashkelon, Israel. We are now near completion of the transfer of a substantial portion
 of the research and development activities from Belgium to Israel. We have worldwide marketing, sales
 and service subsidiaries in Europe, North America, South America and the Asia Pacific region.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the super wide category we offer the NUR Ultima&#153; 5000, commercially released In July 2003. The NUR Ultima
 medium volume production printing printers are designed to provide high levels of productivity while
 offering simplified maintenance procedures and improved ease-of-use. They are also designed to provide
 reduced ink consumption to ensure low operating expenses in high speed printing modes. The Ultima printers
 use piezo drop-on-demand inkjet technology to produce photorealistic quality. The Ultima printers feature
 apparent print resolution up to 600 dpi and are capable of speeds up to 810 square feet (76 square meters)
 per hour. The NUR Ultima 5000 outputs in widths of up to 5 meters (or approximately 16 feet wide).</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 wide format printers are headed by the NUR Fresco&#153; family of wide format printers. The NUR Fresco printer
 was commercially released in February 2000. The NUR Fresco printers are designed to provide a digital
 alternative to conventional screen printing on short and medium run jobs. The NUR Fresco printers use
 piezo continuous drop-on-demand inkjet technology to produce high quality graphics for a wide range
 of applications. These include, among other things, point-of-purchase displays, banners, billboards,
 bus shelter graphics, posters, shopping mall displays and airport terminal displays.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Fresco printers print on a wide variety of substrates in roll-to-roll or roll-to-sheet modes &#151; the
 1800 model outputs in widths up to 1.83 meters (approximately 6 feet); the 3200 model outputs in widths
 up to 3.2 meters (approximately 10 feet).</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>15</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2002, we released the latest version of the Fresco series &#151; the NUR Fresco HiQ 8C models.
 The NUR Fresco HiQ 8C is based on the previous model which was modified to print using eight colors
 mode instead of the standard 4-color mode. Modifications to the printer included changes to the ink
 system to accommodate eight colors and a new switch box that enables fast and easy switching between
 the 4-color and the 8-color printing modes. NUR&#146;s software has also been modified to support 8-color
 printing.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Ultima printer described above is also available in a wide format, the NUR Ultima HiQ 3200 (3.2
 meters or approximately 10 feet wide).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2003, we commercially released the NUR Tempo&#153; flatbed digital printer. The NUR Tempo uses
 UV-curable inks that give it the flexibility to print on almost any type of substrate. These include
 corrugated board, foam-core paperboard, acrylic sheets, PVC, polycarbonate, fluted polypropylene, glass,
 wood and standard rolled media. It also features a large format table (10 &#189; ft. x 6 &#189; ft. / 3.2m x 2m)
 to accommodate a wide variety of applications and job formats. It can handle both rigid and rolled substrates
 with fast and easy changeover between the two for ultimate flexibility. The printer offers 4 and 8 color
 printing modes, delivering a combination of high speed and photo-realistic image quality. The printer&#146;s
 fully encapsulated construction enables it to remove the gases exhausted during the printer&#146;s operation
 out of the working premises, thus ensuring a comfortable working environment. The NUR Tempo is designed
 to eliminate the extra steps involved in lamination and cutting/trimming processes common to other traditional
 methods of printing graphics on rigid surfaces.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Fresco, the NUR Ultima and the NUR Tempo printers are sometimes referred to collectively herein
 as the &#147;NUR Printers.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 also sell specialized inks for use with our printers. The inks sold by NUR to our customers for use
 with the NUR Fresco, the NUR Ultima and the NUR Tempo printers are resistant to water and ultraviolet
 rays and are well suited for indoor and outdoor use without lamination.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 sell our printers and related products primarily to commercial digital printers, design and service
 firms, screen printers, commercial photo labs, outdoor media companies and trade shops. The NUR Printers
 are installed in more than 700 sites throughout Europe, North and South America, Africa and Asia.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Industry Background</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 market for printed applications requiring wide format and super wide format printing has expanded during
 the last few years. Wide format and super wide format printing applications include billboards, flags,
 posters and banners, special event and trade show displays, point of purchase displays, fleet graphics,
 decorations and backdrops. For example, the retail, automotive, restaurant, travel and gasoline industries
 use outdoor advertising to promote their products in numerous locations including roadside billboards
 and posters displayed on streets and buildings, as well as the outside of buses, vans, trucks and trains,
 so-called vehicular graphics. Wide format and super wide format prints can also be found in theaters
 as stage decorations, in museums and exhibitions as backdrops or displays and on construction sites
 as building site coverings. Prior to the introduction of digital printing systems, wide format and super
 wide format short-run prints were produced either by hand painting, which is relatively slow and expensive,
 and produces lesser quality images, or by screen or offset printing, both of which are relatively expensive
 and time consuming processes.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>16</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
 the cost of digital printing expected to decrease and the ability of digital technology expected to
 produce shorter runs more economically, we believe that the use of wide format and super wide format
 prints, such as those produced by the NUR Printers, should grow over time, and that the portion of the
 market serviced by digital printing will continue to increase. The ability to produce wide format and
 super wide format images digitally has also opened new media opportunities for advertisers, such as
 mural printing, carpet printing and new forms of fleet graphics printing. The growth in demand for wide
 format and super wide format digital printers is fueled by both the replacement of conventional print
 methods and by the development of new printing applications.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Traditional Wide Format and Super Wide Format
 Printing Methods</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conventional
 methods of wide format and super wide format printing have included hand painting, screen printing and
 offset printing. Generally, producing wide format and super wide format color prints by traditional
 methods in relatively short runs (i.e., a few copies to a few hundred copies), depending on the application,
 has either been relatively slow and expensive or of limited quality. Because of the inherent limitations
 of the traditional wide format and super wide format printing methods, quality wide format and super
 wide format prints produced by these methods are generally limited to long runs of identical prints,
 designed and prepared well in advance or, in the case of hand painting, to single print applications.
 As a result, traditional methods of producing wide format and super wide format prints have not provided
 timely and economic solutions for the needs of the short run printing market.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Hand
 Painting.</I> &nbsp;&nbsp;Hand painting involves either the projection of an image onto a substrate,
 which is then drawn onto the substrate and subsequently painted by hand, or the spraying of paint onto
 material covered by a template that has been cut to the desired shape. The process of hand painting
 is an alternative mainly in developing countries where labor costs are significantly lower and where
 the significantly lower image quality is tolerated by the local market.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Screen
 Printing</I>. &nbsp;The screen-printing process is distinguished by its ability to print finely detailed
 images on practically any surface, including paper, plastics, metals and three-dimensional surfaces.
 However, the process requires significant set-up time and investment in materials before the image can
 be sent to press. This cost constrains the minimum number of copies the screen printer can produce economically.
 As screen-printing is a highly labor-intensive process, it is best suited for run lengths between 20
 to 400 copies. Hence, this market is a clear target in which we believe our digital printers can be
 highly competitive.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Offset
 Printing.</I> &nbsp;&nbsp;Offset color printing generally produces very high quality images compared
 to hand painting or screen-printing. However, because of the complex steps involved in offset color
 printing, each printing job, whether small or large, involves substantial set-up time and costs. In
 addition, much like hand painting and screen-printing, alterations and customizations are not economically
 feasible unless the entire offset color printing process is repeated. Another drawback is that the variety
 of substrate materials and widths suitable for use with offset printing machinery is limited. In general,
 offset color printing is best suited for long print runs.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>17</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Wide Format and Super Wide Format Digital Printing</I></B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 introduction of digital printing is aiding in the transformation of the wide format and super wide format
 printing industry by lowering set-up costs, shortening turnaround time and reducing labor requirements.
 We believe that the availability of wide format and super wide format digital printing should lead to
 an increase in demand for limited runs of customized and localized advertising campaigns. In addition,
 we believe that single use applications, such as the use of banners, displays and backdrops for trade
 shows, theme parks, entertainment and special events, should become more popular. We believe that the
 market for wide format and super wide format printing should increase as current applications gain market
 acceptance and as new applications are developed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital
 printing involves the production of hard-copy images and text from digital data that is either generated
 on a computer at the printing site or originated by a customer on the customer&#146;s computer system. The
 digital data is then transferred directly from an electronic pre-press or desktop publishing system
 to the digital printer. There are currently several digital printing technologies available, including
 electrostatic, airbrush, drop-on-demand, thermal transfer and continuous inkjet printing.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Electrostatic
 Printing.</I> &nbsp;&nbsp;Electrostatic printing is a non-impact printing technique that employs an
 array of metal styli, selectively pulsed to a high potential to generate a charged latent image on dielectric-coated
 paper, which is then toned to develop the latent image into a visible image. The achievable printing
 resolution is up to 400 dots per square inch. The main drawback of the technology is the need for special
 and expensive substrates and toners. This requirement increases the cost of consumables considerably.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Thermal
 Transfer Printing.</I> &nbsp;&nbsp;Thermal transfer printing is a contact printing technology that employs
 arrays of heated needles and pressure to melt and transfer wax based inks from a carrier roll onto a
 restricted variety of substrates. Like electrostatic printing, thermal transfer printing requires relatively
 expensive consumables.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Airbrush
 Printing.</I> &nbsp;&nbsp;Airbrush printing is accomplished by forcing a low viscosity colored fluid
 through small aperture nozzles, thus creating a spray jet. Computer driven modulation of the spray jets
 causes an image-wise colored layer to be deposited onto the substrate. The strongest feature of airbrush
 technology is the printer&#146;s ability to cover large areas with uniform color. One manufacturer of airbrush
 printers produces a printer that can simultaneously print on both sides of a poster, which is important
 for signs that are rear-illuminated.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Piezo
 Continuous Inkjet Printing.</I> &nbsp;&nbsp;Continuous inkjet printing technology involves the continuous
 flow of electrically conductive ink within a closed loop that is deflected onto a specific location
 on a sheet of paper or other medium. The ink is separated into uniform micro-drops and the micro-drops
 are electronically directed to be printed onto a selected area of the medium. Continuous inkjet printing
 technology allows for high-speed printing and produces images with good resolutions sufficient for viewing
 from distances of beyond five feet. Unlike airbrush printers, continuous inkjet printers also produce
 multiple copies with consistent color quality. The cost of equipment using continuous inkjet printing
 technology is relatively high in comparison to printers using electrostatic technology. However, the
 cost of the output produced with continuous inkjet printers is lower than that of electrostatic printers.
 Although the printer and printing costs of continuous inkjet printing and airbrush technology are comparable,
 continuous inkjet printers produce higher quality prints at higher speeds and with more consistent color.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>18</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Piezo
 Drop-On-Demand Inkjet Printing.</I> &nbsp;&nbsp;Drop-on-demand technology involves the intermittent
 firing of ink drops when needed on the substrate. It provides high resolution and enables use of a variety
 of inks for home, office and industrial use. To address the needs of the wide format market for higher
 resolution images for use with shorter viewing distances, we utilize continuous drop-on-demand technology
 in the NUR Fresco printers and drop-on-demand inkjet technology in the NUR Ultima and NUR Tempo printers.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Drop-on-demand
 technology was primarily developed for office use and is characterized by a relatively higher resolution
 and a selected range of substrates. In comparison, continuous inkjet printing technology was developed
 mainly for use in industrial applications, and, therefore, shows a more uniform and stable color output,
 and the ability to print on a wide selection of substrates.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe that although the NUR Fresco is not the only continuous drop-on-demand printer available in
 the wide format market, its productivity makes it particularly attractive to screen printers. Our NUR
 Ultima printers complement our product line by offering a full-range of printers at entry-level prices.
 The NUR Tempo&nbsp;was designed as a digital alternative to screen printing presses to handle diverse
 applications, especially short to medium, on-demand print runs that are not cost effective using traditional
 screen printing methods. In operation, it is designed to eliminate the extra steps and costs of finishing
 &#150; laminating and cutting/trimming processes &#150; common to other traditional methods of printing graphics
 on rigid surfaces. We believe that the NUR Printers have been designed and engineered to fit the overall
 needs of their respective wide format and super wide format printing markets.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 strategy is to:</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=56><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>strengthen our position as a world leader in the wide format and super wide format digital printing markets by supplying the most productive and cost-effective wide format and super wide format digital printers and totally digitally-based printing solutions for the out-of-home advertising market;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>enable the printers to produce digitally a large portion of the graphics currently produced with screen printing processes;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>be our customers&#146; vendor of choice for their ink needs;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>enable our customers to develop new ways to profit from our printing systems; and</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>provide our customers with highly responsive and capable support, service and supplies.</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Products</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 revenues are derived primarily from the sale and service of the NUR Printers and the sale of inks used
 with the NUR Printers. See &#147;ITEM 5: Operating and Financial Review and Prospects&#151;Geographic Breakdown
 of Revenues&#148; for more information on the breakdown of revenues by category of activity and into geographic
 markets.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>19</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Printers</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Super Wide Format Digital Printers</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2002, we commercially released the latest version of the NUR Salsa product line, the NUR Ultima
 HiQ. The NUR Ultima&nbsp;printers use piezo drop-on-demand inkjet technology. The NUR Ultima medium
 volume production printing&nbsp;printers are designed to provide high levels of productivity while offering
 simplified maintenance procedures and improved ease-of-use. They are also designed to reduce ink consumption,
 which ensures low operating expenses in high speed printing modes. The NUR Ultima features apparent
 print resolution up to 600 dpi for high quality and are capable of speeds up to up to 76 square meters
 (or approximately 810 square feet) per hour. They also include productivity enhancing features like
 true white-skip, which enables the printer to skip white areas of the printed image, thus minimizing
 the net printed area. The NUR Ultima 5000 prints on a variety of substrates 5 meters wide (or approximately
 16 feet wide). The NUR Ultima 5000 printers are available both as an upgrade to existing NUR Salsa series
 and as a new product delivered from the manufacturer.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Wide Format Digital Printers</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 wide format printers are headed by the NUR Fresco family of wide format printers. The first NUR Fresco
 printer was commercially released in February 2000. We believe that the NUR Fresco printer offers a
 digital alternative to screen printing for short to medium length prints, eliminating the high set-up
 cost associated with films and screen preparation costs which are the basis of screen printing. The
 NUR Fresco printers use piezo continuous drop-on-demand inkjet technology to produce high quality graphics
 for a wide range of applications. These include point-of-purchase displays, banners, sheet billboards,
 bus shelter graphics, posters, shopping mall displays, airport terminal displays and many more.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Fresco printers print on a wide variety of substrates in roll-to-roll or roll-to-sheet modes. The
 1800 model outputs in widths up to 1.83 meters (6 feet). The 3200 models output in widths up to 3.2
 meters (approximately 10 feet).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2002, we released the latest version of the Fresco series, the NUR Fresco HiQ 8C models. The
 NUR Fresco HiQ 8C is based on the previous model which was modified to print using eight colors mode
 instead of the standard 4-color mode. Modifications to the printer included changes to the ink system
 to accommodate eight colors and a new switch box that enables fast and easy switching between the 4-color
 and the 8-color printing modes. NUR&#146;s software has also been modified to support 8-color printing. The
 NUR Fresco 8C is available both as an upgrade to existing NUR Fresco 4-color printers and as a new product
 delivered from the manufacturer.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 December 2002, we introduced a new mode of operation for the NUR Fresco product line, the X-Press 100
 printing mode. This new 4-color printing mode extends the productivity and versatility of the NUR Fresco
 photorealistic production printers to accommodate long print runs and high volume production environments.
 Applications suitable for the X-Press 100 printing mode include billboards, outdoor banners and any
 mesh application such as building murals, construction covering and wallscapes.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Ultima printers are also available in a wide format, the NUR Ultima HiQ 3200 (3.2 meters or approximately
 10 feet wide).</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>20</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Flatbed Digital Printers</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2003, we commercially released the NUR Tempo&#153; flatbed digital printer. The NUR Tempo uses
 UV-curable inks that give it the flexibility to print on almost any type of substrate. These include
 corrugated board, foam-core paperboard, acrylic sheets, PVC, polycarbonate, fluted polypropylene, glass,
 wood and standard rolled media. It also features a large format table (10 &#189; ft. x 6 &#189; ft. / 3.2m x 2m)
 to accommodate a wide variety of applications and job formats. It can handle both rigid and rolled substrates
 with fast and easy changeover between the two for ultimate flexibility. The printer offers 4 and 8 color
 printing modes, delivering a combination of high speed and photo-realistic image quality. The printer&#146;s
 fully encapsulated construction ensures a comfortable working environment. The NUR Tempo is designed
 to eliminate the extra steps involved in lamination and cutting/trimming processes common to other traditional
 methods of printing graphics on rigid surfaces.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>The NUR Printers - General</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Printers can be operated in a stand-alone mode or in conjunction with pre-press and desktop publishing
 systems. When configured with a pre-press system, the pre-press workstation prepares the digital file
 containing the specifications for the output to be produced. The NUR Printers require little operator
 supervision, enabling one operator to run several machines at once. While an operator must be specifically
 trained in the operation of a printer, no special color mixing skills are required unlike conventional
 methods such as offset printing.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 compared to traditional methods of wide format and super wide format printing, the NUR Printers can
 significantly reduce the set-up costs associated with each print job such as the skill level of the
 personnel required and the number of skilled personnel required . These advantages make wide format
 and super wide format short-run color printing significantly more economical than conventional printing
 methods. Additionally, the relatively quick turnaround for the printed product enables the NUR Printers
 to produce more output in a given period, thereby lowering the costs of labor per print.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unlike
 hand painting, and screen or offset printing, the layout can be viewed through the pre-press workstation
 prior to printing, permitting last minute fine-tuning. By running a single copy of the print, corrections
 of text, enhancements of images, and additions of color can all be accomplished with minimal time, effort
 and cost. Additionally, since the format can readily be changed, the NUR Printers allow the end-user
 to make each print in the run different, with little time, effort, or additional cost. For example,
 if so desired, different languages, graphics and text can be added to each print in a run.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the years ended December 31, 2001, 2002 and 2003, sales of the NUR Printers accounted for approximately
 54%, 51% and 55%, respectively, of NUR&#146;s total consolidated revenues. Sales of spare parts used in the
 NUR Printers accounted for approximately 5%, 6% and 5% of total sales in the years ended December 31,
 2001, 2002 and 2003 respectively. Currently, the retail prices of the NUR Printers generally range from
 $185,000 to $550,000 per machine.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>21</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Consumables</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Inks</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Tempo printers use specialized UV curable inks designed for the needs of the wide format market.
 The ink is resistant to water and ultraviolet rays, making it fairly durable and thus well suited for
 outdoor conditions. The NUR Tempo, through the utilization of the ink, can print on almost an unlimited
 variety of substrates, including corrugated board, foam-core paperboard, acrylic sheets, PVC, polycarbonate,
 fluted polypropylene, glass, wood and standard rolled media. The ink enables the output of the NUR Tempo
 to be used both for indoor and outdoor advertising with out additional lamination. The ink for use with
 the NUR Tempo is manufactured, exclusively for NUR under the NUR brand name, by SunJet, a division of
 Sun Chemical Limited.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 NUR Fresco and the NUR Ultima printers use specialized all-in-one solvent-pigment based ink designed
 for the needs of the wide format market and suited for drop-on-demand technology printers. This ink
 is developed to ensure color-real, long lasting, color consistent, weather resistant prints. The NUR
 Blueboard printers still in our installed base use specialized solvent-based pigmented ink designed
 for the needs of the super wide format market. The ink is resistant to water and ultraviolet rays, making
 it fairly durable and thus well suited for outdoor conditions. The ink for use with the NUR Blueboard
 is manufactured, exclusively for NUR under the NUR brand name, by several ink manufacturers.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
 recently, our ink research and development operations were carried out by our wholly owned subsidiary
 NUR Media Solutions in its facilities at Louvain-la-Neuve, Belgium and our wholly owned subsidiary Salsa
 Digital Printers in San Antonio, Texas carried out production of our solvent-based inks. As of September
 2003, we manufacture all of our solvent-based ink in our new plant in Ashkelon, Israel and we are now
 near completion of the transfer of a substantial portion of the research and development activities
 from Belgium to Israel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the years ended December 31, 2001, 2002 and 2003, sales of ink accounted for approximately 26%, 26%
 and 27%, respectively, of NUR&#146;s total consolidated revenues.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Substrates</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
 recently, NUR supplied substrates for use with our printers and ink through our wholly owned subsidiary
 in Belgium, NUR Media Solutions. In July 2003 we announced our decision to exit the substrate business.
 As the digital wide format printers have become more widespread, substrates have become a low margin
 commodity that is no longer profitable for NUR to resell. We believe terminating this business will
 allow us to more strongly focus on our proprietary specialty inks. Following the completion of the transfer
 of substantial portion of the ink research and development activities from NUR Media Solutions in Belgium
 to NUR&#146;s main research and development center in Israel, NUR Media Solutions will become a dormant company.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Sales and Marketing</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 distribute and sell our products through the following wholly owned subsidiaries: NUR Europe (including
 the Middle East &amp; Africa division), NUR America, NUR Asia Pacific, NUR DO Brazil Ltda. and NUR Japan.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>22</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2000, we purchased substantially all of the assets and specified liabilities of Salsa Digital,
 Ltd. and related entities, previously one of our competitors in the digital printing market. We have
 fully integrated the former Salsa Digital sales and marketing force into our own existing marketing,
 sales and service subsidiaries in Europe, North America, South America and the Asia Pacific regions.
 Our marketing activities include participating in relevant tradeshows worldwide, advertising in trade
 publications, marketing directly to a target base, as well as publishing our own newsletters, participating
 in services and industry forums and maintaining an internet site.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, we work to develop, market and sell a wide range of advanced inks and clear coats, all of
 which are designed to work with our existing range of printers.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Israeli Government, through the Fund for the Encouragement of Marketing Activities of the Ministry of
 Industry and Trade (the &#147;Marketing Fund&#148;), awards participation grants for marketing expenses incurred
 overseas. As of December 31, 2003, we had received $1.27 million for the promotion of our printers.
 NUR is no longer eligible for support from the Marketing Fund due to its reaching the maximum allowed
 export revenues. NUR is obligated to pay a royalty of 3-4% of the export added value to the Marketing
 Fund until 100% of the grants have been repaid. The value of the grants received (including grants received
 in previous years), are linked to the U.S. dollar. As of December 31, 2003, we had made or accrued to
 make royalty payments in respect of such grants to the Marketing Fund totaling approximately $0.757
 million.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Production and Sources of Supply</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 manufactures and assembles all the NUR Printers through NUR Pro Engineering, a 50% owned affiliate of
 NUR. In May 2003, NUR signed an agreement to acquire the remaining 50% shares of NUR Pro Engineering,
 from Ogen Dialogix Ltd. for the price of $850,000. Under the terms of the agreement the transfer of the
 shares will become effective on March 31, 2004. As of March 2004 the parties fulfilled their material
 commitments and undertakings under the agreement. Upon completion of the transaction, NUR Pro Engineering
 will become a wholly owned subsidiary of NUR. During the third quarter of 2003, we completed a consolidation
 process of our global machinery manufacturing operations of Salsa Digital Printers in San Antonio, Texas
 with those of NUR Pro Engineering, into a single large manufacturing facility in Rosh Ha&#146;Ayin, Israel.
 During the first quarter of 2004, we have transferred all manufacturing capabilities from NUR Pro Engineering
 to NUR, leaving NUR Pro Engineering as a dormant company upon completion of the transaction. For more
 information see &#147;ITEM 10.C: Material Contracts.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full
 system integration and acceptance and quality control testing of the printers are conducted by our employees
 at the Rosh Ha&#146;Ayin facility. Product quality control tests and inspections are performed at various
 steps throughout the manufacturing process, and each product is subject to a final test prior to delivery.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe that, if increases in sales occur, we can expand our production capabilities or engage subcontractors
 to carry out certain of the manufacturing or the assembly of our printers. Most of the components used
 for the assembly of the NUR Printers are available from several sources; however, the printheads used
 in each series of printers are purchased from single suppliers.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
 date, we have been able to obtain adequate supplies of the components and raw materials necessary to
 produce our printers and have not had any serious problems with our subcontractors. If our business
 grows, however, we will need to purchase greater quantities of components on a timely basis. Any delay
 in supply could ultimately hurt our business.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>23</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of September 2003, we manufacture the NUR Fresco and the NUR Ultima inks at our plant in Ashkelon, Israel.
 The ink for use with the NUR Blueboard is manufactured, exclusively for NUR under the NUR brand name,
 by several ink manufacturers. The ink for use with the NUR Tempo is manufactured, exclusively for NUR
 under the NUR brand name, by SunJet, a division of Sun Chemical Limited, a company incorporated in England.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Service and Support</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Installation,
 post sale customer support and warranty services of our products are provided by NUR America, NUR Europe,
 (including the Middle East &amp; Africa division), NUR Asia Pacific, NUR DO Brazil Ltda. and NUR Japan.
 In most cases, our warranty to our direct customers and distributors covers defects in the NUR Printers
 for a period of six months after installation. NUR is also committed to maintaining sufficient spare
 parts and materials necessary for the operation of the NUR Printers for a certain period after cessation
 of the manufacturing of such printers.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Research and Development</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 research and development efforts, which currently engage approximately 50 employees, are focused on
 developing new products and technologies, enhancing the quality and performance relative to price of
 our existing products, reducing manufacturing costs, upgrading and expanding our product line through
 the development of additional features and improving functionality in response to market demand.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
 recently, we had two research and development facilities, including a facility located at our headquarters
 in Lod, Israel and a facility located in Louvain-la-Neuve, Belgium. We are now near completion of the
 transfer of a substantial portion of the research and development activities from Belgium to Israel.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
 research and development expenses, before royalty bearing grants, were approximately&nbsp;&nbsp;$10.9million,
 $9.2 million and $7.2 million in the years ended December 31, 2001, 2002 and 2003, respectively.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
 and development expenses are composed principally of salaries for employees, the hiring of subcontractors,
 and depreciation of capital investment in infrastructure for software and electronic designs and prototype
 material costs.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2000, we purchased all of the assets and assumed specified liabilities of Salsa Digital Ltd. and
 related entities, previously one of our competitors in the digital printing market. The Salsa Digital
 asset purchase transaction resulted in the recognition by us of a one-time write-off of $4.3 million
 assigned to in-process research and development.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between
 December 1997 and March 1999, NUR Europe, one of our subsidiaries, received a grant from local authorities
 in Belgium for reimbursement of up to 70% of its total research and development investment, which it
 carries out in Belgium, up to approximately $0.6 million. NUR Media Solutions markets and sells the
 products developed under the grant, and reimburses the Belgium authorities at a rate of 3% of the revenue
 generated from the sale of the products. NUR Media Solutions has reimbursed the Belgium authorities
 for approximately $0.27 million as of December 31, 2003. NUR Media Solutions has also established a
 research and development center in Belgium dedicated to the research and development of print substrates
 and inks for use with the NUR Printers. Following the completion of the transfer of substantial portion
 of the ink research and development activities from NUR Media Solutions in Belgium to the NUR&#146;s main
 research and development center in Israel, NUR Media Solutions will become a dormant company.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>24</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between
 May 1999 and April 2000, NUR Media Solutions received a grant from the Belgium authorities for reimbursement
 of up to 50% of its total research and development investment, which it carries out in Belgium, up to
 approximately $0.3 million. NUR Media Solutions reimburses the grant at a rate of 6% of the revenue
 generated from the products developed under the grant. As of December 31, 2003, NUR Media Solutions
 had a contingent obligation to pay royalties in the amount of $0.07 million.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, between June 2001 and January 2004, NUR Media Solutions received a grant from the Belgium
 authorities for reimbursement of up to 50% of its total research and development investment, which it
 carries out in Belgium; such number will total up to approximately $1.5 million. NUR Media Solutions
 will reimburse the grant at a rate of 4% of the revenue generated from the products developed under
 the grant. NUR Media Solutions received &#128;0.725 million under the grant in January 2003 and additional
 &#128;0.669 million in January 2004.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the past, NUR has received grants from the Government of Israel, through the Office of the Chief Scientist
 (the &#147;OCS&#148;), for the development of our systems and products. NUR received approximately $0.26 in the
 year ended December 31, 2000, but has not received research and development grants from the OCS in the
 years ended December 31, 2001, December 31, 2002 and December 31, 2003. The OCS awards grants of up
 to 50% (and in certain circumstances up to 66%) of a project&#146;s approved expenditures in return for royalties.
 Under the terms of funding, royalties are payable generally at a rate of 2% to 3% on sales of products
 developed from the funded project and ending when 100% to 150% of the dollar value of the grant is repaid.
 During 2001, we made royalty payments of $0.2 million in respect of such grants to the OCS. As of December
 31, 2003, we had a contingent liability to pay $0.39 million in future royalty payments. On February
 2004, NUR received a demand letter from the OCS claiming that NUR outstanding liability for royalties
 to the OCS in connection with the sale of NUR Fresco printers aggregates to $0.75 million, of which
 $0.36 million is disputed by NUR. NUR responded to the demand letter by denying the OCS claims with
 respect to the disputed amount, and it is currently trying to settle the differences between the parties
 out-of-court. NUR royalty payments to the Office of the Chief Scientist are in respect of sales of the
 NUR Fresco printers. The terms of the grants prohibit the manufacture of products developed with government
 grants outside of Israel or the transfer out of Israel of the technology developed pursuant to these
 grants without the prior consent of the Office of the Chief Scientist. These restrictions do not bar
 exports from Israel of products developed with such technologies. In addition, the know-how from the
 research and development that is used to produce the product may not be transferred to third parties
 or out of Israel without the approval of the OCS. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Competition</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 principal competitive factors affecting the sales of our products are their performance relative to
 price, productivity and throughput, product features and technology, quality, reliability, cost of operation
 and consumables, the quality and costs of training, support and service as well as the flexibility of
 adapting to customers&#146; applications of the products. Other competitive factors include the ability to
 provide access to product financing, NUR&#146;s reputation and customer confidence in NUR to continually
 develop new products and product accessories that will help them maintain and grow their business.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>25</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 main competitors in the super wide format arena are Vutek, Scitex Vision and Gandi Innovations. Said
 companies have introduced products that directly compete with the NUR Ultima super wide printer. In
 the wide format market, the main competitors are Scitex, through its subsidiary, Scitex Vision Ltd.,
 3M Image Graphics, Vutek, Gandi Innovations and Raster Graphics Inc. These companies have introduced
 products that compete with the NUR Fresco and NUR Ultima printers. In the market for Flatbed printers
 utilizing UV curable ink, the main competitors are Durst Phototechnik, Inca Digital Printers, 3M Image
 Graphics, Scitex Vision and Vutek. These companies have introduced products that compete with the NUR
 Tempo. We have also witnessed continued growth of a local Chinese market where approximately 15 local
 competitors are developing, manufacturing and selling inexpensive printers. Recently, these Chinese
 manufacturers have begun penetrating the international market.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 printing industry is large, and many of our competitors may possess greater management, financial, technical,
 manufacturing, marketing, sales, distribution and other resources than those of NUR. As a result, there
 can be no assurance that competitors will not develop and market products utilizing new technology that
 are competitive in price and performance with the NUR Printers, and there can be no assurance that we
 can compete effectively with such products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Trade Secrets, Patents and Proprietary Rights</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 currently rely on a combination of trade secrets, licenses and patents, together with non-disclosure
 and confidentiality agreements, to establish and protect our proprietary rights in our products. No
 assurance can be given that NUR&#146;s existing patents or any future patents by NUR will not be challenged,
 invalidated, or circumvented, or that our competitors will not independently develop or patent technologies
 that are substantially equivalent or superior to our technology. There can be no assurance that further
 patent protection will be obtained in Israel, the United States, or elsewhere, for existing or new products
 or applications, or that such further protection, if obtained, will be effective. In some countries,
 meaningful patent protection is not available. We are not aware of any material claim that our products
 infringe upon the proprietary rights of third parties. However, there can be no assurance that third
 parties will not assert infringement claims against NUR in the future, and the cost of responding to
 such assertions, regardless of their validity, could be significant. In addition, such claims may be
 found to be valid and could result in awards against NUR, which could have a material effect on our
 business. As a result, the cost to NUR of protecting our patent rights could be substantial. </FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe that our success is less dependent upon the legal protection afforded by patent and other proprietary
 rights than on the knowledge, ability, experience and technological expertise of our employees and our
 key suppliers. It is NUR&#146;s policy to have employees sign confidentiality agreements, to have selected
 parties, including key suppliers, subcontractors and distributors, sign non-competition agreements,
 and to have third parties sign non-disclosure agreements. Although NUR takes precautionary measures
 to maintain our trade secrets, no assurance can be given that others will not acquire equivalent trade
 secrets or otherwise gain access to or disclose NUR&#146;s proprietary technology, or that we can meaningfully
 protect our rights to such proprietary technology not subject to patent protection.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Employees and Labor Relations</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, we employed 322 persons worldwide, including independent contractors, about 16%
 of which work in research and development. Approximately 60% of these employees are employed by NUR
 in Israel and the remainder are employed by our subsidiaries worldwide. All of NUR&#146;s employees who have
 access to confidential information are required to sign a non-disclosure agreement covering all of our
 confidential information that they might possess or to which they might have access.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>26</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe our labor relations are satisfactory. We have never experienced a strike or work stoppage. We
 believe our future success will depend, in part, on our ability to continue to attract, retain, motivate
 and develop highly qualified technical, marketing and sales as well as management personnel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Israeli
 law generally requires the payment of severance pay equal to one month&#146;s salary for each year of employment
 upon the termination of employment. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 liability for future severance pay obligations is fully provided for by payments equal to 8.33% of an
 employee&#146;s salary each month made to various managers&#146; insurance policies or similar financial instruments
 and by accrual. The employees of NUR are usually provided with an additional contribution toward their
 retirement that amounts to 10% of wages, of which the employee and the employer each contributes half.
 Furthermore, Israeli employees and employers are required to pay predetermined sums to the National
 Insurance Institute, which is similar to the United States Social Security Administration, and additional
 sums towards compulsory health insurance.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the fourth quarter of 2002, we completed a restructuring process of our operations in the Asia Pacific
 region consisting of, among other things, appointing Computer and Sign Technology Co., Ltd. to market
 and support the NUR Fresco product line in China and moving the Asia Pacific headquarters from Shanghai
 to a new facility located in Hong Kong. The restructuring process resulted in the termination of approximately
 twenty employees. In year 2003 we ceased our operations in the Chinese market and the engagement of
 CAST as an exclusive distributor in China was terminated.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>During the third quarter of 2003, we completed the
 consolidation of our manufacturing facilities, transferring the machinery and ink manufacturing plants
 from San Antonio, Texas to Israel. We have also relocated our North American headquarters from San Antonio,
 Texas to New Jersey in the third quarter of 2003. The consolidation and relocation of operations resulted
 in the termination of approximately 100 employees in San Antonio, Texas.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 are now near completion of the transfer of a substantial portion of the research and development activities
 previously conducted by NUR Media Solutions in Belgium to Israel. Until recently, NUR supplied substrates
 for use with the NUR Printers and ink through our wholly owned subsidiary in Belgium, NUR Media Solutions.
 In July 2003 we announced our decision to exit the substrate business. Following the completion of the
 transfer of substantial portion of the ink research and development activities from NUR Media Solutions
 in Belgium to NUR&#146;s main research and development center in Israel, NUR Media Solutions will become
 a dormant company.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Insurance</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe that the insurance coverage for our business is in accordance with industry standards and is
 adequate and appropriate in light of our businesses and the risks to which they are subject.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>27</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Legal Proceedings</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 December 1999, Poalim Capital Markets Ltd., an Israeli company engaged in the business of mediation
 and assistance in securities transactions, filed a suit in the District Court of Tel Aviv, Israel, against
 NUR and Isal Amlat Investments (1993) Ltd. Poalim Capital Markets claimed that NUR, in executing a private
 placement agreement with Isal Amlat Investments (1993) Ltd. and Dovrat &amp; Co. Ltd. in September 1999,
 breached an agency agreement with Poalim Capital Markets. Poalim Capital Markets sought enforcement
 and monetary relief up to approximately $0.33 million. In November 2002, the parties reached an out-of-court
 settlement whereby NUR&nbsp;&nbsp;undertook to issue to Poalim Capital Markets a warrant to acquire
 11,000 ordinary shares of NUR at an exercise price of $0.784 per share in consideration for the complete
 and final settlement of this matter. The warrant is exercisable for a period of four years, terminating
 on November 7, 2006.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2000, Abudi Signage Industry Ltd., an Israeli company, and Abudi Printing Technology Ltd.,
 a wholly owned subsidiary of Abudi Signage Industry Ltd. (collectively, the &#147;Abudi Parties&#148;), filed
 suit in the District Court of Tel Aviv, Israel, against Meital Technologies Ltd., Kobi Markovitz (the
 major shareholder of Meital), who is currently a consultant to NUR in the field of technologies development,
 NUR and Erez Shachar, our former President and Chief Executive Officer. The Abudi Parties claimed that
 Meital, in selling its piezo drop-on demand technology to NUR breached agreements between the Abudi
 Parties and Meital pursuant to which: (i) Meital was to develop, manufacture and sell to the Abudi Parties
 an upgrade for Abudi&#146;s Vutek airbrush digital printers and Abudi was to receive the exclusive right
 to market, distribute and sell these upgrades, and (ii) Abudi was provided an option to purchase up
 to 20% of Meital shares upon terms and conditions no less favorable than other investors. The Abudi
 Parties claimed that NUR knowingly purchased the Meital technology and therefore caused Meital to breach
 its option agreements with the Abudi Parties. The Abudi Parties sought consequential and indemnification
 monetary damages up to approximately $4.95 million. In May 2002, the parties reached an out-of-court
 settlement whereby NUR undertook to pay the Abudi Parties $0.14 million for the complete and final settlement
 of this matter.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 August 2001, Printable B.V., a client of NUR Europe, filed a suit against it in the Commercial Court
 of Brussels. The client claims that the contract between Printable and NUR Europe for the sale of two
 machines is null and void, and it further seeks for damages amounting to approximately &#128;0.92 million.
 We believe that the claim is without merit and NUR Europe is defending itself vigorously against the
 claim. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 October 2001, Distrade SL, a client of NUR Europe, filed a suit against NUR Europe in the Commercial
 Court of Brussels, alleging technical defaults in a machine purchased by it. Distrade is seeking reimbursement
 of the purchase price paid by it amounting to approximately $0.23 million, as well as damages of approximately
 &#128;0.25 million. The Commercial Court of Brussels appointed an expert in order to hear the parties&#146; claims;
 to examine the machine; and provide an opinion regarding the damages suffered by Distrade from the use
 of the machine. We believe that the claim is without merit and NUR Europe is defending itself vigorously
 against the claim.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 August 2002, Jiaxing Dapeng Advertising Limited Company, an end-user of NUR&#146;s equipment, filed a suit
 against NUR Shanghai in the Jiaxing Intermediate Court in the People Republic of China, alleging that
 the equipment purchased by it was of bad quality. The Jiaxing Intermediate Court ruled that NUR Shanghai
 should reimburse Dapeng the purchase price of approximately $0.184 million and pay a compensation of
 approximately $0.02 million. Following an appeal filed by NUR Shanghai, the Zhejiang Higher Court ruled
 on September 2003 that NUR Shanghai should pay Dapeng approximately $0.184 million.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>28</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 November 2002, Guangzhou Junhao Printing Limited Company, a client of NUR Asia Pacific, filed a suit
 against NUR Asia Pacific in the Guangzhou Intermediated Court situated in the Peoples Republic of China,
 alleging that the equipment purchased by it from NUR Asia Pacific was of bad quality. Junhao is seeking
 reimbursement of the purchase price paid by it amounting to approximately $0.24 million, as well as
 compensation of approximately $0.16 million. We believe that the claim is without merit and NUR Asia
 Pacific is defending itself vigorously against the claim.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 May 2003 Julius Hewinkel GmbH, a former supplier and manufacturer of NUR Media Solutions filed a suit
 against NUR Media Solutions in the Court of Osnabr&#252;ck, Germany. Hewinkel claims that NUR Media Solutions
 is in breach of an OEM agreement signed between Hewinkel and NUR Media Solutions by failing to purchase
 minimum quantities prescribed under such agreement. Hewinkel seeks damages in approximately the amount
 of &#128;0.94 million. We believe that the claim is without merit and NUR Media Solutions is defending itself
 vigorously against the claim.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 August 2003, as a result of our intention to consolidate the manufacturing operation in San Antonio,
 Texas we notified Ram Global Ltd., the landlord under the five-year lease agreement signed between Ram
 Global and Salsa Digital Printers in July 2001, that we intend to terminate the lease agreement prior
 to its predetermined termination date in July 2006. Ram Global filed suit in the in the 288th Judicial
 District, Bexar County, Texas claiming for the rent owed under the lease agreement until its expiration
 in July 2006 and other damages. In September 2003, the parties reached an out-of-court settlement whereby
 the Salsa Digital Printers undertook to pay Ram Global $0.18 million (reflecting six months rent) for
 the complete and final settlement of this matter.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 September 2003, NUR filed a suit in the Magistrate Court of Tel Aviv, Israel against R.R. Graphicarts
 Ltd., a former distributor of NUR in Israel, for the collection of unpaid invoices in the amount of
 approximately $0.42 million. In February 2004, Graphicarts filed a statement of defense denying NUR&#146;s
 claims and it also filed a counter-claim for alleged damages caused to it by NUR in approximately the
 amount of $0.18 million. We believe that the counter-claim that was filed by Graphicarts is without
 merit and NUR is both pursuing its own suit and defending itself vigorously against the counter-claim.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 are not currently subject to any other material legal proceedings. We may from time to time become a
 party to various legal proceedings in the ordinary course of our business.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>29</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Organizational Structure</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, the following chart presents our corporate structure, the jurisdiction of incorporation
 of our significant subsidiaries and the percentage of shares that we hold in those subsidiaries.</FONT>
</P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
  <TR vAlign=bottom>
    <TH colSpan=3 align="left"><FONT face="Times New Roman, Times, Serif" size=1>Subsidiaries</FONT>
      <HR align="left" width="95%" SIZE=1 noShade color=black>
</TH>
    <TH colSpan=3 align="left"><FONT face="Times New Roman, Times, Serif" size=1>Percentage</FONT>
      <HR width="95%" color=black noShade SIZE=1>
</TH>
    <TH colSpan=3 align="left"><FONT face="Times New Roman, Times, Serif" size=1>Jurisdiction
      of Incorporation</FONT>
      <HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left width="62%"><FONT face="Times New Roman, Times, Serif" size=2>Encre Consumables B.V</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="2%"><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left width="26%"><FONT face="Times New Roman, Times, Serif" size=2>Amsterdam, Netherlands</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR America Inc. (NUR America)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Delaware, United States</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Asia Pacific (Hong Kong) Ltd. (NUR Asia Pacific)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Hong Kong, China</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR DO Brazil Ltda</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Sao Paulo, Brazil</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Europe S.A. (NUR Europe)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Brussels, Belgium</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Hungary Trading and Software Licensing Limited</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Liability Company</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=right><font face="Times New Roman, Times, Serif" size=2>100</font></TD>
    <TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Budapest, Hungary</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Macroprinters (Shanghai) Ltd. (NUR Shanghai)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Shanghai, China</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Media Solutions S.A. (NUR Media Solutions)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Brussels, Belgium</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Salsa Digital Printers Ltd. (Salsa Digital Printers)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Delaware, United States*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Japan Ltd. (formerly Signtech Japan Ltd.) (NUR Japan)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Tokyo, Japan</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>NUR Pro Engineering Ltd. (NUR Pro Engineering)</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>50</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Rosh Ha'Ayin, Israel**</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=10></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>___________________</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>* </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Salsa Digital Printers does business as NUR Engineering USA.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD vAlign=top width=36><font face="Times New Roman, Times, Serif" size=2>**</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In May 2003,
      NUR signed an agreement to acquire the remaining 50% shares of NUR Pro Engineering.
      Under the terms of the agreement the transfer of the shares will be effective
      as of March 31, 2004. As of March 2004 the parties fulfilled their material
      commitments and undertakings under the agreement. Upon completion of the
      transaction, NUR Pro Engineering will become a wholly owned subsidiary of
      NUR. During the third quarter of 2003, NUR completed a consolidation process
      of its global machinery manufacturing operations of Salsa Digital Printers
      in San Antonio, Texas with those of NUR Pro Engineering, into a single large
      manufacturing facility in Rosh Ha&#146;Ayin. </FONT></TD>
  </TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Property, Plants and Equipment</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Israel</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 main facilities are located in the high-tech industrial zone in Lod, Israel, in a building that is approximately
 50,000 square feet. We use this facility as our headquarters and for research and development. We have
 invested a total of approximately $2 million in improving this facility. The initial five-year lease
 of the Lod facility, which commenced November 20, 2000, provides for monthly rent of $63,000. The lease
 agreement grants NUR an option to continue the lease term for two consecutive periods of 2.5 years each.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 leases approximately 9,117 square feet in Ashkelon, Israel for use as a manufacturing plant for the
 NUR solvent based inks. The Ashkelon lease expires in December 2007.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Pro Engineering Ltd., a 50% owned affiliate, leases approximately 28,621 square feet in Rosh Ha&#146;Ayin,
 Israel, for the manufacture and assembly of the NUR Printers. The Rosh Ha&#146;Ayin plant is leased through
 several lease agreement the majority of which expire throughout 2004. In May 2003, we signed an agreement
 to acquire the remaining 50% shares of NUR Pro Engineering. Under the terms of the agreement the closing
 of the transaction will occur on March 31, 2004. As of March 2004 the parties fulfilled their material
 commitments and undertakings under the agreement. Upon completion of the transaction, NUR Pro Engineering
 will become a wholly owned subsidiary of NUR. We are currently negotiating the renewal of the Rosh Ha&#146;Ayin
 lease agreements and the complete assignment of NUR Pro Engineering leases to NUR. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>30</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>United States</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 America leases office space in Newton, Massachusetts consisting of 26,500 square feet that it had previously
 used as the subsidiary&#146;s headquarters, sales and marketing offices, and demonstration and service center.
 The Newton lease expires in January 2011. NUR America sublets this space to a third party. The sublease
 expires in January 2011. In 2001, we consolidated&nbsp;our U.S. operations. NUR America, Inc. in Boston,
 Massachusetts&nbsp;and Salsa Digital Printers Ltd. in San Antonio, Texas, were integrated into a single
 large facility in San Antonio, Texas.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salsa
 Digital Printers previously leased 67,250 square feet in San Antonio, Texas for use as its manufacturing
 facility for the Salsa product line and the NUR inks, as well as headquarters for NUR America, NUR America&#146;s
 sales and marketing offices, and NUR America&#146;s training and service center. Pursuant to the consolidation
 of the manufacturing facilities and the relocation of the North American headquarters to New Jersey,
 the San Antonio lease was terminated and a termination fee of $183,649 was paid by Salsa Digital Printers
 in an out-of-court settlement agreement. For more information see &#147;ITEM 4: Legal Proceedings&#148;. In September
 2003, we relocated our machinery and ink manufacturing facilities from San Antonio, Texas to Israel.
 We now assemble and manufacture all of the NUR Printers in a single plant located in Rosh Ha&#146;Ayin, Israel.
 As of 2003, our solvent-based ink is now manufactured at a new plant in Ashkelon, Israel. An integral
 part of our restructuring process was the transfer of our North American headquarters and training center
 to Moonachie, New Jersey. The 11,000 square feet facility replaces NUR&#146;s former facility in San Antonio,
 Texas. The new headquarters houses NUR&#146;s North American sales, marketing, administrative, and support
 staff and includes a fully equipped training center and demo site. The New Jersey lease expires in October
 2008.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Europe</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Europe leases approximately 1,970 square feet of office space in Louvain-la-Neuve, Belgium for use as
 the subsidiary&#146;s headquarters and sales office, demonstration and service center. The Louvain-la-Neuve
 lease expires in March 2011. In 2000, NUR Europe expanded its headquarters space at the above location
 by an additional 12,355 square feet. The lease for the additional space expires in March 2012.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Media Solutions leased approximately 1,867 square feet office space in Louvain-la-Neuve, Belgium for
 use as office space. NUR Europe replaced NUR Media Solutions as Lessee and now occupies this office
 space as well. The Louvain-la-Neuve lease expires in November 2009.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Asia Pacific</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Asia Pacific leases approximately 3,561 square feet for use as office space in Hong Kong. The lease
 for the Hong Kong facility will expire in November 2004.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Japan</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 Japan leases approximately 2,173 square feet of office space in Tokyo. The lease expires August 2005.
 </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>31</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 5: Operating and Financial Review and Prospects</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Operating Results</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>General</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 is a world leader in the market for the sale of wide format and super wide format digital printing systems.
 NUR develops, manufactures, sells and services digital, inkjet color printing systems for on-demand,
 production, wide format and super wide format printing. NUR also supplies inks that are consumable products
 for the operation of the NUR Printers. NUR&#146;s total revenues declined from $120.4 million in the year
 ended December 31, 2001 to $85.3 million in the year ended December 31, 2002 and to $65.6 million in
 the year ended December 31, 2003.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 are derived from the sale of our printers, which include the NUR Fresco printers, the NUR Ultima printers
 and the NUR Tempo printers, and from the sale of inks, spare parts and related services. Until we exited
 the substrate business in July 2003, NUR also had revenues from the sale of substrates for the NUR Printers.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
 of sales of printers and related materials includes materials, labor, overhead, and other direct or
 allocated costs involved in the manufacture, warehousing, delivery, support, and maintenance of products.
 Research and development expenses include mainly labor, materials consumed, expenses by subcontractors,
 consultants, and others. Research and development expenses are carried to the statement of operations
 as incurred. Grants are netted from research and development costs on an accrual basis as the related
 expenses are incurred.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 sales and marketing expenses include the costs associated with the staff of the sales and marketing
 force of NUR and our subsidiaries, advertising and promotion of existing and new products, trade shows,
 commissions, and other marketing activities. Grants are netted from sales and marketing costs on an
 accrual basis as the related expenses are incurred. During the past couple of years, NUR has invested
 in the integration of the Salsa Digital and the NUR worldwide sales and service organizations, in order
 to strengthen the service and sales organizations of NUR Europe, (including the Middle East &amp; Africa
 division), NUR America, NUR Asia Pacific, NUR DO Brazil and NUR Japan. NUR has also invested in the
 consolidation process of its printers and ink manufacturing operations into two manufacturing plants
 in Israel and the consolidation of its research and development capabilities into a single facility
 in Israel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Certain Critical Accounting Policies</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 discussion and analysis of our financial condition and results of operations are based on our consolidated
 financial statements, which have been prepared in accordance with generally accepted accounting principles
 in the United States. For additional information regarding our significant accounting principles see
 Note 2 to NUR&#146;s consolidated financial statements included as a part of this annual report on Form 20-F.
 While all the accounting policies impact the financial statements, certain policies may be viewed to
 be critical. These policies are those that are both most important to the portrayal of our financial
 condition and results of operations and require our management&#146;s most difficult, subjective and complex
 judgments and estimates. Actual results could differ from those estimates.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>32</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 consolidated financial statements are prepared in accordance with accounting principles generally accepted
 in the United States. These accounting principles require management to make certain estimates, judgments
 and assumptions based upon information available at the time that they are made, historical experience
 and various other factors that are believed to be reasonable under the circumstances. These estimates,
 judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of
 the financial statements, as well as the reported amounts of revenues and expenses during the periods
 presented.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 many cases, the accounting treatment of a particular transaction is specifically dictated by generally
 accepted accounting principles in the United States and does not require management&#146;s judgment in its
 application. There are also areas in which management&#146;s judgment in selecting among available alternatives
 would not produce a materially different result. NUR&#146;s management has reviewed these critical accounting
 policies and related disclosures with the Audit Committee.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 management believes the significant accounting policies which affect management&#146;s more significant judgments
 and estimates used in the preparation of NUR&#146;s consolidated financial statements and which are the most
 critical to aid in fully understanding and evaluating the NUR&#146;s reported financial results include Revenue
 Recognition, Allowance for Doubtful Accounts, Inventory valuation, Impairment of long-lived assets,
 Restructuring charges and Income taxes.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Revenue Recognition</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 derive our revenue primarily from two sources: product revenues and service revenues, which include,
 support and maintenance, installation and training revenue. Revenue related to sales of our products
 is generally recognized when persuasive evidence of an agreement exists; the product has been delivered
 and title and risk of loss have passed to the buyer; the sales price is fixed and determinable, no further
 obligations exist, and collectibility is probable. NUR does not grant right of return.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 adopted Emerging Issues Task Force (&#147;EITF&#148;) Issue No. 00-21, &#147;Revenue Arrangements with Multiple Deliverables.&#148;</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 from services are comprised of installation, maintenance and support arrangements, and training, none
 of which are considered essential to the functionality of the products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 from installation, maintenance and support arrangements are deferred and recognized on a straight-line
 basis over the term of the arrangement and revenues from training and installation are recognized at
 the time the services are rendered. Deferred revenue includes amounts received from customers for which
 revenue has not yet been recognized.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 from trade-in transactions of the NUR Printers are recorded at fair value as a discount from revenues
 in accordance with APB 29 &#147;Accounting for Non-monetary Transactions&#148; and EITF 01-2 &#147;Interpretations
 of APB Opinion No. 29&#148;, when the cash consideration involved with such transactions is material.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>33</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Allowance For Doubtful Accounts</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its
 customers to make required payments, which is included in bad debt expense. NUR determines the adequacy
 of this allowance by regularly reviewing the complexion of its accounts receivable aging and evaluating
 individual customer receivables, considering customers&#146; financial condition, credit history and current
 economic conditions. If the financial condition of NUR&#146;s customers were to deteriorate, resulting in
 an impairment of their ability to make payments, additional allowances may be required in future periods.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 occasion, NUR&#146;s subsidiaries engage in the sale of trade receivables with established commercial banking
 institutions. NUR provides the banking institutions with an unlimited guarantee securing the obligations
 of the subsidiaries under the trade receivables sale agreements. A total of $1.1 million and $9.87 million
 was sold to the banks during the quarters ending December 31, 2003 and December 31, 2002, respectively.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Inventory Valuation</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
 each balance sheet date, we evaluate our inventory balance for excess quantities and obsolescence. This
 evaluation includes analyses of sales levels by product line and projections of future demand. In addition,
 we write off inventories that are considered obsolete. Remaining inventory balances are adjusted to
 the lower of cost or market value. If future demand or market conditions are less favorable than our
 projections, additional inventory write-downs may be required and would be reflected in cost of sales
 in the period the revision is made. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Impairment of Long-Lived Assets</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 long-lived assets include property, plant and equipment and other intangible assets. In assessing potential
 impairment of these assets, we consider this factor and other pertinent information. We record an asset
 impairment charge when we believe that the asset has experienced a decline in value that is other than
 temporary. During 2003, we recognized $1.0 million of impairment losses related to our property, plant
 and equipment in Boston. As of December 31, 2003, the carrying value of NUR&#146;s long-lived assets was
 $6.9 million.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 assessing the recoverability of our property and equipment and other intangible assets, we must make
 assumptions regarding the estimated future cash flows and other factors to determine the fair value
 of the respective assets. If these estimates or their related assumptions change in the future, we may
 be required to record impairment charges for these assets.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 June 2001, the Financial Accounting Standards Board issued Statements of Financial Accounting Standards
 No. 141, &#147;Business Combinations&#148;, and No. 142, &#147;Goodwill and Other Intangible Assets&#148;, effective for
 fiscal years beginning after December 15, 2001. Under these rules, goodwill and intangible assets deemed
 to have indefinite lives will no longer be amortized but will be subject to annual impairment tests
 in accordance with the Statements. NUR has conducted an evaluation of its intangible assets as of December
 31, 2002 and December 31, 2003, which resulted in an impairment of $10.87 million and $0 million of
 NUR&#146;s intangible assets, respectively. Other intangible assets will continue to be amortized over their
 useful lives.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 August 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards
 No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148; (FAS 144), which addresses
 financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes
 SFAS No. 121, &#147;Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
 Of&#148; and the accounting and reporting provisions of APB Opinion No. 30, &#147;Reporting the Results of Operations
 for a Disposal of a Segment of a Business&#148;. FAS 144 is effective for fiscal years beginning after December
 15, 2001, with earlier application encouraged. NUR&#146;s implementation of FAS 144 has resulted in the impairment
 of most of its intangible assets. See &#147;ITEM 18: Financial Statements&#148;. During 2003, we recognized $1.0
 million of impairment losses related to our property, plant and equipment in Boston. As of December
 31, 2003, the carrying value of NUR&#146;s long-lived assets was $6.9 million.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>34</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Deferred Income Taxes </I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 record income taxes using the asset and liability approach. Deferred income tax assets and liabilities
 are recognized for future tax consequences attributable to differences between the financial statement
 carrying amounts of existing assets and liabilities and their respective income tax bases, and net operating
 loss and tax credit carryforwards. Our financial statements contain fully reserved tax assets, which
 have arisen as a result of net operating losses, primarily incurred in 2001, 2002 and 2003, as well
 as other temporary differences between book and tax accounting. Significant management judgment is required
 in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation
 allowance recorded against our net deferred tax assets. We have considered future taxable income, prudent
 and feasible tax planning strategies and other available evidence in determining the need for a valuation
 allowance. We evaluate all of these factors to determine whether it is more likely than not that some
 portion or all of the deferred income tax assets will not be realized. As a result of significant net
 operating losses incurred in 2001, 2002 and 2003 and uncertainty as to the extent and timing of profitability
 in future periods, we have continued to record a valuation allowance, which was approximately $25.7
 million as of December 31, 2003. The establishment and amount of the valuation allowance requires significant
 estimates and judgment and can materially affect our results of operations. If the realization of deferred
 tax assets in the future is considered more likely than not, an adjustment to the deferred tax assets
 would increase net income in the period such determination was made.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 effective tax rate may vary from period to period based on changes in estimated taxable income or loss,
 changes to the valuation allowance, changes to state or foreign tax laws, future expansion into geographic
 areas with varying country, state and local income tax rates, deductibility of certain costs and expenses
 by jurisdiction and as a result of acquisitions, divestitures and reorganizations.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Restructuring</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the first and fourth quarters of 2001, the second and fourth quarters of 2002 and the second quarter
 of 2003 NUR decided to perform a series of strategic initiatives intending to further reduce costs and
 increase efficiency. As a result, approximately 60, 72 and 58 employee positions were eliminated by
 NUR in 2001, 2002 and 2003, respectively. In July 2002, the Financial Accounting Standards Board issued
 SFAS No. 146 &#147;Accounting for Costs Associated with Exit or Disposal Activities&#148;, SFAS No. 146 requires
 that a liability for a cost that is associated with an exit activity be recognized only when the liability
 is incurred. It supersedes the guidance in EITF 94-3. In SFAS No. 146, an entity&#146;s commitment to a plan
 does not, by itself, create a present obligation to other parties that meets the definition of a liability
 and establishes that fair value is the objective for the initial measurement of the liability. </FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the event that we redefine our strategic direction and/or difficult economic conditions continue to
 prevail, we may be required to implement further restructuring measures. We are not currently able to
 determine whether or to what extent such circumstances may continue or worsen.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>35</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Geographic Breakdown of Revenues </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 sell our products and services throughout the world. Revenues are generally attributed to the location
 of the sale of the product or service to the end-user. The tables below shows the breakdown of revenues
 by categories of activities and into geographic markets in the years ended December 31, 2003, 2002 and
 2001. The &#147;Others&#148; category, below, includes, among other things, revenues generated by the service
 of the NUR Printers.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH>&nbsp;</TH>
<TH align=center colSpan=9><FONT face="Times New Roman, Times, Serif" size=1><B>Year Ended December 31,</B></FONT></TH></TR>
<TR vAlign=bottom>
<TH>&nbsp;</TH>
<TH colSpan=9>
<HR align=center width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH align=left><FONT face="Times New Roman, Times, Serif" size=1>REGION</FONT>
<HR align=left width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2001</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2002</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2003</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=center colSpan=9><FONT face="Times New Roman, Times, Serif" size=1><B>(In thousands of U.S. dollars)</B></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=9>
<HR align=center width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Middle-East &amp; Africa</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>5,831</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>3,536</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>596</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Asia (except China)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>20,338</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>15,511</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,485</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>China</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13,492</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>4,436</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>176</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Europe</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>41,757</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>32,876</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>36,709</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>America</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>15,999</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>15,700</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>18,608</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=right>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=right>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=right>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total Revenues</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>120,377</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>85,255</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>65,574</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
</TABLE>



<P></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH>&nbsp;</TH>
<TH colSpan=9><FONT face="Times New Roman, Times, Serif" size=1><B>Year Ended December 31,</B></FONT></TH></TR>
<TR vAlign=bottom>
<TH>&nbsp;</TH>
<TH colSpan=9>
<HR align=center width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=9><FONT face="Times New Roman, Times, Serif" size=1></FONT><FONT face="Times New Roman, Times, Serif" size=1></FONT><FONT face="Times New Roman, Times, Serif" size=1><B>(In thousands of U.S. dollars)</B></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=center colSpan=9>
<HR align=center width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=1>CATEGORY</FONT></B></FONT></TD>
<TD align=center width="1%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD>
<TD align=center width="10%"><B><FONT face="Times New Roman, Times, Serif" size=1>2001</FONT></B></TD>
<TD align=center width="2%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD>
<TD align=center width="1%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD>
<TD align=center width="10%"><B><FONT face="Times New Roman, Times, Serif" size=1>2002</FONT></B></TD>
<TD align=center width="2%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD>
<TD align=center width="1%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD>
<TD align=center width="10%"><B><FONT face="Times New Roman, Times, Serif" size=1>2003</FONT></B></TD>
<TD align=center width="2%"><B><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left>
<HR align=left width="95%" color=black noShade SIZE=1>
</TD>
<TD align=right colSpan=9>
<HR align=center width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Printers</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>65,265</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>43,185</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>35,890</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Ink</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>31,390</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>21,904</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,637</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Substrates</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>12,539</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>10,418</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,321</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Others</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>11,183</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,748</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>9,726</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total Revenues</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>120,377</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>85,255</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>65,574</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
</TABLE>



<P><FONT face="Times New Roman, Times, Serif" size=2><B>Results of Operations</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table sets forth for the periods indicated certain line items from NUR&#146;s statement of operations
 as a percentage of NUR&#146;s revenues:</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom align=center>
<TH><FONT size=1></FONT></TH>
<TH><FONT size=1></FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1><B>2001(1)(2)</B></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=1><B>2002</B> <B>&nbsp;(3)</B></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1><B>2003(4)</B></FONT></TH></TR>
<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH>&nbsp;</TH>
<TH align=right width="10%">
<HR align=center width="95%" color=black noShade SIZE=1>
</TH>
<TH align=left colSpan=2>
<HR align=center width="95%" color=black noShade SIZE=1>
</TH>
<TH align=left colSpan=3>
<HR align=center width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=2><em>Revenues</em></FONT></TD>
<TD align=right>&nbsp;</TD>
    <TD align=right><FONT face="Times New Roman, Times, serif" size=2>100</FONT></TD>
    <TD align=left><FONT face="Times New Roman, Times, serif" size=2>%</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, serif" size=2>%</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, serif" size=2>100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, serif" size=2>%</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Cost of sales of printers and related products</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>59</FONT><FONT face="Times New Roman, Times, Serif" size=2>.8</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>67</FONT><FONT face="Times New Roman, Times, Serif" size=2>.3</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>60</FONT><FONT face="Times New Roman, Times, Serif" size=2>.5</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;One time inventory write-off</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>3</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>1</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>20</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>37</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>31</FONT><FONT face="Times New Roman, Times, Serif" size=2>.6</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>19</FONT><FONT face="Times New Roman, Times, Serif" size=2>.5</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Research and development</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>9</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>10</FONT><FONT face="Times New Roman, Times, Serif" size=2>.8</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>11</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Research and development, net</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>8</FONT><FONT face="Times New Roman, Times, Serif" size=2>.5</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>9</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>10</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Selling and marketing, net</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>15</FONT><FONT face="Times New Roman, Times, Serif" size=2>.5</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>14</FONT><FONT face="Times New Roman, Times, Serif" size=2>.9</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>17</FONT><FONT face="Times New Roman, Times, Serif" size=2>.3</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;General and administrative ongoing expenses</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>11</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>14</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>17</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;General and administrative one time expenses</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>3</FONT><FONT face="Times New Roman, Times, Serif" size=2>.4</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>10</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Amortization and impairment of goodwill and other intangible</FONT></TD>
<TD align=right>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;assets</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>2</FONT><FONT face="Times New Roman, Times, Serif" size=2>.4</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>15</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Operating loss</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(3</FONT><FONT face="Times New Roman, Times, Serif" size=2>.4</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(26</FONT><FONT face="Times New Roman, Times, Serif" size=2>.5</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(38</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Financial expenses, net</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>2</FONT><FONT face="Times New Roman, Times, Serif" size=2>.8</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>1</FONT><FONT face="Times New Roman, Times, Serif" size=2>.6</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>3</FONT><FONT face="Times New Roman, Times, Serif" size=2>.3</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Other expense, net</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.3</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.4</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Taxes on income (tax benefit)</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.3</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Minority interest in earnings of a subsidiary</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Equity in earnings (losses) of affiliates, net</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>0</FONT><FONT face="Times New Roman, Times, Serif" size=2>.1</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>&#151;</FONT></TD>
<TD align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Net loss</FONT></TD>
<TD align=right>&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(6</FONT><FONT face="Times New Roman, Times, Serif" size=2>.0)</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(28</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2)</FONT></TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>(42</FONT><FONT face="Times New Roman, Times, Serif" size=2>.2</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>36</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=10></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>__________________</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents financial information for NUR together with our subsidiaries NUR Media Solutions, NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers, NUR Hungary Trading and Software Licensing Limited Liability Company, NUR DO Brazil Ltda., Encre Consumables B.V and NUR Japan and Stillachem (last eight months). </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR acquired the remaining outstanding capital stock of Stillachem in May 2001. As a result, Stillachem became a wholly owned subsidiary of NUR. As part of the restructuring and consolidation of our ink research and development and manufacturing operations we have closed the Stillachem operations and have dissolved the company. The ink previously manufactured by Stillachem is now manufactured in Ashkelon, Israel and substantial portion of the ink research and development activities previously transferred to NUR Media Solutions will be continued in our research and development center in Israel.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(3) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents financial information for NUR together with our subsidiaries NUR Media Solutions, NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers, NUR Hungary Trading and Software Licensing Limited Liability Company, NUR DO Brazil Ltda., Encre Consumables B.V, NUR Japan and Stillachem.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(4) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents financial information for NUR together with our subsidiaries NUR Media Solutions, NUR America, NUR Europe, NUR Shanghai, NUR Asia Pacific, Salsa Digital Printers, NUR Hungary Trading and Software Licensing Limited Liability Company, NUR DO Brazil Ltda., Encre Consumables B.V, NUR Japan and Stillachem (first three months).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Year Ended December 31, 2003 Compared with Year
 Ended December 31, 2002</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Revenues.</I>
 &nbsp;&nbsp;Revenues were approximately $65.6 million in the year ended December 31, 2003, compared
 to approximately $85.3 million in the year ended December 31, 2002. This decrease was mainly attributable
 to discontinuing sales of substrates as of the second quarter, a weakened macroeconomic environment,
 a slowdown in capital equipment investments by customers, reduced demand for printing consumables, heightened
 competition in our market and price reductions of our products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gross
 Profit.</I> &nbsp;&nbsp;Gross profit was approximately $12.8 million in the year ended December 31,
 2003, compared to $26.9 million in the year ended December 31, 2002. Excluding one-time inventory write-offs
 of $13.1 million and $1.0 million, respectively, the gross profit was approximately $25.9 million in
 the year ended December 31, 2003, compared to $27.9 million in the year ended December 31, 2002. The
 decrease in gross profits in 2003 was primarily due to write-off of inventory and a decline in our sales.
 Excluding the one-time inventory write-offs, the gross profit as a percentage of revenue has increased
 from 33% in the year ended December 31, 2002 to 40% in the year ended December 31, 2003. This increase
 is mainly attributed to the discontinuing sales of substrates as of the second quarter of 2003, which
 had a negative to no effect on the gross profit. It is also attributed to the organizational changes
 implemented during 2003, including consolidating all manufacturing activities in Israel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Expenses.</I>
 &nbsp;Research and development costs, net of government grants, were approximately $6.5 million in the
 year ended December 31, 2003, compared to $7.7 million in the year ended December 31, 2002. NUR expects
 to continue to invest significant resources in research and development programs for new products and
 enhancements of existing products. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling
 and marketing expenses were approximately $11.3 million in the year ended December 31, 2003, compared
 to approximately $12.7 million in the year ended December 31, 2002. The majority of sales and marketing
 expenses were incurred by our distribution subsidiaries NUR Europe, NUR America, NUR Shanghai and NUR
 Asia Pacific. The decrease of expenses is mostly attributed to organizational changes implemented during
 2003, including the appointment of local senior management in USA and Asia and a more focused marketing
 activities. As of December 31, 2002, NUR had received $1.27 million from the Marketing Fund for selling
 and marketing expenses. NUR is no longer eligible, however, for support from the Marketing Fund due
 to its reaching the maximum allowed export revenues.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>37</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
 and administrative expenses were approximately $19.9 million for the year ended December 31, 2003, compared
 to approximately $29 million in the year ended December 31, 2002. The figures for 2003 include amortization
 of goodwill and other intangible assets of $0.1 million and restructuring and other one-time expenses
 of $8.7 million. The figures for 2002 include amortization of goodwill and other intangible assets of
 $12.9 million and restructuring and other one-time expenses of $4.2 million during 2002. Without such
 charges, general and administrative expenses were approximately $11.1 million for the year ended December
 31, 2003, compared to approximately $12.0 million in the year ended December 31, 2002. The restructuring
 efforts in 2003 consisted of a series of strategic initiatives intended to further reduce costs and
 increase efficiency and they include reduction in work force and relocating the US headquarters from
 San Antonio, Texas to New Jersey and the Asia Pacific headquarters from China to Hong-Kong. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
 expenses, net increased to $2.2 million in the year ended December 31, 2003, compared to $1.3 million
 in the year ended December 31, 2002. This increase was mainly due to increase in interest rates paid
 by NUR in respect of bank loans taken to finance the cash portion of the Salsa Digital acquisition in
 2000 and foreign exchange gains and an additional charge in respect of beneficial conversion feature
 related to conversion of the convertible loan in the amount of $0.67 million. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxes.</I>
 &nbsp;Taxes on income were $0.2 million in the year ended December 31, 2003, as compared to taxes on
 income of $0.03 million in the year ended December 31, 2002.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Year Ended December 31, 2002 Compared with Year
 Ended December 31, 2001 </I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Revenues.</I>
 &nbsp;&nbsp;Revenues were approximately $85.3 million in the year ended December 31, 2002, compared
 to approximately $120.4 million in the year ended December 31, 2001. This decrease was mainly attributable
 to a weakened macroeconomic environment, a slowdown in capital equipment investments by customers, reduced
 demand for printing consumables, and heightened competition in our market and price reductions of our
 products.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gross
 Profit.</I> &nbsp;&nbsp;Gross profit was approximately $26.9 million, and $27.9 million excluding one-time
 inventory write-offs of $1.0 million, in the year ended December 31, 2002, compared to $44.5 million
 in the year ended December 31, 2001. The decrease in gross profits in 2002 was primarily due to a decline
 in our sales. In addition to those factors noted above, we believe the reduction in our sales can be
 attributed to, among other things, heightened competition and pressure on prices in both the printers
 and the consumables markets, and the entry of more local competition.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Expenses.</I>
 &nbsp;Research and development costs, net of government grants, were approximately $7.7&nbsp;million
 in the year ended December 31, 2002, compared to $10.2&nbsp;million in the year ended December 31, 2001.
 NUR expects to continue to invest significant resources in research and development programs for new
 products and enhancements of existing products. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>38</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling
 and marketing expenses were approximately $12.7&nbsp;million in the year ended December 31, 2002, compared
 to approximately $18.7&nbsp;million in the year ended December 31, 2001. As of December 31, 2001, NUR
 had received $1.27 million from the Marketing Fund for selling and marketing expenses. NUR is no longer
 eligible, however, for support from the Marketing Fund due to its reaching the maximum allowed export
 revenues. The majority of sales and marketing expenses were incurred by the following distribution subsidiaries:
 NUR Europe; NUR America; NUR Shanghai; and NUR Asia Pacific.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
 and administrative expenses were approximately $29.0&nbsp;million, including amortization of goodwill
 and other intangible assets, impairment of goodwill and other intangible assets of $12.9 million, and
 restructuring and other one-time expenses of $4.2 million, for the year ended December 31, 2002, compared
 to approximately $19.5 million in the year ended December 31, 2001. The restructuring efforts in 2002
 consisted of a series of strategic initiatives intended to further reduce costs and increase efficiency,
 including the following: transfer of NUR&#146;s headquarters in Asia from Shanghai to Hong Kong; workforce
 reduction; and salary cuts. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
  expenses, net decreased to $1.3 million in the year ended December 31, 2002,
  compared to $3.3 million in the year ended December 31, 2001. This decrease
  was mainly due to decline in interest rates paid by NUR in respect of long-term
  bank loans taken to finance the cash portion of the Salsa Digital acquisition
  in 2000 and foreign exchange gains.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxes.</I>
 &nbsp;Taxes on income were $0.03 million in the year ended December 31, 2002, as compared to tax benefit
 of $(0.2) million in the year ended December 31, 2001.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><I>Impact of Inflation, Devaluation and Fluctuation
 of Currencies</I></B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most
 of NUR&#146;s sales are in U.S. dollars and in the Euro. In addition, a substantial portion of costs are
 incurred outside Israel in U.S. dollars or paid in U.S. dollars or in NIS linked to the exchange rate
 of the U.S. dollar. Costs not effectively denominated in U.S. dollars are translated to U.S. dollars,
 when recorded, at prevailing exchange rates for the purposes of NUR&#146;s consolidated financial statements,
 and will increase if the rate of inflation in Israel exceeds the devaluation of the Israeli currency
 against the U.S. dollar or if the timing of such devaluations were to lag considerably behind inflation.
 Consequently, NUR is and will be affected by changes in the prevailing NIS/U.S. dollar exchange rate.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 might also be affected by the U.S. dollar exchange rate to the Euro.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 annual rate of inflation in Israel was 1.4% in&nbsp;2001, increased to 6.7% in the year ended December
 31, 2002, and decreased to (1.88)% in the year ended December 31, 2003. The NIS was devalued against
 the U.S. dollar by approximately 9.3% in 2001, by approximately 7.3% in 2002, and by approximately 7.6%
 in 2003. NUR cannot predict whether the rate of devaluation of the NIS against the U.S. dollar will
 continue to exceed the rate of inflation in the future and whether these conditions will have a material
 adverse effect on NUR.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 representative dollar exchange rate for converting the NIS to dollars, as reported by the Bank of Israel,
 was NIS 4.379 for one-dollar U.S. on December 31, 2003. The representative dollar exchange rate was
 NIS 4.737 on December 31, 2002 and NIS 4.416 on December 31, 2001.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 transactions and balances denominated in U.S. dollars are presented at their original amounts. Non-dollar
 transactions and balances have been measured into U.S. dollars in accordance with Statement 52 of the
 FASB. All transaction gains and losses from remeasurement of monetary balance sheet items denominated
 in non-dollar currencies are reflected in the statement of operations as financial income or expenses,
 as appropriate. The average exchange rates during the years ended December 31, 2001, 2002 and 2003 were
 NIS, 4.205, 4.738 and 4.548 for one-dollar U.S., respectively. The exchange rate as of March 29, 2004
 was NIS 4.535 for one dollar.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>39</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Liquidity and Capital Resources</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 have historically funded our operations primarily through the private sale of our equity securities,
 commercial bank loans and through cash generated from operations. We invest our excess cash in cash
 and cash equivalents that are highly liquid. At December 31, 2003 we had approximately $10.3 million
 of cash and cash equivalents compared with $10.5 million at December 31, 2002 and $12.4 million at December
 31, 2001.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 expect that our working capital will not be sufficient for our requirements during 2004. NUR intends
 to raise additional capital from private investors through one or more equity private placement transaction(s)
 if and when needed to fund the capital requirements of its operations.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, NUR does not have material commitments for capital expenditures.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Operating activities </I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the year ended December 31, 2003, NUR had a net loss of $(27.7) million. Net cash used in operating
 activities was approximately $7.9 million. The main changes in NUR&#146;s working capital were: (i) a decrease
 of approximately $11.7 million in trade accounts receivable and long-term trade accounts receivables;
 (ii) a decrease of approximately $6.7 million in trade payables; and (iii) a decrease of approximately
 $10.8 million in inventories.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the year ended December 31, 2002, NUR had a net loss of $(24.1) million. Net cash used in operating
 activities was approximately $4.2 million. The main changes in NUR&#146;s working capital were: (i) a decrease
 of approximately $8.0 million in trade accounts receivable; and (ii) a decrease of approximately $5.1
 million in trade payables.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the year ended December 31, 2001, NUR had net loss of $(7.2) million. Net cash used in operating activities
 was approximately $0.2 million. The main changes in NUR&#146;s working capital were (i) a decrease of approximately
 $7.0 million in trade accounts receivable, (ii) a decrease of approximately $3.2 million in trade payables
 and accrued expenses.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Investing activities</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
 cash used in investing activities was approximately $1.1 million in the year ended December 31, 2003,
 consisting mainly of purchase, net of property and equipment. Net cash used in investing activities
 was approximately $2.7 million in the year ended December 31, 2002, consisting mainly of purchase, net
 of property and equipment. Net cash used in investing activities was approximately $8.6 million in the
 year ended December 31, 2001, consisting mainly of purchase, net of property and equipment. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>40</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Financing activities</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
 cash provided by financing activities in the year ended December 31, 2003 was approximately $10 million,
 deriving primarily from short-term bank credit and short-term loans in the aggregate amount of $9.2
 million and the conversion of a convertible loan commitment secured from several investors in the aggregate
 amount of $1.9 million (net of related issuance expenses). NUR&#146;s chairman and largest shareholder, Dan
 Purjes, provided approximately $1.3 million of the loan. Under the terms of the loan agreement, the
 loan is convertible at any time into ordinary shares of NUR at a conversion rate of $0.62 per share.
 In consideration for the loan undertaking, NUR agreed to pay a cash commitment fee and issue to the
 investors warrants to purchase ordinary shares of NUR equal to 15% of the loan at an exercise price
 of $0.52 per share exercisable over a five-year period. In the event of a draw down of the loan, NUR
 will issue to the investors additional warrants to purchase ordinary shares in the amount equal to 15%
 of the draw down amount, at an exercise price of $0.52 per share, and exercisable for a period of five
 years from the date of the draw down. On December 31, 2003, the investors elected to convert $2 million
 of the loan into ordinary shares of NUR at the conversion rate of $0.62 per ordinary share. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 maintained long and short-term credit facilities in an aggregate amount of approximately $45.9 million
 at December 31, 2003. At December 31, 2002, NUR had approximately $37.9 million in long-term loans from
 banks and others. During 2003, NUR refunded approximately $1.23 million on its long-term loans. NUR&#146;s
 long-term loans are linked to the U.S. dollar and the Euro bearing interest at a rate ranging between
 3.63% and 4.5%. In July 2003 and February 2004, NUR signed an amendment to its long-term loan agreements
 with Bank Hapoalim and Bank Leumi providing for the rescheduling of the repayment dates of the remaining
 long-term loans. Under the rescheduling agreements, NUR undertook, among other things, to maintain four
 financial ratios. During 2003, NUR failed to meet a number of these financial ratios as a result of
 a decrease in NUR&#146;s revenues. However, the banks agreed in writing not to act upon their contractual
 rights pursuant to the defaults mentioned above. We believe that the amendment of the financial ratios
 that took place on February 2004 will allow a better alignment between the financial ratios and NUR&#146;s
 current business plan. However, there can be no assurance that NUR will be able to comply with the bank
 covenants. NUR&#146;s failure to comply with the bank agreements could have a material adverse effect on
 our business and financial results. For more information see &#147;ITEM 10.C: Material Contracts.&#148;</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, total current assets of NUR amounted to approximately $51.4 million, out of which
 $10.3 million was in cash and cash equivalents, compared with total current liabilities of approximately
 $32.5 million. The decrease in current assets is attributable primarily to the decrease in trade accounts
 receivable and inventories.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2002, total current assets of NUR amounted to approximately $70.3 million, out of which
 $10.5 million was in cash and cash equivalents, compared with total current liabilities of approximately
 $33.6 million.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
 cash provided by financing activities in the year ended December 31, 2002 was approximately $5.8 million
 derived mainly from issuance of shares and warrants. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
 cash provided by financing activities in the year ended December 31, 2001 was approximately $2.5 million
 derived mainly in an increase in NUR&#146;s short-term bank credit.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>41</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 have granted several security interests in our assets to various banks and leasing companies to secure
 bank credit lines and lease facilities.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Current and Future Capital Needs</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 a result of decreasing sales, NUR instituted a growth-renewal program in May 2002, which included a
 corporate reorganization plan, a workforce reduction of approximately 15% of our employees and salary
 cuts for most of the remaining employees. In addition, in November 2002, NUR implemented a plan to update
 our operations in the Asia Pacific region, which included the appointment of the Computer And Sign Technology
 Co. Ltd (CAST) as our exclusive distributor for the NUR Fresco product line in China. At the time we
 appointed CAST, we transferred our Asia Pacific headquarters to Hong Kong. This restructuring process
 resulted in the termination of approximately twenty employees, mainly in Shanghai. Total restructuring
 and other one-time expenses in 2002 amounted to $1.3 million. In addition, in 2002, NUR incurred one-time
 inventory write-off of approximately $1.0 million as a result of the transfer of our headquarters from
 Shanghai to Hong Kong. In year 2003 we ceased our operations in the Chinese market and the engagement
 of CAST as an exclusive distributor in China was terminated.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 has incurred operating losses during the last three years. NUR will require additional funds to be raised
 through public or private financing of debt or equity if we seek to expand our operations or if we do
 not meet our expected revenues in future quarters. If such funds are not raised, we may be unable to
 increase expenditures for research and development, production, or marketing of our products, any one
 of which could have an adverse effect on NUR&#146;s business. There can be no assurance that such additional
 financing will be available or that, if available, it will be obtained on terms favorable to NUR. We
 currently have no commitments for additional financing and are exploring the possibility of raising
 additional capital.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 this regard, NUR&#146;s capital requirements and level of expenses depend upon numerous factors, including
 the scope and success of our marketing and customer service efforts, and of our research and development
 activities, as well as the demand for NUR&#146;s products and services. Moreover, in the course of the bankruptcy
 proceedings of Moshe Nurie and the companies controlled by him, NUR in the future may be exposed to
 claims arising from the actions of Moshe Nurie despite the settlement of all material claims related
 to such persons and entities. Liabilities arising from any such claims may be material.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Research and Development, Patents and Licenses </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 research and development efforts, which currently engage approximately 50 employees, are focused on
 developing new products and technologies, enhancing the quality and performance relative to price of
 our existing products, reducing manufacturing costs, upgrading and expanding our product line through
 the development of additional features, and improving functionality in response to market demand.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 are three research and development facilities, a facility at our headquarters in Lod, Israel, a facility
 in Ashkelon, Israel, and a facility in Louvain-la-Neuve, Belgium. We are now near completion of the
 transfer of a substantial portion of the research and development activities from Belgium to Israel.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>42</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
 research and development expenses, before royalty bearing grants, were approximately $10.9 million,
 $9.2 million and $7.2 million, in the years ended December 31, 2001, 2002 and 2003, respectively. Research
 and development expenditures are composed principally of salaries for employees, the hiring of subcontractors,
 depreciation of capital investment in infrastructure for software and electronic designs, and prototype
 material costs. See &#147;ITEM 4: Information on NUR&#151;Research and Development.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Trend Information</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Printers sales</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 from sales of the NUR Printers, which comprised 55% of NUR&#146;s total revenues in 2003, declined by $7.3
 million in 2003 compared to 2002. This decline was due to several factors, including a weakened macroeconomic
 environment, a slowdown in capital equipment investments by customers and heightened competition and
 pricing pressures. We have witnessed the expansion of the wide format market to new arenas, such as
 the UV curable flatbed printers. During 2003, for example, we provided technical previews of the NUR
 Tempo flatbed digital printer in prototype form.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 can be no assurance that NUR will be able to increase its market share in the wide and super wide format
 market or increase its revenues from sales of its printers. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Consumables Sales</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 the past few years, NUR has focused on a recurring revenues strategy for consumables. The consumable
 business is composed of two families of products &#151; specialized inks and specialized substrates. Revenues
 from consumables declined by 38% in 2003 compared to 2002, due to a continued increase in the competitiveness
 of the consumables market during 2003 and slow economic conditions worldwide. NUR is constantly working
 on development of new products intended to maintain a differentiation between our consumable products
 and those of our competitors. In July 2003 we announced our decision to exit the substrate business.
 As the digital wide format printers have become more widespread, substrates have become a low margin
 commodity that is no longer profitable for NUR to resell. We believe terminating this business will
 allow us to more strongly focus on our proprietary specialty inks.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 can be no assurance that NUR will succeed in maintaining its market share in the consumables market
 or increase its revenues from sales of its consumables.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Gross Margins</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 decline in gross margins in 2003 on a GAAP basis was mainly due to write-off of inventory of $13.2 million,
 which related to the reorganization plan of NUR, including, the consolidation and relocation of operations
 in North America from San Antonio, Texas to New Jersey, our decision to exit the substrate business
 and our decision to exit the Chinese market. There is an increase in gross margins in 2003 on a non-GAAP
 basis, which is attributed to improvement in performance. NUR&#146;s management believes that the non-GAAP
 measure reflects better the results of operation of NUR for 2003, since the GAAP results also include
 the completion of NUR&#146;s transition and transformation period, involving among others, the transfer of
 our U.S. headquarters from San Antonio, Texas to the New Jersey, the relocation and integration of the
 U.S. based ink and machine production to Israel, the replacement of six of the top seven senior management
 positions around the world, and the carrying out of major cost cutting and rationalization programs.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>43</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Industry</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
 the cost of digital printing expected to decrease and the ability of digital technology expected to
 produce shorter runs more economically, we believe that the use of wide format and super wide format
 printing, such as that produced by the NUR Printers, should grow over time, and that the portion of
 the market serviced by digital printing should continue to increase. The ability to produce wide format
 and super wide format images digitally has also opened new media opportunities for advertisers, such
 as mural printing, carpet printing, new forms of fleet graphics printing. The growth in demand for wide
 format digital printers is fueled both by the replacement of conventional print methods and the development
 of new printing applications.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
 we expect the above trends to continue worldwide, the digital printing penetration rate to new markets
 may differ geographically.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Restructuring Plan</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 2003, NUR implemented additional restructuring initiative. NUR implemented a corporate plan in order
 to create a more centralized, functional and cost-effective organizational structure. In September 2003,
 NUR completed its consolidation process of the machinery manufacturing facilities in San Antonio, Texas
 and Rosh Ha&#146;Ayin, Israel. NUR now manufactures all its printers in a single plant located in Rosh Ha&#146;Ayin
 Israel. We have also relocated our North American headquarters from San Antonio, Texas to New Jersey
 in the third quarter of 2003. The Ink manufacturing facilities, also previously located in San Antonio,
 Texas were relocated to a new manufacturing plant in Ashkelon, Israel. We now produce all of our solvent-based
 inks in a single manufacturing facility in Ashkelon, Israel. We are now near completion of the transfer
 of a substantial portion of the research and development activities from Belgium to Israel. The restructuring
 plan resulted in extraordinary charges of $2 million for the year ended December 31, 2003.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Off-balance Sheet Arrangements</B> &nbsp;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 are not a party to any material off-balance sheet arrangements. In addition we have no unconsolidated
 special purpose financing or partnership entities that are likely to create material contingent obligations.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Contractual obligations </B></FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH align=left>&nbsp;</TH>
<TH colSpan=12>

<P><FONT face="Times New Roman, Times, Serif" size=1>Payments due by period<BR>(in thousands of U.S. dollars)</FONT>
</P>
</TH></TR>
<TR vAlign=bottom>
<TH align=left>&nbsp;</TH>
<TH colSpan=12>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TH align=left><FONT face="Times New Roman, Times, Serif" size=1>Contractual Obligations</FONT>
<HR align=left width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>Total</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2004</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2005 &#150; 2007</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1>2008 and over</FONT>
<HR width="95%" color=black noShade SIZE=1>
</TH></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Long-Term Rent Obligations(1)</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>3,507</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>1,488</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>2,015</FONT></TD>
<TD align=left width="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="10%"><FONT face="Times New Roman, Times, Serif" size=2>4</FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Capital (Finance) Lease obligations(2)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>717</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>71</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>191</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>455</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating Lease Obligations</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,350</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>563</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>741</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>46</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Accrued severance pay(3)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>945</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>945</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Long term loans</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>30,843</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>862</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>29,981</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>0</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total</FONT></TD>
<TD align=right colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>37,362</FONT></TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>2,984</FONT></TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>32,928</FONT></TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>1,450</FONT></TD>
<TD align=left>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=right colSpan=2>
<HR noShade SIZE=3>
</TD>
<TD align=left>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>______________________</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>We operate from leased premises in Lod, Rosh Ha&#146;Ayin and Ashkelon in Israel. We also lease premises for our subsidiaries&#146; activities in the United States, Hong Kong and Japan.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Europe conducts its activities in Belgium from premises leased by it. Upon completion of payments, NUR Europe will own the premises.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(3) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The accrued severance pay is considered to be a contractual obligation of NUR for more than 5 years, as we do not anticipate at present the dismissal of our employees.</FONT></TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>44</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 6: Directors, Senior Management and Employees</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Directors and Senior Management</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 executive officers and directors of NUR are as follows</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=659 border=0>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=1><B><U>Name</U></B></FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=1><B><U>Age</U></B></FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=1><B><U>Position with NUR</U></B></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Dan Purjes (1)(2)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>53</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Chairman of the Board of Directors</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Robert F. Hussey (1)(3)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>54</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Director</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Oded Akselrod (2)(4)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>57</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Director</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Ilan Ben Gigi&nbsp;(5)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>41</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Director</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Lauri Hanover (1)(3)(6)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>44</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Director</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>Koby Shtaierman (3)(6)</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>49</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Director</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>David Amir</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>46</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>President and Chief Executive Officer </FONT></P>
</TD></TR>
<TR>
<TD vAlign=top width=177>

<P><FONT face="Times New Roman, Times, serif" size=2>David Seligman</FONT></P>
</TD>
<TD vAlign=top width=47>

<P><FONT face="Times New Roman, Times, serif" size=2>45</FONT></P>
</TD>
<TD vAlign=top width=435>

<P><FONT face="Times New Roman, Times, serif" size=2>Chief Financial Officer</FONT></P>
</TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Workstation" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=LEFT>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=12></TD>
<TD width="1214" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=20><FONT face="Times New Roman, Times, serif" size=2>(1)</FONT></TD>
<TD vAlign=top width=12>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Member of NUR&#146;s Stock Option and Compensation Committee. </FONT></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=20><FONT face="Times New Roman, Times, serif" size=2>(2)</FONT></TD>
<TD vAlign=top width=12>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Member of the NUR&#146;s Non-Employee Director Share Option Plan Committee.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=20><FONT face="Times New Roman, Times, serif" size=2>(3)</FONT></TD>
<TD vAlign=top width=12>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Member of NUR&#146;s Audit Committee.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(4)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Elected to serve on the Board of Directors pursuant to a voting arrangement between Dan Purjes and the Investment Corp. of United Mizrahi Bank Ltd.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(5)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Elected to serve on the Board of Directors pursuant to a voting arrangement between Dan Purjes and Isal Amlat Investments (1993) Ltd.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(6)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>External Director.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The senior managers of NUR are as follows:</FONT></TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width=659 border=0>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=1><B><U>Name</U></B></FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=1><B><U>Age</U></B></FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=1><B><U>Position with NUR</U></B></FONT></TD></TR>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=2>Eliahu Shalev</FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=2>53</FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=2>Vice President of Research and Development</FONT></TD></TR>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=2>Nachum Korman</FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=2>42</FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=2>President, NUR America, Inc.</FONT></TD></TR>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=2>Marco Baio</FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=2>41</FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=2>Managing Director, NUR Europe S.A.</FONT></TD></TR>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=2>Amir Kleinstern</FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=2>43</FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=2>Managing Director, NUR Asia Pacific Ltd.</FONT></TD></TR>
<TR>
<TD vAlign=top width=177><FONT face="Times New Roman, Times, serif" size=2>Roni Zomber</FONT></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, serif" size=2>48</FONT></TD>
<TD vAlign=top width=435><FONT face="Times New Roman, Times, serif" size=2>Vice President of Operations</FONT></TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 address of each of our executive officers, senior managers and directors is c/o NUR Macroprinters Ltd.,
 12 Abba Hillel Silver Street, P.O. Box 1281, Lod 71111, Israel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dan
 Purjes </I>has served as the Chairman of the Board of NUR since April 1997. Mr. Purjes is the Chairman
 and Chief Executive Officer of Rockwood Group LLC, a merchant and investment banking firm headquartered
 in New York City. He is also Chairman and a Managing Member of Duncan Capital Group, LLC, an asset management
 firm managing several investment funds which also is active in merchant and investment banking. Previously,
 Mr. Purjes was the Chairman and Chief Executive Officer of Josephthal Group, Inc., the parent company
 of Josephthal &amp; Co. Inc. (&#147;Josephthal&#148;), an investment banking and brokerage firm that was acquired
 in 2001 by the predecessor to Oppenheimer and Company. Mr. Purjes was also the Chairman and Chief Executive
 Officer of FAS Holdings, Inc., the parent company of First Allied Securities, Inc., a retail brokerage
 firm with over 200 branch offices in the U.S., which was acquired in July 2002 by Wells Fargo &amp;
 Company. Prior to joining Josephthal in 1985, Mr. Purjes was a Vice President with a number of securities
 firms, including Bear Stearns &amp; Co. and L.F. Rothschild Unterberg Towbin, in their corporate finance
 and brokerage sales divisions. He began his Wall Street career at Morgan Stanley &amp; Co. in 1978 as
 a director of their computer systems department. Prior to that, Mr. Purjes was a manager at Citibank
 and at Philip Morris International in their computer systems areas. Mr. Purjes earned B.S. and M.S.
 degrees in Computer Science from the City College of New York School of Engineering.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>45</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Robert
 F. Hussey </I>has served as a Director of NUR since September 1997. Mr. Hussey is a private investor.
 From June 1991 to April 1997, Mr. Hussey served as the President and Chief Executive Officer of Metrovision
 of North America. Prior thereto, from 1984 to 1991, Mr. Hussey served as the President, Chief Executive
 Officer and Director of POP Radio Corp., a company which he helped form. From 1979 to 1984, Mr. Hussey
 served as the Vice President/Management Supervisor for Grey Advertising, Inc. Mr. Hussey is also a director
 of Digital Lightwave, Inc., New World Power Corp., Digital Data Networks, Corp. and Axcess Inc., which
 are all publicly held companies. Mr. Hussey holds a B.S. degree in Finance from Georgetown University
 and an M.B.A. degree in International Finance from George Washington University. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oded
 Akselrod </I>has served as a Director of NUR since February 2002. Mr. Akselrod is the General Manager
 of the Investment Corp. of United Mizrahi Bank Ltd., a wholly owned subsidiary of United Mizrahi Bank
 Ltd. Prior to joining the Investment Corp. of United Mizrahi Bank, from 1994 to 1997, Mr. Akselrod held
 the position of General Manager of Apex-Leumi Partners Ltd. as well as Investment Advisor of Israel
 Growth Fund. Prior thereto, from 1991 to 1994, Mr. Akselrod served as General Manager of Leumi &amp;
 Co. Investment Bankers Ltd. Mr. Akselrod began his career in various managerial positions in the Bank
 Leumi Group including member of the management team of Bank Leumi, Deputy Head of the International
 Division, head of the Commercial Lending Department of the Banking Division, member of all credit committees
 at the Bank, assistant to Bank Leumi&#146;s CEO and Head of International Lending Division of Bank Leumi
 Trust Company of New York. Mr. Akselrod holds a Bachelor&#146;s degree in Agriculture Economics from Hebrew
 University, Jerusalem and an M.B.A. degree from Tel Aviv University. Mr. Akselrod is also a director
 of Moffet Technology Fund Israel Ltd., Marthon Venture Capital Fund Ltd. both publicly held companies.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ilan
 Ben Gigi</I> &nbsp;has served as a Director of NUR since March 2003. Mr. Ben Gigi is Chief Executive
 Officer of MVT Multi Vision Technologies Ltd. Prior to joining MVT, from 2000 to 2002, Mr. Ben Gigi
 served as Vice President of Business Development and Chief Executive Officer of Ormat Industries, Ltd.
 and Ormat Power Inc., respectively. Prior thereto, from 1997 to 2000, Mr. Ben Gigi served as Chief Executive
 Officer of Karaganda Power Ltd. in Kazakhstan. Mr. Ben Gigi holds a B.A. in Economics and a B.Sc with
 honors of Mechanical Engineering, both from Tel Aviv University, and an EMBA from the Senior Management
 Program (SMP) of the Technion Institute of Management. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lauri
 Hanover </I>has served as an External Director of NUR since November 2003. Ms. Hanover is the Corporate
 Vice President and Chief Financial Officer of NICE Systems Ltd. She previously served as Executive Vice
 President and Chief Financial Officer of Sapiens International Corporation N.V., from 1997 to 2000.
 From 1984 to 1997, Ms. Hanover served in a variety of financial management positions, including Corporate
 Controller at Scitex Corporation Ltd. and from 1981 to 1984 as Financial Analyst at Philip Morris Inc.
 (Altria). Ms. Hanover holds a Bachelor&#146;s degree in finance from the Wharton School of Business and a
 Bachelor-of-Arts degree from the College of Arts and Sciences, both of the University of Pennsylvania.
 Ms. Hanover also holds a Master&#146;s degree in business administration from New York University. Ms. Hanover
 has served on the Board of Directors of Nova Measuring Instruments Ltd. since 2000. Ms. Hanover qualifies
 as an External Director according to the Companies Law, 1999.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>46</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Koby
 Shtaierman </I>has served as an External Director of NUR since November 2003. Mr. Shtaierman currently
 serves as Vice President Marketing and Sales of Advanced Vision Technology Ltd. From 1996 to 1998, Mr.
 Shtaierman served as Vice President of Corporate Marketing for Tecnomatix Technologies Ltd. From 1985-1995,
 Mr. Shtaierman served as Marketing Director of the Input System Division of Scitex Corporation. Prior
 thereto Mr. Shtaierman held various positions at Israel Aircraft Industries. Mr. Shtaierman holds a
 B.Sc. and M.Sc. degrees in Electronics and Computer Engineering from the Technion, Haifa. Mr. Shtaierman
 qualifies as an External Director according to the Companies Law, 1999.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>David
 Amir</I> &nbsp;has been serving as NUR&#146;s President and Chief Executive Officer since April 2003. Mr.
 Amir has also been serving as director of NUR Europe, NUR America, Salsa Digital Printers, NUR Media
 Solutions, NUR Asia Pacific and NUR Pro Engineering since April 2003. Prior to joining NUR, from 1999
 to 2002, Mr. Amir served as President and Chief Executive Officer of Paspartoo Ltd., a high-tech company
 specializing in &#147;virtual to print&#148; technology. Mr. Amir was also the founder of Paspartoo Ltd. Prior
 thereto, from 1984 to 1999, Mr. Amir served in various research and development, marketing, customer
 support and senior management positions with Scitex Corporation. Mr. Amir&#146;s last position with Scitex
 Corporation was Corporate Vice President of Business Development. Mr. Amir holds a B.Sc. in Electrical
 Engineering from Technion in Haifa.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>David
 Seligman</I> &nbsp;has served as Chief Financial Officer of NUR since October 2003. Mr. Seligman has
 also served as a Director of NUR Europe, NUR Media Solutions, NUR America, NUR Asia Pacific, NUR Japan
 and Encre Consumables B.V. since October 2003. Prior to joining NUR, Mr. Seligman served as Chief Financial
 Officer for RADVISION Ltd. (Nasdaq: RVSN). Previously, he was Chief Financial Officer for LanOptics
 Ltd. (Nasdaq: LNOP), a senior financial analyst for Fidelity Investment Systems in Boston, Massachusetts,
 and served as a controller and financial analyst for several hi-tech companies. Mr. Seligman holds a
 B.A. degree in political science and geography, and a M.B.A. degree in accounting and finance, both
 from Tel Aviv University.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Eliahu
 Shalev </I>has served as Vice President of Research and Development since March 2001, as well as Chief
 Operating Officer since November 2001 and until December 2003. Prior to joining NUR, from April 2000
 to February 2001, Mr. Shalev served as corporate Vice President of CreoScitex, heading the Output Division
 in Herzelia and Vancouver. From May 1981 to March 2000, Mr. Shalev served in various research and development
 management positions with Scitex Corporation Ltd. Mr. Shalev holds a B.Sc. in Electrical Engineering
 from Ben Gurion University in Israel and an MSC in Electrical Engineering from Technion Haifa. He also
 holds an M.B.A. degree from Tel Aviv University.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Nachum
 Korman </I>has served as President of NUR America, Inc. since June 2003. Mr. Korman joined NUR in 1999
 heading up its NUR Middle East &amp; Africa division, and became Vice President of NUR Europe S.A. in
 July 2000. Mr. Korman was President of NUR Europe from January 2001 and until June 2003. Prior to joining
 NUR Mr. Korman served as Operations Director and Sales Director for the Middle East and Africa at Scitex
 Corporation. Previously, Mr. Korman held a Sales Logistics Management role at Scitex Europe S.A. following
 his earlier career at Elbit and Optrotec Belgium.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>47</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Marco
 Baio </I>has served as Managing Director of NUR Europe since July 2003. Prior to this Mr. Baio served
 as president of Objet Geometries Europe, a company specializing in the development and marketing of
 rapid prototyping systems. Previously, Mr. Baio spent 9 years at Scitex Corporation where he served,
 at different periods, as managing director of Scitex Italy and Scitex Germany.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amir
 Kleinstern </I>has served as Managing Director of NUR Asia Pacific since July 2003. Previously, Mr.
 Kleinstern had provided consulting services to NUR. Prior to this, Mr. Kleinstern held the position
 of Vice President of Research and Development at Paspartoo Ltd., a company specializing in &#147;virtual-to-print&#148;
 technology. Previously, Mr. Kleinstern spent 12 years with Scitex Corporation, both in Israel and in
 the U.S., in a variety of management, marketing and technical positions. Mr. Kleinstern holds a B.Sc.
 and a M.Sc. in Mathematics and Computer Sciences from the Ben Gurion University.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Roni
 Zomber </I>has served as Vice President of Operations since December 2003. Prior to this Mr. Zomber
 served as a VP of Operations and a member of the management of M-Systems Flash Disk Pioneers Ltd. (Nasdaq:
 FLSH). Previously, Mr. Zomber spent 8 years as an Executive VP and a member of the management of Nice
 Systems Ltd. (Nasdaq: NICE) and prior to this Mr. Zomber spent 9 years at Scitex as a planning and control
 manager. Mr. Zomber holds a practical engineer diploma and a B.A. in Business administration from New
 England College, Henniker, New Hampshire.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Compensation of Officers and Directors</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the year ended December 31, 2003, the aggregate compensation paid to the executive officers and directors
 of NUR (a total of 10 persons, including 2 directors who left the Board during 2003) amounted to approximately
 $0.198 million. This amount includes the amount of compensation paid and benefits in kind granted to
 these persons by NUR and our subsidiaries.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 executive officers of NUR received part of the compensation set forth above under NUR&#146;s Management by
 Objectives (MBO) Compensation Plan. The MBO sets annual individual goals to be achieved by the executive
 officers throughout the year. The percentage of individual achievement determines the percent of the
 MBO bonus paid to each executive officer. The MBO plan for the benefit of NUR&#146;s Chief Executive Officer
 is administered by the Stock Option and Compensation Committee. The MBO plan for the benefit of the
 other executive and senior officers is administered by the Chief Executive Officer. A portion of the
 bonus amounts are paid in cash in the year for which they are awarded and the balance is paid in cash
 in the year following the financial year for which they are awarded.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, a total of 647,501 options were granted in 2003 to executive officers and directors to purchase
 ordinary shares. The 647,501 options granted had a weighted average exercise price of $0.67 and have
 expiration dates in 2013.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
 to an employment agreement, Erez Shachar, in his capacity as President and Chief Executive Officer of
 NUR, earned a salary of $58,000&nbsp;&nbsp;during the first three months of 2003. Erez Shachar resigned
 his position as President and Chief Executive Officer of NUR on April 1, 2003, and is working with NUR
 as a consultant until March 31, 2004.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>48</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 pay our non-employee Directors remuneration for their services as directors. This remuneration includes
 an annual payment of $8,000 and additional payments of approximately $500 per meeting and $250 per committee
 meeting. The Chairman of the Board and Chairman of any committee are also entitled to receive an additional
 annual fee of $5,000. Each non-employee Director (other than Dan Purjes) also receives an annual grant
 of options to purchase 10,000 ordinary shares under the conditions set forth in NUR&#146;s 1998 Non-Employee
 Director Share Option Plan. The Directors do not receive any additional remuneration upon termination
 of their services as directors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 shareholders approved at the Annual Shareholders meeting held on February 12, 2002 a Terms of Service
 Agreement with Dan Purjes effective as of January 1, 2002. In his capacity as Chairman of the Board,
 Dan Purjes receives an annual fee of $125,000 to be due and paid in ordinary shares to Rockwood Group
 LLC, a company wholly owned by Dan Purjes. The fee shall be paid quarterly, at the end of each quarter,
 by way of issuing ordinary shares valued at $31,250. Such annual fee shall be in lieu of any and all
 payments, which are due to Dan Purjes in his capacity as a director, Chairman of the Board, and a member
 of any committees of the Board, including the right to receive options to purchase ordinary shares in
 accordance with NUR&#146;s 1998 Share Option Plan for Non-Employee Directors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Outstanding Options and Warrants </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, NUR had outstanding options under NUR&#146;s stock option plans to purchase a total
 of 2,661,710 of its ordinary shares. Of such options, 54,500 have been issued under the 1995 Israel
 Stock Plan, 771,466 have been issued under the 1997 Stock Option Plan, 107,501 have been issued under
 the 1998 Non-Employee Director Share Option Plan and 1,728,243 have been issued under the 2000 Stock
 Option Plan (as amended). The options granted under the 1995 Plan, the 1997 and the 2000 Plan are subject
 to various vesting requirements and have been issued at exercise prices ranging from $0.37 to $7.50per
 share with various expiration dates. The options granted under the 1998 Plan are not subject to vesting
 requirements and have an exercise price ranging from $0.37 to $13.50 per share, with various expiration
 dates. See Note 15 to NUR&#146;s consolidated financial statements included as a part of this annual report
 on Form 20-F for more details.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 May 17, 2002, NUR filed a tender offer with the Securities and Exchange Commission pursuant to which
 option holders had the right to cancel and exchange certain options granted to them under NUR&#146;s 2000
 Stock Option Plan, 1997 Stock Option Plan and 1995 Israel Stock Option Plan. Pursuant to the terms and
 conditions of the tender offer, the new options were to be granted six months and one day from the date
 the old options were canceled, at an exercise price equal to the market price on the date of the new
 grant. In order to receive the new options, option holders were required to have a service relationship
 with NUR or any of its subsidiaries until the new grant date. 2,027,166 ordinary shares, representing
 93% of the outstanding options under NUR&#146;s 2000 Stock Option Plan, 1997 Stock Option Plan and 1995 Israel
 Stock Option Plan, were available for exchange under the tender offer. The tender offer expired on June
 15, 2002 and resulted in the cancellation of 1,245,316 options with varying exercise prices. </FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>49</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of March 25, 2004, NUR had outstanding warrants exercisable into a total of 3,127,833 ordinary shares.
 Of such warrants, (i) 50,000 were issued to Josephthal &amp; Co., Inc. as placement agent in connection
 with NUR&#146;s private placement between September and December 1997 and subsequently transferred by Josephthal
 to David Fuchs, (ii) 37,411 were issued to Investec Clali Trust Company Ltd. as placement agent in connection
 with NUR&#146;s private placement in September 2000, (iii) 612,500 were issued to the Investment Corp. of
 United Mizrahi bank Ltd. as part of the private placement in January 2002, (iv) 70,000 were issued to
 Bank Hapoalim as part of the rescheduling of NUR&#146;s long-term debts, (v) 50,000 were issued to Bank Leumi
 as part of the rescheduling of NUR&#146;s long-term debts (vi) 140,000 were issued to Bank Hapoalim as part
 of the amendments of the covenants governing the rescheduling of NUR&#146;s long-term debts, (vii) 100,000
 were issued to Bank Leumi as part of the amendments of the covenants governing the rescheduling of NUR&#146;s
 long-term debts, (viii) 11,000 were issued to Poalim Capital Markets as part of the settlement of the
 litigation discussed in ITEM 4: &#147;Legal Proceedings&#148;, (ix) 505,000 were issued to Bank Hapoalim as part
 of the amendments of the covenants governing NUR&#146;s debts, (x) 350,000 were issued to Bank Leumi as part
 of the amendments of the covenants governing NUR&#146;s debts, (xi) 27,000 were issued to Bank Discount as
 part of the agreement regarding NUR&#146;s debt, (xii) 98,000 were granted to Bank Discount as part of the
 agreement regarding the covenants governing NUR&#146;s debt, (xiii) 1,009,614 were granted to the investors
 participating in NUR&#146;s convertible loan of $3.50 million in October 2003, and (xiv) 67,308 were granted
 to Rockwood Inc. in its capacity as placement agent in connection with NUR&#146;s convertible loan in October
 2003. The Fuchs warrants are exercisable at $1.00. NUR extended the exercise period for the Fuchs warrants
 to December 2005 in consideration for certain services provided by Fuchs. The Investec Clali warrants
 are exercisable at $13.365 no later than September 2005. The Mizrahi warrants are exercisable at $4.50
 no later than January 2006. The Bank Hapoalim and Bank Leumi warrants are exercisable at $5.00 no later
 than February 2006. The additional Bank Hapoalim and Bank Leumi warrants are exercisable at $0.34 no
 later than March 2007. The Poalim Capital Markets warrants are exercisable at $0.784 no later than November
 2006, the first Bank Discount warrant is exercisable at $0.72 no later than June 2007, The second Bank
 Discount warrant and the third Bank Hapoalim and Bank Leumi warrants are exercisable at $0.62 no later
 than August 2007 and the convertible loan investment warrants and the convertible loan placement agent
 warrants are exercisable at $0.52 no later than October 2008.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Of
 the options and warrants described above, directors and executive officers of NUR hold options and warrants
 to purchase an aggregate of 1,073,655 ordinary shares issuable pursuant to exercise of such securities.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>1995 Israel Stock Option Plan</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 1995, NUR adopted the 1995 Israel Stock Option Plan, which provides for grants of stock options to employees
 and consultants of NUR. Options to purchase an aggregate of 500,000 ordinary shares were originally
 available for grant under the 1995 Israel Stock Option Plan, as amended, including service options for
 future services, options for performance, and options to consultants for service or performance. </FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 shareholders approved at the Annual Shareholders meeting held on November 18, 2003 the Board&#146;s resolution
 to terminate the 1995 Plan and to increase the number of ordinary shares authorized for issuance under
 NUR&#146;s 2000 Plan (as amended) in the aggregate amount that was outstanding for grant under the 1995 Plan
 as of July 15, 2003, thereby increasing the number of ordinary shares authorized for issuance under
 NUR&#146;s 2000 Stock Option Plan by 33,261.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>1997 Stock Option Plan</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 1997, NUR adopted the 1997 Stock Option Plan, which provides for grants of stock options to employees,
 directors of NUR and consultants to NUR. Options to purchase an aggregate of 2,200,000 ordinary shares
 were originally available for grant under the 1997 Stock Option Plan, as amended.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>50</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 shareholders approved, at the Annual Shareholders meeting held on November 18, 2003, the Board&#146;s resolution
 to terminate the 1997 Plan and to increase the number of ordinary shares authorized for issuance under
 NUR&#146;s 2000 Plan in the aggregate amount that was outstanding for grant under the 1997 Plan as of July
 15, 2003, thereby increasing the number of ordinary shares authorized for issuance under NUR&#146;s 2000
 Stock Option Plan by 464,329.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>1998 Non-Employee Director Share Option Plan</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 1998, NUR adopted the 1998 Non-Employee Director Share Option Plan to provide for grants of options
 to purchase ordinary shares to non-employee directors of NUR. The 1998 Plan is administered by the Non-Employee
 Director Share Option Committee subject to Board approval. An aggregate amount of not more than 250,000
 ordinary shares is reserved for grants under the 1998 Plan. The 1998 Plan will expire on December 8,
 2008 (10 years after adoption), unless earlier terminated by the Board.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
 the 1998 Non-Employee Director Share Option Plan, each non-employee director that served on the 1998
 &#147;Grant Date,&#148; as defined below, automatically received an option to purchase 10,000 ordinary shares
 on such Grant Date and will receive an option to purchase an additional 10,000 ordinary shares on each
 subsequent Grant Date thereafter, provided that he or she is a non-employee director on the Grant Date
 and has served as such for the entire period since the last Grant Date. The &#147;Grant Date&#148; means, with
 respect to 1998, October 26, 1998, and with respect to each subsequent year, August 1. Directors first
 elected or appointed after the 1998 Grant Date, will automatically receive on such director&#146;s first
 day as a director an option to purchase up to 10,000 ordinary shares prorated based on the number of
 full months of service between the prior Grant Date and the next Grant Date. Each such non-employee
 director would also automatically receive, as of each subsequent Grant Date, an option to purchase 10,000
 ordinary shares provided he or she is a non-employee director on the Grant Date and has served for the
 entire period since the last Grant Date.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 exercise price of the option shares under the 1998 Plan is 100% of the fair market of such ordinary
 shares at the date of grant of such options. The fair market value means, as of any date, the average
 closing bid and sale prices of the ordinary shares for the date in question as furnished by the National
 Association of Securities Dealers, Inc. through Nasdaq or any similar organization if Nasdaq is no longer
 reporting such information, or such other market on which the ordinary shares are then traded, or if
 not then traded, as determined in good faith (using customary valuation methods) by resolution of the
 members of the Board of Directors of NUR, based on the best information available to it. The exercise
 price is required to be paid in cash.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 term of each option granted under the 1998 Non-Employee Director Share Option Plan is ten (10) years
 from the applicable date of grant. All options granted vest immediately upon the date of grant.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 options granted would be subject to restrictions on transfer, sale or hypothecation. All options and
 ordinary shares issuable upon the exercise of options granted to the non-employee directors of NUR could
 be withheld until the payment of taxes due with respect to the grant and exercise (if any) of such options.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>51</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>2000 Stock Option Plan</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 2000, NUR adopted the 2000 Stock Option Plan to provide for grants of service and non-employee options
 to purchase ordinary shares to officers, employees, directors and consultants of NUR. The 2000 Stock
 Option Plan provides that it may be administered by the Board, or by a committee appointed by the Board,
 and is currently administered by the Stock Option and Compensation Committee subject to the Board approval.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 shareholders approved, at the Annual Shareholders meeting held on November 18, 2003, the termination
 of the 1995 Plan and the 1997 Plan and the increase of the number of ordinary shares authorized for
 issuance under the 2000 Stock Option Plan (as amended) in the aggregate amount that was outstanding
 for grant under the 1995 Plan and the 1997 Plan as of July 15, 2003, thereby increasing the number of
 ordinary shares authorized for issuance under the 2000 Stock Option Plan (as amended) by 497,590, from
 2,000,000 to 2,497,590. The 2000 Stock Option Plan will expire on August 31, 2008, unless previously
 terminated or extended by the Board.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board has broad discretion to determine the persons entitled to receive options under the 2000 Stock
 Option Plan (as amended), the terms and conditions on which options are granted, and the number of ordinary
 shares subject thereto. The exercise price of the option shares under the 2000 Stock Option Plan is
 determined by the Board, provided, however, that the exercise price of any option granted shall not
 be less than eighty percent (80%) of the stock value at the date of grant of such options. The stock
 value at any time is equal to the then current fair market value of NUR&#146;s ordinary shares. For purposes
 of the 2000 Stock Option Plan (as amended), the fair market value means, as of any date, the last reported
 sale price, on such date, of the ordinary shares on such principal securities exchange of the most recent
 prior date on which a sale of the ordinary shares took place.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board determines the term of each option granted under the 2000 Stock Option Plan (as amended); provided,
 however, that the term of an option shall not be for more than ten (10) years. Upon termination of employment,
 all unvested options lapse. The Board determines the vesting period of each option grant under the 2000
 Stock Option Plan (as amended). </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 options granted are subject to restrictions on transfer, sale or hypothecation. Options and ordinary
 shares issuable upon the exercise of options granted to Israeli employees of NUR are held in a trust
 until the payment of all taxes due with respect to the grant and exercise (if any) of such options.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Indemnification of Executive Officers and Directors</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
 the Annual Shareholders meeting held on February 12, 2002, NUR&#146;s shareholders authorized it to enter
 into indemnification agreements with each of its current and future Directors. The shareholders of NUR
 further authorized certain amendments to the indemnification agreements at the Annual Shareholders meeting
 held on November 18, 2003. According to the terms of the indemnification agreements (as amended), NUR
 shall, subject to the provisions of the indemnification agreement, indemnify each director for the following:</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;monetary
 liabilities imposed on the director for the benefit of another person pursuant to a final judgment by
 a competent court relating to acts performed by the director in his/her capacity as a director or officer
 of NUR or its subsidiaries; and</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>52</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 reasonable litigation expenses. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 indemnification undertaking shall be limited to certain categories of events and to the maximum amount
 equal to fifty percent (50%) of the net equity of NUR or to one time annual revenue of NUR in the year
 prior to the date of the claim (the higher amount of the two) with regard to judgment liability, and
 $3.0 million with regard to litigation expenses. In addition, a policy of directors&#146; and officers&#146; liability
 insurance is maintained by us that insures our directors and officers and those of our subsidiaries
 against liability incurred by, arising from or against them for certain of their acts, errors or omissions.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Board Practices</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Terms of Directors</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board currently consists of six members, including two external directors. Unless otherwise prescribed
 by resolution, the Board shall consist of not less than four (4) nor more than twelve (12) directors.
 The members of the Board are elected annually at NUR&#146;s Annual Shareholders&#146; meeting and remain in office
 until the next annual shareholders&#146; meeting, unless the director has previously resigned, vacated his
 office, or was removed in accordance with NUR&#146;s Amended and Restated Articles of Association. The previous
 Annual Meeting was held on November 18, 2003. In addition, the Board may elect additional members to
 the Board. The members of the Board do not receive any additional remuneration upon termination of their
 services as directors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
 to the Israeli Companies Law, 1999, the two external directors of the Board serve for a period of three
 (3) years unless their office is vacated earlier in accordance with NUR&#146;s then current Amended and Restated
 Articles of Association and the Israeli Companies Law, 1999.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Alternate Directors</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Amended and Restated Articles of Association provide that, subject to the Board&#146;s approval, a director
 may appoint an individual, by written notice to NUR, to serve as an alternate director. The following
 persons may not be appointed nor serve as an alternate director: (i) a person not qualified to be appointed
 as a director, (ii) an actual director, or (iii) another alternate director. Any alternate director
 shall have all of the rights and obligations of the director appointing him or her, except the power
 to appoint an alternate (unless the instrument appointing him or her expressly provides otherwise).
 The alternate director may not act at any meeting at which the director appointing him or her is present.
 Unless the appointing director limits the time period or scope of any such appointment, such appointment
 is effective for all purposes and for an indefinite time, but will expire upon the expiration of the
 appointing director&#146;s term. There are currently no alternate directors. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Committees of the Board of Directors</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Approval of Certain Transactions Under the Israeli
 Companies Law; Audit Committee</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Israeli Companies Law, 1999 requires disclosure by an &#147;Office Holder&#148; (as defined below) to NUR in the
 event that an Office Holder has a direct or indirect personal interest in a transaction to which NUR
 intends to be a party, and codifies the duty of care and fiduciary duties which an Office Holder has
 to NUR. An &#147;Office Holder&#148; is defined under the Israeli Companies Law as a director, general manager,
 chief business manager, vice general manager, other manager directly subordinate to the general manager
 and any other person assuming the responsibilities of any of the foregoing positions without regard
 to such person&#146;s title.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>53</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Israeli Companies Law, 1999 requires that certain transactions, actions and arrangements must be approved
 by the Audit Committee, by the Board and, in certain circumstances, by the shareholders of NUR. NUR
 is also required to maintain the Audit Committee as a result of the inclusion for quotation of the ordinary
 shares on the Nasdaq SmallCap Market. The Audit Committee must be composed of members of the Board who
 are not employees of NUR and the external directors. In addition, the majority of members of the Audit
 Committee may not be holders, directly or indirectly, through family members, of more than five percent
 of the ordinary shares.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 Audit Committee currently consists of Lauri Hanover, Koby Shtaierman and Robert F. Hussey. Approval
 by the Audit Committee and the Board is required for (i) proposed transactions to which NUR intends
 to be a party in which an Office Holder has a direct or indirect personal interest, (ii) actions or
 arrangements which may otherwise be deemed to constitute a breach of fiduciary duty or of the duty of
 care of an Office Holder to NUR, (iii) arrangements with directors as to the terms of office or compensation,&nbsp;&nbsp;(iv)
 indemnification of Office Holders, and (v) compensation and scope of work of the Independent Auditor.
 Arrangements with directors as to the terms of their service or compensation also require shareholder
 approval. All arrangements as to compensation of Office Holders who are not directors require approval
 of the Board. In certain circumstances, the matters referred to in (i), (ii), and (iv) may also require
 shareholder approval.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office
 Holders (including directors) who have a personal interest in a matter which is considered at a meeting
 of the Board or the Audit Committee may not be present at such meeting, may not participate in the discussion,
 and may not vote on any such matter, except that such Office Holders may consent in writing to resolutions
 adopted by the Board and/or the Audit Committee by unanimous consent.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 requirements of The Nasdaq Stock Market, Inc. provide that the Audit Committee reports, among other
 things, that it has reviewed and discussed the consolidated financial statements for the year ended
 December 31, 2003 with the management of NUR.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Audit Committee has discussed with the independent auditor the matters covered by Statement on Auditing
 Standards No. 61, as well as the independence of the independent auditor, and was satisfied as to the
 independent auditor&#146;s compliance with said standards.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Stock Option and Compensation Committee</I></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 March 1998, NUR established a Stock Option and Compensation Committee to administer NUR&#146;s stock option
 plans, other than the 1998 Non-Employee Director Share Option Plan. The Stock Option and Compensation
 Committee is charged with administering and overseeing the allocation and distribution of stock options
 under the approved stock option plans of NUR and approval of the NUR&#146;s executive officers&#146; annual compensation.
 The Companies Law, 1999 provides that the Board is not entitled to delegate to Board committees its
 power, among other things, to allocate shares or securities convertible into shares of NUR. Accordingly,
 all recommendations of the Stock Option and Compensation Committee are subject to the Board approval.
 The Stock Option and Compensation Committee is presently composed of three members: Dan Purjes, Lauri
 Hanover and Robert F. Hussey.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>54</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Non-Employee Director Share Option Plan Committee</I></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 February 1999, NUR established a committee to administer the NUR&#146;s 1998 Non-Employee Director Share
 Option Plan (the &#147;NEDSOP Committee&#148;). The NEDSOP Committee is charged with administering and overseeing
 the allocation and distribution of stock options under the 1998 Non-Employee Director Share Option Plan.
 The Israeli Companies Law, 1999 provides that the Board is not entitled to delegate to Board committees
 its power, among other things, to allocate shares or securities convertible into shares of NUR. Accordingly,
 the NEDSOP Committee recommendations are subject to the Board&#146;s approval. The NEDSOP Committee is presently
 composed of two members: Dan Purjes and Oded Akselrod.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Employees</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, we had 322 employees and independent contractors compared to 355 employees and
 independent contractors as of December 31, 2002 and 404 as of December 31, 2001. The 9% decrease was
 primarily due to the restructuring and consolidation of NUR&#146;s operations during 2003. Out of NUR&#146;s 322
 employees and independent contractors, as of December 31, 2003, 47 were in sales and marketing, 50 were
 in research and development, 170 were in customer support, operations and production, and 55 were in
 management finance and administration. As of December 31, 2003, we had 190 employees located in Israel,
 57 employees located in Belgium, 36 employees located in the U.S., 8 employees located in Central and
 Latin America and 31 employees located in Asia Pacific. We believe our relations with employees are
 satisfactory. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Share Ownership </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table sets forth certain information regarding the beneficial ownership of NUR&#146;s ordinary
 shares as of December 31, 2003 of (i) each director of NUR and (ii) each executive officer of NUR. All
 of the information with respect to beneficial ownership of the ordinary shares is given to the best
 of NUR&#146;s knowledge and has been furnished in part by the respective directors and executive officers.</FONT>
</P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=center border=0>
<TR vAlign=bottom>
<TH align=left><FONT face="Times New Roman, Times, Serif" size=2><B><FONT size=1>Name of Beneficial Owner</FONT></B></FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1><B>Number of Shares</B><BR><B>Beneficially Held(1)</B> </FONT></TH>
<TH>&nbsp;</TH>
<TH>&nbsp;</TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1><B>Percent of Class</B></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left><HR align="left" width="95%" SIZE=1 noShade color=black></TD>
<TD align=left>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Dan Purjes(2)</FONT></TD>
<TD align=center width="20%"><FONT face="Times New Roman, Times, Serif" size=2>5,424,268</FONT></TD>
<TD align=center width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="20%"><FONT face="Times New Roman, Times, Serif" size=2>31.15%</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Ilan Ben Gigi</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Robert F. Hussey</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Lauri A. Hanover</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Koby Shtaierman</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Oded Akselrod (3)</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>-</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>David Amir</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>David Seligman</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>*</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>____________________________</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="10" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD VALIGN="top" COLSPAN="2"><FONT face="Times New Roman, Times, Serif" size=2>* Less than one
      percent of the outstanding ordinary shares.</FONT></TD>
  </TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>55</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>


<P>&nbsp;</P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As used in this table, &#147;beneficial ownership&#148; means the sole or shared power to vote or direct the voting or to dispose or direct the disposition of any security. For purposes of this table, a person is deemed to be the beneficial owner of securities that can be acquired within 60 days from December 31, 2003 through the exercise of any option or warrant. Ordinary shares subject to options or warrants that are currently exercisable or exercisable within 60 days are deemed outstanding for computing the ownership percentage of the person holding such options or warrants, but are not deemed outstanding for computing the ownership percentage of any other person. The amounts and percentages are based upon 17,414,281 ordinary shares outstanding as of December 31, 2003.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Not including 403,226 ordinary shares of NUR that Dan and Edna Purjes elected on December 31, 2003 to convert into ordinary shares of NUR at the conversion rate of $0.62 per ordinary share convertible under the loan that was extended to NUR on July 2003. The total number of ordinary shares that were converted on December 31, 2003 in connection with the convertible loan is 1,020,614. During January 2004 NUR issued the share certificates in connection with the conversion of the convertible loan.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=36><FONT face="Times New Roman, Times, Serif" size=2>(3) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Oded Akselrod does not hold any ordinary shares or options to purchase ordinary shares of NUR.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 directors and officers of NUR hold, in the aggregate, options and warrants exercisable into 1,116,924
 ordinary shares. Under the 1998 Share Option Plan for Non-Employee Directors (the &#147;1998 Plan&#148;), each
 of Messrs. Robert Hussey, Dan Purjes, who are Directors of NUR, were granted on October 26, 1998, August
 1, 1999, August 1, 2000 and August 1, 2001, respectively, options to purchase 10,000 ordinary shares
 of NUR. On August 1, 2002 and on August 1, 2003 Robert Hussey was granted options to purchase 10,000
 ordinary shares, respectively. Ilan Ben Gigi, a Director of NUR as of March 11, 2003, was granted 4,167
 options on March 11, 2003. Lauri Hanover and Kobi Shtaierman, both External Directors of NUR as of November
 18, 2003 were each granted 6,667 options on November 18, 2003. The exercise price for the underlying
 shares of such options is the &#147;Fair Market Value&#148; (as defined in the 1998 Plan) of the ordinary shares
 of NUR at the date of grant. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 7: Major Shareholders and Related Party Transactions</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Major Shareholders </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following table sets forth information regarding the beneficial ownership of NUR&#146;s ordinary shares as
 of December 31, 2003, by each person known by NUR to be the beneficial owner of more than 5% of our
 outstanding ordinary shares. Each of our shareholders has identical voting rights with respect to its
 shares. All of the information with respect to beneficial ownership of the ordinary shares is given
 to the best of NUR&#146;s knowledge and has been furnished in part by the beneficial owner.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 align=center border=0>
<TR vAlign=bottom>
<TH align=left><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1><B>Ordinary Shares<BR>Beneficially Owned</B></FONT></TH>
<TH><FONT size=1></FONT></TH>
<TH><FONT size=1></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1><B>Percentage of Ordinary Shares Beneficially Owned (1)</B></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left>&nbsp;</TD>
<TD align=left>
<HR width="95%" color=black noShade SIZE=1>
</TD>
<TD align=left>&nbsp;</TD>
<TD align=left>&nbsp;</TD>
<TD align=left colSpan=3>
<HR width="95%" color=black noShade SIZE=1>
</TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT size=2>Dan Purjes(2)</FONT></TD>
<TD align=center width="25%"><FONT face="Times New Roman, Times, Serif" size=2>5,424,268</FONT></TD>
<TD align=center width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="7%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center width="25%"><FONT face="Times New Roman, Times, Serif" size=2>31.15%</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT size=2>Investment Corp. of United Mizrahi Bank Ltd.</FONT></TD>
<TD align=center><FONT size=2>2,333,333</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=center><FONT size=2>13.39%</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>___________________________</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on a total of 17,414,281 ordinary shares outstanding as of December 31, 2003.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Not including 403,226 ordinary shares of NUR that Dan and Edna Purjes elected on December 31, 2003 to convert into ordinary shares of NUR at the conversion rate of $0.62 per ordinary share convertible under the loan that was extended to NUR on July 2003. The total number of ordinary shares that were converted on December 31, 2003 in connection with the convertible loan is 1,020,614. During January 2004 NUR issued the share certificates in connection with the conversion of the convertible loan.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
 of December 31, 2003, there were 70 record holders of ordinary shares, of which 39 represented United
 States record holders holding approximately 83.49% of the outstanding ordinary shares of NUR.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>56</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Related Party Transactions</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 October 2000, NUR loaned Hilel E. Kremer, NUR&#146;s former Chief Financial Officer, NIS 85,744 (approximately
 $17,350). The loan agreement provides for a three-year term loan linked to the consumer price index
 at an interest of 4% per annum. As part of Hilel Kremer&#146;s severance agreement, NUR agreed to forgive
 the loan including all accrued linkage and interest.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
 various services rendered to NUR Europe S.A. and NUR Media Solutions S.A. by Sorly Ltd., a company wholly
 owned by Erez Shachar,&nbsp;our former President and Chief Executive Officer, NUR Europe S.A. and NUR
 Media Solutions S.A. each paid Sorly Ltd. the annual sum of $30,201.50 during 2002.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
 the Annual Meeting of Shareholders held on February 12, 2002, NUR&#146;s shareholders approved a Terms of
 Service Agreement with Dan Purjes effective as of January 1, 2002. In his capacity as Chairman of the
 Board, Dan Purjes will receive an annual fee of $125,000 to be due and paid in ordinary shares of NUR
 to Rockwood Group LLC, a company wholly owned by Dan Purjes. Until decided otherwise by NUR&#146;s Audit
 Committee, the fee shall be paid quarterly, at the end of each quarter, by way of issuing ordinary shares
 valued at $31,250. Such annual fee shall be in lieu of any and all payments which are due to Dan Purjes
 in his capacity as a member of the Board, Chairman of the Board, and a member of any committees of the
 Board, including the right to receive options to purchase ordinary shares in accordance with NUR&#146;s 1998
 Share Option Plan for Non-Employee Directors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 September 17, 2003, NUR&#146;s Audit Committee and Board of Directors approved the participation of David
 Amir, our President and Chief Executive Officer, as an investor in the a convertible loan undertaking.
 David Amir provided $50,000 of the $3.50 million convertible loan undertaking, under the same terms
 and conditions as all other investors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 October 2003, NUR entered into an engagement agreement with the law offices of Omer, Zohari &amp; Co.,
 a law firm owned by Moshe Zohari, Avi Omer and certain other partners. Avi Omer is the brother of David
 Amir, our President and Chief Executive Officer. Under the engagement agreement, Omer, Zohari &amp;
 Co. represents us in litigations against third parties and provides us with legal services as needed
 in Israel and in Belgium. The cost of these services is intended to at least equal the cost of these
 services if performed by unrelated parties. The aggregate consideration for the services that Omer,
 Zohari &amp; Co. provided to us and to the subsidiaries was $70,000 in 2003. On March 2004, our Audit
 Committee and Board of Directors reviewed, ratified and approved the terms of the engagement with Omer,
 Zohari &amp; Co.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
 the Annual meeting of Shareholders held on November 18, 2003, NUR&#146;s shareholders approved the participation
 of Dan Purjes, NUR&#146;s Chairman and major shareholder as an investor in the a convertible loan undertaking.
 Dan Purjes provided $1,250,000 of the $3.50 million convertible loan undertaking, under the same terms
 and conditions as all other investors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
 &#147;ITEM 10: Additional Information&#151;Material Contracts&#148; and Note 14 to NUR&#146;s consolidated financial statements,
 which are included as a part of this annual report, for a further discussion of transactions and balances
 with related parties.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Interests of experts and counsel</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>57</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 8: Financial Information</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
 pages F-[2] to F-[43].</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 9: The Offer and Listing</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable, except for ITEMS 9.A.4 and Item 9.C, which are detailed below.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;
 ordinary shares were traded on the Nasdaq National Market between October 1995 and July 2003. During
 2003, our ordinary shares closed for a period of 30 consecutive trading days below the minimum bid price
 of $1.00 per share as required for continued listing on The Nasdaq National Market. Accordingly, in
 July 2003, we transferred our securities to the Nasdaq SmallCap Market, whereby we were granted an extension
 of 180 days to meet the minimum requirement of $1.00 per share. NUR regained compliance with this requirement
 in October 2003. Our ordinary shares are currently traded under the symbol &#147;NURM.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 prices set forth below are high and low closing market prices for the ordinary shares of NUR as reported
 by Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, for the fiscal year ended December
 31 of each year indicated below, as of the end of each fiscal quarter indicated below, and for each
 month for the six-month period ending December 31, 2003. Such quotations reflect inter-dealer prices,
 without retail markup, markdown, or commission and may not necessarily represent actual transactions.</FONT>
</P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <td><FONT FACE="Times New Roman, Times, Serif" SIZE=1><strong><u>Year</u></strong></FONT>
    </td>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>High (US)</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Low (US)</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=18% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.00</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=18% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.38</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2000</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.00</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.31</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2001</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.75</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.29</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2002</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.61</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.44</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.25</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><strong>2002</strong></FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.65</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.47</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.79</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.80</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Third Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.28</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fourth Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.99</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><strong>2003</strong></FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.25</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.75</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.21</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Third Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.02</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fourth Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.44</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.83</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><strong>2004</strong></FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First Quarter</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.14</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><strong><u>Most
      Recent Six Months</u></strong></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <th ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><u>High</u></FONT></th>
    <th ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></th>
    <th ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></th>
    <th ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><u>Low</u></FONT></th>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 2004</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.80</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>February
      2004</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.91</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.77</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 2004</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.14</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.55</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.99</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.51</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>November
      2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.44</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.45</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>October 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.65</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.83</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>58</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 does not anticipate that it will pay any cash dividend on its ordinary shares in the foreseeable future.
 Dividends, if any, will be paid in NIS. Dividends paid to shareholders outside Israel will be converted
 to U.S. dollars, on the basis of the exchange rate prevailing at the date of payment. NUR has determined
 that it will not distribute dividends out of tax-exempt profits.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 10: Additional Information</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Share Capital</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 applicable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Memorandum of Association and Amended and Restated Articles of Association</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
 forth below is a brief description of certain provisions contained in the Memorandum of Association,
 the Amended and Restated Articles of Association (&#147;Articles&#148;) as well as certain statutory provisions
 of Israeli law. The Memorandum of Association and the Articles have been filed as exhibits to this annual
 report or incorporated by reference herein. The description of certain provisions does not purport to
 be a complete summary of these provisions and is qualified in its entirety by reference to such exhibits.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Authorized Share Capital</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 authorized share capital of NUR is fifty million (50,000,000) New Israeli Shekel, divided into fifty
 million ordinary shares.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Purpose and Objective</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
 to Section 3.1 of NUR&#146;s Articles, our objective is to undertake any lawful activity, including any objective
 set forth in our Memorandum of Association. Pursuant to Section 3.2 of our Articles, our purpose is
 to operate in accordance with commercial considerations with the intentions of generating profits.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Board of Directors</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
 the Israeli Companies Law, 1999, the Board is authorized to set NUR&#146;s strategy and supervise the performance
 of the duties and actions of NUR&#146;s Chief Executive Officer. The Board may not delegate to a committee
 of the Board or the Chief Executive Officer the right to decide on certain of the authorities vested
 with it, including determination of NUR&#146;s strategy, distributions, issuances of securities and approval
 of financial reports. The powers conferred upon the Board are vested in the Board as a collective body
 and not in each one or more of the directors individually. Unless otherwise set forth in a resolution
 of the shareholders, the Board shall consist of not less than four (4) nor more than twelve (12) directors
 (including any external directors whose appointment is mandated under the Companies Law).</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>59</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 directors are elected annually at a general meeting of shareholders and remain in office until the next
 annual meeting at which time they shall retire, unless their office is previously vacated as provided
 in the Articles. A retiring director may be reelected. If no directors are elected at the annual meeting,
 all of the retiring directors remain in office pending their replacement at a general meeting. Holders
 of the ordinary shares do not have cumulative voting rights in the election of directors. Consequently,
 the holders of ordinary shares in the aggregate conferring more than 50% of the voting power represented
 in person or by proxy will have the power to elect all the directors. Pursuant to the Israeli Companies
 Law, publicly traded companies must appoint two external directors to serve on their Board of Directors
 and Audit Committee. The external directors are appointed for a 3-year term. The election of external
 directors requires the vote of the majority of the voting power represented at the meeting, provided
 that either (i) such a majority includes at least one third of the shareholders present who do not qualify
 as controlling shareholders (as such term is defined in the Israeli Companies Law) or (ii) the aggregate
 number of shares held by non-controlling shareholders voting at the meeting against such election does
 not exceed one percent of the outstanding voting rights of the company.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
 to the provisions of Israeli Companies Law, the Board may approve each of the following transactions
 that are not detrimental to the best interest of NUR: (i) a transaction to which NUR is a party to,
 and in which an officer of NUR has an interest; (ii) a transaction between NUR and an officer of NUR;
 (iii) a private offer of NUR&#146;s securities to a holder of five percent (5%) or more of NUR&#146;s shares;
 or (iv) such other transactions that require special approval pursuant to the Companies Law. In the
 event of an extraordinary transaction or the approval of the terms of service or employment (including
 any waiver, insurance or indemnification) of an officer of NUR, such transaction shall require additional
 approvals of the Audit Committee, or of the Audit Committee and of a meeting of shareholders, by regular
 or special majority, all as stipulated by the Companies Law. Any officer who has an interest in a transaction
 shall not participate in the meeting of the Board or Audit Committee in which such transaction is considered
 and shall not vote in such meeting, provided that if the majority of the members of the Board or the
 Audit Committee have an interest in the transaction, they may attend and vote at the meeting and then
 the transaction must also be approved by a general meeting of the shareholders.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
 person shall be disqualified to serve as a director by reason of his not holding shares in NUR. Additionally,
 there is no age limit for the retirement of directors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Rights of Shareholders</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
 preemptive rights are granted to holders of ordinary shares under the Articles or the Israeli Companies
 Law. Each ordinary share is entitled to one vote on all matters to be voted on by shareholders, including
 the election of directors. Non-residents of Israel may freely hold and trade the ordinary shares pursuant
 to general and specific permits issued under Israel&#146;s Currency Control Law, 1978. Neither the Memorandum
 of Association nor the Articles make any distinction between residents and non-residents of Israel with
 respect to the ownership of ordinary shares. The Memorandum of Association, the Articles and Israeli
 law do not make any distinction between residents and non-residents of Israel with respect to the voting
 rights related thereto.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
 annual meeting of shareholders must be held once in every calendar year at such time (within a period
 of not more than fifteen months after the last preceding annual meeting) and at such place as may be
 determined by the Board. The Board may, at any time, convene general meetings of shareholders, and shall
 be obligated to do so upon receipt of a requisition in writing in accordance with Israeli law. Prior
 to any general meeting a written notice thereof shall be delivered to all registered holders and to
 all other persons entitled to attend, and shall be otherwise made public as required by Israeli law.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>60</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two
 or more members present in person or by proxy and holding shares conferring in the aggregate more than
 33 1/3% of the total voting power attached to our shares shall constitute a quorum at general meetings.
 If a meeting is adjourned due to the lack of a quorum, one or more shareholders, holding not less than
 33 1/3% of all the outstanding voting power attached to the ordinary shares, present in person or by
 proxy at the subsequent adjourned meeting, will constitute a quorum. Unless provided otherwise by the
 terms of issue of the shares, no member shall be entitled to be present or vote at a general meeting
 (or to be counted as part of the quorum) unless all amounts due as of the date designated for same general
 meeting with respect to his shares were paid. A resolution shall be deemed adopted if the requisite
 quorum is present and the resolution is supported by members present, in person or by proxy, vested
 with more than fifty percent (50%) of the total voting power attached to the shares whose holders were
 present, in person or by proxy, at such meeting and voted thereon, or such other percentage required
 by Law.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 August 18, 1999, pursuant to the purchase of 600,000 ordinary shares of NUR by Isal Amlat Investments
 (1993), a shareholders agreement was signed between Isal and Dan Purjes providing for, among other things,
 Dan Purjes voting the ordinary shares over which he has voting control in favor of one designee selected
 by Isal to serve as a director on NUR&#146;s board of directors. This agreement will terminate in the event
 that either Isal holds less than 4% of NUR&#146;s outstanding ordinary shares or Dan Purjes holds less than
 20%.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 January 17, 2002, pursuant to the purchase of 2,333,333 ordinary shares of NUR and of warrants exercisable
 for 612,500 ordinary shares of NUR by Investment Corp. of United Mizrahi Bank Ltd., a shareholders&#146;
 agreement was signed between Mizrahi and Dan Purjes providing for, among other things, Dan Purjes voting
 the ordinary shares over which he has voting control in favor of one designee selected by Mizrahi to
 serve as a director on NUR&#146;s board of directors. This agreement will terminate in the event that either
 Mizrahi holds less than 7% of NUR&#146;s outstanding ordinary shares or Dan Purjes holds less than 17%. </FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Dividends and Profits</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Board may from time to time, subject to the provisions of Israeli Companies Law, declare and order the
 payment of a dividend from NUR&#146;s accrued profits at the rate it may deem, provided that there is no
 reasonable concern that payment of such dividend may prevent NUR from meeting its current and expected
 liabilities when they become due. Subject, if any, to special or restricted rights conferred upon the
 holders of shares as to dividends, the dividends shall be distributed in accordance with the paid-up
 capital of NUR attributable to the shares for which the dividend has been declared. Our obligation to
 pay dividends or any other amount in respect of shares may be set-off against any indebtedness, however
 arising, liquidated or non-liquidated, of the person entitled to receive the dividend. Any dividend
 unclaimed within the period of seven years from the date stipulated for their payment, shall be forfeited
 and returned to us, unless otherwise directed by the Board. In the event of the winding up of NUR, then,
 subject to provisions of any applicable law and to any special or restricted rights attached to a share,
 our assets in excess of our liabilities will be distributed among the stockholders in proportion to
 the paid-up capital attributable to the shares in respect of which the distribution is being made.</FONT>
</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>61</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Material Contracts</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Loan Agreements and Recent Amendments</I></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 July 2000, in order to finance the acquisition of Salsa Digital, NUR entered into long-term loan agreements
 with Bank Hapoalim and Bank Leumi, as subsequently amended. The loan agreements provided for a three-year
 long-term credit line of up to $20.0million and $15.0million from Bank Hapoalim and Bank Leumi, respectively.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 most recent amendments to the long-term loan agreements were entered into in July 2003 and February
 2004, providing for a twelve-month grace period regarding the quarterly payments of the principal and
 a balloon payment of the remainder of the long-term loans in the first quarter of 2006. According to
 the rescheduling agreements, the remaining long term loans of $13.8 million at Bank Leumi and $15.8
 million at Bank Hapoalim carry interest rates of LIBOR plus 2.25% per annum on 11.8 million and LIBOR
 plus 2.5% per annum on $2.0 million at Bank Leumi, and of LIBOR plus 2.5% per annum on the $15.8 million
 at Bank Hapoalim. As of December 31, 2003 $15.825 million was outstanding under the Bank Hapoalim loan
 and $13.8 million was outstanding under the Bank Leumi loan.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, to support its ongoing operations NUR utilizes short-term bank credit from certain banking
 institutions. As of December 31, 2003, NUR utilized short-term facilities of $8.0 million from Bank
 Hapoalim, $4.6 from Bank Discount, $2.65 million from Bank Leumi, and $0.2 from Bank Investec (the Investec
 credit line is to be repaid during the first quarter of 2004).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 loans are secured by a floating lien on all assets of NUR, a negative pledge of the assets of NUR America,
 NUR Europe, NUR Media Solutions and NUR Asia Pacific and unlimited guarantees by such subsidiaries.
 The long term and short term loans also contain customary events of default, including the failure to
 pay interest or principal, material breach of any representation or warranty or breach of any covenant,
 cross-defaults, bankruptcy, or a change in control event relating to NUR or its subsidiaries. The loans
 are governed by the laws of the State of Israel.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, under the long-term and short-term loan agreements as amended in July 2003 and February 2004,
 NUR undertook, among other things, the following:</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain certain earnings before income tax, depreciation and amortization (EBITDA) of not less than $6.0 million in year 2004. The EBITDA for year 2005 shall be determined by the end of year 2004.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain a tangible equity of no less than: (i) no less than $0.5 million in the first calendar quarter of 2004, $0.7 million in the second calendar quarter of 2004, $1.0 million in the third calendar quarter of 2004, and $1.3 million in the fourth calendar quarter of 2004; and (ii) not less than $15.5 million or less than 16% of NUR&#146;s tangible assets in 2005.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain at the end of each quarter a cash balance of at least $6.0 million.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To refrain from merging, consolidating, amalgamating or entering into any other form of business combination with a third party, or liquidating or dissolving.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To issue an option to purchase up to 505,000 ordinary shares, an option to purchase up to 350,000 ordinary shares and an option to purchase up to 98,000 ordinary shares of NUR to Bank Hapoalim, Bank Leumi and Bank Discount, respectively. All option warrants will be exercisable until August 2007 at $0.62 per ordinary share. NUR also undertook to issue an option to purchase an additional 27,000 ordinary shares to Bank Discount exercisable at $0.72 per share no later than June 2007. For more information regarding option warrants previously issued to the banks see &#147;ITEM 6: Outstanding Options and Warrants.&#148;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>62</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>NUR Pro Engineering Acquisition</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 May 2003, NUR signed an agreement to acquire the remaining 50% shares of NUR Pro Engineering, its subcontractor
 for the assembly and manufacturing of its printers, from Ogen Dialogix Ltd., for $850,000. Under the
 terms of the agreement the transfer of the shares will become effective on March 31, 2004. As of March
 2004 the parties fulfilled their material commitments and undertakings under the agreement. Upon completion
 of the transaction, NUR Pro Engineering will become a wholly owned subsidiary of NUR. During the third
 quarter of 2003, we completed a consolidation process of our global machinery manufacturing operations
 of Salsa Digital Printers in San Antonio, Texas with those of NUR Pro Engineering, into a single large
 manufacturing facility in Rosh Ha&#146;Ayin, Israel. During the transition period between the signing of
 the agreement and the transfer of the ownership of the shares we have been working to complete the transfer
 of all NUR Pro Engineering&#146;s operations to NUR leaving NUR Pro Engineering a dormant company upon completion
 of the transaction.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Convertible Loan</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 July 30, 2003 NUR secured a convertible loan commitment from several investors according to which the
 investors have undertaken to provide NUR with a convertible loan in the aggregate amount of $3.50 million.
 NUR&#146;s chairman and largest shareholder, Dan Purjes, provided $1.3 million of the loan. Under the terms
 of the loan agreement, the loan is convertible at any time into ordinary shares of NUR at a conversion
 rate of $0.62 per share. In consideration for the loan undertaking, NUR agreed to pay a cash commitment
 fee and issue to the investors warrants to purchase ordinary shares of NUR equal to 15% of the loan
 at an exercise price of $0.52 per share exercisable over a five-year period. In the event of a draw
 down of the loan, NUR will issue to the investors additional warrants to purchase ordinary shares in
 the amount equal to 15% of the draw down amount, at an exercise price of $0.52 per share, and exercisable
 for a period of five years from the date of the draw down. On December 31, 2003, the investors elected
 to convert $2 million of the loan into ordinary shares of NUR at the conversion rate of $0.62 per ordinary
 share. During January 2004 NUR issued the share certificates in connection with the conversion of the
 convertible loan.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Exchange Controls</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Israeli
 law places limitations on foreign currency transactions and transactions between Israeli and non-Israeli
 residents, including payment of dividends. The Controller of Foreign Exchange at the Bank of Israel,
 through permits, may regulate or waive these limitations. As of May 1998, foreign currency transactions
 are generally permitted, although certain restrictions still apply. Restricted transactions include
 foreign currency transactions by institutional investors, including futures contracts by foreign residents
 for periods of more than one month, and investments outside of Israel by pension funds and insurers.
 Under the permit, all foreign currency transactions must be reported to the Bank of Israel.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>63</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Taxation </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Israeli Taxation, Foreign Exchange Regulation and
 Investment Programs</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following is a summary of the material Israeli tax consequences, Israeli foreign exchange regulations
 and certain Israeli government programs as they relate to NUR and its shareholders. To the extent that
 the discussion is based on new tax or other legislation that has not been subject to judicial or administrative
 interpretation, there can be no assurance that the views expressed in the discussion will be accepted
 by the tax or other authorities in question. The discussion is not intended, and should not be construed,
 as legal or professional tax advice and is not exhaustive of all possible tax considerations.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders
 of our ordinary shares should consult their own tax advisors as to the United States, Israeli or other
 tax consequences of the purchase, ownership and disposition of ordinary shares, including, in particular,
 the effect of any foreign, state or local taxes.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>The Tax Reform</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 January 1, 2003, the Law for Amendment of the Income Tax Ordinance (Amendment No. 132), 5762-2002, known
 as the Tax Reform, came into effect, following its enactment by the Israeli Parliament on July 24, 2002.
 On December 17, 2002, the Israeli Parliament approved a number of amendments to the tax reform, which
 came into effect on January 1, 2003. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 tax reform, aimed at broadening the categories of taxable income and reducing the tax rates imposed
 on employment income, introduced the following, among other things:</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reduction
 of the tax rate levied on capital gains (other than gains deriving from the sale of listed securities)
 derived after January 1, 2003, to a general rate of 25% for both individuals and corporations. Regarding
 assets acquired prior to January 1, 2003, the reduced tax rate will apply to a proportionate part of
 the gain, in accordance with the holding periods of the asset, before or after January 1, 2003, on a
 linear basis; </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imposition
 of Israeli tax on all income of Israeli residents, individuals and corporations, regardless of the territorial
 source of income, including income derived from passive sources such as interest, dividends and royalties;</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Introduction
 of controlled foreign corporation (CFC) rules into the Israeli tax structure. Generally, under such
 rules, an Israeli resident who holds, directly or indirectly, 10% or more of the rights in a foreign
 corporation whose shares are not publicly traded, in which more than 50% of the rights are held directly
 or indirectly by Israeli residents, and a majority of whose income in a tax year is considered passive
 income, will be liable for tax on the portion of such income attributed to his holdings in such corporation,
 as if such income were distributed to him as a dividend; </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Imposition
 of capital gains tax on capital gains realized by individuals as of January 1, 2003, from the sale of
 shares of publicly traded companies (such gain was previously exempt from capital gains tax in Israel).
 For information with respect to the applicability of Israeli capital gains taxes on the sale of ordinary
 shares, see &#147;&#151; Capital Gains Tax on Sales of Our Ordinary Shares&#148; below; and</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Introduction
 of a new regime for the taxation of shares and options issued to employees and officers (including directors).
 </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>64</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>General Corporate Tax Structure </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
 Israeli companies are subject to &#147;Company Tax&#148; at the rate of 36% of taxable income (and are subject
 to Capital Gains Tax at a rate of 25% for capital gains derived after January 1, 2003). However, the
 effective tax rate payable by a company which derives income from an approved enterprise (as further
 discussed below) may be considerably less.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Tax Benefits Under the Law for the Encouragement
 of Capital Investments, 1959 </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Law for the Encouragement of Capital Investments, 1959, as amended (the &#147;Investment Law&#148;), provides
 that a proposed capital investment in eligible facilities may, upon application to the Investment Center
 of the Ministry of Industry and Commerce of the State of Israel, be designated as an approved enterprise.
 The Investment Center approves applications based upon the criteria set forth in the Investment Law
 and regulations, the then prevailing policy of the Investment Center, and the specific objectives and
 financial criteria of the applicant. Each certificate of approval for an approved enterprise relates
 to a specific investment program delineated both by its financial scope, including its capital sources,
 and by its physical characteristics, e.g., the equipment to be purchased and utilized pursuant to the
 program.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Investment Law provides that an approved enterprise is eligible for tax benefits on taxable income derived
 from its approved enterprise programs. Under an amendment to the Investment Law that was made within
 the framework of the tax reform, it was clarified that tax benefits under the Investment Law shall also
 apply to income generated by a company from the grant of a usage right with respect to know-how developed
 by the approved enterprise, income generated from royalties, and income derived from a service which
 is auxiliary to such usage right, provided that such income is generated within the &#147;Approved Enterprise&#146;s&#148;,
 as defined by the Investment Law, ordinary course of business. If a company has more than one approval
 or only a portion of its capital investments are approved, its effective tax rate is the result of a
 weighted average of the applicable rates. The tax benefits under the Investment Law are not available
 with respect to income derived from products manufactured outside of Israel. In addition, the tax benefits
 available to an approved enterprise are contingent upon the fulfillment of conditions stipulated in
 the Investment Law and regulations and the criteria set forth in the specific certificate of approval,
 as described above. In the event that a company does not meet these conditions, it would be required
 to refund the amount of tax benefits, plus a consumer price index linkage adjustment and interest.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Investment Law also provides that an approved enterprise is entitled to accelerated depreciation on
 its property and equipment that are included in an approved enterprise program.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable
 income of a company derived from an approved enterprise is subject to company tax at the maximum rate
 of 25%, rather than 36%, for the benefit period. This period is ordinarily 7 years commencing with the
 year in which the approved enterprise first generates taxable income, and is limited to twelve years
 from commencement of production or 14 years from the date of approval, whichever is earlier.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>65</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
 company that has an approved enterprise program is eligible for further tax benefits if it qualifies
 as a foreign investors&#146; company. A foreign investors&#146; company is a company in which more than 25% of
 its share capital and combined share and loan capital is owned by non-Israeli residents. A company that
 qualifies as a foreign investors&#146; company and has an approved enterprise program is eligible for tax
 benefits for a ten-year benefit period. As specified below, depending on the geographic location of
 the approved enterprise within Israel, income derived from the approved enterprise program may be exempt
 from tax on its undistributed income for a period of between two to ten years, and will be subject to
 a reduced tax rate for the remainder of the benefits period. The tax rate for the remainder of the benefits
 period will be 25%, unless the level of foreign investment exceeds 49%, in which case the tax rate will
 be 20% if the foreign investment is more than 49% and less than 74%; 15% if more than 74% and less than
 90%; and 10% if 90% or more. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Instead
 of the foregoing tax benefits, a company may elect to receive an alternative package of benefits. Under
 the alternative package of benefits, our undistributed income derived from the approved enterprise will
 be exempt from company tax for a period of between two and ten years from the first year the company
 derives taxable income under the program, depending on the geographic location of the approved enterprise
 within Israel, and such company will be eligible for a reduced tax rate for the remainder of the benefits
 period. A company that has elected the alternative package of benefits, such as us, that subsequently
 pays a dividend out of income derived from the approved enterprise during the tax exemption period,
 will be subject to tax in respect of the amount distributed, including any taxes thereon, at the rate
 which would have been applicable had it not elected the alternative package of benefits, generally 10%-25%,
 depending on the percentage of the company&#146;s ordinary shares held by foreign shareholders. The dividend
 recipient is taxed at the reduced rate of 15%; such rate is applicable to dividends from approved enterprises
 if the dividend is distributed during the tax exemption period or within twelve years thereafter. The
 company must withhold this tax at source, regardless of whether the dividend is converted into foreign
 currency.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
 to applicable provisions concerning income under the alternative package of benefits, dividends paid
 by a company are considered to be attributable to income received from the entire company and the company&#146;s
 effective tax rate is the result of a weighted average of the various applicable tax rates, excluding
 any tax exempt income. Under the Investment Law, a company that has elected the alternative package
 of benefits is not obliged to distribute retained profits, and may generally decide from which year&#146;s
 profits to declare dividends. We currently intend to reinvest any income derived from our approved enterprise
 program and not to distribute such income as a dividend.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Part
 of NUR&#146;s production facilities have been granted the status of an &#147;Approved Enterprise&#148; under the Investment
 Law, under three separate investment plans. The implementation of the investments under the first plan
 was completed in 1993. The implementation of the second plan was finalized in 1999. NUR&#146;s application
 for a third plan was approved in 2000.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According
 to the provisions of the Investment Law, NUR chose to enjoy &#147;alternative benefits&#148;&#151;waiver of grants
 in return for tax benefits. Accordingly, NUR&#146;s income from the Approved Enterprise will be tax-exempt
 for a period of two years for the first and the third plans and for a period of four years for the second
 plan, commencing with the year it first earns taxable income, and subject to corporate tax at the rate
 of 15% based on the percentage of foreign ownership of the company, for additional periods of five,
 three and five years, for the first, second&nbsp;and third plans, respectively.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 period of tax benefits, detailed above, is subject to limits of twelve years from the commencement of
 production, or fourteen years from receiving the approval, whichever is earlier. Given the above-mentioned
 conditions, the period of benefits for the first plan commenced in the year 1994 and terminated in the
 year 2000, and the period of benefits for the second plan commenced in the year 1998 and will terminate
 in the year 2004. The period of benefits for the third plan has not yet been determined.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>66</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
 dividends are distributed out of profits derived from an &#147;Approved Enterprise&#148;, NUR will be liable for
 corporate tax at the rate, which would have been applied if it had not chosen the alternative tax benefits
 (currently 15% based on the percentage of foreign ownership of NUR for an &#147;Approved Enterprise&#148;). Therefore,
 income derived from NUR&#146;s &#147;Approved Enterprise&#148; tax-exempt profits, is not available for distribution
 to shareholders as a dividend. See Note 16(a) to NUR&#146;s consolidated financial statements, which are
 included as a part of this annual report on Form 20-F.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 dividend recipient is taxed at the reduced rate applicable to dividends from &#147;Approved Enterprises&#148;
 (i.e., 25%), if the dividend is distributed during the tax benefits period or within a twelve years
 period thereafter, or for an unlimited period in the case of a &#147;Foreign Investors&#146; Company&#148;&#151;a company
 over 25% foreign-owned with an approved enterprise. This tax must be withheld by the company at source,
 regardless of whether the dividend is converted into foreign currency. See below &#147;&#151; Capital Gains Tax
 on Sales of Our Ordinary Shares.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grants
 and certain other incentives received by a company in accordance with the Investment Law remain subject
 to final ratification by the Israel Investment Center, such ratification being conditional upon fulfillment
 of all terms of the approved program. Failure to comply with all such terms may require the return of
 such grants and incentives (inclusive of interest as of the date of the grant).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 existing &#147;Approved Enterprise&#148; status and any new programs, if and when approved, are subject to various
 conditions. The tax benefits derived from NUR&#146;s &#147;Approved Enterprise&#148; status are conditioned upon fulfillment
 of the conditions stipulated by the Investment Law, the regulations promulgated thereunder and the criteria
 set forth in the certificate of approval issued pursuant to the Investment Law. In the event of a failure
 by NUR to comply with these conditions and criteria, the grants and tax benefits could be canceled,
 in whole or in part, and NUR would be required to refund the amount of the canceled benefits, adjusted
 for inflation, interest and penalties. Management believes that NUR has operated and will continue to
 operate in compliance with all the &#147;Approved Enterprise&#148; conditions and other criteria applicable to
 us from the Office of Chief Scientist, the Marketing Fund and our &#147;Approved Enterprise&#148; status, although
 there can be no assurance of this. Management further believes that the likelihood is remote that NUR
 will be required to refund grants or tax benefits that we derive from the Office of Chief Scientist,
 the Marketing Fund and under our &#147;Approved Enterprise&#148; status. There can be no assurance, however, that
 the funding and tax benefits will continue. See &#147;ITEM 4: Information on NUR&#151;Research and Development&#148;
 and &#147;ITEM 3: Key Information&#151;Risk Factors&#151;We rely upon government grants, tax benefits, and other funding
 from third parties.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Israeli government may reduce or eliminate tax benefits available to approved enterprise programs in
 the future. We cannot assure you that our approved program and the benefits thereunder shall continue
 in the future at its current level or at any level &#150; see &#147;ITEM 3: Risks&#151;relating to location in Israel).</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Tax Benefits Under the Law for the Encouragement
 of Industry (Taxes), 1969</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
 the Law for the Encouragement of Industry (Taxes), 1969 (the &#147;Industry Encouragement Law&#148;), Industrial
 Companies are entitled to the following preferred corporate tax benefits:</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>67</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>deduction of purchases of know-how and patents over an eight-year period for tax purposes;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=24></TD>
<TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>accelerated&nbsp;depreciation rates on equipment and buildings. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligibility
 for benefits under the Industry Encouragement Law is not subject to receipt of prior approval from any
 governmental authority. Under the Industry Encouragement Law, an &#147;Industrial Company&#148; is defined as
 a company resident in Israel, at least 90% of the income of which, in any tax year, determined in Israeli
 currency, exclusive of income from government loans, capital gains, interest and dividends, is derived
 from an &#147;Industrial Enterprise&#148; owned by it. An &#147;Industrial Enterprise&#148; is defined as an enterprise
 owned by an Industrial Company, whose major activity in a given tax year is industrial production activity.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
 believe that we currently qualify as an Industrial Company within the definition of the Industry Encouragement
 Law. No assurance can be given that we will continue to qualify as an Industrial Company or that the
 benefits described above will be available in the future.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Taxation Under Inflationary Conditions</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Income Tax Law (Adjustment for Inflation), 1985 (the &#147;Adjustment for Inflation Law&#148;) attempts to overcome
 some of the problems experienced in a traditional tax system by an economy experiencing rapid inflation,
 which was the case in Israel at the time the Adjustment for Inflation Law was enacted. Generally, the
 Adjustment for Inflation Law was designed to neutralize for Israeli tax purposes the erosion of capital
 investments in businesses and to prevent unintended tax benefits resulting from the deduction of inflationary
 financing expenses. The Adjustment for Inflation Law applies a supplementary set of inflationary adjustments
 to taxable profit computed according to regular historical cost principles.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Adjustment for Inflation Law introduced a special tax adjustment for the preservation of equity based
 on changes in the Israeli CPI whereby certain corporate assets are classified broadly into fixed (inflation
 resistant) assets and non-fixed assets. Where shareholders&#146; equity, as defined in the Adjustment for
 Inflation Law, exceeds the depreciated cost of fixed assets, a corporate tax deduction which takes into
 account the effect of inflationary change on such excess is allowed (up to a ceiling of 70% of taxable
 income for companies in any single tax year, with the unused portion permitted to be carried forward
 on a linked basis with no ceiling). If the depreciated cost of fixed assets exceeds shareholders&#146; equity,
 then such excess multiplied by the annual rate of inflation is added to taxable income. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, subject to certain limitations, depreciation on fixed assets and losses carried forward are
 adjusted for inflation based on changes in the Israeli CPI. The net effect of the Adjustment for Inflation
 Law on NUR might be that NUR&#146;s taxable income, as determined for Israeli corporate tax purposes, will
 be different than NUR&#146;s U.S. dollar income, as reflected in our consolidated financial statements, due
 to the difference between the annual changes in the CPI and in the NIS exchange rate with respect to
 the U.S. Dollar, causing changes in the effective tax rate.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Capital Gains Tax on Sales of Our Ordinary Shares</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Israeli
 law generally imposes a capital gains tax on the sale of capital assets located in Israel, including
 shares in Israeli companies, by both residents and non-residents of Israel. Unless a specific exemption
 is available or unless a tax treaty between Israel and the shareholder&#146;s country of residence provides
 otherwise. The law distinguishes between real gain and inflationary surplus. The inflationary surplus
 is a portion of the total capital gain, which is equivalent to the increase of the relevant asset&#146;s
 purchase price which is attributable to the increase in the Israeli consumer price index between the
 date of purchase and the date of sale. The real gain is the excess of the total capital gain over the
 inflationary surplus.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>68</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
 to the tax reform, sales of our ordinary shares by individuals were generally exempt from Israeli capital
 gains tax for so long as they were quoted on Nasdaq. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
 to the tax reform, generally, capital gains tax is imposed at a rate of 15% on real gains derived on
 or after January 1, 2003, from the sale of shares in companies (i)&nbsp;publicly traded on the Tel Aviv
 Stock Exchange (&#147;TASE&#148;) or; (ii) (subject to a necessary determination by the Israeli Minister of Finance)
 Israeli companies publicly traded on a recognized stock exchange outside of Israel (such as NUR). This
 tax rate does not apply to: (i)&nbsp;dealers in securities; (ii) shareholders that report in accordance
 with the Inflationary Adjustment Law; or (iii)&nbsp;shareholders who acquired their shares prior to
 an initial public offering (that are subject to a different tax arrangement). The tax basis of shares
 acquired prior to January 1, 2003 will be determined in accordance with the average closing share price
 in the three trading days preceding January 1, 2003. However, a request may be made to the tax authorities
 to consider the actual adjusted cost of the shares as the tax basis if it is higher than such average
 price. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Israeli
 residents are exempt from Israeli capital gains tax on any gains derived from the sale of shares publicly
 traded on the TASE, and are exempt from Israeli capital gains tax on any gains derived from the sale
 of shares of Israeli companies publicly traded on a recognized stock exchange outside of Israel; provided,
 however, that such capital gains are not derived from a permanent establishment in Israel and provided
 further that such shareholders did not acquire their shares prior to an initial public offering. However,
 non-Israeli corporations will not be entitled to such exemption if an Israeli resident (i) has a controlling
 interest of 25% or more in such non-Israeli corporation, or (ii) is the beneficiary or is entitled to
 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 any event, the provisions of the tax reform shall not affect the exemption from capital gains tax for
 gains accrued before January 1, 2003, as described above.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 some instances where NUR shareholders may be liable to Israeli tax on the sale of their ordinary shares,
 the payment of the consideration may be subject to the withholding of Israeli tax at the source. Pursuant
 to the Convention Between the Government of the United States of America and the Government of Israel
 with Respect to Taxes on Income, as amended (the &#147;U.S.-Israel Tax Treaty&#148;) the sale, exchange or disposition
 of ordinary shares by a person who (i) holds the ordinary shares as a capital asset, (ii) qualifies
 as a resident of the United States within the meaning of the U.S.-Israel Tax Treaty and (iii) is entitled
 to claim the benefits afforded to such person by the U.S.-Israel Tax Treaty generally will not be subject
 to the Israeli capital gains tax unless such Treaty U.S. Resident holds, directly or indirectly, shares
 representing 10% or more of our voting power during any part of the 12-month period preceding such sale,
 exchange or disposition, subject to certain conditions. In this case, the sale, exchange or disposition
 of ordinary shares would be subject to Israeli tax, to the extent applicable; however, under the U.S.-Israel
 Tax Treaty, such Treaty U.S. Resident would be permitted to claim a credit for such taxes against the
 U.S. federal income tax imposed with respect to such sale, exchange or disposition, subject to the limitations
 in U.S. laws applicable to foreign tax credits. The U.S.-Israel Tax Treaty does not relate to U.S. state
 or local taxes.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>69</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Taxation of Non-Resident Holders of Shares</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-residents
 of Israel are subject to income tax on income accrued or derived from sources in Israel. Such sources
 of income include passive income such as dividends, royalties and interest, as well as non-passive income
 from services rendered in Israel. On distributions of dividends other than bonus shares, or stock dividends,
 income tax at the rate of up to 25% is withheld at source, unless a different rate is provided in a
 treaty between Israel and the shareholder&#146;s country of residence. Under the U.S.-Israel Tax Treaty,
 the maximum tax on dividends paid to a holder of ordinary shares who is a Treaty U.S. Resident is 25%.
 However, under the Investment Law, dividends generated by an Approved Enterprise are taxed at the rate
 of 15%. Furthermore, dividends not generated by an Approved Enterprise paid to a U.S. company holding
 10% or more of our ordinary shares are taxed at a rate of 12.5%.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
 an amendment to the Inflationary Adjustments Law, non-Israeli corporations might be subject to Israeli
 taxes on the sale of traded securities in an Israeli company, subject to the provisions of any applicable
 double taxation treaty or unless a specific exemption is available.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
 information with respect to the applicability of Israeli capital gains taxes on the sale of ordinary
 shares by United States residents, see above &#147;&#151; Capital Gains Tax on Sales of Our Ordinary Shares.&#148;</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. Tax Considerations Regarding Ordinary Shares</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 following summary describes certain of the principal United States federal income tax consequences relating
 to an investment in ordinary shares as of the date hereof. The summary is based on the Internal Revenue
 Code of 1986 (the &#147;Code&#148;), and existing final, temporary and proposed Treasury Regulations, Revenue
 Rulings and judicial decisions, all of which are subject to prospective and retroactive changes. NUR
 will not seek a ruling from the Internal Revenue Service (the &#147;IRS&#148;) with regard to the United States
 federal income tax treatment relating to an investment in ordinary shares and, therefore, there can
 be no assurance that the IRS will agree with the conclusions set forth below. The summary does not purport
 to address all federal income tax consequences that may be relevant to particular investors. For example,
 the summary applies only to holders who hold ordinary shares as a capital asset within the meaning of
 Section 1221 of the Code, and does not address the tax consequences that may be relevant to investors
 in special tax situations (including, for example, insurance companies, tax-exempt organizations, dealers
 in securities or currency, banks or other financial institutions, or investors that hold ordinary shares
 as part of a hedge, straddle or conversion transaction). Further, it does not address the alternative
 minimum tax consequences of an investment in ordinary shares or the consequences to holders of equity
 interests in investors in ordinary shares (including, for example, a partner in a partnership). ACCORDINGLY,
 PERSONS CONSIDERING THE PURCHASE OF ORDINARY SHARES SHOULD CONSULT THEIR OWN TAX ADVISORS CONCERNING
 THE APPLICATION OF UNITED STATES FEDERAL INCOME TAX LAWS, AS WELL AS THE LAWS OF ANY STATE, LOCAL OR
 FOREIGN TAXING JURISDICTION, TO THEIR PARTICULAR SITUATIONS.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>70</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
 purposes of this discussion, &#147;U.S. Holder&#148; means a holder of ordinary shares that is a citizen or resident
 of the United States, a corporation (or entity treated as a corporation for the United States federal
 income tax purposes) created or organized in the United States or any State thereof (including the District
 of Columbia), or an estate or trust the income of which is subject to United States federal income tax
 on a net income basis with respect to ordinary shares. The term &#147;non-U.S. Holder&#148; refers to any holder
 of ordinary shares (other than a partnership) that is not a U.S. Holder. If a partnership (including
 an entity treated as a partnership for United States federal income tax purposes) is a holder of ordinary
 shares, the United States income tax treatment of a partner in the partnership will generally depend
 upon the status of the partner and the activities of the partnership. Partners should consult their
 own tax advisors as to the particular United States income tax consequences applicable to them. </FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Taxation of U.S. Holders</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions
 on Ordinary Shares.</I> &nbsp;&nbsp;Distributions made by NUR with respect to ordinary shares generally
 will constitute dividends for federal income tax purposes and will be taxable to a U.S. Holder as dividend
 income to the extent of NUR&#146;s undistributed current or accumulated earnings and profits (as determined
 for United States federal income tax purposes). Distributions in excess of NUR&#146;s current or accumulated
 earnings and profits will be treated first as a nontaxable return of capital reducing the U.S. Holder&#146;s
 tax basis in the ordinary shares, thus increasing the amount of any gain (or reducing the amount of
 any loss) which might be realized by such Holder upon the sale or exchange of such ordinary shares.
 Any such distributions in excess of the U.S. Holder&#146;s tax basis in the ordinary shares will be treated
 as capital gain to the U.S. Holder and will be either long term or short term capital gain depending
 upon the U.S. Holder&#146;s federal income tax holding period for the ordinary shares. Dividends paid by
 NUR generally will not be eligible for the dividends received deduction available to certain United
 States corporate shareholders under Code Sections 243 and 245. Recently enacted legislation may permit
 a U.S. Holder that is an individual to treat any dividends received from NUR with respect to ordinary
 shares under favorable tax rates applicable to capital gains. U.S. Holders that are individuals should
 consult their own tax advisors concerning the availability of the favorable tax rates to any dividends
 received from NUR with respect to ordinary shares.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 amount of any cash distribution paid in a foreign currency will equal the U.S. dollar value of the distribution,
 calculated by reference to the exchange rate in effect at the time the dividends are received. A U.S.
 Holder should not recognize any foreign currency gain or loss if such foreign currency is converted
 into U.S. dollars on the day received. If a U.S. Holder does not convert the foreign currency into U.S.
 dollars on the date of receipt, however, such Holder may recognize gain or loss upon a subsequent sale
 or other disposition of the foreign currency (including an exchange of the foreign currency for U.S.
 dollars). Such gain or loss, if any, will be ordinary income or loss for United States federal income
 tax purposes.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
 to certain conditions and limitations, any Israeli withholding tax imposed upon distributions which
 constitute dividends under United States income tax law will be eligible for credit against a U.S. Holder&#146;s
 federal income tax liability. Alternatively, a U.S. Holder may claim a deduction for such amount, but
 only for a year in which a U.S. Holder elects to do so with respect to all foreign income taxes. The
 overall limitation on foreign taxes eligible for credit is calculated separately with respect to specific
 classes of income. For this purpose, dividends distributed by NUR with respect to ordinary shares will
 generally constitute &#147;passive income.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale
 or Exchange of Ordinary Shares.</I> &nbsp;&nbsp;A U.S. Holder of ordinary shares generally will recognize
 capital gain or loss upon the sale or exchange of the ordinary shares measured by the difference between
 the amount realized and the U.S. Holder&#146;s tax basis in the ordinary shares. Gain or loss will be computed
 separately for each block of shares sold (shares acquired separately at different times and prices).
 The deductibility of capital losses is restricted and generally may only be used to reduce capital gains
 to the extent thereof. However, individual taxpayers generally may deduct annually $3,000 of capital
 losses in excess of their capital gains.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>71</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Passive
 Foreign Investment Company.</I> &nbsp;&nbsp;A foreign corporation generally will be treated as a &#147;passive
 foreign investment company&#148; (&#147;PFIC&#148;) if, after applying certain &#147;look-through&#148; rules, either (i) 75%
 or more of its gross income is passive income or (ii) 50% or more of the average value of its assets
 is attributable to assets that produce or are held to produce passive income. Passive income for this
 purpose generally includes dividends, interest, rents, royalties and gains from securities and commodities
 transactions. The look-through rules require a foreign corporation that owns at least 25%, by value,
 of the stock of another corporation to treat a proportionate amount of assets and income as held or
 received directly by the foreign corporation.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 does not believe that it is currently a PFIC nor does it anticipate that it will be a PFIC in the future
 because it expects that less than 75% of its annual gross income will be passive income and less than
 50% of its assets will be passive assets, based on the look-through rules, the current income and assets
 of NUR and its subsidiaries, and the manner in which NUR and its subsidiaries are anticipated to conduct
 their businesses in the future. However, there can be no assurance that NUR is not or will not be treated
 as a PFIC in the future. If NUR were to be treated as a PFIC, all U.S. Holders may be required, in certain
 circumstances, to pay an interest charge together with tax calculated at maximum rates on certain &#147;excess
 distributions,&#148; including any gain on the sale of ordinary shares. In order to avoid this tax consequence,
 a U.S. Holder (i) may be permitted to make a &#147;qualified electing fund&#148; election, in which case, in lieu
 of such treatment, such holder would be required to include in its taxable income certain undistributed
 amounts of NUR&#146;s income or (ii) may elect to mark-to-market the ordinary shares and recognize ordinary
 income (or possible ordinary loss) each year with respect to such investment and on the sale or other
 disposition of the ordinary shares. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
 NUR nor its advisors have the duty to or will undertake to inform U.S. Holders of changes in circumstances
 that would cause NUR to become a PFIC. U.S. Holders should consult their own tax advisors concerning
 the status of NUR as a PFIC at any point in time after the date of this Form. NUR does not currently
 intend to take the action necessary for a U.S. Holder to make a &#147;qualified electing fund&#148; election in
 the event NUR is determined to be a PFIC.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Foreign
 Personal Holding Company.</I> &nbsp;&nbsp;A foreign corporation may be classified as a foreign personal
 holding company (a &#147;FPHC&#148;) for federal income tax purposes if both of the following tests are satisfied:
 (i) at any time during the taxable year five or fewer individuals who are United States citizens or
 residents own or are deemed to own (under certain attribution rules) more than 50% of its stock (vote
 or value) and (ii) at least 60% (50% for years subsequent to the year in which it becomes a FPHC) of
 its gross income (regardless of its source), as specifically adjusted, &#147;is foreign personal holding
 company income,&#148; which includes dividends, interest, rents, royalties and gain from the sale of stock
 or securities.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 does not believe that it is currently a FPHC nor does it anticipate that it will be a FPHC in the future;
 however, no assurance can be given that NUR is not or will not become a FPHC as a result of future changes
 of ownership or changes in the nature of the income of NUR. If NUR were to be classified as a FPHC,
 each U.S. Holder would be required to include in income as a taxable constructive dividend its pro rata
 share of NUR&#146;s undistributed foreign personal holding company income.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>72</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Controlled
 Foreign Corporation.</I> &nbsp;&nbsp;If more than 50% of the ordinary shares (vote or value) of NUR
 is owned, directly or indirectly, by U.S. Holders that own or are deemed to own under certain attribution
 rules 10% or more of the total combined voting power of all classes of stock of NUR (&#147;10% Shareholder&#148;),
 NUR could be treated as a &#147;controlled foreign corporation&#148; (a &#147;CFC&#148;) under Subpart F of the Code. It
 is unclear how controlling blocks of stock will be valued for these purposes. Accordingly, NUR may be
 treated as a CFC for United States federal income tax purposes even though 10% Shareholders do not own
 more than 50% of the outstanding ordinary shares.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 does not believe that it is currently a CFC; however, no assurance can be given that NUR will not become
 a CFC as a result of future changes in its ownership. If NUR were to be treated as a CFC, each 10% Shareholder
 would be required to include in its taxable income as a constructive dividend its pro rata share of
 certain undistributed income of NUR, and all or a portion of the gain from the sale or exchange of the
 ordinary shares may be treated under Section 1248 of the Code as dividend income. Neither NUR nor its
 advisors have the duty to or will undertake to inform U.S. Holders of changes in circumstances that
 would cause NUR to become a CFC. U.S. Holders should consult their own tax advisors concerning the status
 of NUR as a CFC.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Information
 Reporting.</I> &nbsp;&nbsp;Under limited circumstances, U.S. Holders are required to report certain
 acquisitions of ordinary shares from NUR to the IRS on IRS Form 926. In addition, a U.S. Holder who
 owns 10% or more of the ordinary shares (vote or value) may be required to file IRS form 5471 to the
 IRS to report certain acquisitions or dispositions of the ordinary shares or in the case NUR were treated
 as a CFC or FPHC. Failure to file the required information returns may result in the imposition of penalties.
 Potential investors of the ordinary shares should consult with their own tax advisors regarding the
 necessity of filing information returns.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Taxation of Non-U.S. Holders</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions
 on Ordinary Shares.</I> &nbsp;&nbsp;Distributions made by NUR with respect to the ordinary shares to
 non-U.S. Holders who are not engaged in the conduct of a trade or business within the United States
 will be subject to United States federal income tax only if 25% or more of the gross income of NUR (from
 all sources for the three-year period ending with the close of the taxable year preceding the declaration
 of the distribution) was effectively connected with the conduct of a trade or business in the United
 States by NUR. NUR does not anticipate engaging in the conduct of a trade or business within the United
 States, except through its subsidiaries. However, if the 25% threshold for such period is exceeded,
 a portion of any distribution paid by NUR to a non-U.S. Holder could be subject to federal income tax
 withholding at the rate of 30%; the portion of the distribution that could be subject to withholding
 would correspond to the portion of NUR&#146;s gross income for the period that is effectively connected to
 its conduct of a trade or business within the United States.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sale
 or Exchange of Ordinary Shares.</I> &nbsp;&nbsp;A non-U.S. Holder will not be subject to United States
 federal income tax on any gain realized upon the sale or exchange of ordinary shares if such Holder
 has no connection with the United States other than holding the ordinary shares and in particular (i)
 such gain is not effectively connected with a trade or business in the United States of the non-U.S.
 Holder and (ii) in the case of a non-U.S. Holder who is an individual, such non-U.S. Holder is not present
 in the United States for 183 days or more in the taxable year of such disposition.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>73</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>United
 States Business.</I> &nbsp;&nbsp;A non-U.S. Holder engaged in a trade or business in the United States
 whose income from the ordinary shares (including gain from the sale or exchange thereof) is effectively
 connected with the conduct of such trade or business will generally be subject to regular United States
 federal income tax on such income in the same manner as if it were a U.S. Holder. In addition, if such
 a Holder is a foreign corporation, it may be subject to a branch profits tax equal to 30% of its effectively
 connected earnings and profits for the taxable year, subject to adjustments.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Backup Withholding</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
 made by NUR with respect to the ordinary shares and the gross proceeds received from the disposition
 of the ordinary shares may be subject to certain information reporting to the IRS and to a backup withholding
 tax. However, backup withholding generally will not apply to payments made to certain exempt recipients
 (such as a corporation or financial institution) or to a Holder who furnishes a correct taxpayer identification
 number or provides a certificate of foreign status and provides certain other required information.
 If backup withholding applies, the amount withheld is not an additional tax, but is credited against
 such Holder&#146;s United States federal income tax liability.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Dividends and paying agents</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Statement by experts</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Documents on display</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
 statement in this annual report about any of our contracts or other documents is not necessarily complete.
 If the contract or document is filed as an exhibit to a registration statement, the contract or document
 is deemed to modify the description contained in this annual report. You must review the exhibits themselves
 for a complete description of the contract or document.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
 may review a copy of our filings with the SEC, including exhibits and schedules, and obtain copies of
 such materials at the SEC&#146;s public reference room at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W,
 Washington, D.C. 20549. You may also obtain copies of such materials from the Public Reference Section
 of the SEC, Room 1024, Judiciary Plaza, 450 Fifth Street, N.W, Washington, D.C. 20549, at proscribed
 rates. You may call the SEC at 1-800-SEC-0330 for further information on the public reference room.
 The SEC maintains a web site (http://www.sec.gov) that contains reports, proxy and information statements
 and other information regarding registrants that file electronically with the SEC. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
 SEC filings are also available to the public from commercial document retrieval services.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 Subsidiary Information</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
 ITEM 4.C. of this annual report.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>74</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 11: Quantitative and Qualitative Disclosures
 About Market Risk</B> &nbsp;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market
 risks relating to NUR&#146;s operations result primarily from weak economic conditions in the markets in
 which NUR sells its products and from changes in exchange rates or in interest rates.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Inflation, Deflation and Fluctuation of Currencies</I></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
 &#147;ITEM 5: Operating and Financial Review and Prospects&#151;Impact of Inflation, Deflation and Fluctuation
 of Currencies.&#148; </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>During 2002, NUR entered into non-hedging forward and
 options contracts. On June 26, 2003 the transactions resulted in a loss of approximately $0.5 million
 for the year ended December 31, 2003, which is included in the statements of operations as financial
 expenses.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Interest Rate </I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 exposure to market risk due to changes in interest rates relates primarily to NUR&#146;s long-term loans
 interest rate variation. As of December 31, 2003 we had a balance of $30.0 million of long term loans
 carrying annual interest rates of LIBOR + 2.5%. Changes in the LIBOR interest rate might affect our
 financial expenses. The most recent amendment to the long-term loan agreements was entered into in July
 2003 and February 2004, providing for a twelve-month grace period regarding the quarterly payments of
 the principal and a balloon payment of the remainder of the long-term loans in the first quarter of
 2006. According to the rescheduling agreements, the remaining long term loans of $13.8 million at Bank
 Leumi and $15.8 million at Bank Hapoalim carry interest rates of LIBOR plus 2.25% per annum on 11.8
 million and LIBOR plus 2.5% per annum on $2.0 million at Bank Leumi, and of LIBOR plus 2.5% per annum
 on the $15.8 million at Bank Hapoalim. As of March 2004 $15.8 million was outstanding under the Bank
 Hapoalim loan and $13.8 million was outstanding under the Bank Leumi loan.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
 does not otherwise believe the disclosure required by ITEM 11 of this annual report to be material to
 NUR.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 12: Description of Securities Other Than Equity
 Securities</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART II</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 13: Defaults, Dividend Arrearages and Delinquencies
 </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
 2003 NUR failed to meet certain of the financial ratios governing its long-term and short-term loans.
 However, the banks have agreed in writing not to act upon their contractual rights pursuant to NUR&#146;s
 defaults mentioned above. We believe that the amendment of the financial ratios that took place on February
 2004 will allow a better alignment between the financial ratios and NUR&#146;s business plan for 2004. For
 more information see &#147;ITEM 10.C: Material Contracts.&#148;</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>75</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 14: Material Modifications to the Rights of
 Security Holders and Use of Proceeds </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 are no material modifications to, or qualifications of, the rights of security holders that are required
 to be disclosed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 15: Controls and Procedures</B> &nbsp;</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Disclosure Controls and Procedures</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
 Chief Executive Officer and Chief Financial Officer have conducted an evaluation of NUR&#146;s disclosure
 controls and procedures (as defined in Rules 13a-15(c) and 15d-15(c) of the Securities Exchange Act
 of 1934) as of the end of the period covered by this report and each has concluded that such disclosure
 controls and procedures were effective as of such date to ensure that information required to be disclosed
 in NUR&#146;s reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized
 and reported within the time periods specified in Securities and Exchange Commission rules and forms.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Internal control over Financial Reporting</I></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 were no changes in NUR&#146;s internal control over financial reporting that occurred during the year ended
 December 31, 2003 that have materially affected, or are reasonably likely to materially affect, NUR&#146;s
 internal control over financial reporting.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16: Reserved</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16A: Audit Committee Financial Expert</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
 March 2004 the Board determined that it has at least one audit committee financial expert, as defined
 in Item 16A of Form 20-F, serving on the Audit Committee. Lauri Hanover has been designated as the audit
 committee financial expert. For additional information regarding Lauri Hanover&#146;s financial experience,
 see &#147;ITEM&nbsp;&nbsp;6: Directors and Senior Management.&#148;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16B: Code of Ethics</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
  Audit Committee and Board have adopted a code of ethics, as defined in Item
  16B of Form 20-F, that applies to NUR&#146;s Chief Executive Officer, Chief
  Financial Officer, Vice President of Finance, Controller and any other person
  bearing the title of Vice President or higher in the Finance Department. A copy
  of the code of ethics has been filed as an exhibit to this annual report. </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
 are no material modifications to, or waivers from, the provisions of the code of ethics that are required
 to be disclosed.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>76</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16C: Principal Accountant Fees and Services&nbsp;</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Fees paid to the Auditors</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Audit Fees</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the years ended December 31, 2002 and December 31, 2003, the aggregate fees billed for professional
 services rendered by our independent accountant for the audit of our annual financial statements or
 services that are normally provided by the accountant in connection with statutory and regulatory filings
 or engagements for those fiscal years amounted to approximately $0.39 million and $0.36 million, respectively.
 </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Audit-Related Fees</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the years ended December 31, 2002 and December 31, 2003, the aggregate fees billed for assurance and
 related services by our independent accountant that are reasonably related to the performance of the
 audit or review of NUR&#146;s financial statements and are not under audit fees mentioned above amounted
 to approximately $0.05 million and $0.12 million, respectively. The audit related services included
 mainly audit services of the subsidiaries related to the annual financial statements performed by external
 auditors.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Tax Fees</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the years ended December 31, 2002 and December 31, 2003, the aggregate fees billed for professional
 services rendered by our independent accountant for tax compliance, tax advice, and tax planning amounted
 to approximately $0.15 million and $0.12 million, respectively. The nature of services was mainly focused
 international tax consultancy services.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>All Other Fees</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 the years ended December 31, 2002 and December 31, 2003, the aggregate fees billed for products and
 services rendered by our independent accountant other than the above reported services amounted to approximately
 $0.05 million and $0.04 million, respectively. The nature of the other services was mainly focused advisory
 services pertaining to approved enterprise issues, transfer prices, etc.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Audit Committee&#146;s pre-approval policies and procedures</B></FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
 Audit Committee nominates and engages our independent auditors to audit our financial statements. See
 also the description under the heading in &#147;ITEM 6: Directors, Senior Management and Employees&#151;Board
 Practices.&#148; In July 2003, our Audit Committee also adopted a policy requiring management to obtain the
 Audit Committee&#146;s approval before engaging our independent auditors to provide any other audit or permitted
 non-audit services to us. Pursuant to this policy, which is designed to assure that such engagements
 do not impair the independence of our auditors, the Audit Committee pre-approves annually a catalog
 of specific audit and non-audit services in the categories Audit Service, Audit-Related Service and
 Tax Services that may be performed by our auditors. </FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>77</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16D: Exemptions from the Listing Standards
 for Audit Committees</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 16E: Purchase of Equity Securities by the Company
 and Affiliated Purchasers</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>PART III</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 17: Financial Statements</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
 Applicable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>ITEM 18: Financial Statements </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
 Financial Statements and Financial Statement Schedule included at the end of this report.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>78</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD height=25 colspan="2" align=center><div align="left"><font size="2" face="Times New Roman, Times, serif"><strong>ITEM
        19: Exhibits</strong></font></div></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Number</U></B></FONT></TD>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Description</U></B></FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>1.1</FONT></TD>
    <TD height=25><FONT face="Times New Roman, Times, serif" size=2>Memorandum
      of Association of the Registrant, in Hebrew with a translation to English(1)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>1.2</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Amended
      and Restated Articles of Association of the Registrant(2)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>1.3</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Certificate
      of Name Change(3)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.1</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Specimen
      Certificate for ordinary shares(1)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.2</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Forms
      of Placement Agent&#146;s Warrant Agreement and Certificate(4)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.3</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Forms
      of Qualified Independent Underwriter&#146;s Warrant Agreement and Certificate(4)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.4</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Share and Warrant Purchase Agreement dated January 17, 2002 between the
      Registrant and The Investment Corp. of United Mizrahi Bank Ltd.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.5</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated January 17, 2002 between the Registrant and
      The Investment Corp. of United Mizrahi Bank Ltd.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.6</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated January 17, 2002 between the Registrant
      and The Investment Corp. of United Mizrahi Bank Ltd.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.7</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated February 12, 2002 between the Registrant and
      Bank Hapoalim B.M.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.8</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated February 12, 2002 between Registrant
      and Bank Hapoalim B.M.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.9</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated February 12, 2002 between the Registrant and
      Bank Leumi le-Israel Ltd.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.10</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated February 12, 2002 between Registrant
      and Bank Leumi le-Israel Ltd.(5)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.11</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated November 21, 2002 between the Registrant and
      Poalim Capital Markets &amp; Investments Ltd.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.12</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated November 7, 2002 between the Registrant
      and Poalim Capital Markets &amp; Investments Ltd.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.13</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement dated, March 11, 2003 between the Registrant and Bank
      Hapoalim B.M.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.14</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated March 11, 2003 between Registrant
      and Bank Hapoalim B.M.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.15</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated March 11, 2003 between the Registrant and Bank
      Leumi le-Israel Ltd.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.16</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated March 11, 2003 between Registrant
      and Bank Leumi le-Israel Ltd.(6)</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.17</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Convertible Loan and Warrant Agreement, dated July 2003 between Registrant
      and certain investors</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.18</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Warrant Agreement, dated October 15, 2003 between the Registrant and
      certain investors</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.19</FONT></TD>
    <TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form
      of Registration Rights Agreement, dated July, 2003 between the Registrant
      and certain investors</FONT></TD>
  </TR>
  <TR vAlign=bottom>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=2>2.20</FONT></TD>
    <TD height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant
      Agreement, dated October 15, 2003 between the Registrant and the Placement
      Agent (X Securities Ltd.)</FONT></TD>
  </TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>79</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Number</U></B></FONT></TD>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Description</U></B></FONT></TD>
  </TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.21</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated October 15, 2003 between the Registrant and the Placement Agent (Matthew Norton)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.22</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated October 15, 2003 between the Registrant and the Placement Agent (David Fuchs)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.23</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated August 1, 2003 between the Registrant and Bank Hapoalim B.M.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.24</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Registration Rights Agreement, dated August 1, 2003 between the Registrant and Bank Hapoalim B.M.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.25</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated August 1, 2003 between the Registrant and Bank Leumi le-Israel Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.26</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Registration Rights Agreement, dated August 1, 2003 between the Registrant and Bank Leumi le-Israel Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.27</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated June 27, 2003 between the Registrant and Israel Discount Bank Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.28</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Registration Rights Agreement, dated June 27, 2003 between the Registrant and Israel Discount Bank Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.29</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Warrant Agreement, dated August 1, 2003 between the Registrant and Israel Discount Bank Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>2.30</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Registration Rights Agreement, dated August 1, 2003 between the Registrant and Israel Discount Bank Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.1</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>1995 Israel Stock Option Plan (previously referred to in Company filings as the 1995 Flexible Stock Incentive Plan or the 1995 Stock Option / Stock Purchase Plan)(1)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.2</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Amendment to the 1995 Israel Stock Option Plan(4)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.3</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>1997 Stock Option Plan(7)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.4</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>1998 Non-Employee Director Share Option Plan(8)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.5</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>2000 Stock Option Plan(9)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.6</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Amendment to the 1995 Israel Stock Option Plan</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.7</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Lease Agreement for office space in Brussels, Belgium between Nivellease, S.A. and the Registrant dated November 26, 1996(4)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.8</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Lease Agreement for office space in Newton Center, Massachusetts between WHTR Real Estate Limited Partnership and the Registrant dated July 10, 1998(4)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.9</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Distribution Agreement between Imaje S.A. and the Registrant dated June 26, 1995(1)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.10</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Settlement Agreements relating to Moshe Nurie and his affiliated companies(4)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.11</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Hapoalim Loan Agreements(5)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.12</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Hapoalim Rescheduling Loan Agreement dated February 10, 2002(5)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.13</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Leumi le-Israel Loan Agreements(5)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.14</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Leumi le-Israel Rescheduling Loan Agreement dated February 11, 2003(6)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.15</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Hapoalim Amendment to the Rescheduling Loan Agreement dated March 11, 2003(6)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.16</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Leumi le-Israel Amendment to the Rescheduling Loan Agreement dated March 12, 2003(6)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.17</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Hapoalim Amendment to the Rescheduling Loan Agreement dated August 7, 2003</FONT></TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>80</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE  cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=bottom>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Number</U></B></FONT></TD>
    <TD align=center height=25><FONT face="Times New Roman, Times, serif" size=1><B><U>Description</U></B></FONT></TD>
  </TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.18</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Leumi le-Israel Amendment to the Rescheduling Loan Agreement dated July 30, 2003</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.19</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Israel Discount Bank Amendment to the Rescheduling Loan Agreement dated July 30, 2003</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.20</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Hapoalim Amendment to the Covenants dated February 18, 2004</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.21</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Bank Leumi le-Israel Amendment to the Covenants dated February 18, 2004</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.22</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Israel Discount Bank Amendment to the Covenants dated February 22, 2004</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.23</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of confidentiality agreement (4)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.24</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>The Founders Agreement dated September 30, 1999 among Gera Eiron, Ogen Dialogix Ltd. and the Registrant(2)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.25</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Assembly Agreement dated October 4, 1999 between NUR Pro Engineering and the Registrant(2)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.26</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Lod Lease Agreement dated January 11, 2000 between A. Barzilai Investments and Assets Ltd. and Kamim Investments and Assets Ltd. and the Registrant(2)</FONT></TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=center height=19>&nbsp;</TD>
<TD height=19>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD vAlign=top align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.27</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Asset Purchase Agreement dated May 17, 2000 by and among Salsa Digital, Ltd., Signtech Japan, Ltd., Salsa Digital DO Brasil, Ltda., Salsa Digital (Guangzhou) Ltd., Salsa Dubai Corp., Salsa Technology Pte Ltd., as sellers, and NUR Macroprinters Ltd., Salsa Digital Printing Ltd. and NUR Hungary Trading and Software Licensing Limited Liability Company, as purchasers(10)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.28</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Amendment No. 1 to Asset Purchase Agreement dated as of June 30, 2000(11)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.29</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Lease Agreement dated July 1, 2001 by and between RAM Global Ltd. and Salsa Digital Printers(5)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>4.30</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Form of Agreement dated May 11, 2003 between the Registrant and Ogen Dialogix Ltd., Gera Eiron and NUR Pro Engineering Ltd.</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>8</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>List of Subsidiaries of the Registrant</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>11</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Code of Ethics</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>12.2</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Certification of Principal Executive Officer required by Rule 13a-14(a) and Rule 15d-14(a) (Section 302 Certifications)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>12.2</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Certification of Principal Financial Officer required by Rule 13a-14(a) and Rule 15d-14(a) (Section 302 Certifications)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>13.1</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Certification of Principal Executive Officer required by Rule 13a-14(b) and Rule 15d-14(b) (Section 906 Certifications)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>13.2</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Certification of Principal Financial Officer required by Rule 13a-14(b) and Rule 15d-14(b) (Section 906 Certifications)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>14.1</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Consent of Kost Forer &amp; Gabbay (S-8)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center width=61 height=25><FONT face="Times New Roman, Times, serif" size=2>14.2</FONT></TD>
<TD width=1185 height=25><FONT face="Times New Roman, Times, serif" size=2>Consent of Kost Forer &amp; Gabbay (F-3)</FONT></TD></TR>
</TABLE>

<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top width=10></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>__________________________________</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD vAlign=top width=10>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously filed with NUR&#146;s F-1 (File No. 33-93160) and incorporated by reference herein.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously filed with NUR&#146;s Form 20-F for the year ended December 31, 2000 and incorporated by reference herein.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT size=2>(3)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously filed with NUR&#146;s Form 6-K dated January 7, 1998 and incorporated by reference herein.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT size=2>(4)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously filed with NUR&#146;s Form F-1 (File No. 333-66103) and incorporated by reference herein.</FONT></TD></TR>
<TR>
<TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT size=2>(5)</FONT></TD>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously filed with NUR&#146;s Form 20-F for the year ended December 31, 2001 and incorporated by reference herein.</FONT></TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>81</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>






<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(6)
      </FONT></TD>
    <TD width="10" vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Form 20-F for the year ended December 31, 2002 and
      incorporated by reference herein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(7)
      </FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Form 20-F for the year ended December 31, 1997 and
      incorporated by reference herein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(8)
      </FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Form 6-K dated November 13, 1998 and incorporated
      by reference herein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(9)
      </FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Schedule TO-I (File No. 5-56015) on May 16, 2002 and
      incorporated by reference herein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT size=2>(10)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Form 6-K/A dated May 22, 2000 and incorporated by
      reference herein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT size=2>&nbsp;</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT size=2>(11)</FONT></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Previously
      filed with NUR&#146;s Form 6-K/A dated July 7, 2000 and incorporated by
      reference herein.</FONT></TD>
  </TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2><I>Financial Statement Schedules</I></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
 than as set forth below, all schedules have been omitted as the required information is either not applicable
 or presented in the financial statements or notes thereto.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>82</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
















<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNATURES</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
 to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant certifies that
 it meets all of the requirements for filing on Form 20-F and has duly caused this annual report to be
 signed on its behalf by the undersigned, thereunto duly authorized.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR>
    <TD vAlign=top width="50%">&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters
      Ltd.</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: &nbsp;&nbsp;&nbsp;&nbsp;/s/
      David Amir</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT size=2><I>David Amir</I></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I>President
      and Chief Executive Officer</I></FONT></TD>
  </TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Dated: March 30, 2004</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CERTIFICATIONS</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>I, David Amir, the principal executive officer of NUR
 Macroprinters Ltd., certify that: </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this annual report on Form 20-F of NUR Macroprinters Ltd.; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>3. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>4. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The company&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the company and have: </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(a) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Evaluated the effectiveness of the company&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(c) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Disclosed in this report any change in the company&#146;s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company&#146;s internal control over financial reporting.</FONT></TD></TR>
</TABLE>



<P>&nbsp;</P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>83</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>5. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The company&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company&#146;s auditors and the audit committee of the company&#146;s board of directors (or persons performing the equivalent functions): </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(a) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company&#146;s ability to record, process, summarize and report financial information; and </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the company&#146;s internal control over financial reporting. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Date: March 30, 2004</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width="50%">&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>/s/David Amir</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#151;&#151;&#151;&#151;&#151;&#151;</font></TD></TR>
<TR>
<TD vAlign=top width=336>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>David Amir</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=336>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Chief Executive Officer</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>I, David Seligman, the principal financial officer
 of NUR Macroprinters Ltd., certify that: </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this annual report on Form 20-F of NUR Macroprinters Ltd.; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>3. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>4. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The company&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the company and have: </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(a) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Evaluated the effectiveness of the company&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(c) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Disclosed in this report any change in the company&#146;s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company&#146;s internal control over financial reporting.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>84</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<page>
<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>5. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The company&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company&#146;s auditors and the audit committee of the company&#146;s board of directors (or persons performing the equivalent functions): </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(a) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company&#146;s ability to record, process, summarize and report financial information; and </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=46></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the company&#146;s internal control over financial reporting. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Date: March 30, 2004</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD vAlign=top width="50%">&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><BR>/s/ David Seligman</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></TD></TR>
<TR>
<TD vAlign=top width=336>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>David Seligman</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=336>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Chief Financial Officer</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>85</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>

<page>




<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD. AND ITS SUBSIDIARIES</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>AS OF DECEMBER 31, 2003</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>IN U. S. DOLLARS</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>INDEX</B></FONT></P>
<TABLE width="600" border="0" align="center" cellPadding="0" cellSpacing="0">
  <TR>
    <TD></TD>
    <TD ></TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD align="center"><font size="1" face="Times New Roman, Times, serif"><strong>Page</strong></font></TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD align="center"><HR SIZE="1" NOSHADE></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Report of Independent
      Auditors</B></font></TD>
    <TD align="center"> <font size="2" face="Times New Roman, Times, serif"><B>F-2</B></font></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Consolidated
      Balance Sheets</B></font></TD>
    <TD align="center" > <font size="2" face="Times New Roman, Times, serif"><B>F-3
      - F-4</B></font></TD>
  </TR>
  <TR>
    <TD ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Consolidated
      Statements of Operations</B></font></TD>
    <TD align="center" > <font size="2" face="Times New Roman, Times, serif"><B>F-5</B></font></TD>
  </TR>
  <TR>
    <TD ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Statements of
      Changes in Shareholders&#146; Equity (Deficiency)</B></font></TD>
    <TD align="center" > <font size="2" face="Times New Roman, Times, serif"><B>F-6</B></font></TD>
  </TR>
  <TR>
    <TD ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Consolidated
      Statements of Cash Flows</B></font></TD>
    <TD align="center" > <font size="2" face="Times New Roman, Times, serif"><B>F-7
      - F-8</B></font></TD>
  </TR>
  <TR>
    <TD ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" ><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD > <font size="2" face="Times New Roman, Times, serif"><B>Notes to Consolidated
      Financial Statements</B></font></TD>
    <TD align="center" > <font size="2" face="Times New Roman, Times, serif"><B>F-9
      - F-43</B></font></TD>
  </TR>
</TABLE>

<br>
<HR align="center" width="150" SIZE=1 NOSHADE>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><IMG height=27 alt=* src="image001.gif" width=30><strong><em>ERNST &amp;
      YOUNG</em></strong></td>
  </tr>
</table>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><br>
  REPORT OF INDEPENDENT AUDITORS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>To the Shareholders
  of<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><U>NUR MACROPRINTERS
  LTD.</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have audited the accompanying
consolidated balance sheets of NUR Macroprinters Ltd. (&#147;the Company&#148;) and its subsidiaries
as of December 31, 2002 and 2003 and the related consolidated statements of operations, changes in
shareholders&#146; equity (deficiency) and cash flows for each of the three years in the period ended
December&nbsp;31, 2003. These financial statements are the responsibility of the Company&#146;s management.
Our responsibility is to express an opinion on these financial statements based on our audits. We
did not audit the financial statements of certain consolidated subsidiaries, which statements reflect
total assets of 7% as of December 31, 2003 and total revenues of approximately 15% for the year ended
December 31, 2003, of the related consolidated totals. Those financial statements were audited by
other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to
amounts included for these subsidiaries, is based solely on the reports of the other auditors.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We conducted our audits
in accordance with auditing standards generally accepted in the United States. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In our opinion, based
on our audits and the reports of other auditors, the consolidated financial statements referred to
above present fairly, in all material respects, the consolidated financial position of the Company
and its subsidiaries as of December 31, 2002 and 2003 and the consolidated results of their operations
and their cash flows for each of the three years in the period ended December 31, 2003, in conformity
with accounting principles generally accepted in the United States.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As discussed in Notes 2k, 1e and 2l to
the financial statements, the Company adopted FASB 142, &#147;Goodwill and other Intangible Assets&#148;
and FASB 146, &#147;Accounting for Costs Associated with Exit or Disposal Activities&#148; and EITF
00-21, &#147;Revenues Arrangements with Multiple Deliverables&#148;, respectively.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width=100% border="0">
  <TR>
    <TD width="50%" > <P style="MARGIN-LEFT: 2.85pt"><font size="2" face="Times New Roman, Times, serif">Tel-Aviv,
        Israel</font></P></TD>
    <TD width="50%" align="right"> <P><font size="2" face="Times New Roman, Times, serif">KOST
        FORER GABBAY &amp; KASIERER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></P></TD>
  </TR>
  <TR>
    <TD > <P><font size="2" face="Times New Roman, Times, serif">February 26,
        2004</font></P></TD>
    <TD align="right"> <P><font size="2" face="Times New Roman, Times, serif">A
        Member of Ernst &amp; Young Global&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></P></TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED
      BALANCE SHEETS</B></FONT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <td COLSPAN=4 align="center"><font size="1" face="Times New Roman, Times, serif"><strong>December
      31,</strong></font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <TH COLSPAN=4><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <td COLSPAN=2 align="center"><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
      2002 </FONT></strong></td>
    <td COLSPAN=2 align="center"><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" width="95%" size="1" noshade color=black></TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" width="95%" size="1" noshade color=black></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSETS</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT ASSETS:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash
      and cash equivalents</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;10,505</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;10,301</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Short-term
      restricted cash</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,163</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>772</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Trade
      receivables (net of allowance for doubtful accounts of $ 5,768 and</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$
      4,963 as of December 31, 2002 and 2003, respectively)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28,777</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18,571</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Other
      accounts receivable and prepaid expenses (Note 3)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,531</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,800</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Inventories
      (Note 4)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,297</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,947</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      current assets</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70,273</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51,391</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LONG-TERM
      INVESTMENTS:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Long-term
      trade receivables (Note 5)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,760</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>758</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Investments
      in an affiliated company (Note 6)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>590</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,048</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Restricted
      long-term bank deposits (Note 7)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>185</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Severance
      pay fund</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>916</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>810</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Long-term
      prepaid expenses</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>152</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>84</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      long-term investments</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,603</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,744</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROPERTY,
      PLANT AND EQUIPMENT, NET (Note 8)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,576</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,084</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TECHNOLOGY
      AND OTHER INTANGIBLE ASSETS, NET (Note 9)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>854</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>736</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DEFERRED
      INCOME TAXES (Note 16f)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      assets</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;87,895</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;61,944</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying
  notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F -3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED
      BALANCE SHEETS</B></FONT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands
      (except share data)</B></FONT></td>
  </tr>
</table>

<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <td COLSPAN=4 align="center"><strong><font size="1" face="Times New Roman, Times, serif">December
      31,</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <td COLSPAN=4 align="center"><hr align="center" width="95%" size="1" noshade color=black></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2>&nbsp;</TH>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">
      2002</font></strong></td>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2003</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIABILITIES
      AND SHAREHOLDERS&#146; EQUITY (DEFICIENCY)</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT LIABILITIES:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term
      bank credit and loans (Note 10)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;5,844</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;15,104</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
      maturities of long-term loans (Note 11)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,020</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>862</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade
      payables</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,538</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,623</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade
      payables to related parties (Note 14)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,906</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,101</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
      accounts payable and accrued expenses (Note 12)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,984</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,777</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer
      advances</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>270</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      current liabilities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33,562</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,521</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LONG-TERM
      LIABILITIES:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term
      loans, net of current maturities (Note 11)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,051</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29,981</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
      severance pay</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,122</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>945</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      long-term liabilities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31,173</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,926</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COMMITMENTS
      AND CONTINGENT LIABILITIES (Note 13)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SHAREHOLDERS'
      EQUITY (DEFICIENCY) (Note 15):</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share
      capital</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary
      shares of NIS 1 par value:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized:
      50,000,000 shares as of December 31, 2002 and 2003; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Issued and</FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE=2>outstanding:
      17,155,859 and 17,414,281 shares as of</FONT> </TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      December 31, 2002 and 2003, respectively</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,261</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional
      paid-in capital</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45,697</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47,095</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Receipts
      on account of shares</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,401</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      other comprehensive loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,286</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,137</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      deficit</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(25,453</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(53,123</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      shareholders&#146; equity (deficiency)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,160</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,503</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      liabilities and shareholders&#146; equity (deficiency)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;87,895</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;61,944</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying
  notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED
      STATEMENTS OF OPERATIONS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td height="15"><FONT face="Times New Roman, Times, Serif" size=2><B>U.S.
      dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=6 align="center"><strong><font size="1" face="Times New Roman, Times, serif">Year
      ended December 31,</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=6 align="center"><hr align="center" width="95%" size="1" noshade color=black></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2001</font></strong></td>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2002</font></strong></td>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2003</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues
      (Note 17):</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
      of printers, related products and services</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;120,377</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;85,255</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;65,574</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost of revenues:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
      of sales of printers and related products (a)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>71,928</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57,360</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39,665</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory
      write-off</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>975</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,154</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      cost of revenues</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>75,917</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58,335</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52,819</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44,460</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26,920</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,755</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
      expenses:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research
      and development, net (Note 18a)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,234</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,742</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,546</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling
      and marketing</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18,665</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,744</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General
      and administrative:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ongoing
      expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,953</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,121</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Doubtful
      account expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,881</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,694</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
      and impairment of goodwill (Note 2k)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>572</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,836</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
      and impairment of technology and other</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;intangible
      assets (Note 2k)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,332</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,049</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>118</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restructuring
      charges (Note 1e)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,237</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,300</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,001</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Total</u>
      operating expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48,361</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49,505</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,801</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
      loss</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,901</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(22,585</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(25,046</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial
      expenses, net (Note 18b)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,336</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,322</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,157</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other expenses,
      net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(324</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(124</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(265</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Loss before
      taxes on income (tax benefit)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,561</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(24,031</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27,468</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes on
      income (tax benefit) (Note 16d)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(191</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Loss before
      equity in earnings of an affiliate</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,370</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity in
      earnings of an affiliate, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>154</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;(7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$(24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$(27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic net
      loss per share (Note 18c)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;(0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;(1.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;(1.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted net
      loss per share (Note 18c)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;(0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;(1.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;(1.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Cost of sales
      includes purchases from related parties for the years ended December 31,
      2001, 2002 and 2003 in the amounts of $&nbsp;13,819 and $&nbsp;9,026 and
      $&nbsp;8,273, respectively.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying
  notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>STATEMENTS
      OF CHANGES IN SHAREHOLDERS&#146; EQUITY (DEFICIENCY)</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td height="15"><FONT face="Times New Roman, Times, Serif" size=2><B>U.S.
      dollars in thousands (except share data)</B></FONT></td>
  </tr>
</table>


<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">
      Number of<br>
      Ordinary <br>
      shares <br>
      outstanding</font></strong></TH>
    <TH COLSPAN=3> <strong><font size="1" face="Times New Roman, Times, serif">Share<br>
      capital</font></strong></TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">Additional<br>
      paid-in<br>
      capital</font></strong></TH>
    <TH COLSPAN=3><font size="1" face="Times New Roman, Times, serif"><strong>Receipts
      on<br>
      account of<br>
      shares</strong></font></TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">
      Accumulated<br>
      other<br>
      comprehensive<br>
      loss</font></strong></TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">
      Retained<br>
      earnings<br>
      (accumulated<br>
      deficit)</font></strong></TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">
      Total<br>
      comprehensive<br>
      loss</font></strong></TH>
    <TH COLSPAN=3><strong><font size="1" face="Times New Roman, Times, serif">
      Total<br>
      shareholders&#146;<br>
      equity<br>
      (deficiency)</font></strong></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance
      as of January 1, 2001</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,525,918</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      3,618</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      39,057</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=3% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (578</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      5,828</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      47,925</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Foreign currency
      translation adjustments</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD colspan="2"><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total comprehensive
      loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (7,420</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD colspan="2"><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercise
      of options, net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>225,835</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>436</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>492</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance as
      of December 31, 2001</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,751,753</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,674</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39,493</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(782</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,388</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40,997</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Foreign currency
      translation adjustments</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(504</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(504</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(504</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total comprehensive
      loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,569</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD colspan="2"><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Issuance
      of shares, net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,404,106</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>528</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;6,732</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance as
      of December 31, 2002</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,155,859</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45,697</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,286</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(25,453</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,160</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other comprehensive
      loss:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Foreign currency
      translation adjustments</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>149</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>149</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>149</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total comprehensive
      loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,521</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Issuance
      of shares, net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>184,754</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercise
      of options</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>73,668</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Receipts
      on account of shares, net</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,401</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,401</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Issuance
      of warrants</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>466</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>466</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fair value
      of options granted in connection</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;to
      convertible loans and beneficial </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;conversion
      feature</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>843</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>843</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance as
      of December 31, 2003</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,414,281</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,261</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 47,095</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,401</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1,137</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (53,123</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1,503</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD></TD>
    <TD><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying
  notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F -6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED
      STATEMENTS OF CASH FLOWS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td height="15"><FONT face="Times New Roman, Times, Serif" size=2><B>U.S.
      dollars in thousands</B></FONT></td>
  </tr>
</table>

<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=6 align="center"><font size="1" face="Times New Roman, Times, serif"><strong>Year
      ended December 31,</strong></font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=6 align="center"><hr align="center" width="95%" size="1" noshade color=black></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2001
      </font></strong></td>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2002</font></strong></td>
    <td COLSPAN=2 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2003</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=2><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Cash flows
      from operating activities:</u></FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      loss</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;&nbsp;(7,216&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;(24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$(27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments
      to reconcile net loss to net cash used in</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operating
      activities:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation,
      amortization and impairment of goodwill,</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;technology
      and other intangible assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,333</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,424</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,570</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off
      of property and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>636</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,021</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off
      of inventories</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>975</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,154</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
      of fair value of warrants granted in</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;connection
      with convertible loans and amortization of</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;beneficial
      conversion feature</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>843</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
      related to issuance of shares</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss
      on sale of property and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>190</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>124</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>83</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
      income taxes, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(663</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(43</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>600</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
      severance pay, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(27</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(51</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(71</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity
      in earnings of an affiliate, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(154</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in trade receivables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,043</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,971</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,638</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      (increase) in other accounts receivable and</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prepaid
      expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,021</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(733</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(186</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      (increase) in inventories</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,250</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(221</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in long-term trade receivables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>168</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>511</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,028</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in long-term related parties' accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>618</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in long-term prepaid expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>68</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      (decrease) in trade payables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>257</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,105</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,712</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
      (decrease) in trade payables from related parties</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,576</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,925</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(761</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in other accounts payable and accrued expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,147</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,040</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,072</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
      in customer advances</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,452</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(271</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(212</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net cash
      used in operating activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(206</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,891</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Cash flows
      from investing activities:</u></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      in short-term restricted cash</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(454</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(709</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      in restricted long-term bank deposit</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from restricted long-term bank deposit and</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restricted
      cash</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>127</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>532</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase
      of property and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9,043</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,179</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,198</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from sale of property and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>686</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,197</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
      in an affiliated company</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(460</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from acquisition of a consolidated subsidiary, net (1)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>110</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net cash
      used in investing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8,574</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,741</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,123</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying
  notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>CONSOLIDATED
      STATEMENTS OF CASH FLOWS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td height="15"><FONT face="Times New Roman, Times, Serif" size=2><B>U.S.
      dollars in thousands</B></FONT></td>
  </tr>
</table>

<br>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=9 align="center"><font size="1" face="Times New Roman, Times, serif"><strong>Year
      ended December 31,</strong></font></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=9 align="center"><hr align="center" width="95%" size="1" noshade color=black></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <td COLSPAN=3 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2001</font></strong></td>
    <td COLSPAN=3 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2003</font></strong></td>
    <td COLSPAN=3 align="center"><strong><font size="1" face="Times New Roman, Times, serif">2003</font></strong></td>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
    <TH COLSPAN=3><hr align="center" width="95%" size="1" noshade color=black></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=66% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Cash
      flows from financing activities:</u></FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from issuance of shares and warrants</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,690</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 466</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from exercise of options and warrants, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>492</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
      from convertible loans, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,401</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term
      bank credit and short-term loans, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,323</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>783</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,260</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal
      payment of long-term loans</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,322</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,706</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,228</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net cash
      provided by financing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,493</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,767</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,953</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effect of
      exchange rate changes on cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(537</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(714</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,143</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Decrease
      in cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,824</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,890</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and
      cash equivalents at the beginning of the year</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19,219</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,505</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and
      cash equivalents at the end of the year</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 12,395</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,505</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,301</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Proceeds
      from acquisition of consolidated subsidiary:</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=right valign="bottom">&nbsp;</TD>
    <TD WIDTH=4% ALIGN=left valign="bottom">&nbsp;</TD>
    <TD WIDTH=7% ALIGN=right valign="bottom">&nbsp;</TD>
    <TD WIDTH=4% ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fair value
      of assets acquired and liabilities assumed at</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the date
      of acquisition was as follows:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Working capital,
      net (excluding cash and cash equivalents)</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (554</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
    <TD width="4%" ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      $</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
      trade receivables</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Property
      and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>862</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Technology</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>700</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
      loans</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,468</FONT></TD>
    <TD ALIGN="LEFT" VALIGN="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Excess of
      losses over investment in an affiliate</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>308</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2><hr noshade size=1></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=1></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=1> </TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (110</FONT></TD>
    <TD ALIGN=left valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-
      </FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=left valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="2"><hr noshade size=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>(2)&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Supplemental
      disclosure of cash flows activities:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
    <TD ALIGN=left valign="bottom">&nbsp;</TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid
      during the year for:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      2,628&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1,685</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;       1,483</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="2"><hr noshade size=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=3> </TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      945</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>625
      </FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="2"><hr noshade size=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=3> </TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font face="Times New Roman, Times, Serif" size=2>(3)&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Supplemental
      disclosure of non-cash operating financing</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
    <TD ALIGN=left valign="bottom">&nbsp;</TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion
      of long-term loans</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;       1,401</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="2"><hr noshade size=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=3> </TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Transfer
      of equipment from property, plant and</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equipment
      to inventory</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;       2,131</FONT></TD>
    <TD ALIGN=right valign="bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2><hr noshade size=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom">&nbsp; </TD>
    <TD COLSPAN=2 ALIGN=right valign="bottom"> <HR NOSHADE SIZE=3></TD>
    <TD align="right" valign="bottom"></TD>
    <TD ALIGN=right valign="bottom"><HR NOSHADE SIZE=3> </TD>
    <TD ALIGN=right valign="bottom">&nbsp;</TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The accompanying notes are an integral part of the consolidated financial statements.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F -8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      1:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>GENERAL</B></FONT></TD>
  </TR>
  <TR>
    <TD width="76" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Macroprinters Ltd. (&#147;the Company&#148;) and its subsidiaries (collectively, &#147;the Group&#148;)
develop, manufacture, sell and provide services of digital printing systems for on-demand, short-run,
wide format and super-wide format printing as well as related consumable products. The principal
markets of the Group are located in Europe, the Americas and Asia.</FONT></TD></TR>
<TR>
    <TD width="76" vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company operates through wholly-owned subsidiaries for sales, support services and marketing of
the Company&#146;s products in their country or region of domicile. Such entities include NUR Europe
S.A. Nur Media Solutions S.A. (&#147;Nur Media Solutions&#148;), (&#147;NUR Europe&#148;) in Belgium,
NUR America Inc. (&#147;NUR America&#148;) in the U.S. and NUR Asia Pacific Ltd. (&#147;NUR Asia
Pacific&#148;) in Hong Kong.</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Media Solutions S.A. (&#147;NUR Media Solutions&#148;), a wholly-owned subsidiary, was engaged
in developing and marketing consumables for the Company&#146;s printers. In October 2003 the operations
of NUR Media Solutions were transferred to Nur Europe. In addition, during 2003, NUR Shanghai operations
were transferred to NUR Asia Pacific.</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003, the manufacturing operations of Stillachem and NUR Salsa were transferred to Israel. As
part of the transfer, the Company manufactures all its printers in a single plant located in Rosh
Ha&#146;Ayin, Israel and the ink manufacturing facilities were relocated to a new manufacturing plant
in Ashkelon, Israel. In addition, NUR Salsa&#146;s marketing operations were transferred to NUR America.
</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Acquisition of NUR Pro Engineering Ltd.:</FONT></TD></TR>
<TR>
    <TD width="76" vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Pro Engineering Ltd., a 50% joint venture, is engaged in the assembly of the Company&#146;s printers.
On May 11, 2003, the Company and the shareholders of NUR Pro Engineering Ltd. signed an additional
share purchase agreement (&#147;the Agreement&#148;). According to the Agreement, the&nbsp;Company
will purchase the remaining shares held by the shareholders (50%), in consideration for $ 850, which
will be paid in monthly installments until March 31, 2004. The Company expects to complete the acquisition
of Nur Pro Engineering by the end of the first quarter of 2004. As a result, the financial statements
of Nur Pro Engineering, will be fully consolidated into the financial statements of the Group.</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of December 31, 2003, $ 460 has been paid in accordance with the agreement. (See Note&nbsp;6).</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      purchases some of the ink and all of the ink-jet printer-heads used in its
      printers from a single supplier for each series of printers. The Company&#146;s
      customers rely on the ink and ink-jet printerheads to operate their printers.
      Because the Company&#146;s business depends on these items for sale and
      maintenance of its printers, a failure in supply or a change in credit terms
      could have a material adverse effect on the Company&#146;s results of operations
      and financial position.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      1:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>GENERAL
      (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD width="76" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company employs a limited number of unaffiliated subcontractors to manufacture components for its
printers. The Company currently employs one 50% owned affiliated sub-contractor to assemble some
of its printers (see b above).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Because the Company relies on a limited number of subcontractors, if the Company fails to maintain
its relationships with its subcontractors or fails to develop alternative sources for its printer
components, it could have a material adverse effect on the Company&#146;s results of operations and
financial position.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Restructuring charges:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During the first and fourth quarters of 2001, the second and fourth quarters of 2002 and the second
quarter of 2003 the Company decided to perform a series of strategic initiatives intending to further
reduce costs and increase efficiency. As a result, approximately 60, 72 and 58 positions were eliminated
by the Group in 2001, 2002 and 2003, respectively. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The restructuring charges consisted of the following:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>In 2001</U>:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidating
      the operations of NUR America and Salsa Digital Printers into one facility
      in San-Antonio.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidating
      the ink manufacturing of Stillachem into the facility of Salsa Digital Printers
      in San Antonio.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidating
      the Salsa Digital Printers R&amp;D operations in Israel and the U.S. into
      the Company&#146;s facility in Lod, Israel.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>In
      2002</U>:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Downsizing
      in the number of employees due to the reduction in sales levels.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Relocating
      operations in Asia Pacific from China to Hong Kong.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>In
      2003:</U></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consolidating
      the operations of NUR Media Solutions and Nur Europe.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Relocating
      Nur Salsa operations to Israel.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c)
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Relocating
      Nur Shanghai&#146;s operations to Nur Asia Pacific.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In connection with SFAS No. 146, &#147;Accounting for Costs Associated With An Exit Or Disposal Activity&#148;
(&#147;SFAS 146&#148;), the Group recorded during 2001, 2002 and 2003 restructuring charges of $
3,237, $&nbsp;1,300 and $&nbsp;2,001, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 10</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      1:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>GENERAL
      (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The changes
      in the accrued restructuring costs are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>June 30, 2003</FONT>
    </TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Payments/<BR>
      write-off</FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,<BR>
      2003</FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="3" ALIGN=RIGHT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
    <TD colspan="3" ALIGN=RIGHT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
    <TD colspan="3" ALIGN=RIGHT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employee
      termination and severance costs</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1,067</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1,067</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      -</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other exit
      costs</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>934</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>934</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total special
      charges</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,001</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,001</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> -</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of the years ended December 31, 2003, 2003 and 2001, all restructuring charges were fully paid or
written-off.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The components
      and the classification of the restructuring charges for the years ended
      2001, 2002 and 2003, are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=9><hr width=95% size=1 color=BLACK noshade></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
    </TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
    </TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
    </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=3><hr width=95% size=1 color=BLACK noshade></TH>
    <TH COLSPAN=3><hr width=95% size=1 color=BLACK noshade></TH>
    <TH COLSPAN=3><hr width=95% size=1 color=BLACK noshade></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Restructuring
      charges</FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="9" ALIGN=RIGHT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Restructuring
      charges:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Employee
      termination and severance costs</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,881</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 860</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,067</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Other
      exit costs</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,356</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>440</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>934</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,237</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,300</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,001</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>f. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As for additional information regarding the requirements of bank covenants see Note 11e.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES </B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s consolidated financial statements are prepared in accordance with accounting principles
generally accepted in the United States (&#147;US GAAP&#148;).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Use of estimates:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those estimates.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Financial
      statements in U.S. dollars:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The currency
      of the primary economic environment in which the operations of the Company
      and certain subsidiaries are conducted is the U.S. dollar (&#147;dollar&#148;);
      thus, the dollar is the reporting and functional currency of the Company
      and certain subsidiaries. </FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 11</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s and certain subsidiaries&#146; transactions and balances denominated in dollars
are presented at their original amounts. Non-dollar transactions and balances have been remeasured
to dollars in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.
52 &#147;Foreign Currency Translation&#148;. All transaction gains and losses from remeasurement
of monetary balance sheet items denominated in non-dollar currencies are reflected in the statements
of operations as financial income or expenses, as appropriate.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>For those subsidiaries whose functional currency has been determined to be their local currency, assets
and liabilities are translated at year-end exchange rates and statement of operations items are translated
at average exchange rates prevailing during the year. Such translation adjustments are recorded as
a separate component of accumulated other comprehensive loss in shareholders&#146; equity (deficiency).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Principles of consolidation:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The consolidated financial statements include the accounts of the Company and its wholly- owned subsidiaries.
Intercompany transactions and balances including profit from intercompany sales not yet realized
outside the Group, have been eliminated upon consolidation. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Cash equivalents:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Cash equivalents are short-term highly liquid investments that are readily convertible to cash with
original maturities of three months or less.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e.
      </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Short-term restricted cash</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Short-term restricted cash is primarily invested in highly liquid deposits, which are used as security
for certain of the Company&#146;s liabilities and obligations.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>f. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Inventories:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Inventories
      are stated at the lower of cost or market value. Inventory write-offs are
      provided to cover risks arising from slow-moving items, technological obsolescence,
      excess inventories, discontinued products and for market prices lower than
      cost . In 2003, the Group wrote off an amount of approximately $&nbsp;13,100
      in excess inventory, discontinued products and for market prices lower than
      cost, which has been included in cost of revenues. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Cost is determined
      as follows:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Raw materials
      &#150; using the average cost method with addition of allocable indirect
      manufacturing costs. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Work-in-progress
      and finished products - on the basis of direct manufacturing costs with
      the addition of allocable indirect manufacturing costs.</FONT></TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 12</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>g. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Long-term trade receivables:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Long-term receivables from extended payment agreements are recorded at estimated present values determined
based on prevailing rates of interest at the date of transaction and reported at the net amounts
in the accompanying consolidated financial statements. Imputed interest is recognized, using the
effective interest method as a component of interest income in the accompanying statements.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>h. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Investments in an affiliated company:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The investment in NUR Pro Engineering, of which the Company owns 50% and can exercise significant influence,
is presented using the equity method of accounting. </FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In these financial statements, affiliated companies are companies held to the extent of 20% or more
(which are not subsidiaries), or companies less than 20% held, which the Company can exercise significant
influence over operating and financial policy of the affiliate. </FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s investments in affiliates are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an investment may not be recoverable. As of
December 31, 2003 based on managements&#146; most recent analyses, no impairment losses have been
identified.</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Investment in an affiliated company represents investments in ordinary shares. The Company applies
EITF 99-10, &#147;Percentage Used to Determine the Amount of Equity Method Losses&#148; (&#147;EITF
No. 99-10&#148;). Accordingly, losses of the investee are recognized based on the ownership level
of the particular investee security held by the investor.</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company expects to complete the acquisition of Nur Pro Engineering by the end of the first quarter
of 2004. As a result, the financial statements at Nur Pro Engineering, will be fully consolidated
into the financial statements of the Group (see Note 1b).</FONT></TD></TR>
<TR>
    <TD width="114" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>i. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Property, plant and equipment, net:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Property,
      plant and equipment are stated at cost, net of grants received and accumulated
      depreciation.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Depreciation
      is calculated using the straight-line method over the estimated useful lives
      of the assets at the following annual rates:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER><font size="1" face="Times New Roman, Times, serif"><strong>%</strong></font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Machinery
      and equipment</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10
      - 33</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Motor vehicles</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Office furniture
      and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 - 10</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Building</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Leasehold
      improvements</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Over the
      term of the lease</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 13</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>j. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Impairment of long-lived assets:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group&#146;s long-lived assets and certain identifiable intangibles are reviewed for impairment
in accordance with Statement of Financial Accounting Standard No. 144, &#147;Accounting for the Impairment
or Disposal of Long-Lived Assets&#148; (&#147;SFAS No. 144&#148;), whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets to be held and used is measured by a comparison of the carrying amount of an asset to the
future undiscounted cash flows expected to be generated by the assets. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount
of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the
lower of the carrying amount or fair value less costs to sell. As of December 31, 2003, impairment
losses in the amount of approximately $ 1,021 have been identified. This amount is included in the
statements of income under ongoing general and administrative expenses.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>k. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Technology and other intangible assets:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Intangible assets acquired in a business combination for which date is on or after July 1, 2001, should
be amortized over their useful lives using a method of amortization that reflects the pattern in
which the economic benefits of the intangible assets are consumed or otherwise used up, in accordance
with Statement of Financial Accounting Standards No. 142, &#147;Goodwill and Other Intangible Assets&#148;,
(&#147;SFAS No. 142&#148;). Acquired technology is amortized over a weighted average of 10 years,
and the customer list is amortized over a weighted average of&nbsp;&nbsp;seven years. Amortization
and impairment of goodwill, technology and other intangible assets for the years ended December 31,
2003, 2002 and 2001, were $2,955, $12,855 and $118, respectively. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>l. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Revenue recognition:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      generates revenues from the sale of its products and from services to its
      products. The Company sells its products primarily through its direct sales
      force and distributors.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      adopted Emerging Issues Task Force (&#147;EITF&#148;) Issue No. 00-21, &#147;Revenue
      Arrangements with Multiple Deliverables&#148;.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In accordance
      with EITF No. 00-21, the Company concluded that its entire arrangements
      represents a single unit accounting. Accordingly, payments that are contingent
      upon performance are deferred until contingency is resolved.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Revenues
      from product sales are recognized in accordance with Staff Accounting Bulletin
      No. 104 &#147;Revenue Recognition in Financial Statements&#148; (&#147;SAB.
      No 104&#148;) upon delivery, provided that the collection of the resulting
      receivable is probable, there is a persuasive evidence of an arrangement,
      no significant obligations in respect of installation remain and the price
      is fixed or determinable. The Company does not grant a right of return.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 14</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Revenues from services are comprised of maintenance and support arrangements, installation and training,
none of which are considered essential to the functionality of the products. Revenues from maintenance
and support arrangements are deferred and recognized on a straight-line basis over the term of the
arrangement and revenues from training and installation are recognized at the time the services are
rendered.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Value of trade-in transactions of the Company&#146;s printers are recorded at fair value as a discount
from revenues in accordance with APB 29, &#147;Accounting for Non-monetary Transactions&#148;, and
EITF 01-2, &#147;Interpretations of APB Opinion No. 29&#148;, when the cash consideration involved
with such transactions is material.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Deferred revenue includes amounts received from customers for which revenue has not yet been recognized.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>m. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Warranty costs:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group
      generally provides a warranty period of six months, at no extra charge.
      The Group estimates the costs that may be incurred under its basic limited
      warranty and records a liability in the amount of such costs at the time
      product revenue is recognized. Factors that affect the Group&#146;s warranty
      liability include the number of installed units, historical and anticipated
      rates of warranty claims, and cost per claim. The Group periodically assesses
      the adequacy of its recorded warranty liabilities and adjusts the amounts
      as necessary. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Changes in
      the Group&#146;s liability during the year are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=20% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance at
      the beginning of the year</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (1,327</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Utilization
      of warranties</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>966</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Changes in
      liability for warranty during the year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(16</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance at
      the end of the year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (377</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>n. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Research and development costs:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Research and development costs net of grants for funding approved research and development projects
are charged to the statement of operations as incurred.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>o. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Government grants:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Royalty-bearing
      grants from the Government of Israel for funding approved research and development
      projects are recognized at the time the Company is entitled to such grants,
      on the basis of the costs incurred and included as a reduction in research
      and development costs. Research and development grants amounted to $ 649,
      $ 1,449 and $ 687 in 2001, 2002 and 2003, respectively. Total royalties
      accrued or paid amounted to $ 432, $ 180 and $ 67 in 2001, 2002 and 2003,
      respectively and were recorded as part of the cost of revenues. </FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company also received non-royalty-bearing grants from the Fund for Encouragement of Marketing Activity.
These grants are recognized at the time the Company is entitled to such grants on the basis of the
costs incurred and included as a reduction in sales and marketing expenses.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company is also entitled to non-royalty-bearing grants for its participation in the &#147;MAGNET&#148;
project financed by the Government of Israel. These grants are recognized at the time the Company
is entitled to such grants, on the basis of the costs incurred and are recorded as a reduction in
research and development expenses.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>p. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Income taxes:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group accounts for income taxes in accordance with Statement of Financial Accounting Standards
No. 109, &#147;Accounting for Income Taxes&#148; (&#147;SFAS No. 109&#148;). This statement prescribes
the use of the liability method whereby deferred tax asset and liability account balances are determined
based on differences between financial reporting and tax bases of assets and liabilities and are
measured using the enacted tax rates and laws that will be in effect when the differences are expected
to reverse. The Group provides a valuation allowance, if necessary, to reduce deferred tax assets
to their estimated realizable value.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>q. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Concentrations of credit risk:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Financial
      instruments that potentially subject the Group to concentrations of credit
      risk consist principally of cash and cash equivalents, short-term restricted
      cash, trade receivables, long-term trade receivables, restricted long-term
      bank deposits and long-term loan to an affiliate. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The majority
      of the Group&#146;s cash and cash equivalents and short-term restricted
      cash are invested in dollar and Euro instruments with major banks in Israel,
      the U.S., Asia and Belgium. Management believes that the financial institutions
      that hold the group&#146;s investments are financially sound and accordingly,
      minimal credit risk exists with respect to these investments. Such deposits
      in the United States may be in excess of insured limits and are not insured
      in other jurisdictions. However, management believes that such financial
      institutions are financially sound, and accordingly, minimal credit risk
      exists with respect to these investments.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The trade
      receivables and the long-term trade receivables of the Group are derived
      mainly from sales to customers located primarily in the U.S.A. and Europe.
      Management believes that credit risks are moderated by the diversity of
      its end-customers and geographic sales areas. The Group performs ongoing
      credit evaluations of its customers financial condition. An allowance for
      doubtful accounts is determined with respect to specific debts that the
      Group has determined to be doubtful of collection. </FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 16</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company has provided a long-term loan to an affiliate, amounting to $&nbsp;282 and $&nbsp;280 as
of December 31, 2002 and 2003, respectively. The long-term loan is unsecured. The Company performs
ongoing evaluations of the balances and to date, considers the credit risk to be low. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group has no significant off-balance-sheet concentration of credit risk such as foreign exchange
contracts, option contracts or other foreign hedging arrangements.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>r. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Severance pay:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s liability for severance pay is calculated pursuant to Israel&#146;s Severance Pay
Law based on the most recent salary of the employees multiplied by the number of years of employment,
as of the balance sheet date. Employees are entitled to one month&#146;s salary for each year of
employment, or a portion thereof. The Company&#146;s liability for all of employees, is fully provided
by monthly deposits with severance pay funds, insurance policies and by an accrual. The value of
these policies is recorded as an asset in the Company&#146;s consolidated balance sheet. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may
be withdrawn only upon the fulfillment of the obligation pursuant to Israel&#146;s Severance Pay
Law or labor agreements. The value of the deposited funds is based on the cash surrendered value
of these policies, and includes immaterial profits.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Severance expenses for the years ended December 31, 2001, 2002 and 2003 amounted to $&nbsp;1,426, $&nbsp;716
and $&nbsp;1,388, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>s. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Fair value of financial instruments:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following
      methods and assumptions were used by the Group in estimating their fair
      value disclosures for financial instruments:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The carrying
      amounts of cash and cash equivalents, short-term restricted cash, trade
      receivables, other accounts receivable and prepaid expenses, short-term
      bank credit, other accounts receivable and prepaid expenses, current maturities
      of long-term loans, trade payables, trade payables to related parties, customer
      advances and other accounts payable and accrued expenses approximate their
      fair value, due to the short-term maturity of such instruments.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The carrying
      amounts of the Group&#146;s long-term trade receivables, long-term loans
      to an affiliate and restricted long-term bank deposits, approximate their
      fair value. The fair value was estimated using discounted cash flow analyses,
      based on the Group&#146;s investment rates currently available for similar
      type of investment arrangements.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The carrying
      amount of the Group&#146;s long-term loans approximates their fair value.
      The fair value was estimated using discounted cash flow analyses, based
      on the Group&#146;s incremental borrowing rates for similar type of borrowing
      arrangements.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 17</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>t. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Advertising expenses:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Advertising expenses are charged to the statement of operations, as incurred. Advertising expenses
for the years ended December 31, 2001, 2002 and 2003 amounted to $&nbsp;554, $&nbsp;261 and $&nbsp;291,
respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>u. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Basic and diluted net loss per share:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Basic net loss per share is computed based on the weighted average number of Ordinary shares outstanding
during each year. Diluted net loss per share is computed based on the weighted average number of
Ordinary shares outstanding during the period plus dilutive potential Ordinary shares considered
outstanding during the year, in accordance with Statement of Financial Accounting Standard No. 128,
&#147;Earnings Per Share&#148; (&#147;SFAS No. 128&#148;).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Outstanding stock options and warrants have been excluded from the calculation of the diluted net loss
per Ordinary share when such securities are anti-dilutive for all periods presented. The total weighted
average number of shares related to the outstanding options and warrants excluded from the calculations
of diluted net loss per share was 931,736, 1,194,630 and 1,446,455 for the years ended December 31,
2001, 2002 and 2003, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>v. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Accounting for stock-based compensation:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      has elected to follow Accounting Principles Board Opinion No. 25 &#147;Accounting
      for Stock Issued to Employees&#148; (&#147;APB No. 25&#148;) and FASB Interpretation
      No. 44 &#147;Accounting for Certain Transactions Involving Stock Compensation&#148;
      (&#147;FIN No. 44&#148;) in accounting for its employee stock option plans.
      Under APB No. 25, when the exercise price of the Company&#146;s stock options
      is less than the market price of the underlying shares on the date of grant,
      compensation expense is recognized. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      adopted the disclosure provisions of Financial Accounting Standards Board
      Statement No. 148, &#147;Accounting for Stock-Based Compensation - Transition
      and Disclosure&#148; (&#147;SFAS No. 148&#148;), which amended certain provisions
      of SFAS 123 to provide alternative methods of transition for an entity that
      voluntarily changes to the fair value based method of accounting for stock-based
      employee compensation, effective as of the beginning of the fiscal year.
      The Company continues to apply the provisions of APB No. 25, in accounting
      for stock-based compensation. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Pro forma
      information regarding net income and net earnings per share is required
      under Statement of Financial Accounting Standard No. 123 &#147;Accounting
      for Stock-Based Compensation (&#147;SFAS No. 123&#148;) and has been determined
      as if the Company had accounted for its employee stock options under the
      fair value method of SFAS No. 123. The fair value for these options is amortized
      over their vesting period and estimated at the date of grant using a Black-Scholes
      Option Valuation Model with the following weighted-average assumptions for
      2001, 2002 and 2003: risk-free interest rates of 2.0%, 2.0% and 3.2%, respectively;
      dividend yields of 0% for each year; volatility factors of the expected
      market price of the Company&#146;s Ordinary shares of 0.74, 0.78 and 0.76,
      respectively; and an expected life of the option of 10 years for each year.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 18</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except per share data)</B></FONT></td>
  </tr>
</table>
<br>

<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following
      table illustrates the effect on net loss and loss per share, assuming that
      the Company had applied the fair value recognition provision of SFAS 123
      on its stock-based employee compensation:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss
      as reported</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (7,216</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (24,065</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (27,670</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Add: Stock-based
      compensation expense</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;determined
      under fair value method for all</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;awards,
      net of related tax effects</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (4,818</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (614</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (327</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pro forma
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (12,034</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,679</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,997</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Earnings
      per share:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Basic
      net loss per share, as reported</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Basic
      pro forma net loss per share</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.82</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.45</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.62</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Diluted
      net loss per share, as reported</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.42</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.60</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Diluted
      pro forma net loss per share</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.82</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.45</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1.62</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company applies SFAS No. 123 and EITF 96-18 &#147;Accounting for Equity Instruments That Are Issued
to Other than Employees for Acquiring, or in Conjunction with Selling, Goods or Services&#148; (&#147;EITF
96-18&#148;) with respect to options issued to non-employees. SFAS No. 123 requires use of an option
valuation model to measure the fair value of the options at the grant date. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>w. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Derivative and hedging activities:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company accounts for Derivatives and Hedging based on Statement of Financial Accounting Standards
No. 133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148; (&#147;SFAS No.
133&#148;). SFAS No. 133 requires companies to recognize all of its derivative instruments as either
assets or liabilities in the statement of financial position at fair value.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>For derivative
      instruments not designated as hedging instruments, the gain or loss is recognized
      in other income/expense in current earnings during the period of change.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>On June 28,
      2002, the Company entered into call/put option agreement in the amount of
      approximately $ 10,000, to be executed on June 26, 2003. The gain (loss)
      that resulted was included in the statements of operations during 2002 and
      2003, and was $ 221 and$ (5), respectively.</FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 19</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      2:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SIGNIFICANT
      ACCOUNTING POLICIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>x.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The unqualification of the auditor&#146;s
opinion:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The report of Grant Thornton LLP on the financial statements of NUR Asia Pacific, a subsidiary of the
Company, was qualified with respect to certain limitations in evidence and accounting records relating
to the carrying value of inventory at December 31, 2002, resulting in changes to the carrying value
of inventory and the subsidiary&#146;s net loss in 2003, as discussed in their report. These effects
on net loss are, in management&#146;s opinion, not material in relation to the consolidated financial
statements of the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>y. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Reclassification:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Certain amounts from prior years have been reclassified to conform to the current year representation.
The reclassification had no effect on previously reported net loss, shareholders&#146; equity and
cash flows.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>z. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Impact of recently issued accounting standards: </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In January
      2003, the FASB issued Interpretation No. 46, &#147;Consolidation of Variable
      Interest Entities&#148; (&#147;FIN 46&#148;). The objective of FIN 46 as
      revised in December 2003, is to improve financial reporting by companies
      involved with variable interest entities. A variable interest entity is
      a corporation, partnership, trust, or any other legal structure used for
      business purposes that either (a) does not have equity investors with voting
      rights or (b) has equity investors that do not provide sufficient financial
      resources for the entity to support its activities. FIN 46 requires a variable
      interest entity to be consolidated by a company if that company is subject
      to a majority of the risk of loss from the variable interest entity&#146;s
      activities or entitled to receive a majority of the entity&#146;s residual
      returns or both. FIN 46 also requires disclosures about variable interest
      entities that the company is not required to consolidate but in which it
      has a significant variable interest. The consolidation requirements of FIN
      46 apply immediately to variable interest entities created after January
      31, 2003. The consolidation requirements apply to older entities in the
      first fiscal year or interim period ending after March 15, 2004. Certain
      of the disclosure requirements apply in all financial statements issued
      after January 31, 2003, regardless of when the variable interest entity
      was established. As of December 31, 2003, the Company does not expect the
      adoption of FIN 46 to have a material impact on its consolidated financial
      statements.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 20</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      3:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>OTHER
      ACCOUNTS RECEIVABLE AND PREPAID EXPENSES</B></FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Government
      authorities</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      960</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1,657</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Participations
      and grants receivable</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>864</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>677</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employees</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>167</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Advances
      to suppliers (1)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,546</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>273</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Prepaid expenses</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,212</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>623</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>782</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,473</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,531</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,800</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Includes $&nbsp;1,328 and $&nbsp;0 as of December 31, 2002 and 2003, respectively, paid in advance
to an affiliate, NUR Pro Engineering, in respect of printers that have not yet been supplied.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      4:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>INVENTORIES</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Raw materials</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      4,620</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      8,571</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Work-in-progress</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,307</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>172</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Finished
      products</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,370</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,204</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 24,297</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15,947</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      5:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>LONG-TERM
      TRADE RECEIVABLES</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The aggregate annual maturities of long-term trade receivables from the sale of products are as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First year
      (current maturities)</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      3,082</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      956</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,404</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>654</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Third year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>330</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>104</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fourth year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,714</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less - current
      maturities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,082</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>956</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,760</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 758</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Long-term
      trade receivables bear interest at the average rate of 13% per annum.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 21</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE 6:-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INVESTMENTS IN AN AFFILIATED COMPANY</B></FONT></P>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Investment
      in NUR Pro Engineering:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE> </TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity, net
      (1)</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      308</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      768</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term
      loans (2)</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>282</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>280</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total investments
      in NUR Pro Engineering</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 590</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,048</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) Net equity
      as follows:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      equity as of purchase date</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
      net earnings</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
      investment</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>460</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 768</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>(2) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company granted NUR Pro Engineering loans as follows: </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A loan in the amount of $&nbsp;175 linked to the U.S. dollar bearing annual interest at the rate of
3%. A maturity date has not yet been determined.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A loan in the amount of $&nbsp;100 denominated in NIS bearing no interest and to be repaid in 20 years.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>*) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Represents an amount lower than $ 1.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE 7:-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  RESTRICTED LONG-TERM BANK DEPOSITS</B></FONT></P>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Restricted
      long-term bank deposits are maintained with banks mainly to secure obligations
      to customers. Nur Europe is restricted from withdrawing any portion of the
      long-term bank deposits at any time, until the repayment of the leasing
      obligation by the customer. The restricted long-term bank deposits will
      mature in 2005, are linked to the Euro and bear a weighted average interest
      at a rate of 1.05%.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 22</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      8:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>PROPERTY,
      PLANT AND EQUIPMENT</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Composition of property and equipment is as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cost:</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Machinery
      and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5,309</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,760</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Motor
      vehicles</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Office
      furniture and equipment</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,712</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,051</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Buildings</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,392</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,392</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Leasehold
      improvements</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,695</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,903</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,127</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,108</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      depreciation</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,551</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,024</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depreciated
      cost</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 11,576</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,084</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Depreciation expenses for the years ended December 31, 2001, 2002 and 2003, amounted to $&nbsp;3,014,
$&nbsp;2,860 and $&nbsp;3,452, respectively. (As for impairment, see Note 2j).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As for charges,
      see Note 13c.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Capital lease obligations</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Nur Europe
      leases certain equipment under lease agreements which are recorded as capital
      leases. The related equipment is included in property, plant and equipment
      and depreciated accordingly.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Future minimum
      lease payment sunder the capital leases at December 31,:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      85</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>85</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>85</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2007</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>85</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2008 and
      thereafter</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>595</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>935</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less - amounts
      representing interest</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>218</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Present value
      of net minimum payments</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>717</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less- current
      portion</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>71</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Non-current
      portion</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 646</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 23</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      9:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TECHNOLOGY
      AND OTHER INTANGIBLE ASSETS, NET</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a.
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Techn</FONT><FONT face="Times New Roman, Times, Serif" size=2>ology
      and other intangible assets:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="76" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>1.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Composition
      of technology and other intangible assets:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=5% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Original
      amounts:</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Technology</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 700</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 700</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Customer
      list</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>272</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>272</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Patent
      rights</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,044</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,044</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      amortization:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Technology</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>118</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>182</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Customer
      list</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Patent
      rights</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>190</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amortized
      cost</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 854</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 736</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Estimated amortization expenses for the year
ended:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      118</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>118</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>118</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2007 and
      thereafter</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>382</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 736</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 24</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      9:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TECHNOLOGY
      AND OTHER INTANGIBLE ASSETS, NET (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The unaudited results of operations presented below for the year ended December 31, 2001, reflect the
impact on results of operations had the Group adopted the non-amortization provisions of SFAS No.
142 effective January 1, 2000:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended<BR>
      December 31,<BR>
      2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reported
      net loss</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (7,216</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Goodwill
      amortization</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>572</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proforma
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (6,644</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic loss
      per share:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Reported
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Goodwill
      amortization</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.04</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proforma
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.45</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted loss
      per share:</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Reported
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.49</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Goodwill
      amortization</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.04</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Proforma
      net loss</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.45</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      10:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHORT-TERM
      BANK CREDIT AND LOANS</B></FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=800 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=3 rowspan="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Linkage<br>
      terms </FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE> </TH>
    <TH COLSPAN=6><font size="1" face="Times New Roman, Times, serif">Interest
      rate</font></TH>
    <TH COLSPAN=6><font size="1" face="Times New Roman, Times, serif">December
      31.</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=6><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=6><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="6" ALIGN=center><font size="2">%</font> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center><font face="Times New Roman, Times, Serif" size=2>NIS -</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=4% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
      bank credit</FONT></TD>
    <TD WIDTH=0% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=0% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=center><font face="Times New Roman, Times, Serif" size=2>unlinked</font></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=0% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.59</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=0% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=6% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      3,402</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">LIBOR</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">LIBOR</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
      bank loans</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S. dollar</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>+2.25</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>+2.75</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,442</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,587</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
      bank credit</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Euro</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>881</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term
      bank credit</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S. dollar</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.63</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,636</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">5,844</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">15,104</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The weighted average interest rate as of December 31, 2002 and 2003 was 8.2% and 3.77%, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The total authorized credit line is $&nbsp;15,450 at December 31, 2003, which was fully utilized.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 25</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      11:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>LONG-TERM
      LOANS</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Composed
      as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="4"><font size="1" face="Times New Roman, Times, serif">Interest
      rate</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="5"><font size="1" face="Times New Roman, Times, serif">December
      31.</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="4"><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="5"><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Linkage<br>
      terms</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">2002</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">2003</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><font size="1" face="Times New Roman, Times, serif">2002</font></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><font size="1" face="Times New Roman, Times, serif">2003</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH colspan="2"><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>%</FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="4" ALIGN=CENTER><HR COLOR="BLACK" NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From banks</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S.
      dollar</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.5</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Libor+2.5%</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      31,423</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      30,197</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From leasing
      companies</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Euro</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.95</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.95</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>648</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>646</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,071</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,843</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less - current
      maturities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,020</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>862</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 30,051</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 29,981</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The aggregate
      annual maturities of long-term loans are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=5><font size="1" face="Times New Roman, Times, serif">December
      31,</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=5><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=2><font size="1" face="Times New Roman, Times, serif">2002</font></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><font size="1" face="Times New Roman, Times, serif">2003</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First year
      (current maturities)</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      2,020</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      862</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,834</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,106</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Third year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,581</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,875</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fourth year</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,881</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fifth year
      and thereafter</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>755</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,051</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29,981</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 32,071</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 30,843</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In July 2003, the Company entered into a Convertible Loan Agreement with certain existing shareholders
(&#147;the Lenders&#148;), according to which the Company is entitled to receive up to a maximum
possible loan (&#147;the Loan&#148;) amount of $ 3,500. Through December 31, 2003, the Company received
an amount of $ 2,000 from the Lenders, on account of the Loan. The Loan is to be repaid after three
and one-half years, unless converted into Ordinary shares by the Lenders or a defined event triggering
early repayment is met. The Loan bears interest at a rate of 12% per annum. Furthermore, the Loan&#146;s
principal and interest may be converted by the Lender into Ordinary shares of the Company at any
time during the loan term, at a conversion price of $&nbsp;0.62 per Ordinary share (&#147;Conversion
Price&#148;). Warrants exercisable for purchase of up to 1,076,922 of the Company&#146;s Ordinary
shares were also issued to the lenders (based on such loan amounts advanced, divided by the Conversion
Price). The warrants are exercisable at a price per Ordinary share of $ 0.52, at any time until October 2008. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 26</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      11:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>LONG-TERM
      LOANS (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In accordance with APB No. 14, &#147;Accounting for Convertible Debt and Debt Issued with Stock Purchase
Warrants&#148; (&#147;APB No. 14&#148;). The fair value of the warrants amounted to $&nbsp;711. However,
for accounting purposes, the net proceed received has been allocated between the loan and the warrants,
resulting in a value ascribed to the warrants in the amount of $466. This amount is amortized&nbsp;ratably
until October 2008, and is included in financial expenses. For the year ended December 31, 2003,
the Company recorded $ 29 in financial expenses.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The fair value of the warrants was estimated at the grant date using a Balck-Scholes option pricing
model with the following assumptions: risk-free interest rate of 3.2%, dividend yield of 0%, volatility
factors of the expected market price of the Company&#146;s Ordinary shares of 0.76 and an expected
life of ten years.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of December 31, 2003, $ 2,000 of the Loans were converted into Ordinary shares by the Lenders and
recorded as receipts on account of shares.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In connection with the issuance of the Loans and warrants, the Company has applied EITF 00-27, &#147;Application
of Issue No. 98-5 to Certain Convertible Instruments,&#148; which resulted in the recognition of&nbsp;$
676 related to the beneficial conversion feature on the Loans, because the effective Conversion Price
of the convertible debt was less than the fair value of the Ordinary shares on the date of issuance,
which is also the commitment date. As of December 31, 2003, the entire amount was recorded as financial
expenses. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003, the Company entered into agreements with certain banks according to which the banks agreed
to reschedule the repayment dates of the Company&#146;s long-term loans and bank credit. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In connection
      with the loan rescheduling, the Company issued to the banks warrants to
      purchase an aggregate amount of 1,220,000 Ordinary shares of the Company,
      at an exercise price of $ 0.34 through $ 0.72 per share. The warrants expire
      on various dates during 2007.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      recorded compensation of approximately $ 494, which is being amortized ratably
      from March 2003 through April 2007, and is included in financial expenses.
      For the year ended December 31, 2003, the Company recorded $ 92 in financial
      expenses. This transaction was accounted for in accordance with APB No.14,
      &#147;Accounting for Convertible Debt and Debt Issued with Stock Purchase
      Warrants&#148; (&#147;APB 14&#148;).</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The fair
      value of the warrants was estimated at the grant date using a Black-Scholes
      option pricing model with the following assumptions: risk-free interest
      rate of 3.2%, dividend yield of 0%, volatility factors of the expected market
      price of the Company&#146;s Ordinary shares of 0.76 and an expected life
      of five years.</FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 27</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      11:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>LONG-TERM
      LOANS (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003, the Company did not comply with certain terms of the covenants set under their loan agreements
with the banks.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003, the Company received the banks written approval, not to act upon their contractual rights
on the Company&#146;s abovementioned default. The long-term loans balances are presented according
to the original rescheduled periods.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In February 2004, the Company signed new agreements with the banks, according to which new covenants
were arranged. The new covenants are as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain an equity of no less than $&nbsp;500, $&nbsp;700, $&nbsp;1,000 and $&nbsp;1,300 during
the first, second, third and fourth quarters of 2004, respectively, to maintain an equity of no less
than $&nbsp;15,500 or less than 16% of the Company&#146;s tangible assets in 2005.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain at the end of each quarter a cash balance of at least $ 6,000.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>3. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To refrain from merging, consolidating, amalgamating or entering into any other form of business combination
with a third party, or liquidating or dissolving.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>4. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To maintain certain financial ratios relating to the Company&#146;s earnings before income tax, depreciation
and amortization (EBITDA) and the Company&#146;s overall long-term debt to financial institutions.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>5. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To further secure the Company&#146;s outstanding credit by a guarantee in favor of the banks issued
by the Company&#146;s subsidiaries.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
    <TD width="38" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The long-term
      loans balances are presented according to the new rescheduled periods and
      in accordance with Statement of Financial Accounting No. 6, &#147;Classification
      of Short-Term Obligation Expected to be Refinanced&#148;.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Subsequent
      to the balance sheet date existing shareholders and new investors of the
      Company have given an indication for additional equity investment, of which
      $1,500 was secured in an escrow account. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The minimum
      investment required to meet the first quarter bank covenants, based on the
      preliminary result of operations for the first quarter of 2004, is approximately
      $2,700 thousand.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Based on
      the indications for additional investment that exceed the minimum equity
      required for the first quarter, the budget for 2004 and other indicators
      management is in the opinion that it will meet the bank covenants for the
      first quarter of 2004, and all preceding quarters.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 28</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      12:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>OTHER
      ACCOUNTS PAYABLE AND ACCRUED EXPENSES</B></FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=5><font size="1" face="Times New Roman, Times, serif">December
      31,</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=5><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4>&nbsp;</TH>
    <TH COLSPAN=2><font size="1" face="Times New Roman, Times, serif">2002</font></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><font size="1" face="Times New Roman, Times, serif">2003</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employees
      and payroll accruals</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      2,841</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      3,391</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Government
      Authorities</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,293</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>766</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Royalties
      payable</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>746</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>308</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Warranty</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,327</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>377</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued expenses</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,777</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,935</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 8,984</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,777</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=4></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      13:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>COMMITMENTS
      AND CONTINGENT LIABILITIES</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lease commitments:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      and most of its subsidiaries rent their facilities under various operating
      lease agreements, which expire on various dates, the latest of which is
      in 2011. The minimum rental payments under non-cancelable operating leases
      are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH COLSPAN=2><font size="1" face="Times New Roman, Times, serif">Year ended
      <br>
      December 31,</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><HR COLOR="BLACK" NOSHADE SIZE=1></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      2,051</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,235</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,521</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2007 and
      thereafter</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4,857</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Total rent expenses for the years ended December 31, 2001, 2002 and 2003, were $&nbsp;1,778, $&nbsp;1,570
and $&nbsp;1,654, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Royalty commitments:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company entered into several project plans with the Chief Scientist of Israel&#146;s Ministry of
Industry and Trade. The Company has an obligation to pay royalties at the rate of 2%-3% of the sales
derived from the applicable products developed within the framework of such research and development
projects, up to an amount equal to 100% - 150% of the grant received, linked to the U.S. dollar and
for grants received after January 1, 1999, accrued for interest at the rate of LIBOR. The Company
has no obligation to repay this amount if sales are not sufficient to satisfy the royalty obligations.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=152>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In addition,
      Nur Median Solutions has an obligation to pay royalties at rates of 3%-6%
      on the sales of products developed with funds provided by the Government
      of Belgium, up to an amount equal to the research and development grants
      received in connection with such products, linked to the Euro.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 29</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <HR align=center width="100%" noShade SIZE=1> <div align="right"><strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands
      </B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      13:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>COMMITMENTS
      AND CONTINGENT LIABILITIES (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=150>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Total royalties accrued or paid amounted to $&nbsp;180, $&nbsp;67 and $&nbsp;675 for the years ended
December 31, 2001, 2002 and 2003, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=150>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of December 31, 2003, the Company and NUR Media Solutions have a contingent obligation to pay royalties
in the amount of $&nbsp;3,196.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company is required to pay royalties to the Fund for the Encouragement of Marketing Activity at
the rate of 3%-4% of the increases in export sales of products for which the Company received participations
for its marketing activities, up to an amount equal to 100%-150% of the grant received, linked to
the U.S. dollar. Royalties regarding grants received from 1999 and accrued for interest at LIBOR
interest.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The grant is repayable only in respect of sales of the related products, as a percentage of the growth
in export sales. If there is no increase in export sales, or if the Company ceases producing the
relevant products, the grant would not be repaid. As of December 31, 2003, the Company paid an aggregate
amount of $&nbsp;346.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
    <TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of December 31, 2003, the Company has a contingent obligation to pay royalties in the amount of
$&nbsp;411.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
    <TD vAlign=top width=78></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Charges and guarantees:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As collateral for its liabilities to the banks, the Company recorded fixed charges on certain assets
and share capital, as well as a floating lien on all of its assets.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Bank deposit in the amount of $ 628 secures bank guarantees and letters of credit. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
    <TD vAlign=top width=78></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Litigation:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2002,
      the Company filed three lawsuits against customers of NUR Shanghai. As a
      result, the customers filed lawsuits against Nur Shanghai, in the amount
      of $ 392. Based on the opinion of its legal counsel, management did not
      record any provision with respect to these claims.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003,
      a former supplier filed a lawsuit against NUR Media Solutions, in the amount
      of &#128; 943 thousand. Based on management&#146;s estimate and the opinion
      of its legal counsel, the Company did not record any provision in respect
      of this claim.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003,
      a former employee filed a lawsuit against NUR Japan, in the amount of $
      40. Based on management&#146;s estimate and the opinion of its legal counsel,
      the Company did not record any provision in respect of this claim.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2003,
      a government institution in the United States filed a claim against the
      Nur America regarding payments due to employees in the amount of $ 80. Company
      management believes that actual payments on account of the claim will amount
      to $ 55. Nur America has provided an allowance in the amount of $ 55.</FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F -30</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands&nbsp;(except
      share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      14:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TRANSACTIONS
      AND BALANCES WITH RELATED PARTIES</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Accounts payable in respect of an affiliate, NUR Pro Engineering, are in respect of the assembly of
the Company&#146;s printers. The amount is linked to the NIS and does not bear any interest (as for
advances to a supplier, see Note 3).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A company wholly-owned by the Company&#146;s former CEO rendered services to certain subsidiaries.
The Group&#146;s expenses during the years 2001, 2002 and 2003 in respect of such services amounted
to $&nbsp;73, $ 60 and $&nbsp;220, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Loans to related
      parties, see Note 6.</FONT></TD>
  </TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In February 2002, the Company signed a service agreement with the Chairman of the Board of Directors
for an annual fee of $&nbsp;125, which will be paid by the issuance of Ordinary shares of the Company.
In&nbsp;&nbsp;2002 and 2003, in respect of this agreement, 70,773 and 184,754 Ordinary shares were
issued, respectively.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In October 2003, the Company entered into an engagement agreement with a certain law firm, that is
owned, among others, by the brother of the Company&#146;s CEO. Under the engagement agreement, the
law firm represented the Company in litigations against third parties and provided legal services
as needed in Israel and in Belgium. The aggregate consideration for the services provided to the
Company and to its subsidiaries by the law firm amounted to approximately $ 70 in 2003. During 2004
the Company&#146;s audit committee and Board of Directors reviewed, ratified and approved the terms
of the engagement agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Ordinary shares of the Company are currently listed for trade on the Nasdaq SmallCap Market as
of May 2003, as a result of the Company&#146;s non compliance with Nasdaq listing requirements.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Shareholders&#146; rights:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Ordinary shares confer upon their holders voting rights, the right to receive dividends and the right
to share in excess assets upon liquidation of the Company.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 31</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong><font size="2" face="Times New Roman, Times, serif"></font></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands
      &nbsp;(except share and per share data) </B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY) (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>On January 17, 2002, the Company effected a private offering of its securities in which the Company
issued 2,333,333 Ordinary shares of NIS 1 par value each in consideration of $&nbsp;7,000 (excluding
issuance expenses).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In addition, as part of the share purchase agreement, the Company issued to the investors warrants
exercisable into an aggregate of 612,500 Ordinary shares. The warrants will be exercisable until
January 2006 at $&nbsp;4.5 per Ordinary share.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Stock Option Plans:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In October 1995, the Company&#146;s Board of Directors adopted a Flexible Stock Incentive Plan (&#147;1995
Plan&#148;). The Stock Incentive Plan provides for grants of stock options to the Company&#146;s
employees and outside consultants. An aggregate amount of not more than 500,000 stock options are
available for grant under the Stock Incentive Plan. Of such amount, (i) not more than 414,768 options
are available for grant as stock options on the basis of future services (&#147;service options&#148;),
(ii) not more than 18,232 options may be granted as stock options on the basis of performance (&#147;performance
options&#148; - as of December 31, 2003 there are no outstanding performance options) and (iii) not
more than 67,000 options may be granted as stock options to consultants on the basis of service or
performance in respect of the public offering (&#147;consultant options&#148;).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The service options usually vest over a four-year period with an exercise price of not less than 80%
of the fair market value of the Ordinary shares at the date of grant (as defined in the stock incentive
plan).</FONT></TD></TR>
<TR>
    <TD width="152" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Consultant options usually vest immediately based on past services rendered as the board determines.
The options expire usually after 10 years from the date of grant.</FONT></TD></TR>
<TR>
    <TD width="152" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In October 1997, the Company adopted an additional stock option plan. According to that option plan,
1,200,000 options will be granted to the Company&#146;s and its subsidiaries&#146; employees, directors
and consultants. In October 1998 and August 1999, the Company&#146;s and its subsidiaries&#146; shareholders
approved the increase in the number of options available for grant by 500,000, and 500,000 options,
respectively. The options usually vest over a three-year period with an exercise price of not less
than 80% of the fair market value of the Ordinary shares at the date of grant (as defined in the
stock option plan). Each option usually expires after 10 years from the date of grant.</FONT></TD></TR>
<TR>
    <TD width="152" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
    <TD vAlign=top width=152>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In December 1998, the Company&#146;s shareholders approved the directors stock option plan (&#147;1998
plan&#148;) according to which 250,000 options are available for grant with an exercise price of
the average of the closing bid and sale price at the issuance date. Each option is vested immediately
and will expire after 10 years. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 32</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share and per share data)</B></FONT></td>
  </tr>
</table>
<br>

<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY) (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=150>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In August
      2000, the Company&#146;s Board of Directors adopted the 2000 Stock Option
      Plan (&#147;2000 plan&#148;). According to that option plan, 1,000,000 options
      may be granted to officers, directors, employees and consultants of the
      Company and its subsidiaries. The Options usually vest over a three-year
      period. The exercise price of the options under the 2000 plan is determined
      to be not less than 80% of the fair market value of the Company&#146;s Ordinary
      shares at the time of grant, and they usually expire after 10 years from
      the date of grant. The 2000 plan expires on August 31, 2008, unless previously
      terminated or extended by the Board of Directors.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=150>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During 2001,
      2002 and 2003, the Company granted to directors (including the Chairman
      of the Board of Directors) 20,834, 10,000 and 27,501 options, respectively.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=150>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Under the
      Company&#146;s 1995, 1997, 1998 and 2000 plans, the Company reserved for
      issuance 466,739, 1,735,671, 250,000 and 2,497,590 Ordinary shares, respectively.
      As of December 31, 2003, 0, 0, 92,499, and 862,680 options, respectively,
      are still available for future grants under these plans. Any options, which
      are canceled or forfeited before expiration, become available for future
      grant.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=150>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In November
      2003, the Company decided to terminate the 1995 and 1997 plans and to increase
      the number of Ordinary shares authorized to be issued under the 2000 plan
      in the aggregate amount that was outstanding under these plans.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=150>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In May 2002,
      the Company offered to option holders the right to cancel and exchange certain
      stock options granted to them under the Company&#146;s 1995, 1997 and 2000
      Stock Option Plans. At such time, which is not less than six months and
      one day from the date of cancellation of such Stock Options, the Company
      shall grant one new option for every cancelled option to those employees
      who are employees by the Company at such time. The exchange offer expired
      on June&nbsp;15, 2002 and resulted in the cancellation of 1,245,316 options
      with varying exercise price. 1,219,584 new options were granted on December
      17, 2002. All options were granted with an exercise price equal to the share
      price at the date of grant.</FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 33</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands&nbsp;(except
      share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY) (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>2. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A summary of the Company&#146;s share option activity at December&nbsp;31, 2003 for the Plans is as
follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options outstanding</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Available<BR>
      for grant</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number<BR>
      of options</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      average<BR>
      exercise<BR>
      price</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Balance
      as of January 1, 2001</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,553,615</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,530,610</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      5.45</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options granted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(505,734</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>505,734</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.05</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options exercised</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(225,835</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.46</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options forfeited</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>569,530</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(569,530</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7.66</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Balance
      as of December 31, 2001</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,617,411</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,240,979</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.10</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Increase
      of 2000 stock option plan</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> -</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Options
      granted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,414,466</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,414,466</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.07</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Options
      forfeited or cancelled</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,702,166</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,702,166</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.96</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Balance
      as of December 31, 2002</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,905,111</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,953,279</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.31</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Options
      granted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,659,923</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,659,923</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.70</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Options
      exercised</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(73,668</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.73</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Options
      forfeited or cancelled</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>709,991</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(709,991</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.82</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Balance
      as of December 31, 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>955,179</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,829,543</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.46</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The number
      of options exercisable as of December 31, 2001, 2002 and 2003 was 1,092,851,
      1,474,122 and 4,412,711, respectively.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The weighted
      average exercise price of options exercisable as of December 31, 2001, 2002
      and 2003 is $&nbsp;4.51, $&nbsp;1.60 and $&nbsp;1.65, respectively.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 34</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands&nbsp;(except
      share and per share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY) (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>3. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The options outstanding as of December 31, 2003 have been separated into ranges of exercise price,
as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Range of<BR>
      exercise price</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options<BR>
      outstanding<BR>
      as of<BR>
      December 31,<BR>
      2003</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      average<BR>
      remaining<BR>
      contractual<BR>
      life</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      average<BR>
      exercise<BR>
      price</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Options<BR>
      exercisable<BR>
      as of<BR>
      December 31,<BR>
      2003</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Weighted<BR>
      average<BR>
      exercise<BR>
      price of<BR>
      exercisable<BR>
      options</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>$</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Years</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=15% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.37-0.69</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,989,089</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=15% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.38</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      0.52</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,279,922</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      0.41</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.72-0.78</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>789,024</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.83</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>711,359</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.90-1.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>573,833</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.00</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.07</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>336,833</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.18</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63-1.86</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>404,334</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.96</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.64</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,334</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.86</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.94-2.75</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>186,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.28</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.20</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>186,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.20</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20-4.67</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>660,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.70</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>658,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00-7.00</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>146,100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.73</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.29</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>146,100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.29</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.50-13.5</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>80,663</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.26</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.71</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>80,663</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 11.71</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,829,543</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.46</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,412,711</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.65</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT>&nbsp;</TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>4.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Weighted-average
      fair values and exercise price of options on dates of grant are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=27><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For exercise
      prices on the date of grant that</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Equal market
      price</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exceed market
      price</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Are less than
      market price</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted
      average<BR>&nbsp;&nbsp;exercise
      prices</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      4.25</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      0.92</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      0.61</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      6.87</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      2.92</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1.62</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      -</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      -</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      0.06</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Weighted
      average</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;fair
      value on</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;grant
      date</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3.31</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.78</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.48</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.29</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.25</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1.27</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> -</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> -</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.08</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=3></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 35</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands
      &nbsp;(except share and per share data) </B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      15:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SHAREHOLDERS&#146;
      EQUITY (DEFICIENCY) (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Warrants to consultants investors and others:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company&#146;s
      outstanding warrants as of December 31, 2003, are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Issuance date</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Number of<BR>

      warrants issued</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exercise price
      <BR>
      per share</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Warrants<BR>

      exercisable</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1><BR>
      Expiration date</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=21% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December
      1997</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1.00</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=18% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>December
      2005</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 2000</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2.75</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 2004</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>February
      2000</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>February
      2004</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>September
      2000</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,411</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 13.36</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,411</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>September
      2005</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 2002</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>612,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 4.50</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>612,500</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>January 2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>February
      2002</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>120,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 5.00</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>120,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>February
      2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>November
      2002</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.78</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>November
      2006</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>240,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.34</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>240,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 2007</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.72</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 2007</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>August 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>953,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.62</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>953,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>August 2007</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>October 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,076,922</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 0.52</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,076,922</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>October 2008</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,167,833</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,167,833</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>f. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Accumulated other comprehensive loss:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Accumulated
      other<BR>
      comprehensive loss</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance as
      of December 31, 2002</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (1,286</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      foreign currency translation adjustments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>149</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accumulated
      other comprehensive loss as of December 31, 2003</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1,137</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>g. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Dividends:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In the event that cash dividends are declared in the future, such dividends will be paid in NIS. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A dividend paid to shareholders outside Israel will be converted into dollars, on the basis of the
exchange rate prevailing at the date of payment. The Company does not intend to pay cash dividends
in the foreseeable future.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 36</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      16:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TAXES
      ON INCOME</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the &#147;law&#148;):</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Certain of
      the Company&#146;s production facilities have been granted the status of
      &#147;Approved Enterprise&#148; under the law, under three separate investment
      plans.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>According
      to the provisions of this law, the Company elected to enjoy &#147;alternative
      benefits&#148; which provide tax benefits in exchange for waiver of grants.
      Accordingly, the Company&#146;s income from the &#147;Approved Enterprise&#148;
      will be tax-exempt for a period of 2, 4 and 4 years, for the first, second
      and third plan, respectively, commencing with the year it first earns taxable
      income. Based on the percentage of foreign ownership of the Company, income
      derived during the remaining periods of five, three and three years, respectively
      of benefits is taxable at the rate of 15% to 20%.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The period
      of tax benefits detailed above is subject to limits of 12&nbsp;years from
      the commencement of production, or 14&nbsp;years from receiving the approval,
      whichever is earlier. Given the abovementioned conditions, the period of
      benefits for the first and second plans commenced in 1994 and 1999, respectively.
      The first plan was terminated in 2001 and the second plan will terminate
      in 2004. The period of benefits for the third plan have not yet commenced.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The entitlement
      to the above benefits is conditional upon the Company fulfilling the conditions
      stipulated by the above law, regulations published thereunder and the letters
      of approval for the specific investments in &#147;Approved Enterprises&#148;.
      In the event of failure to comply with these conditions, the benefits may
      be canceled and the Company may be required to refund the amount of the
      benefits, in whole or in part, including interest. As of the balance sheet
      date, the Company complies with all these conditions.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The tax-exempt
      profits earned by the Company&#146;s &#147;Approved Enterprise&#148; can
      be distributed to shareholders, without imposing a tax liability on the
      Company, only upon the complete liquidation of the Company. If these retained
      tax-exempt profits are distributed in a manner other than upon the complete
      liquidation of the Company, they would be taxed at the corporate tax rate
      applicable to such profits as if the Company had not elected the alternative
      tax benefits (currently - 15%-20% for an &#147;Approved Enterprise&#148;
      based on the percentage of foreign ownership of the Company). </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      has decided to permanently reinvest the tax exempt profits resulting from
      the &#147;Approved Enterprise&#148; status and not to distribute such profits
      as dividends. Accordingly, no deferred income taxes have been provided in
      respect of said tax exempt profits.</FONT></TD>
  </TR>
</TABLE>
<br>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 37</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      16:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TAXES
      ON INCOME (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The law also entitles the Company to claim accelerated rates of depreciation on equipment used by the
&#147;Approved Enterprise&#148; during five tax years.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Income from sources other than the &#147;Approved Enterprise&#148; during the periods of benefits,
will be taxable at the statutory rate of 36%.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Measurement of results for tax purposes under the Income Tax Law (Inflationary Adjustments), 1985:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Results for tax purposes are measured in terms of earnings in NIS after certain adjustments for increases
in Israel&#146;s Consumer Price Index (&#147;CPI&#148;). As explained in Note 2b, the financial statements
are measured in U.S. dollars. The difference between the annual change in Israel&#146;s CPI and in
the NIS/dollar exchange rate causes a difference between taxable income and the income before taxes
shown in the financial statements. In accordance with paragraph 9(f) of SFAS No. 109, the Company
has not provided deferred income taxes in respect of the difference between the reporting currency
and the tax bases of assets and liabilities.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Tax benefits under the Law for the Encouragement of Industry (Taxation), 1969:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      is an &#147;industrial company&#148;, as defined by this law and, as such,
      is entitled to certain tax benefits, including accelerated rates of depreciation,
      in accordance with regulations published under the inflationary adjustments
      law. The Company is also entitled to deduct the offering expenses and patent
      amortization costs from its taxable income in three and eight equal annual
      installments, respectively.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 38</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except per share data) </B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      16:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TAXES
      ON INCOME (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>d. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Theoretical tax expense:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A reconciliation
      of the theoretical tax expense, assuming all income is taxed at the statutory
      rate applied to corporations in Israel and the actual tax expense, is as
      follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Theoretical
      taxes on income (tax benefit)<br>
      &nbsp;computed at the rate of 36%</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (2,722</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (8,651</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (9,888</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>

  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Increase
      (decrease) in taxes:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Approved
      enterprise (1)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,498</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,179</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Reduced
      statutory tax rate of a subsidiary</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,886</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>402</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(506</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Non-deductible
      and other expenses</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>207</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>248</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>82</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Carryforward
      loss, generated during the year</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;for
      which a valuation allowance was</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;provided</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,943</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,856</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,457</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Utilization
      of operating carryforward tax</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;losses
      from prior years</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(231</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Actual tax
      expense (tax benefit)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (191</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 34</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;(1)
      &nbsp;Basic net loss per share amounts of</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
      tax benefits resulting from the</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Approved
      Enterprise" benefits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.10</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.07</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted
      net loss per share amounts of</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
      tax benefits resulting from the</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Approved
      Enterprise" benefits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.10</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (0.07</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>e.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Taxes on
      income (benefit) included in the </FONT></TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>statements
      of operations:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Domestic</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (450</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Foreign</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>472</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>77</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>472</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>77</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(398</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Domestic</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(656</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(43</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>600</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Foreign</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(663</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(43</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>600</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (191</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 34</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 202</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 39</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      16:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TAXES
      ON INCOME (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>f. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Deferred income taxes: </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Deferred
      income taxes reflect the net tax effects of temporary differences between
      the carrying amounts of assets and liabilities for financial reporting purposes
      and the amounts used for income tax purposes. Significant components of
      the Groups&#146; deferred tax assets are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deferred
      tax asset:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net
      operating losses and deductions carryforward</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,740</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 26,614</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Others</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>375</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>85</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net
      deferred tax assets before valuation allowance</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,115</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26,699</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Valuation
      allowance (1)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9,526</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(25,710</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net deferred
      tax assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Domestic</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Foreign</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Presented
      as follows:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Current
      assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Long-term
      assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1,589</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 989</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group has provided valuation allowances in respect of deferred tax assets resulting from tax losses
carryforward and other temporary differences. Management currently believes that since the Company
has a history of losses it is more likely than not that the deferred tax regarding all loss carryforwards
will not be utilized in the foreseeable future.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>g. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Carryforward tax losses and deductions:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As of December
      31, 2003, the Company had available carryforward tax losses and deductions
      aggregating to approximately $&nbsp;17,000.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=114>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Additional
      carryforward losses of NUR America and NUR Salsa, in the amount of approximately
      $&nbsp;24,500, which is located in the U.S., will expire in 2021. Utilization
      of U.S. net operating losses may be subject to substantial annual limitation
      due to the &#147;change in ownership provision of the Internal Revenue Code
      of 1986&#148; and similar state provisions. The annual limitation may result
      in the expiration of net operating losses before utilization.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 40</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      16:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>TAXES
      ON INCOME (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Asia Pacific and NUR Shanghai had available carryforward losses as of December 31, 2003 aggregating
to approximately $&nbsp;18,000, which have no expiration date. </FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Japan had available carryforward losses as of December 31, 2003 aggregating to approximately $
300, which expire in 2007.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>

<TR>
<TD vAlign=top width=114>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>NUR Europe and NUR Media Solutions had available carryforward losses as of December 31, 2003 aggregating
to approximately $&nbsp;23,400, which have no expiration date.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>h. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Loss before income taxes consists of the following:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Domestic</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (6,238</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      (3,834</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      572</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Foreign</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,323</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(20,197</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(28,040</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (7,561</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,031</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,468</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      17:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>MAJOR
      CUSTOMERS AND GEOGRAPHIC INFORMATION</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Summary information
      about geographic areas:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Company
      manages its business on the basis of one reportable segment. See Note 1a
      for a brief description of the Company&#146;s business. The following data
      is presented in accordance with Statement of Financial Accounting Standard
      No. 131 (&#147;SFAS No 131&#148;), &#147;Disclosures about Segments of an
      Enterprise and Related Information&#148;. Total revenues are attributed
      to geographical areas based on location of end customers.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following
      table presents total revenues and long lived assets for the years ended
      December 31, 2001, 2002 and as of December 31, 2001, 2002 and 2003, resectively:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total<BR>
      revenues</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Long-<BR>
      lived<BR>
      assets</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total<BR>      revenues</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Long-<BR>
      lived<BR>
      assets</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total<BR>
      revenues</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Long-<BR>
      lived<BR>
      assets</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Israel</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      1,873</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      3,989</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      355</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      4,327</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      925</FONT></TD>
    <TD WIDTH=7% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      4,253</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Asia (except
      China)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20,338</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>415</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,511</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>728</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,604</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>143</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>China</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,492</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>790</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,436</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>493</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>America (except
      the</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;U.S.A.)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,999</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,700</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,017</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S.A</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,960</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,615</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,196</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,974</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,306</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>353</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Europe</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41,757</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,692</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,876</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,060</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36,370</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,147</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Others</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,958</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,181</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,301</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 120,377</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 26,501</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 85,255</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 12,582</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 65,574</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,904</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 41</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      17:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>MAJOR
      CUSTOMERS AND GEOGRAPHIC INFORMATION (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Product lines:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Total revenues
      from external customers distributed on the basis of the Company&#146;s product
      lines are as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="10%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Printers</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      65,265</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      43,185</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      35,890</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ink</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31,390</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21,904</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,637</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Substrates</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,539</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,418</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Others</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,183</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,748</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,726</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 120,377</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 85,255</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 65,574</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Major customer
      data as a percentage of total revenues: </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The Group
      does not have any major customer that represents 10% or more of the consolidated
      revenues.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      18:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SELECTED
      STATEMENTS OF OPERATIONS DATA</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=76>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Research and development expenses, net:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>

<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended
      December 31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=57% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Research
      and development expenses</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      10,883</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      9,191</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
      7,233</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Less
      - participation of the Israeli and Belgian</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;governments
      in research and development projects</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>649</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,449</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>687</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,234</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 7,742</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,546</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b.Financial
      expenses:</FONT></TD>
  </TR>
  <TR>
      <TD> &nbsp;</TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Expenses:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Interest
      on short-term bank credit and charges</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1,364</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (2,710</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (2,772</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Interest
      on long-term loans</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,368</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(54</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Foreign
      currency translation differences (1)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,630</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(683</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,673</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,362</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,447</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5,445</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;Income:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Interest
      on bank deposits and other</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>365</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>167</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>490</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Foreign
      currency translation differences (1)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>661</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,958</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,798</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,026</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,125</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,288</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (3,336</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (1,322</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (2,157</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>

<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>(1) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Include losses from non-hedging forward and option contracts. (See Note 2w).</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 42</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"><strong>NUR
      MACROPRINTERS LTD. AND ITS SUBSIDIARIES</strong></font></td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2><B>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></td>
  </tr>
  <tr>
    <td><div align="right"></div>
      <div align="right">
        <HR align=center width="100%" noShade SIZE=1>
        <strong></strong></div></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. dollars in thousands (except share data)</B></FONT></td>
  </tr>
</table>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      18:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SELECTED
      STATEMENTS OF OPERATIONS DATA (Cont.)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>c.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following
      table sets forth the reconciliation of basic and diluted net losses per
      share:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE WIDTH=600 BORDER=0 align="center" CELLPADDING=0 CELLSPACING=0>
  <TR>
  <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
  <TH COLSPAN=9><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Year ended December
    31,</FONT> <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2001</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2002</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2003</FONT>
      <HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=51% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Numerator:</u></FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net
      losses available to shareholders of</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Ordinary
      shares</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Numerator
      for diluted net losses per share -</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;earnings
      available to shareholders of</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Ordinary
      shares</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (7,216</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (24,065</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (27,670</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Denominator:</u></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Weighted
      average number of Ordinary</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;shares
      (denominator for basic net loss</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;per share)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,655,048</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,055,606</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,272,089</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Effect
      of dilutive securities:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Employee
      and non-employee</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;stock
      options and warrants</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>*)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Denominator
      for diluted net loss per share</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,655,048</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,055,606</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 17,272,089</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=3></TD>
    <TD></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=114></TD>
<TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>*) </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Anti-dilutive.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76><FONT face="Times New Roman, Times, Serif" size=2><B>NOTE
      19:- </B></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>SUBSEQUENT
      EVENTS (UNAUDITED)</B></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>a.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In March
      2004, as part of the Convertible Loan and Warrant Agreement, the Company
      issued 3,225,805 Ordinary shares to the investors.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=76></TD>
    <TD vAlign=top width=38><FONT face="Times New Roman, Times, Serif" size=2>b.
      </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>On February
      2004, NUR received a demand letter from the OCS claiming that NUR outstanding
      liability for royalties to the OCS in connection with the sale of NUR Fresco
      printers aggregates to $&nbsp;0.75 million, of which $&nbsp;0.36 million
      are dispute amount by NUR. NUR responded to the demand letter by denying
      the OCS claims with respect to the disputed amount, and it is currently
      trying to settle the differences between the parties out-of-court. Based
      on management&#146;s estimate and the opinion of its in-house legal counsel,
      the Company did not record any provision in respect of this dispute.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">F - 43</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

<P align=center>&nbsp;</P>
<page>






<p align="center"><font size="2" face="Times New Roman, Times, serif"><strong>Report
  of Independent Accountants on<br>
  Financial Statement Schedule</strong></font></p>
<p><font size="2" face="Times New Roman, Times, serif"><br>
  To the Board of Directors of <br>
  NUR Macroprinters Ltd.<br>
  <br>
  </font><font size="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></font><font size="2" face="Times New Roman, Times, serif">Our
  audits of the consolidated financial statements referred to in our report dated
  February 26, 2004 as to which the date is appearing in the 2003 Annual Report
  to the Shareholders of NUR Macroprinters Ltd. also included an audit of Financial
  Statement Schedule II - Valuation and Qualifying Accounts - listed in Item 18
  of this Form 20-F. In our opinion, the schedule presents fairly, in all material
  respects, the information set forth therein when read in conjunction with the
  related consolidated financial statements. </font></p>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="56%"><font size="2"><font size="2" face="Times New Roman, Times, serif">Tel-Aviv,
      Israel </font><font size="2"><font size="2" face="Times New Roman, Times, serif"><br>
      March 30, 2004 </font></font></font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      KOST FORER &amp; GABBAY<br>
      &nbsp;A Member of Ernst &amp; Young Global </font></td>
  </tr>
</table>
<br>
<br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><div align="center"><font size="2" face="Times New Roman, Times, serif">S-1</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<PAGE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"><strong>SCHEDULE
  II - VALUATION AND QUALIFYING ACCOUNTS</strong><br>
  Three years ended December 31, 2003<br>
  In thousands of US Dollars</font><font size="2" face="Times New Roman, Times, serif">
  </font></p>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3 align="left"><font size="1" face="Times New Roman, Times, serif">Column
      A</font></TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Column B</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Column C</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Column D</font></TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Column E</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH>&nbsp;</TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Balance opening <br>
      period</font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">at<br>
      of<br>
      &nbsp; </font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Provision Doubtful
      Accounts</font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">for<br>
      <br>
      &nbsp; </font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Write-off Previously
      Provided Accounts</font></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">of&nbsp;&nbsp;<br>
      <br>
      <br>
      &nbsp; </font></TH>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif">Balance at End of
      Period</font></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2003</FONT></strong></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Allowance
      for Doubtful Accounts</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,768</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,639</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8,444</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,963</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2002</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Allowance
      for Doubtful Accounts</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,922</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,464</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,618</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,768</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2001</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Allowance
      for Doubtful Accounts</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,593</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>753</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,424</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,922</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2003</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Deffered
      tax Valuation Allowance</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,526</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,184</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25,710</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2002</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Deffered
      tax Valuation Allowance</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,025</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>501</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,526</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Year
      ended December 31, 2001</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Deffered
      tax Valuation Allowance</FONT></strong></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,453</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,572</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,025</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><div align="center"><font size="2" face="Times New Roman, Times, serif">S-2</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<p align=center>
<font size=2></font></p>





</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>image001.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image001.gif
M1TE&.#EA'@`;`'<`,2'^&E-O9G1W87)E.B!-:6-R;W-O9G0@3V9F:6-E`"'Y
M!`$`````+`(``@`<`!@`@`````````)5A!VI&ZB>#F0/K"DIQ;9.W721&$KF
M2:;HRET'Z+GNM[4>J;W/3#/VJ(/]2JR3[%;,[)`PX(6'JQV!O6D(VKPNJ=7*
5$YE<0<,H7O9L.F?3:J&RG9,4```[
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>4
<FILENAME>logo.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 logo.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``,"`@,"`@,#`P,$`P,$!0@%!00$
M!0H'!P8(#`H,#`L*"PL-#A(0#0X1#@L+$!80$1,4%145#`\7&!84&!(4%13_
MVP!#`0,$!`4$!0D%!0D4#0L-%!04%!04%!04%!04%!04%!04%!04%!04%!04
M%!04%!04%!04%!04%!04%!04%!04%!3_P``1"`"<`10#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
M!`0```%]`0(#``01!1(A,4$&$U%A!R)Q%#*!D:$((T*QP152T?`D,V)R@@D*
M%A<8&1HE)B<H*2HT-38W.#DZ0T1%1D=(24I35%565UA96F-D969G:&EJ<W1U
M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!
M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#]4Z***`"B
MBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`K-UWQ+I/A>T%SJ^I6NFP,=JO
M=2K&&/H,GD^PKP/]JS]LO0?V>;-M(T](M=\<3Q[H=-#D1VJD';+.1T&<80'<
MWL.:_-[6OC-XP^.?C32&\523>*'CE4K;"7R1U&[:5XB7CG:!QWKWL%E%7%1]
MK/W8?B_0^?QV<4<)+V4/>G^"]3]0[/\`:0B\237AT'2G.GJT?D:GJA-K!Y>X
MB663=A@O!$8`W.1P,8)]#D^)>@6Z:']INFM)M9?9:6UPACE/RLQ+(>5`52<F
MOS>M?C1IGA6%-%T?Q/'=ZX+<1IJ,L+?9--98RQ-E!M&YB3@.V7=FR!&,EO=/
M"'CV^U;11_HMO&4B2V^WR@-=W)"*KR2X.U68J&*#H0.`17@<38_+^&,&\9C7
M9?9BOBD_)/\`%Z)=;:'I9)'%YSB/J^'U?5](^MOP_P"'/I[QG\6]&\)KY4<@
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M>>%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110
M`4444`%?+_[9W[75I\"=`E\/>';J"X\?7L0,<1!<6,39'G-VW\?*IZ]2,8![
MO]J;]HBR_9S^')UDQQ7VMWLOV73=/=\&63&6<CKL0<D^ZCJ17XV>(_$>I^+]
M>O\`6M9O9=2U2_F:>XNIFRTCD\_3T`Z`8`XKZ?)\L^M2]O57N+;S?^1\MG.:
M_5(^PHOWW^"_S*U]>SZI=7%[>74MY>7$C22S3,6>1R<EBQ/).?\`/=+:>2)M
MHE=(W^\$?:&Z_GU_SW;<+&FQ8W\PE068=R1G`Y[9Q_GGI_AC\.[_`.)WBN#1
M[(^7'CS+FY(R(8@?F;KUYP!W)%?:XW&8?+L+4Q>*FH4X)MM[)+^MMWLCX##8
M>MC*\*%"/-.3LDNK9WW[/7P?OO'&KC7+@O9:+:R$?:L_O9I`1\L?H1W;WP,F
MOLFSM8;"UAMK:-8;>)0D<:<!0,8`YJKH&A67AC1;+2M.B$%E:QB.),Y./4G/
M))))/<DGO5\'@<^G?Z>]?YO\;\8XGC#,I8B?NT8Z4X]H]&^\GN^VRT/[,X8X
M=H<.X)48ZU'K*7=]EY+IWW8[S6,:IGY0<_R]_P#/\^K\*^'+KQIJ]IIMO</<
M"*,&6X?F*U3.2%4]>N/<_G7,Z?93ZI?6]G:H9;B=Q'&@/4G'O7IWB3XU^`OV
M<--&@27::IXD\EYY[:U(+%P,CS7_`(,]%4Y.,<<Y,\'Y%_;%>53%2Y</"W,^
M_:*\W]Z6UG8]?,:N(7+A\#3<ZTKV25[=Y/LEYZ-[GL?AGPGIWA.Q%M81$$@;
MYI&W/(0.I/\`0<5H1:E:3S)%'<PO*\?FK&K@LR?W@.N/>OBJ/]I/Q5\7)526
MW^QZ(TCNFG:-F6YN@-H\ML#(0!_F8E1SG/`!]'\%^,K+0_%"66D-:W%\EL)I
MVBD'ELN\*(IK@96,#)*Q(H''&:_J+"8W"TH1HX2"C36BZ?<OZN?#XSA3'45*
M>,G>KJ[+6WK*_P#P%M?M]+T5RW@Z7Q%=R3W>K3V;V<[,\"01L"J9^0`[CD8R
M=Q^]D<#'/4U]#"7/'FM8^#K4O8S<.9.W8****LP"BBB@`HHHH`****`"BBB@
M`HI&8(I9B%4#))Z"N(\)_'/X=>//$=SX?\-^.O#NO:Y;;C+IVG:G#/.H7[QV
M*Q)QWQT[T`=Q1110`4444`%%%<9X_P#C/X"^%4ME%XR\9Z%X6EO3_HT>KZA%
M;--S@E0[`D`]^@H`[.BJ]AJ%KJMC!>V5S#>6=P@EAN+>0/'(A&0RL."".A%6
M*`"BN)^*GQJ\"_!'1H=5\=^*=.\,6,[F.![Z7#3,!DK&@RSD#J%!QD5=^''Q
M2\(_%_PXFO\`@OQ#8>)=(9S$;K3YA(J.,$HPZJP!!VL`<$<<T`=35'7=;LO#
M6BW^K:E.MKI]C`]S<3-T2-%+,?P`-7J^(?\`@IW\8I/#W@K1OAY8NR7&OL;R
M^9)-I%M$PV(1W#R?^BCUS79@\,\77C177\NIQXS$QPE"5:73\^A\/?M"_&[4
MOC_\3M2\4WP:"T;]QI]EO)6WMEX11D\,?O-C&68\5YKG/OGT[_Y_S[F<^^?3
MO_G_`#[F<^^?3O\`Y_S[_K5.G&E!0@K)'X[5J2K3=2;NV2VUM+>W,<$*^9-*
MP1%!^\3T'7_/\_N+]GGX6#X=>#5N+Q%.L:EMFN3@9B7'R19[XR2?4D^E>3_L
ME_#&WU:>\\6:G;K<1P/]FL8Y!E2^/G?'?`8*/<GTKZK+G`7D>HSU/YU_'/C'
MQN\36EPU@W[D&G4?\TMU#TCHW_>5NFO]&>'/#"H4XYUB5[TD^1=ELY>KV7EZ
MB;BQSG)//\O>@$D`9S[9^GO1@X4YX/3GZ>]>??&+QV?">@K9VK?\3'4%9$8-
M@Q1XPS_7G`]SGMS_`#%A,+4QE>-"GO+^K_+<_H##8>>*JQHT]W_7X%7QO^T6
M_ARWNM'\#G&I/&5N?$(!\R'H"EM_=`!(,AY)/&``3\]3SR7-S)-<2O/-(Y>2
M21RSNQ/+$DY)^O\`^M8FF@0RQNR!P8]P;!8=QUY_S^,6X!2./7.?_KU_0&'H
MPPM"&'I*T8]/S?J^K/U;`9;A\NBU0CJ]WU?J_+HMET1UFG>.]3T;2%T[0B=,
MB/\`I-Q+'M\RX<<Y9SSM5<83.,Y.,GG[1_9/^%EQJ7ARTU_Q%;27".1+&M[$
M4CFE#L1,D>1N_A)ED!+'[H`&6\:^#?PZ\`?"#P]I_P`3OCCK.G^'=,N6!T33
M=8DP;AE^;SC#RTG&"J`'CYB.17W%\-_BIX0^,'AQ=>\%^(K#Q+I!<Q&ZL)@X
M1P`2C#JK`$':P!Y%?H^2Y94LL1B-ND?U?]>9^"<<\5X:\\LRU>]?WYKOU2>[
M[-WTV7EU(&!2T5SWCOXA>&?AAX=FU_Q;KVG^'-&A94>]U*X6&,,?NJ"QY8]@
M.37VQ^#'0T5X'_PWM^SW_P!%9\.?^!!_^)H_X;V_9[_Z*SX<_P#`@_\`Q-`'
MOE%>!_\`#>W[/?\`T5GPY_X$'_XFI+;]NW]GV[F6-/BWX95FX!EO/+7\2P`%
M`'O%%<_X.^(7A;XAZ?\`;O"WB32?$=G_`,_&DWL=R@_%&(KH*`"BBB@`HHHH
M`^4O^"H'B_5?!O[&/C6?2+M[*XO7M-/EFB8J_DRSHLB@@\;ERI]0Q'>OP:\)
M^+-8\"^)=-\0^']1GTG6M-G6YM+VV;;)#(IR"#_0\$9!R#7[F?\`!6?_`),J
M\3_]A#3_`/TI2OP=H`_H:_8?_;`T?]K7X6Q7Y:&R\::4B0:[I2'&R3'$\8Z^
M5)@D>A#*<[<GZ.K^:']G?X^^)OV:_BGI7C?PQ-_I-JWEW5E(Y$-];,1YD$F/
MX6`&#_"P5AR!7]$'P,^-?AK]H3X9:/XW\*70GTW4(_GA8CS;68?ZR"4=G4\'
MU&",@@D`[ZBBB@`K^<W]NCQ1JGBS]KCXJ7&JWLM[):Z]=6$!E8D100R&.*-1
MV4*HX'N>]?T95_-Q^V-S^U?\7_\`L:M2_P#2AZ`/U'_X(P^+=6U[]F_Q'I6H
M7LEW9:-K\D%A'*Q/V>)X8I&C7T7>S-CU9O6OT`K\Y_\`@B5_R0GQ[_V,@_\`
M26&OT8H`_#[_`(+%:_?ZE^UG%IUQ<O)8Z;H-HEK`3\L6\N[D#U)/)]AZ"N[_
M`."(^N7T7QB^(6C+<N--N-!2[DML_*TL=PB(^/4+*X_&O-/^"OG_`">/??\`
M8$L?_07KO/\`@B7_`,E^\=?]BP?_`$J@H`_9*65((GDD=8XT!9G8X"@=237X
MB?M'?%N?XV_&3Q'XH=V-E-.;;3XRV0EK'E8@/0D?.<=W/KS^JO[9?B:_\(_L
MR^/-0TR9+>[-DMJ)';&$FE2)]O\`M;'8#W(K\7^V/PX[_P"?\^_V_#N'5IXA
M[[+\W^A\+Q+B'>&'6V[_`"7ZAG/OGT[_`.?\^]W1=)N/$&LV.F6HWW-Y.EO&
M.3\S-@=/3//^<TLY]\^G?_/^??WK]D+P0=?\<W6NR*'@TJ/9&#WFDR`>O9=Y
M_$5V\39U#A[)\3F<]?9Q;2[R>D5\Y-(\+),MEF^8T<%'[;U\DM9/Y),^K/"7
MAJR\&^'K#2+!1';6<0C3`P9#W<^Y.6)]36D#G'/Z_3WJ29U+@*3M48&3GTJ,
M'IS^OT]Z_P`N\17J8BM*M6ES2DVVWNVW=M^K/[FHTH4:<:=-6BDDEV2V0L]P
M,-+(P1$7).>%4#)[].M?)GC[Q6_C+Q1=ZAD_9\^7;H3]V)?N]^IY/XU[A\</
M$CZ%X-^S0MMGU)_L^<\B/&7(_#`_X%7S;_GKU_6OT?A/`VA/'3WEHO3K][T^
M1^B\-X-1A+%2ZZ+TZ_C^0YI&=4!.0H(7Z9)]?>OJ3]C+]G)/'>I1^./$=JD_
MAVSD9;.SN$)6]G4_?(S@HA]<AFXZ`YY7]ES]FFY^-.JR:QJX:V\(64ACE?D/
M>2X^XGLN1N/N!SS7Z-Z)HEAX;TBSTO3+6.RT^TB6&"WA&%C0#``K]SR3*76D
ML577NK9=_P#@?F?#<>\8QP-.>4X"7[UZ2DOLI[I/^9_@O/;\5/\`@LGK5]??
MM6V&GSW,DEE8^';7[-;ECLC+R3,Y`Z`L<9/?:OH*[#_@B1K5]%\9_B!I"74B
MZ;/X?6ZDM0QV-+'<QJCD=,A99!_P(UP/_!8C_D[X=/\`D7K+_P!"FKL?^")A
M_P",@/'(R?\`D6&X_P"WN"OT8_F0_9:OR0_X+?ZY?MXT^&&C?:Y1I:Z?=W?V
M0.1&9C(J;RO0G:,`]@3ZFOUOK\@O^"WO_)4/AG_V!KG_`-'B@#\U**^N/^"6
M/A_2_$_[86@:?K.F6>K6$FG7Y>UO[=)XF(@8@E6!&0:_;D_`[X<'.?A_X6.>
M3_Q);;_XB@#^8ZBOZ<3\#OAP<Y^'_A8YY/\`Q);;_P"(JMJ7[/7PMUBUDMK[
MX;>$KJ!P0R2Z';$'_P`<H`_FH\/^)=7\)ZDFHZ'JM[HVH1\)=Z?</!*OT=""
M/SK[L_93_P""M/CKX7WT.C?%-[KQ_P"%G8+_`&@S`ZI9C&,AS@3+ZJYW=P_8
M_:OQG_X),_!'XCZ;=R>&-/N?A]KK1GR+K2YWDM?,SD&2WD)!7MA"GUK\@?VD
MOV;?%_[+GQ'F\(>+X8FF,8N;+4+0EK>]@)($D9(!Z@@J0""#[$@']&7P]^(/
MA_XJ>#-*\5^%M2BU;0M4A$]M=0GAE/4$'E6!R"IP000>1715^,O_``2!_:9O
M/!'Q7F^$^L7S'PUXG#S:=%*WRVVHHN[Y<G@2HK*1W98\=\_LU0`4444`?'/_
M``5G_P"3*O$__80T_P#]*4K\([*-);VW20$HTBJP!P2">:_=S_@K/_R95XG_
M`.PAI_\`Z4I7X2Z=_P`A"V_ZZK_,4`>Z_MF?LFZW^R9\4I-%N3)J'AC4@UUH
M>L%<"Y@SRCXX$J9`8>ZL.&%=)^P1^V5?_LF_$\'499[KP!K3I#K5A'EO*[+=
M1K_?3/('WER.NTC]K/VD?V=/#7[4'PAO?!OB.,1M(@FT_4D4&6PN@OR3)Z]<
M,N?F4D=\U_/'\7_A/XB^!_Q&UOP5XJLVLM9TJ<Q2#!V2IU26,_Q(ZD,I]#0!
M_31H.O:=XIT2PUC2+V'4=+OX$N;6[MG#QS1.`RNI'4$$&K]?CC_P2P_;FD^'
M6OV?P>\<:A_Q2FJ3;-"OKA^-.NG;_4%CTBD8\=E<^CDC]CJ`"OYN/VQN?VK_
M`(O_`/8U:E_Z4/7](]?S<?MC<_M7_%__`+&K4O\`TH>@#]+_`/@B5_R0GQ[_
M`-C(/_26&OT8K\Y_^")7_)"?'O\`V,@_])8:_1B@#\+O^"OG_)X]]_V!+'_T
M%Z[S_@B7_P`E^\=?]BP?_2J"N#_X*^?\GCWW_8$L?_07KO/^")?_`"7[QU_V
M+!_]*H*`/KW_`(*F>++O3/A;X3\/P[1:ZOJCS7#9^8B"/*J/8M(#_P`!%?F=
MG/OGT[_Y_P`^_P"A7_!5;P[KDUIX$UQ)))?#=N]Q:2Q*ORPW+A65F/\`MJC`
M?[A]>?SUSGWSZ=_\_P"??]-R116"A;S_`#/RW/I-XZ5^B7Y`3UYS_7_/^??[
MI_9B\$MX)^&4-W./],U8_:Y$;Y2H=<1KCKPG)]V_/YT_9J^!UY\:_&%]\G_$
MCT&V_M'4I#T=0?DA!_O.0?P5OQ^YI[4V#M`Z;?)X;:"H![#VQ7\Z>-^?SI4*
M&24=I>_-]-+\L?OO)^D>Y^L>&.3J=2KFE7I[L5Z_$_NLEZOL56&T@9Y'7GZ>
M]-7DCG]?I[TNXL<DY)]_I[UY]\8_'`\*^'?L=M+MU/4%,<>#S''C#OUX/8>Y
M]J_C_"X:>,KQH4EK)_T_D?TQAL//%58T8;O^K_(\C^+OC$>+?%4BP/NL;$&W
MA.>'(/SOU[GI[`>M5/A9\-]4^+?CC3O#.D_+-=,6EN&7<EO"OWY7YZ`=!W)`
M[UR60!UX]S_]?_/\_P!%OV)/@XG@+X=+XGOX"NO>(D68F1<-#:CF).>F[[Y]
M=R^E?TID64PJ2IX2'P06OI_FV?8\2YQ3X6R=SI?'\,%_>?5^FK?=Z=3W#P'X
M+T[X=^#])\.:4FRQTZ!84)ZN>K.W^TS$L?<FM^BBOVB,5"*C%62/XUJU9UZD
MJM5WE)MMOJWJV?AQ_P`%B/\`D[X=/^1>LO\`T*:NQ_X(F'_C(#QR,G_D6&X_
M[>X*X[_@L1_R=\.G_(O67_H4U=C_`,$3#_QD!XY&3_R+#<?]O<%49'[+5^07
M_!;W_DJ'PS_[`US_`.CQ7Z^U^07_``6]_P"2H?#/_L#7/_H\4`>.?\$E?^3T
M_#G_`&#=0_\`2=J_>"OP?_X)*_\`)Z?AS_L&ZA_Z3M7[P4`%%%%`!7Y\?\%H
M/AY;:]^SUX<\7+`AU'0-;2'S]OS"WN(V5USZ&1(3^'Y_H/7Y^_\`!:#QQ!HG
M[.'A[PT)XQ?:YK\;B`L-[0012,[`=<!VA!/^T/6@#\E?@)XOF\`?&_P#XC@(
M$FEZ[977/0JLZ%@?8C(_&OZ;*_F3^`7A67QS\<?A_P"'X5#/J6OV-K@]`&G0
M$GV`R:_ILH`****`/CG_`(*S_P#)E7B?_L(:?_Z4I7X2Z=_R$+;_`*ZK_,5^
M[7_!6?\`Y,J\3_\`80T__P!*4K\)=._Y"%M_UU7^8H`_J<M^;>+_`'1_*OD?
M_@H?^Q/:_M3?#S^V-!MXX?B1H,+-ILW"_;X1EFM)#[G)0G[K>@9J^N+?FWB_
MW1_*I*`/Y7[^PNM)O[BRO+>6SO;65H9H)D*212*2&5E/(((((/0BOVB_X)A?
MMT_\+L\-0?#'QO?;O'FC6_\`H%[._P`VK6B#N3UFC'WN[*`W)#FN"_X*K?L+
M?\)%9WOQJ\!:;G5+9/,\3:;;)S<1*/\`C\11_&H'[P#JOS=58M^5'A+Q9K'@
M3Q-IGB'0-0FTK6M,N$NK2\MVVO%(IR"/Z@\$9!X-`']25?S<?MC<_M7_`!?_
M`.QJU+_TH>OVX_8=_:_TG]K7X61Z@QAL?&FDJEOKNEH<!)"/EGC'7RI,$C^Z
M0RG.,G\1_P!L;G]J_P"+_P#V-6I?^E#T`?I?_P`$2O\`DA/CW_L9!_Z2PU^C
M%?G/_P`$2O\`DA/CW_L9!_Z2PU^C%`'X7?\`!7S_`)/'OO\`L"6/_H+UWG_!
M$O\`Y+]XZ_[%@_\`I5!7!_\`!7S_`)/'OO\`L"6/_H+UWG_!$O\`Y+]XZ_[%
M@_\`I5!0!^O'C?P1HOQ%\,7_`(?\06,>H:7>Q-%+$XY`*D;E/56`)PPY%?E)
MI7[#'Q$\2_%G6_#%GH&I:3H5K<7*0:[J\/E6[QKGR6W#<&WY7A-Q`)]#7Z\4
M5ZN"S&M@8RC3Z]^GF>3C<MHX^495/L]NOD>7?L\_`#0_V>OAW#X;TPB^NYF\
M_4M2D3:]Y.1@L1D[5`X5<G`]223XEXAD4:SJ"1S^?&;F0^8.`WS'!`STP>/K
M7UX[%49@I<@9"CJ?:OC+QAXB@L;K4]7U>5-/B:=Y)#(2`K%ON@=2<\8%?SMX
MLU)UXX6]Y3E*71Z_#_5ON/UG@B@H2JTZ4=$HI)?/IN4-8UFUT#2[C4+V416T
M"[G;/7I@#GDD\`>IKY/\5>)KKQ=KMSJ=VWS2G$<>>(T'W5'/;_'UYZ3XG_$V
M;QQ=K;6NZ#1X&S'&QPTK8QO;G\AVS7&Z?I]UK&H6UC8V\M[>W4BPP6\*[GE=
MCA5`SU)-?&<.Y-+`4_;5E^\ET[+MZOK]Q_3^39;]1INO7TF_P7];G??L_?"Z
MY^+GQ2T?1T@>738I5N]2EQ\J6Z,"V[KRQP@'?=]:_5Q$6-%1%"HHP%48`'I7
MCG[+OP+'P2\!>5?!)/$FJ%;C4I$;<$(!V0J?1`3R.I+'TKV6OZ'R7`/!8>\U
M[\M7Y=E_74_F3CKB&.?9ERT'>C2O&+[O[4OF]%Y),****^@/S@_#C_@L1_R=
M\.G_`"+UE_Z%-78_\$3#_P`9`>.1D_\`(L-Q_P!O<%<=_P`%B/\`D[X=/^1>
MLO\`T*:NQ_X(F'_C(#QR,G_D6&X_[>X*`/V6K\@O^"WO_)4/AG_V!KG_`-'B
MOU]K\@O^"WO_`"5#X9_]@:Y_]'B@#QS_`()*_P#)Z?AS_L&ZA_Z3M7[K:GJM
MEHEA-?:C>06%E"-TMS=2K''&.F69B`!]:_"G_@DK_P`GI^'/^P;J'_I.U>Z_
M\%MO$GB^+Q?\/]",EQ#X%ET^2Z1(V80W%^)663>.A9(_*VYZ>8V.IH`_4"R^
M+/@?4GC6T\9>'[II#M18=4@<L?08?DTFJ?%OP-H>[^TO&GA[3]O+?:M5@BQW
MYW.*_F#HH`_H%^+_`/P4I^`OPDT^=QXQ@\7ZDF0FF^&"+QW;'_/0$1*/<O\`
M@:_&?]K?]JCQ#^UI\4I/%.LP+ING6T7V72M(BD+I9V^2<$G&YV)RS8&3@8``
M`\5AADN9HX88VEED8(D:`EF8G```ZDU]?_LR_P#!,7XK_'75+&]\0Z7<_#_P
M:Y#S:GJ\.RYE3/*PV[8<L>S.%7'.3P"`=S_P2(_9NNOB-\;'^)>IVCCPSX/#
M&VE<82XU%UQ&@]?+1C(<=#Y>?O5^UM<9\'_A#X8^!7P]TGP7X0T\:?HNG1[4
M4G=)*Y.7ED;^)V.23^`P``.SH`****`/CG_@K/\`\F5>)_\`L(:?_P"E*5^$
MNG?\A"V_ZZK_`#%?NU_P5G_Y,J\3_P#80T__`-*4K\)=._Y"%M_UU7^8H`_J
M<M^;>+_='\JDJ.WYMXO]T?RJ2@!LD:RHR.H=&!#*PR"/0U^(?_!3/]AIOV?O
M%[^/_!MBW_"N]<N#YMO"GRZ/=MR8CCI$YR4/0'*<87=^WU8?CCP3HGQ(\(ZM
MX8\1Z?%JFAZK;M;7=I,,K(A_D0<$$<@@$<B@#^;_`/9U_:`\3?LT_%/2O&WA
MB7,]L?+N[&1R(;ZV8CS(),=B!P?X6"L.0*H?'SQY8_%+XV>.?&.F130:?KVL
M76I00W``DC261G"M@D9&['X5Z!^V=^R;KG[)?Q7N-#NA)>^&-0+W.A:N5^6Y
MM\_<8]!+'D*X^C`885X%0!^R'_!$K_DA/CW_`+&0?^DL-?HQ7YS_`/!$K_DA
M/CW_`+&0?^DL-?HQ0!^%W_!7S_D\>^_[`EC_`.@O7>?\$2_^2_>.O^Q8/_I5
M!7!_\%?/^3Q[[_L"6/\`Z"]<W_P3C_:D\'?LI?%/Q-XA\:0ZI-8:CHQL(1I5
MNLSB3SXG^8,Z`#"'GF@#]]:*^$_^'ROP&_Y\/&7_`(*X?_C]'_#Y7X#?\^'C
M+_P5P_\`Q^@#[LKD/BG\,]*^*_@K4/#VJ1*8[@!XI<<Q2J=R/QSP>H[@D=Z^
M0O\`A\K\!O\`GP\9?^"N'_X_1_P^5^`W_/AXR_\`!7#_`/'ZSJ4X58N$U=,Z
M,/7JX6K&O1ERRBTTUT:V/F,>#-4N?%E_X=TZ%M9U&TEFC*V'[T2^62&9=I.1
MQQC.21USS]P_LE?LJS_#B9/&/B^)/^$D>,K9V&0PL58?,S'H92"1QPH)&22:
M\@TG_@K!^S+H.IW6HZ;X4\0:?J%T6:>[MM!M8Y92Q!;<PFR<D`G/?FMK_A\K
M\!O^?#QE_P""N'_X_7S.`R&EA*GMJCYFMNR_S9^J\1>(>*SC"O!86'LX25I.
M_O2[KLD^O5K3:Z/NRBOA/_A\K\!O^?#QE_X*X?\`X_1_P^5^`W_/AXR_\%</
M_P`?KZH_(C[LHKX3_P"'ROP&_P"?#QE_X*X?_C]'_#Y7X#?\^'C+_P`%</\`
M\?H`^)/^"Q'_`"=\.G_(O67_`*%-78_\$3#_`,9`>.1D_P#(L-Q_V]P5X!_P
M4!_:&\+_`+3?Q]_X3+PA%J$.D?V3;66W4X%BE\Q"Y;Y59ACYQWKW_P#X(F'_
M`(R`\<C)_P"18;C_`+>X*`/V6K\@O^"WO_)4/AG_`-@:Y_\`1XK]?:_(+_@M
M[_R5#X9_]@:Y_P#1XH`\<_X)*_\`)Z?AS_L&ZA_Z3M7[2?&GX'^#?V@O`MUX
M2\;Z1'JVDS'S(SG9-;2@$++$XY1QD\CJ"0002#^+?_!)7_D]/PY_V#=0_P#2
M=J_>"@#\%OVP_P#@F[X[_9EEN]>T99O&7P^4L_\`:UM%^_L4SP+J,=./^6B_
M(<<[<@5\@`X.:_JEEB2>)XY$62-P59&&0P/4$=Q7YX?MB_\`!)KP]\2VO?%?
MPB^R^$_$[DRSZ$_R:=>MW\O_`)]W/L-A]%Y:@#Q[]@3_`(*!_"OP<MAX5^(7
M@;PUX*U-<)!XST;288(YVZ`W01=R-_TT7*GN%Y)_6K3=3L]9T^VO]/NX+ZQN
M8UE@N;:0212H1D,K*2&!'((K^8+X@?#KQ-\*O%5YX:\7:)>>']<M#B:RO8]K
M`=F!Z,I[,I(/4$U[C^R?^WI\1OV5+^*STZZ_X2'P8\FZY\-:C(QA`/WF@;DP
MN?494G[RM0!_0K17B/[,W[8/PZ_:JT`W?A'5/)UFWB$E]X?OB([VUZ`DKGYT
MR<;UR.1G!.*]NH`****`/G?]O[X-ZY\=?V5O&/A?PS`UYK^(+ZSM%(!N6AF2
M1HQDCYF56`]6P*_$/X*?LM?$?XM?%G2O"%CX3UBTN/MB)J%Q=64D4=A$''F2
M2LP`7:,\'DG`&20*_I$HH`:BA$51G`&.:=110`4444`>4?M-?LZ>&_VH/A/J
M?@OQ$@B:0>?I^HH@:6PNE!V3)Z]2&7^)2PXSD?SO?%OX4>)/@C\0M8\&>++!
M]/UK3)C'(C#Y)5ZI+&?XD=<,K#J#7]/%<3\0O@C\/_BS<65QXS\%Z'XHN+(@
MV\VJV$<[Q`'.T,P)VY).WH<\B@#XS_X(O>%=5T3]G#Q+JE]9R6MEJ_B&2:QD
MD&//C2"*-G7U7>K+GU5O2OT"JMIVFVFCV%O8V%K#8V5O&(H;:VC$<<2`8"JH
M```'0"K-`'Y$?\%>OV9O'.J_&"P^)F@:%?\`B#PY>Z7#97<FGV[3M93Q,XPZ
MKDA&5D(;&,[@<<9_/(?#/Q><8\*:WSP/^)=-_P#$U_4)10!_+V/AGXO.,>%-
M;YX'_$NF_P#B:!\,_%YQCPIK?/`_XETW_P`37]0E%`'\O8^&?B\XQX4UOG@?
M\2Z;_P")H'PS\7G&/"FM\\#_`(ETW_Q-?U"44`?R]CX9^+SC'A36^>!_Q+IO
M_B:!\,_%YQCPIK?/`_XETW_Q-?U"44`?R]CX9^+SC'A36^>!_P`2Z;_XF@?#
M/Q><8\*:WSP/^)=-_P#$U_4)10!_+V/AGXO.,>%-;YX'_$NF_P#B:!\,_%YQ
MCPIK?/`_XETW_P`37]0E%`'\O?\`PK3Q?C/_``BNMX_[!TW_`,37Z@?\$<_V
M<?&W@;6O%OQ'\3:-=^'](U'3ETO3H-0A:&:[S*LCRJC88(OEJ`Q&&WG&<&OU
M$HH`*_-G_@K_`/LT>./BK#X+\;^#=$N_$D.BV]Q9:C8Z?$9;B)&97258U^9U
MX<-M!(^4XQDC])J*`/R!_P""2W[*OC_2?C8WQ,\1^'M1\->'=,T^>"U?4[9H
M'OIIAY>(T<!BBKO);&,A1SDX_7ZBB@`HHHH`\K_:!_9E^'W[3/A5M%\<:)'>
MLBD6FIP8CO;)C_%%+C(YZJ<J>X-?BQ^V#_P3R\>_LM7MSJUM%-XM\`%B8M?M
M(?FM@3PMU&"3&>@W_<;C!!.T?OW4=Q;Q7<$D$\:30RJ4>.10RNI&""#P01VH
M`_G=_8#L/$]_^U]\,?\`A%4NVNX-7AFO6M=V$L0P^U&0CHGE%P<\'<!R2`?Z
M)JYOPI\-O"/@.:ZF\->%M%\/2W7^O?2M/AMFEYS\Q11NY]:Z2@`HHHH`:[K$
MC.[!$499F.`!ZFN.^$/Q4TCXR^!K/Q/HQ*VT\DD+PNP+12(Y5E;'T!'J&![U
MSG[4WCC_`(5]\`O&6J(ZI=26365ON."99B(ACW&\M_P&OA+]E7]H&Y_9G;6K
M3Q':7/\`8.N:4=6TR$J<2W"AEB9>N%EVE">Q1?2O*Q&.CA\1"E+9IW\NQ^D9
M'PA6SS),3CL.KU8SBH1_F25YI=W:47\FNI^ANF?%G1=7^+.L_#^VD$FL:5IT
M.H7!##`#L1LQUR`8V/M(M=M7Y;_LQ^//$&A?M2>&/%'B;?&WC@SJ]Q-\HN5G
M=T5E]%\Z)5'L!BOU')P*TP.*>*A*35K/\-U^!Q\8<.QX;Q='#TY<RE"+;Z<R
MO&=O^WD].ESSSXT_'+P[\"](TC4/$$C>7J6H16,:1D;E5C^\E(_NQKECCV'4
MBO08I4GB26)UDC=0RNAR&!Z$'N*_-OXO:[I_[6_QT\26\WB_2_#7A3PUI\UM
MI%QJ5Y'#%=W`.`5WL,B209+#HB+W(S]!_L$?&QO'_P`.)/".JW`DU_PP%@!9
M]QFM,D1,#WV8*$CL$/\`%6%#'>UQ#IOX7\+[VW_X!Z^;\&O+LCIXV-W7A9UH
MV?NJI\'W;2WUEY'TUJFJ6>AZ;=:AJ%S%9V-K$TT]Q,P5(T499F)Z``5\;>,?
M^"EVBV.MRVGA3P;>>(K*(G-[<77V;S0#]Y$".VWT+8/M7?\`_!0?6+[2OV<[
MV*SD>..^U&UM;DIWB+%B#[%D4?IWJ]^PSX-\.Z)^S]X>U;2K>WEU'5DDGU&^
M"@RR2^8RF-FZX3:%"].,]22:KU:U3$?5Z,N6RNW:YGE&7Y3@,B>>YI0==RJ>
MSC!2<$K*[<I+7O9?YZ>Q?#CQK;_$?P%H'BBU@:V@U:SCNU@=@QCW+DJ2.N#D
M9]J^</B5_P`%!-)^''Q`U[PK+X+U#4)M)NFMGN(KQ%63:`2P4KD#FOJRRL;;
M3;5+:SMXK6VCSLA@0(BY.3@#@<DU^:-SX\A^&/[<_C;Q1<Z3>:U:Z;<ZA+-9
MV2J9#&;<AFPQ`VJ#D^P)YJ,=6JT(4U&5FVDW:_X&G!V4Y?G.*QTJV'=2-.$I
MPASN+O=6CS+RTN_4^T/@!^U1X1_:$:]M='CNM,UFSC$TVFWX7>8B<>8C*2&4
M$@'H02,CD9]:U75;/0],NM1U"YBLK&UB::>XG8*D:*,EF)Z`"OAK]@?P<WC/
MXJ>-?BK"MEI.ER2W-K!HUI("T+3R++@J/NHJ@!>!N)./NFO4_P#@HCJU]IO[
M/)ALY7BAOM6MK:[V'&Z+#OM/L71*JCBJGU-UZBNU?YD9MPW@O]:*>2X&3C&;
M@FF[N#DKRC?K;IYZ7.+\9_\`!2S0[#6I;/PGX0O/$5G$3F]N;G[*)`.K(@1V
MV^[8/M7L/[/O[6_A#X_RRZ=9QS:'XBBC\UM*O64M*@ZM$XX<#OP".N,<U2_8
MG\%>&_#WP!\-ZEH\%O-?:O;FYU&^"AI99BQ#(S=<(1L"]!M]22?F+]HC0]+^
M%G[:_@RY\$B.QOKNYL+JZLK,!4CGEG,;J%'3S(^2O?>3_%7*ZV*H0AB*DTXR
MM=6VOV9]%#*>',XQ>*R/`X:=*K14^6JYN7,X;\\7I%-]OP>A^@OBS7E\*^%M
M9UIX6N$TVRFO&A5MID$:%RH/;.W%?'T'_!3K0'VO+X"U9("<&1+R)B/PP!^M
M?5'Q>_Y)-XU_[`E[_P"B'K\O_@E\4?%6@?"GQ?X%\.^`W\6KXE;RY+I;:2X^
MSLT03`15(+`?,N2,'!P>^F88FK1J0A"5DT^E]>AQ<$</9?F^`Q.(Q>']K*$X
M)?O'32B_B=[VT6MGO:Q^G'P@^+_AWXV^#HO$?AN:5[4R&&:"X4)-;R@`F-U!
M(!P0>"0000:\I_:"_;+T[X!>.[?PS=>%KS6IIK*.]6>WNDC&&=UVX()S\GZT
MG[#?P8U_X._"V^7Q+";+4]8O?MOV!B"]O&(U10^"<.<$D=L@'G-?/O[:EX^G
M_MB>!+J.UEOI(+;395M8,>9,5O)#L7)`W'&!GN13KXFO#!PJOW9NU]/T,<FR
M')\7Q1B<OC^^PT%-Q]ZU^5+[2ML[J^SW/H/X'_MO^#/C/XIA\-&POO#FM7`;
M[-%?%'BG8`DHKJ>&P"<,!G'&3Q7NOB[Q`OA/PGK6N/"URFF64]ZT*MM,@CC9
M]H/;.W&:^`_A.(?VG?VT&\::390^%=,T5X=1N+&=U%W.8AL!*#JS/@.1PHQD
MDD9^X_C'_P`DB\<?]@*^_P#2=ZVP=>K5HSG-WLW9[7MUL>9Q1DN7Y;FN%PV&
M@X>TC!SIN7-R.3UCS==/\^MC@_V8_P!I)?VC]*U^_3P^=`CTRXC@5&N_/,N]
M"V2=BXQCIS70?$_X_>&_A!XR\*Z)XF=K"U\0K.(M49AY-O)&8P%E_NJWF?>Z
M`CG`.1\X_P#!+\?\4;XZ./\`E_MN?^V1K$_X*@$?;?AT#R/+O^/QMZY_K=6.
M7K$-WE_]M;\CV9<,9=7XVGD48N-#5))NZ_=<R=W=_%KK?ML?;_B/Q!%H'A75
M-<"?;(;*REO0D3#]ZJ(7P#TY`Z^]>4?LQ?M*+^TAIGB"^C\/MH$6EW$4*H]W
MYYEWJ6R?D7&,=.:^4K'XG^/_`-E31M2^''CZWFUSP9K.E3Q:-JD)+B+S(2%\
MIFZH"P#1-RG5>/O=]_P2_4KX2\>`CD7UJ,_]LFIPQTJV)ITUIOS+SL1C.#Z.
M5Y#C<=4:JV=/V52+=G&4K/2]K]&FFT]NYZI^T1^V5HO[/WB^R\.W&@W6NWL]
MF+R0V]PD0A5G95!W`Y)VD_3'K7G.B?\`!2O1-:UO3M.7P-J,+7MS%;K(U_&0
MI=PN2-O;-?07[1FFVDWP/^(%Q):027"Z#>;97C4L,0OC!(S7S_\`\$U-.M+W
MX6>)Y9[6">1-;^622-68?N(CP3FG6EBEBE2C4LI7>RTL+*\-P]+ANKF>(P3G
M4I.,&_:27,Y?:TT5K[6?J?4OQ,\<1?#7P!KWBF>U>^BTFT>Z:VC<(T@4?=!/
M`KY.7_@IOI$BDQ_#S5I!ZK>QD?HM?0G[4_\`R;I\0O\`L#S_`,J^)_V0_B1\
M8/#.@6>C^#/!D6N>$+C6P;W4GLY)3$S>6)1O60`;4`/(.,TL;B*M.O&G"5DU
MT5^I?"6199C<EQ&88R@JLX3Y5S5725N5/=75^RM=GZ,>%M?A\5^&-(UNW1H[
M?4K.&\C1SDJLB!P#[@&ODSQ%_P`%(M%\.^)=6TF3P-J<_P#9UW-:O-'>QX;R
MW*%L8X!QW/>OL>ORV^%'Q5M?@Y\;?B]XAO\`P[<^)K`I?VLUK"$*+OOE"M-N
M.!&6PI.#]\<<\ZX^O4H>S49\M[W=K].QP<%Y-@,W6-JXC#.JZ:BX0YW'64FK
M<VGEN??/P(_:'\+?M!:)=WOA\W%K=V+JEYIUZH6:#=G:W!(93@X(/8YQ6Q\8
M_C#X?^!_@JX\2>(9)/LZN(8+:W`::YF;.V-`2!G`)R2``":^8?\`@F[\,Y]/
MT7Q%X]EN[8P:N186UG:R[S$(W+/Y@_A.2H53SMY_B!/KO[8_P)U?X[_#*UL-
M`EB&M:9>"]M[>=]B7`V,C)N/"G#9!/&1@XSFKI5Z]3!>UM[]M#CS#*,EP?%?
M]FRJM8532DV_AT7-&_92TOT7I<\D\/?\%);?4==LX=0^'&JV^DWLX@MKFRN1
M<32,6P`L910[9(^56S]:^T8I/-B1]K)N`.UQ@CV/O7YO>$/VE?B7^S5'H'@_
MXC^!X[O0--(^QI?6@BN8T1L;X)AF.0IDX.">1\PSD_HMH>LVOB+1=/U6Q<R6
M5];QW4#D8+1NH93CZ$5&7UY5E)5)WDK:-6:.CCC)L/EDZ-3!854Z4^:TXU'4
MC-*UGKK%VW6SOIL7J***]@_+CYR_;<^%GCKXQ>`=&\/^#+&WOHUOC>7R37*0
ML=B$1@%B`>78GG^$5SGQ8_8S/Q#^&/PJT:V>*RUGPY%:Z=J%SN`+6A5?M&#S
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M,[:"3P5M1;F._P!0`987&V>%LY9N@D4X/.WG@U]JT5A_9V'2BHJSC;5;Z=V>
ML^.L[J5:\Z]7VD*JE%PE=P2E_+&^ENFNGF<O\3OAWI?Q7\":OX5UE6^PZC#Y
M9DC^_$X(9)%_VE8`CZ<\5\1:+^SM^TQ\";N^TGX>ZU#?Z'/(7$D%S;K&Q/\`
M&8;C_5OC&=N>G4\5^@M%:XC!T\1)3;:DNJ=F>=DO%&-R6C4PL(0JT9N[A4CS
M1OWM=:_/\CC_`(0Z1X@T+X9^';+Q7=/>^)8[4'49Y)?-+3L2S_-T."<<<<<<
M5\X>#OV:?&5E^V/KOC_5--LF\'7D]Z=TERCM-'+`8P#%SP2<$'MG\?K^BKJ8
M:%104F_<::^7<Y<'G^+P,\7.C&*^L1E&6FRD[OELU;RWL?''P@_9>^(/P,_:
M.U+4_"<UBOPYNFVS)>W1W2VS?,(@B@GS(F)VL<`@=?F-?3WQ-^'6D?%CP-JO
MA;6XV>PU"+87CX>)P<I(A[,K`$?3!X)KJ:**6%IT82IQ^%WT?GT]`S+B''9I
MBZ6.K-*M344I15FW':3?67G^A^?NE?LZ_M+?`F\OM)^'6NQ:CH-Q(762&Y@5
M&)_C,-Q_JWQC.PGIU->A?LW_`+'/B#0?B`/B/\4M475?$RR&XM[-9C.4G(QY
MTTAX9E'W57@<'/`%?8%%<L,NHPDI7;2V3>B^1]#C./,UQE"I1Y*<)5%:<X04
M:DUU4I7Z];)'/?$32+KQ#\/_`!/I=B@EO;[2[JV@1F"AI'B95!)X')'->'?L
M0?`_Q7\#O!GB+3_%EM;VMU?7R7$*6]PLWRB)5.2O`Y%?25%=LJ$958UGO&_X
MGRM#.,1A\MK97!+V=5QD]-;QVL[V]=`KY&_:%_9T\<?$7]ISP=XRT2RM9-`T
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M)M>^WGN<?XM^&&A?$CP`OA;Q5I\6H63P(C*>&BD5<"2-NJL#G##^1(KS+]E?
M]GG4/V>+KQQIL]ZNIZ3J%Y!<:=>Y`D>,(P*R+V920"1P>HQR![[16[H4Y5(U
M6O>74\>EG.-I8*MET9_N:K3<>ETT[KL]+/NM]E;C_C%X<O\`Q?\`"CQAH>EQ
M+/J6HZ3<VEM&[A`TCQLJ@L>`,D<FO)OV)O@MXI^"/@#7-+\66]O;7MYJ7VJ)
M+>X$PV>4B\D<`Y4U]$T4I4(RK1K/=*Q5'.<30RRKE,$O9U)*3TUO':SO:WR.
M$^.WA+4O'GP>\7^'M(C274]2TZ6VMTD<(K.PX!8\"OC'X>_`O]JGX4:$^C^%
M+RPTG37G:Y:W6ZM9`9&"@MET)Z*.^./S_0FBL:^#A7FJCDTTK:.QZV3\4XK)
ML)/`PHTZE.<N9JI#FUM;:Z7X'/?#VPUS3/`VA6WB:_.I^(8[./\`M"ZVHH><
MKE\!`%P&)`P.@%?+?P$_98\3^'OC#\2]4\::59MX5\36E_9B,72RO,DURKC*
MKG;E`3GJ#BOL6BM9X:%1P<OL_P!:G!@\_P`7@(8J&'45]8MS65K6?,N6S2C9
M[=NA\C?LL_L[?$SX!?%7Q'`;JPG^'=R[KF>X)FN0,^3,D:@['`(5@V`1GKA3
M7L/[2OACXC>+OAR^G_#75K?2-8:='GD>5H9I(E.=D4HX1B0,D]0",C->L45$
M,)"G1=&+=GY[7[&^,XDQ>.S.GFU>$'5CR_9]V3CLY*^K?7Y6M8_/+7/V:/VC
MOCSJNCZ?\2-1M[?2+%F"W=Q<6S")3@.RQP<NY`P"V/J!G/WYX<T.W\,>'M+T
M:TW&TTZUBM(=YRVR-`BY/K@"M&BC#X2&'<I)MM]6[LK.^)<7GM.E0JPA3IT[
5\L*<>6*;W=KO5_UNPHHHKM/DC__9
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>exhibit_2-17.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<hr size="1" noshade  style="margin-top: -10px">
<P align=right><strong><u><font size="2" face="Times New Roman, Times, serif">Exhibit
  2.17</font></u></strong></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>CONVERTIBLE
  LOAN AND WARRANT AGREEMENT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>THIS CONVERTIBLE LOAN AND WARRANT AGREEMENT (the &#147;<B>Agreement</B>&#148;) made as of the____ day of July 2003, by and between <B>NUR Macroprinters Ltd.</B>, an Israeli company (the&nbsp;&#147;<B>Company</B>&#148;), and the persons and entities identified in <B><U>Schedule 1</U> </B> attached hereto (the&nbsp;&nbsp;&#147;<B>Investors</B>&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>WITNESSETH:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B> the Company wishes to receive an irrevocable undertaking from the Investors to provide the Company
with a loan for an amount between US$2,000,000 and US $4,000,000 (the &#147;<B>Principal Amount</B>&#148;); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS </B> the Investors&nbsp;desire to undertake to provide the Company with their portion of the Principal Amount (the &#147;<B>Loan Undertaking</B>&#148;); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS</B>
  in consideration for the Loan Undertaking the Company shall issue to the Investors
  warrants exercisable into Ordinary Shares of the Company (&#147;<B>Ordinary
  Shares</B>&#148;) and pay to the Investors a commitment fee, on the terms and
  conditions set forth herein; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>WHEREAS </B> the Company and the Investors wish to set forth the terms and conditions regarding the exercise of
the Loan Undertaking by the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in the consideration of the mutual promises and covenants set forth herein, the parties
agree as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Advance of Loan and issue of Warrants</U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Undertaking
      to provide Loan</U>.&nbsp;Subject to the terms and conditions of this Agreement
      at the Closing (as defined below) the Investors shall undertake to lend
      to the Company up to the Principal Amount as set forth opposite each Investor&#146;s
      name in <B><U>Schedule&nbsp;1</U></B> attached hereto in consideration of
      (i) the issuance by the Company of a warrant (the &#147;<B>Warrant</B>&#148;)
      in the form attached hereto as <B><U>Schedule 2</U></B> for the purchase
      of Ordinary Shares equal to 15% of the amount of each Investor&#146;s Loan
      Undertaking divided by $0.52 exercisable at $0.52 per share for a period
      of five years from the Closing and subject to the conditions set forth therein
      and (ii) a cash commitment fee&nbsp;&nbsp;in an amount equal to 2% of each
      Investors respective Loan Undertaking (the &#147;<B>Cash Commitment</B>&#148;).</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Drawdown
      of Loan.</U>The Company may call upon the Loan Undertaking (the &#147;<B>Draw
      Down</B>&#148;) at any time within 1 year from the Closing provided that
      the Company is not in a state of insolvency or bankruptcy, at such time
      Prior to the Company exercising any Draw Downs, the Company may on ten days
      notice cancel the Loan Undertaking and release the Investors&#146; commitments
      (the Investors will retain the Loan Undertaking Warrants and the Cash Commitment)..
      The Company may draw down the Principal Amount (&#147;<B>Draw Down Amount</B>&#148;)
      in units of one million dollar ($1,000,000) increments. To effect a Draw
      Down the Company shall serve written notice to the Escrow Agent&nbsp;&nbsp;(as
      defined in Section 2.2.3 below) which notice shall state the exact amount
      which the Company wishes to receive and the date on which such amount is
      required to be made available (&#147;<B>Draw Down Date</B>&#148;) such date
      to be no less than seven (7) business days following the date on which the
      Escrow Agent receives notice of a Draw Down from the Company.</FONT></TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>





<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Draw
      Down Closing</U>. On the Draw Down Date the Escrow Agent shall release to
      the Company the pro rata share of the Draw Down Amount for each Investor
      whereupon the Company shall (i) issue to each Investor a convertible loan
      note bearing interest at a rate of 12% per annum and with a term of 42 months
      from Closing (the &#147;<B>Loan Note</B>&#148;) in the form attached hereto
      as <B><U>Schedule 3</U></B>. . Any portion of the outstanding principal
      of the Loan Note and accrued but unpaid interest may be converted (subject
      to shareholder approval pursuant to The Nasdaq Stock Market Inc. Marketplace
      Rule (4350(i))) at any time at the option of the Investors at the Conversion
      Price as defined below. (ii) issue to that Investor a Warrant to purchase
      Ordinary Shares (the &#147;<B>Draw Down Warrant</B>&#148;)in the form attached
      hereto as <B><U>Schedule 4</U></B>. The number of Draw Down Warrants to
      be issued to each Investor shall be equal to 15% of the amount of the Draw
      Down Amount divided by Draw Down Warrant Exercise Price which will be the
      lesser of (a) the average closing bid price of the Company&#146;s shares
      on NASDAQ during the ten (10) days preceding the Draw Down Date or (b)$0.52
      (as such term is defined in the Draw Down Warrant), exercisable Draw Down
      Warrant Exercise Price for a period of five years from the Draw Down Date
      and subject to the conditions set forth therein.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<U>Security</U>.
      The Company agrees to secure the repayment of the Principal Amount and any
      accrued and unpaid interest on the Loan Notes by creating at Closing a first
      priority floating charge on the Company&#146;s assets for the benefit of
      the Investors which shall be subordinated to the Company&#146;s current
      charges and encumbrances on the Company&#146;s assets, as well as to any
      charges created by the Company in favor of banking institutions(the &#147;<B>Floating
      Charge</B>&#148;). Following repayment to the Investors of their Loan Undertaking
      and any accrued interest the Investors shall execute such documents as are
      necessary to release the Floating Charge. In the event of a default by the
      Company of payments of interest and/or principal the Investors may not unilaterally
      exercise their right to foreclose without the prior consent of Bank Hapoalim
      B.M., Bank Leumi Le-Israel Ltd, Israel Discount Bank Ltd. (the &#147;<B>Banking
      Institutions</B>&#148;), for as long as one or all of the Banking Institutions
      have not commenced a foreclosure procedure of the Company.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.5</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Repayment</U>.&nbsp;The
      Company undertakes to pay to the Investors the Principal Amount, together
      with interest thereon (denominated in United States dollars) at a rate of
      interest of 12% per annum, payable quarterly in arrears. There shall be
      no repayment of the Principal Amount by the Company for twenty-four (24)
      months following the Closing. Thereafter, and provided that the Company
      has paid any sums due to its banks at the date of such repayment the Company
      shall pay one sixth (1/6) of the Principal Amount, not to exceed $500,000,
      at the end of each quarter for five quarters, with the balance due and payable
      at the end of the sixth quarter (that is, 42 months from the Closing). Notwithstanding
      the above, the Company may prepay all amounts owed to the Investors, at
      any time, subject to the Company providing the Investor with a ten (10)
      day prior written notice informing the Investors of such intention to prepay.
      In the event that the Company is unable to comply with the payment schedule
      set out herein, any sums unpaid by the Company to the Investors shall be
      deferred to the following quarter.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.6</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Default</U>.
      Notwithstanding anything herein to the contrary, in the event of a default
      by the Company on payments of interest and/or principal, the exercise price
      of the Warrants and Draw Down Warrants shall be reduced to the dollar equivalent
      of NIS1.0 and the interest rate of the Loan Notes will increase to 18% per
      annum if the default remains uncured for a period exceeding 45 days.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.7</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Conversion</U>.
      The Investors may at any time during the period that the Loan Undertaking
      is outstanding at their option,convert the Loan Undertaking into Ordinary
      Shares of the Company at the conversion price of $0.62 per Ordinary Share.
      Upon conversion, Investors shall have such rights as granted to them in
      the Registration Rights Agreement, a copy of which is attached hereto as
      <B>Schedule 5</B>.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>1.8</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In no event
      shall the Loan Note be convertible into Ordinary Shares unless and until
      the Company obtains shareholder approval as provided in NASD Rule 4350 (i)(D);
      provided, however, that prior to obtaining shareholder approval, the Company
      shall only be able to Draw Down that amount that would not necessitate the
      Company getting shareholder approval under such rule.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <B><U>Closing </U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>2.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The closing
      (the &#147;<B>Closing</B>&#148;) of transactions contemplated herein shall
      take place at the offices of Barnea &amp; Co, legal counsel to the Company,
      at 3A Jabotinsky St., Ramat Gan, Israel, as soon as possible, but in any
      event no later than, July <SUP>th</SUP> 2003, or at such other time and
      place as shall be mutually agreed upon between the Company and the Investors.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>2.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>At the
      Closing, the following transactions shall occur simultaneously (no transaction
      shall be deemed to have been completed or any document delivered until all
      such transactions have been completed and all required documents delivered):</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>2.2.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company
      shall issue to each of the Investors the Warrants in the form attached as
      <B><U>Schedule 2</U></B>.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>2.2.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>the Company
      shall pay each Investor the Cash Commitment (as set forth opposite each
      Investor&#146;s name in <B><U>Schedule&nbsp;1</U></B>).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>2.2.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Each Investor
      shall pay to the Escrow Agent an amount equal to the Loan Undertaking, to
      hold in Escrow in accordance with the terms of the Escrow Agreement attached
      hereto as <B>Schedule 7 </B> with each Investor executing such Escrow Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>2.2.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company
      and the Investors shall execute and deliver the Registration Rights Agreement,
      a copy of which is attached hereto as <B><U>Schedule 5</U></B></FONT></TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Representations and Warranties of the Company</U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company
      hereby represents and warrants to the Investors, and acknowledges that the
      Investors are entering into this Agreement in reliance thereon, as follows:</FONT></TD>
  </TR>
<TR>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Organization</U>.&nbsp;The
      Company is duly organized, existing in Israel as a public company limited
      by shares pursuant to the Companies Law 5759-1999 (the &#147;Companies Law&#148;),
      and registered by the Registrar of Companies as public company, number 52-003986-8.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Validly
      Existing</U>. The Company validly exists as a company under the laws of
      the State of Israel. The Company has the full corporate power and authority
      to conduct its business as currently conducted and the Company had at all
      relevant times the full corporate power and authority to conduct its business
      as previously conducted, save that if at any time the Company did not have
      the full corporate power and authority to conduct its business as previously
      conducted, the lack of such corporate power and authority did not have a
      material adverse effect on the Company.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Public
      Listing</U>. As of October 1995 the Ordinary Shares of the Company are registered
      for trading on the Nasdaq National Market (&#147;Nasdaq&#148;) under the
      symbol &#147;NURM&#148;.In November 2002, the Company received a compliance
      notice from The Nasdaq Stock Market, Inc., stating that, for a period of
      30 consecutive trading days, its ordinary shares closed below the minimum
      bid price of $1.00 per share as required for continued listing on The Nasdaq
      National Market. In accordance with Nasdaq&#146;s Marketplace Rules, we
      had until May 5, 2003 to regain compliance with Nasdaq&#146;s continued
      listing requirements. We have been unable to demonstrate compliance with
      the continued listing requirements and, accordingly, have applied to transfer
      our securities to The Nasdaq SmallCap Market and the Company has been notified
      by the NASD that such transfer has been accepted.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Share
      Capital</U>. The registered share capital of the Company is NIS 50,000,000,
      divided into 50,000,000 Ordinary Shares, of which no more than [17,155,859]
      Ordinary Shares are issued and outstanding as of [December31<SUP>th</SUP>,
      2002]. In addition, as of [December 31<SUP>th</SUP>, 2002] the Company had
      issued and outstanding options and warrants exercisable into no more than
      [2,188,578Ordinary Shares].</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.5</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Full
      Disclosure</U>. To the best of the Company&#146;s knowledge, the Form 20-F
      of the Company of May 15<SUP>th</SUP>, 2003 (the &#147;<B>20-F Form</B>&#148;)
      that includes the Company&#146;s annual report for the year ended December
      31, 2002 does not incorporate or contain any untrue statement of a material
      fact or omit to state any material fact required to be stated therein or
      necessary to make the statements therein not misleading, all as of May 15<SUP>th</SUP>,
      2003. Any subsequent filings filed by the Company are attached hereto as
      <U>Schedule 3.5.</U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.6</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Due
      Authorization</U>.&nbsp;The Warrants and Draw Down Warrants, when issued
      at the Closing in accordance with the provisions of this Agreement and the
      Ordinary Shares underlying the Warrants and Draw Down Warrants (the &#147;<B>Warrant
      Shares</B>&#148;) and the Ordinary Shares issued upon the conversion of
      the Loan Notes (the &#147;<B>Loan Shares</B>&#148;), shall all be duly authorized,
      validly issued, fully paid, non-assessable and clear and free from any lien,
      encumbrance, or any other third party right whatsoever.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.7</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Approvals</U>.&nbsp;The
      execution and delivery of this Agreement and the full performance of all
      other obligations and undertakings of the Company contemplated hereunder
      will have been duly approved by the Board of Directors of the Company. Shareholder
      approval,pursuant to The Nasdaq Stock Market Inc. Marketplace Rule (4350(i)),
      or if required under any other applicable law, will be sought by the Company
      upon completion of Closing. Subject to such shareholders approval, all acts
      required to be taken by the Company to authorize the execution and delivery
      of this Agreement, the performance of each of its obligations hereunder
      and the consummation of the transaction contemplated hereunder have been
      duly taken and are legally valid and in full force and effect.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.8</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>No Violation</U>.
      The execution and delivery of this Agreement and the performance of and
      compliance with all other obligations and undertakings of the Company contemplated
      hereunder will not result in a violation of, or conflict with, or constitute
      a default, or give rise to any right of termination, cancellation or acceleration
      or the loss of any benefit under: (i) the Articles of Association of the
      Company; (ii) any note or contract, in any form, to which the Company is
      a party or by which it or any of its property is bound or affected; or (iii)
      any applicable law in any relevant jurisdiction, order, injunction, or judgment
      of any court or governmental bureau or authority, domestic or foreign, or
      any arbitration award applicable to it or any of its properties or assets
      having an adverse material effect on the Company.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.9</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Binding
      Obligation</U>. This Agreement, when executed and delivered by or on behalf
      of the Company, shall constitute the valid and legally binding obligation
      of the Company, legally enforceable against the Company in accordance with
      its terms. There is no consent, approval, order, license, permit, action
      by, or authorization of, or filing with any governmental authority (including
      any notifications) or any person that is required to be obtained or made
      on the part of the Company prior to the Closing (other than shareholders
      approval as detailed in section 3.7 above) that has not been, or will not
      have been, obtained by the Company prior to the Closing in connection with
      the valid execution, delivery, and performance of this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>3.10</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Effectiveness</U>.&nbsp;Each
      representation and warranty herein is deemed to be made on the date of this
      Agreement and shall survive and remain in full force and effect at the Closing.</FONT></TD>
  </TR>
</TABLE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <B><U>Representations and Warranties of the Investors&nbsp; </U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Investors
      hereby represent and warrant to the Company, and acknowledge that the Company
      is entering into this Agreement in reliance thereon, as follows:</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>This Agreement,
      when executed and delivered by the Investors, will constitute a valid, binding,
      and enforceable obligation of each of the Investors.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Each Investors
      is a &#147;US accredited investor&nbsp;&nbsp;(a &#147;US person&#148;),
      as that term is defined in Regulation &#167;230.501 under Securities Act
      of 1933, as amended; (the &#147;<B>Securities Act</B>&#148;) and has such
      business and financial experience as is required to protect its own interests
      in connection with its decision to enter this Agreement.</FONT></TD>
  </TR>
</TABLE>

<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Investor
      understands, acknowledge and agree that the Warrant Shares and the Loan
      Shares (as defined in Section 3.6)have not been registered under the Securities
      Act and may not be offered or sold in the United States or to U.S. persons
      unless such shares are registered under the Securities Act and applicable
      state securities laws, or an exemption from the registration requirements
      of the Securities Act and such state securities laws is available. The Investors
      understand that the certificate evidencing the Warrant Shares and the Loan
      Shares will be imprinted with a legend in substantially the following form:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=94>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#147;The
      Shares represented by this Certificate have not been registered under the
      United States Securities Act of 1933. The Shares have been acquired for
      investment and may not be sold, transferred or assigned in the absence of
      an effective registration statement for these Shares under the United States
      Securities Act of 1933, or an opinion of NUR Macroprinters Ltd&#146;s counsel,
      that registration is not required under the said Act.&#148;</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The execution
      of this Agreement does not, and the consummation of the transactions contemplated
      hereby and compliance by the Investors with the provisions hereof, will
      not (i) result in any conflict with, breach of, or default (or give rise
      to any right of termination, cancellation or acceleration or the loss of
      any benefit) under any of the terms, conditions or provisions of any material
      agreement, permit or other instrument or obligation to which the Investors
      are a party, or by which the Investors or any of their properties or assets
      may be bound or (ii) violate any law or order applicable to them or any
      of their properties or assets having an adverse material effect on the Investors.
      No consent or approval by any governmental authority is required in connection
      with the execution by the Investors of this Agreement or the consummation
      by the Investors of the transactions contemplated hereby except for such
      actions, consents or approvals as will be obtained as of the Closing.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.5</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Investor
      understands and acknowledges that the participation at the Closing by any
      party defined by the Israeli Companies Law, 5759-1999 (the &#147;<B>Law</B>&#148;)
      as a controlling shareholder of the Company (&#147;<B>Controlling Shareholder</B>&#148;)
      shall require the approval of the Shareholders of the Company by a special
      majority as more particularly set out in the Law and that without such approval
      a Controlling Shareholder will be prohibited from participating as herein
      set forth.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>4.6</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Each representation
      and warranty herein is deemed to be made on the date of this Agreement,
      and shall survive and remain in full force and effect at the Closing.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Conditions Precedent</U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>5.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The obligations
      of the Investors to proceed with Closing is subject to the fulfillment at
      or before the Closing of each and every of the following conditions precedent,
      any one or more of which may be waived in whole or in part by the Investors,
      which waiver shall be in writing and at the sole discretion of the Investors:</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.1.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Each and
      every representation and warranty made by the Company in this Agreement
      shall have been true and correct in all material respects when made and
      shall be true and correct in all material respects as if originally made
      on and as of the date of the Closing,</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.1.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All covenants,
      agreements, and conditions contained in this Agreement to be performed or
      complied with by the Company prior to or at the Closing, shall have been
      fully performed or complied with by the Company prior to or at the Closing.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.1.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company
      shall have received the consent of its banks to postpone principal repayments
      of the Company&#146;s outstanding long-term bank loans for a period twelve
      (12) months and satisfactory renegotiation of the loan covenants.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.1.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>There shall
      not then be in effect any order or judgment enjoining or restraining the
      transactions contemplated by this Agreement and to the Company&#146;s best
      knowledge no suit, proceeding or investigation shall have been commenced
      by any governmental authority or private person on any ground, restraining,
      enjoining or hindering, the transaction contemplated herein and the Company
      shall have received any and all consents and approvals required by it to
      consummate the transactions contemplated herein.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE  width="100%" cellSpacing="0" cellPadding="0" border="0">

<TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>5.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The obligation
      of the Company to proceed with Closing is subject to the fulfillment at
      or before the Closing of the following conditions precedent, any one or
      more of which may be waived in whole or in part by the Company, which waiver
      shall be in writing and at the sole discretion of the Company:</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.2.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The representations
      and warranties made by the Investors in this Agreement shall have been true
      and correct in all material respects when made, and as of the Closing as
      if made on the date of the Closing.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.2.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All covenants,
      agreements, and conditions contained in this Agreement to be performed or
      complied with by the Investors prior to or at the Closing.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.2.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Investors
      have secured all permits, consents, waivers, and authorizations, if any,
      that shall be required from them under law or contract to lawfully consummate
      this Agreement.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.2.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>There shall
      not then be in effect any order enjoining or restraining the transactions
      contemplated by this Agreement.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>

<TR>
<TD width=96></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>5.2.5</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In the
      event that an Investor shall also be a Controlling Shareholder&nbsp;&nbsp;the
      Company shall require that the Shareholders approve the participation of
      such Controlling Shareholder by a special majority of votes as more particularly
      set out in the Law. For the avoidance of doubt the non-satisfaction of this
      condition shall not prohibit the Company proceeding with a Closing with
      other Investors who, according to the Law, are not Controlling Shareholders.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Affirmative Covenants</U></B></FONT></P>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>6.1</font></TD>
    <TD><font face="Times New Roman, Times, Serif" size=2><u>Confidentiality</u></font></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>

<TABLE  width="100%" cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>6.1.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Investors
      agree that any Confidential Information (defined below) obtained pursuant
      to this Agreement, or provided to the Investors prior to or after the Closing,
      will not be disclosed without the prior written consent of the Company;
      <U>provided</U> that, in connection with periodic reports to its shareholder
      or partners, the Investors may, without first obtaining such written consent,
      make general statements, not containing technical or specific business information,
      regarding the nature and progress of the Company&#146;s business; and <U>provided</U>
      further, that the Investors may provide summary information regarding the
      Company&#146;s financial information in its reports to its respective shareholders
      or partners, but may not annex to such reports the full financial information
      to be provided hereunder by the Company. All of the above shall be subject
      to the explicit reporting requirements pertaining to the Investors under
      all applicable laws, orders and judgments (including the Israeli Securities
      Law 1968).</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=94></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>6.1.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>For the
      purposes of this Section 6.1, &#147;<B>Confidential</B> <B>Information</B>&#148;
      shall mean all information, including, but not limited to, financial information,
      business plans, budgets, customer lists, computer software, source codes,
      plans, drawings, technical specifications, patents, copyrights, and other
      intellectual property rights, in any form (paper, disk, or other), relating
      to the business of the Company. However, Confidential Information shall
      not include information which (a) was in the Investors&#146;s possession
      prior to its disclosure, as shown by prior written records; (b) is or becomes
      available to the public through no fault of the Investors; (c) was disclosed
      to the public by operation of law, (including any court order or judgment);
      or (d) is rightfully received by the Investors from a third party without
      a duty of confidentiality.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=47></TD>
    <TD vAlign=top width=48><font face="Times New Roman, Times, Serif" size=2>6.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Use
      of Proceeds</U>.&nbsp;The Company will use the net proceeds for working
      capital and general corporate purposes, as determined by the Company&#146;s
      Board of Directors from time to time.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Registration Rights</U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The&nbsp;&nbsp;Loan
      Shares shall have registration rights as set forth in the Registration Rights
      Agreement attached hereto as <B><U>Schedule&nbsp;5</U></B> including an
      entitlement to one demand registration right at the Company&#146;s expense
      and one at the Investors&#146; expense, and unlimited piggyback registration
      rights. The Warrant Shares shall have unlimited piggyback registration rights
      as set forth in Schedule 5.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Miscellaneous</U></B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.1</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Further
      Assurances</U>. Each of the parties hereto shall perform such further acts
      and execute such further documents as may reasonably be necessary to carry
      out and give full effect to the provisions of this agreement and the intentions
      of the parties as reflected thereby.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.2</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Governing
      Law.</U> &nbsp;&nbsp;This Agreement shall be governed by and construed in
      accordance with the laws of the State of Israel, without giving effect to
      the rules respecting conflict of law. All disputes, controversies, differences
      or questions arising out of or relating to this Agreement, or to the validity,
      interpretation, breach, violation of any term hereof, shall be adjudicated
      by the courts of competent jurisdiction sitting in Tel Aviv. Anything to
      the contrary notwithstanding, the provisions of this Section 8.2 shall not
      apply to the Registration Rights Agreement, which shall be subject to the
      provisions thereof.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.3</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Successors
      and Assigns; Assignment</U>. Except as otherwise expressly stated to the
      contrary herein, the provisions hereof shall inure to the benefit of, and
      be binding upon, the successors, assigns under law, heirs, executors, and
      administrators of the parties hereto.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.4</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Entire
      Agreement; Amendment and Waiver.</U> &nbsp;&nbsp;This Agreement and the
      Schedules hereto constitute the full and entire understanding and agreement
      between the Parties with regard to the subject matters hereof and thereof.
      All prior understandings and agreements among the Parties, including the
      Term Sheet executed by the Parties, are void and of no further effect. Any
      term of this Agreement may be amended, waived, or discharged (either prospectively
      or retroactively, and either generally or in a particular instance), by
      written consent of the parties hereto, other than the Registration Rights
      Agreement which may only be amended as set forth therein).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.5</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Brokers.</U>&nbsp;Except
      as set forth in the Placing Agreement with Rockwood Inc., no agent or broker
      or any person acting in a similar capacity on behalf of or under the authority
      of the Company is or will be entitled to any broker&#146;s or finder&#146;s
      fee or any other similar commission or fee in connection with the transactions
      contemplated hereby.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.6</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Expenses.</U>&nbsp;At
      the Closing, the Company will pay the legal fees of the Investors up to
      amount of US$15,000.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.7</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Notices,
      etc.</U>&nbsp;All notices and other communications required or permitted
      hereunder to be given to a party to this Agreement shall be in writing and
      shall be telecopied or mailed by registered or certified mail, postage prepaid,
      or otherwise delivered by hand or by messenger, addressed to such party&#146;s
      address as set forth below:</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR></TABLE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="94">&nbsp;</td>
    <td width="160"><font face="Times New Roman, Times, Serif" size=2>If to the
      Investors:</font></td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>&nbsp;to
      such address and by facsimile as set forth in <b><u>Schedule&nbsp;1</u></b>
      attached hereto.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>If to the
      Company:</font></td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>Nur Macroprinters
      Ltd.<br>
      Attn: David Amir, CEO <br>
      12 Abba Hilel Silver Street <br>
      &nbsp;Lod, Israel </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>Facsimile:&nbsp;</font></td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>(972) 8
      921-8918</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>With a
      Copy:</font></td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>Michael
      Barnea</font></td>
  </tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="94">&nbsp;</td>
    <td width="160">&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>Barnea
      &amp; Co.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>3A Jabotinsky
      Street,</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2>Ramat Gan
      52520, Israel</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="Times New Roman, Times, Serif" size=2>Facsimile:</font></td>
    <td valign="top"><font face="Times New Roman, Times, Serif" size=2> (972)
      3 613 3355</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
</table>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="94">&nbsp;</td>
    <td width="160">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
</table>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=94>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>or such other address with respect to a party as such party shall notify each other party in writing
as above provided.</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR>

<TR>
    <TD width=94>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Any notice sent in accordance with this Section 8.7 shall be effective (i) if mailed, five (5) business
days after mailing, (ii) if sent by messenger, upon delivery, and (iii) if send via telecopier, upon
transmission and telephonic confirmation of receipt. The term &#147;business day&#148; shall mean
any Monday through Friday on which the banks in Israel are open for business.</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<TABLE  width="100%" cellSpacing="0" cellPadding="0" border="0">

<TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.8</font></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><U>Delays or Omissions</U>.
      No delay or omission to exercise any right, power, or remedy accruing to
      any party upon any breach or default under this Agreement, shall be deemed
      a waiver of any other breach or default therefore or thereafter occurring.
      Any waiver, permit, consent, or approval of any kind or character on the
      part of any party of any breach or default under this Agreement, or any
      waiver on the part of any party of any provisions or conditions of this
      Agreement, must be in writing and shall be effective only to the extent
      specifically set forth in such writing. Unless otherwise provided by law,
      all remedies, either under this Agreement, or under law, or otherwise afforded
      to any of the parties, shall be cumulative and not alternative.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR>

<TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.9</font></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><U>Counterparts; Facsimiles.</U>
      &nbsp;&nbsp;This Agreement may be executed in any number of counterparts,
      each of whom shall be deemed an original and enforceable against the parties
      actually executing such counterpart and all of which together shall constitute
      one and the same instrument. Each party may rely on the other party&#146;s
      facsimile signatures as original binding commitments of such other party.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR>

<TR>
<TD width=48></TD>
    <TD vAlign=top width=46><font face="Times New Roman, Times, Serif" size=2>8.10</font></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><U>Heading, Preamble,
      and Schedules</U>. The titles and subtitles used in this Agreement are used
      for convenience only and are not to be considered in construing or interpreting
      this Agreement. The Preamble and Schedules are an integral and inseparable
      part of this Agreement.</FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
  WITNESS WHEREOF the parties have signed this Agreement.</FONT></P>
<P>&nbsp;</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Nur Macroprinters Ltd.<br>
  <br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp;&nbsp;______________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:
  _____________________<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>Name:<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>Title:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>INVESTOR</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>_________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:
  ___________________<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>Name:</FONT></P>

<p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>List of Schedules</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 1</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investors&#146;s
  address, Amount of Loan, Amount of Cash Commitment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 2</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Form of Warrant.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 3</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Form of Loan Note.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 3.5</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Filings since the last 20F</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 4</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Form of Draw Down Warrant.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 5</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Registration Rights Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Schedule 6</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Placing Agent Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B><U><FONT style="FONT-WEIGHT: normal">Schedule
  7</FONT></U> <FONT style="FONT-WEIGHT: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Escrow Agreement</FONT></B></FONT></P>

  <p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>Schedule 1</U></B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>List of Investors</FONT></P>

<TABLE WIDTH=600 BORDER=1 align="center" CELLPADDING=2 CELLSPACING=0>

  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><font size="2" face="Times New Roman, Times, serif">Name/Entity</font></strong></TD>
    <TD WIDTH=17% ALIGN=left><strong><font size="2" face="Times New Roman, Times, serif">Address</font></strong></TD>
    <TD colspan="2" ALIGN=center><strong><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></strong><strong><font size="2" face="Times New Roman, Times, serif">Amount
      of Loan</font></strong></TD>
    <TD colspan="3" ALIGN=center><strong><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></strong><strong><font size="2" face="Times New Roman, Times, serif">Cash
      Commitment</font></strong></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Dan and
      Edna Purjes</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,150,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      23,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">First Purjes
      Descendants, LP</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Second
      Purjes Descendants, LP</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Y Securities
      Management, Ltd.</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$&nbsp;50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Myles Wittenstein</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      20,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Barbara
      Stoller</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Mark Wittenstein</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Bridges
      and PIPES, LLC</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      300,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      6,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">United
      European Bank and Trust</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      300,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      6,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Richard
      Ornstein</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      100,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      2,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Len Knappmiller</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">JM Hull
      Associates, L.P.</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      100,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      2,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Drake Investments
      Ltd.</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Gary Gelman</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      100,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      2,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">David Amir</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">The Purjes
      Foundation</font></TD>
    <TD ALIGN=CENTER><font size="2" face="Times New Roman, Times, serif">**************</font></TD>
    <TD colspan="2" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      50,000</font></TD>
    <TD colspan="3" ALIGN=right><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">US$
      1,000</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><strong><font size="2" face="Times New Roman, Times, serif">Total</font></strong></TD>
    <TD ALIGN=CENTER>&nbsp;</TD>
    <TD colspan="2" ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><strong>US$
      3,500,000</strong></font></TD>
    <TD colspan="3" ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif"><strong>US$70,000</strong></font></TD>
  </TR>
</TABLE>

  <p align="center"><font size="2" face="Times New Roman, Times, serif"></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>exhibit_2-18.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -2px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<P align=right><strong><font size="2" face="Times New Roman, Times, serif"><u>Exhibit 2.18</u></font></strong></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>WARRANT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>THIS WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;)
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE EXERCISED AND
THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD, TRANSFERRED, PLEDGED,
ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE,
TRANSFER, PLEDGE, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>to purchase</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Ordinary Shares</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>of</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>at a price of&nbsp; $0.52 per share</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>VOID AFTER 17:00 p.m. (prevailing Tel Aviv time)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>On the Expiration Date (as hereinafter defined)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>in favor of</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>No. W-</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.,</B> an Israeli company with its principal offices at 12 Abba Hilel Silver Street, Lod, Israel (the &#147;<U>Company</U>&#148;), hereby grants to ________________ (the &#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms and conditions hereof, up to ______________ (_______)
of the Company&#146;s Ordinary Shares, par value NIS 1.00 per share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at any time from time to time, on or after the date hereof (the &#147;<U>Effective Date</U>&#148;), and until the fifth anniversary of such date (the &#147;<U>Expiration Date</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>(Hereinafter:
  (i) the Ordinary Shares purchasable hereunder or any other securities which
  may be issued by the Company in substitution therefor, are referred to as the
  &#147;<U>Warrant Shares</U>&#148;; (ii) the price of Fifty Two Cents ($0.52)
  payable hereunder for each of the Warrant Shares, as adjusted in the manner
  set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148;
  and (iii) this Warrant and all warrants hereafter issued in exchange or substitution
  for this Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise
  Price and the number of Warrant Shares are subject to adjustment as hereinafter
  provided.)</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> </FONT><FONT face="Times New Roman, Times, Serif" size=2>1.&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Warrant Period; Exercise
  of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  This Warrant may be exercised in whole at any time, or in part from time to
  time, beginning on the date hereof until the Expiration Date (the &#147;<U>Warrant
  Period</U>&#148;), by the surrender of this Warrant (with a duly executed exercise
  form in the form attached at the end hereof as <B>Exhibit A</B>), along with
  the Exercise Certificate or the Exercise Opinion (each as defined in Section
  1.1(b) below), at the principal office of the Company, set forth above, together
  with proper payment of the Exercise Price multiplied by the number of Warrant
  Shares for which the Warrant is being exercised. Payment for Warrant Shares
  shall be made by certified or official bank check or checks, payable to the
  order of the Company or by wire transfer to an account to be designated in writing
  by the Company. Payments shall be made in United States dollars.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In addition to the method of exercise set forth in Section 1.1(a) hereof, each
  Holder shall have the right to exercise the Warrant in whole or in part and,
  upon such exercise, to receive for each Warrant surrendered a fraction of one
  Ordinary Share as shall be determined by the formula set forth below, with no
  cash payment required other than a payment of Equivalent Par Value (as defined
  below) for each Ordinary Share issued upon the exercise of the Warrant in accordance
  with this Section 1.1(b). The number of Ordinary Shares the Holder shall be
  entitled to receive shall upon the exercise of the Warrant and surrender of
  the related warrant certificate in accordance with this Section 1.1(b) shall
  be equal to the product of (x) the total number of Ordinary Shares exchangeable
  for the Warrants being exercised (assuming exercise in accordance with Section
  1.1(a)) multiplied by (y) a fraction, the numerator of which is the aggregate
  Market Price (as defined below) of such Ordinary Shares plus Equivalent Par
  Value less the aggregate Exercise Price therefore, and the denominator of which
  is such aggregate Market Price. Upon exercise of the Warrants pursuant to this
  Section 1.1(b), the warrants so exercised shall no longer be exercisable. Solely
  for the purpose of this paragraph, &#147;Equivalent Par Value&#148; shall be
  an amount in U.S. Dollars equal to NIS 1.0 based on the Representative Rate
  of the U.S. Dollar as published by the Bank of Israel on the date of payment.
  Solely for the purposes of this paragraph, Market Price shall be calculated
  as the average of the five trading days immediately preceding the date on which
  the form of exercise attached (Exhibit A) is deemed to have been sent to the
  Company. For the purposes of this paragraph, &#147;Market Price&#148; shall
  be deemed to be the last reported sale price of the Ordinary Shares, or if no
  such reported sale takes place on such day, the average of the last reported
  sale prices for the last three (3) trading days.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder of a Warrant, by its acceptance thereof, covenants and agrees that the Warrants described
herein are being acquired as an investment and not with a view to the distribution thereof and such
Holder further covenants and agrees that it will not sell, transfer, pledge, assign, or hypothecate
the Warrant or the ordinary shares issueable upon exercise of the Warrant unless there is an effective
registration statement under the Securities Act of 1933 covering the Warrant or the ordinary shares
issueable upon exercise of the Warrant, or the Holder of the Warrant and/or the ordinary shares receives
an opinion of counsel satisfactory to the Company stating that such sale, transfer, pledge, assignment,
or hypothecation is exempt from the registration and prospectus delivery requirements of the Securities
Act of 1933 and the qualification requirements under applicable law.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Warrant should be exercised
in part, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver
a new Warrant evidencing the rights of the Holder to purchase the remainder of the Ordinary Shares
purchasable hereunder. The Company shall pay any and all expenses, taxes and other charges that may
be payable in connection with the issuance of the Warrant Shares and the preparation and delivery
of share certificates pursuant to this Section 1 in the name of the Holder (including without limitation
the applicable stamp duty), and to the extent required, the execution and delivery of a new Warrant,
provided, however, that the Company shall only be required to pay taxes which are due as a direct
result of the issuance of the Ordinary Shares or other securities, properties or rights underlying
such Warrants (such as the applicable stamp duty), and will not be required to pay any tax which
may be (i) due as a result of the specific identity of the Holder or (ii) payable in respect of any
transfer involved in the issuance and delivery of any such certificates in a name other than that
of the Holder and the Company shall not be required to issue or deliver such certificates unless
or until the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of Ordinary Shares
issued shall be rounded down to the nearest whole number.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon the issuance of Ordinary Shares resulting from the exercise in whole or in part of this Warrant,
the Company shall deliver to the Holder an irrevocable letter of instructions to the Company&#146;s
transfer agent to issue as soon as is reasonably practicable to the Holder share certificates reflecting
the Warrant Shares exercised thereby, together with any and all other documents required for the
issuance of such certificates by the transfer agent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reservation of Shares</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Company covenants that: (i) at all times during the Warrant Period it shall have in reserve, and
will keep available solely for issuance or delivery upon exercise of the Warrant, such number of
Ordinary shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the Warrant
and payment of the Exercise Price therefor, the Warrant Shares issuable upon such exercise will be
validly issued, fully paid, non assessable, free and clear from any lien, encumbrance, pledge or
any other third party right and not subject to any preemptive rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
  <U>Adjustments to Exercise Price and Number of Securities</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision
  and Combination</U>. &nbsp;In case the Company shall at any time subdivide or
  combine the outstanding Ordinary Shares, the Exercise Price shall forthwith
  be proportionately decreased in the case of subdivision or increased in the
  case of combination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock
  Dividends and Distributions</U>. &nbsp;In case the Company shall pay a dividend
  on, or make a distribution of, Ordinary Shares or of the Company&#146;s capital
  stock convertible into Ordinary Shares, the Exercise Price shall forthwith be
  proportionately decreased. An adjustment made pursuant to this Section 3.2 shall
  be made as of the record date for the subject stock dividend or distribution.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
  in Number of Securities</U>. &nbsp;Upon each adjustment of the Exercise Price
  pursuant to the provisions of this Section 3, the number of Ordinary Shares
  issuable upon the exercise of each Warrant shall be adjusted to the nearest
  full amount by multiplying a number equal to the Exercise Price in effect immediately
  prior to such adjustment by the number of Ordinary Shares issuable upon exercise
  of the Warrants immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition
  of Ordinary Shares</U>. &nbsp;For the purpose of this Warrant, the term &#147;Ordinary
  Shares&#148; shall mean (i) the class of stock designated as Ordinary Shares
  in the Articles of Association of the Company as may be amended as of the date
  hereof, or (ii) any other class of stock resulting from successive changes or
  reclassifications of such Ordinary Shares consisting solely of changes in nominal
  value, or from nominal value to no nominal value, or from no nominal value to
  nominal value.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment
  of Exercise Price in Certain Cases.</U> &nbsp;&nbsp;No adjustment of the Exercise
  Price shall be made if the amount of said adjustment shall be less than 2 cents
  ($.02) per Ordinary Share, provided, however, that in such case any adjustment
  that would otherwise be required then to be made shall be carried forward and
  shall be made at the time of and together with the next subsequent adjustment
  which, together with any adjustment so carried forward, shall amount to at least
  2 cents ($.02) per Ordinary Share.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger or Consolidation. </U> In case of any consolidation of the Company with or merger of the Company with, or merger of the Company
into, (other than a merger which does not result in any reclassification or change of the outstanding
Ordinary Shares), the Company shall cause the corporation formed by such consolidation or merger
to execute and deliver to the Holder a supplemental warrant agreement providing that the Holder of
the Warrant then outstanding or to be outstanding shall have the right thereafter (until the expiration
of such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of stock
and other securities and property receivable upon such consilidation or merger, by a holder of the
number of Ordinary Shares of the Company for which such Warrant might have been exercised immediately
prior to such consolidation, merger, sale or transfer. Such supplemental warrant agreement shall
provide for adjustments which shall be identical to the adjustments provided in Section 3. The above
provision of this Subsection shall similarly apply to successive consolidations or mergers.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default.</U>  In the event of a default by the Company on payments of interest and/or principal of the Loan Notes
((as defined in the Convertible Loan and Warrant Agreement dated __ July 2003 between the Company
and Holder (the &#147;Agreement&#148;) and issued pursuant to the terms of the Agreement, the Exercise
Price shall be reduced to the dollar equivalent of NIS 1.00.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices to Warrant Holders</U>. &nbsp;Nothing contained in this Warrant shall be construed as conferring upon the Holder the right
to vote or to consent or to receive notice as a stockholder in respect of any meetings of stockholders
for the election of directors or any other matter, or as having any rights whatsoever as a stockholder
of the Company. If, however, at any time prior to the Expiration Date, any of the following events
shall occur:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
Company shall take a record of the holders of its Ordinary Shares for the purpose of entitling them
to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the accounting treatment
of such dividend or distribution on the books of the Company; or</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
Company shall offer to all the holders of its Ordinary Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the
Company, or any option, right or warrant to subscribe therefor; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation
or merger) or a sale of all or substantially all of its property, assets and business as an entirety
shall be proposed;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>then, in any one or more of said events, the Company shall give to the Holder written notice of such
event at least fifteen (15) days prior to the date fixed as a record date or the date of closing
the transfer books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed
dissolution, liquidation, winding up or sale.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-Transferability</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-WEIGHT: normal">(a)</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Holder covenants and agrees that
the Warrants are being acquired as an investment and not with a view to the distribution thereof.
<FONT style="FONT-WEIGHT: normal">The Holder shall not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake to
dispose of (&#147;Sell&#148;) the Warrants until the first anniversary of the Effective Date. &nbsp;Thereafter,
the Holder may, subject to applicable securities laws, Sell, all or any portion of the Warrants,
provided that the Holder may only Sell the Warrants on two occasions, to no more than five (5) transferees
on each occasion, provided further that on the second such occasion the Holder shall reimburse the
Company with any and all direct costs incurred by the Company connected with such sale, transfer
or assignment including any reasonable registration costs.</FONT></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless registered, the Warrant Shares
issued upon exercise of the Warrants shall be subject to a stop transfer order and the certificate
or certificates evidencing such Warrant Shares shall bear legend substantially similar to the following:</FONT></P>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD width=75>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;THE SHARES
      REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY,
      SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION
      STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B></FONT></TD>
    <TD width="75">&nbsp;</TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loss, etc. of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed,
and upon surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the Holder a
new Warrant of like date, tenor and denomination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Holders of the Ordinary Shares shall be entitled to all of the rights and privileges relating to registration
rights afforded to the Warrant Holders under that the Agreement (including the Registration Rights
Agreement attached thereto)incorporated herein by reference and expressly made a part hereof.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>8.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Headings</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The headings of this Warrant have been inserted as a matter of convenience and shall not affect the
construction hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Notices</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing
and shall be deemed effectively given upon personal delivery to the party to be notified or seven
(7) days after deposit with the Post Authority, for dispatch by registered or certified mail, postage
prepaid and addressed to the Holder at the address set forth in the Company&#146;s books and to the
Company at the address of its principal offices set forth above, or when given by telecopier or other
form of rapid written communication, provided that confirming copies are sent by such airmail.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Governing Law</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant shall be governed by and construed and enforced in accordance with the laws of the State
of Israel (regardless of the laws that might otherwise govern under applicable Israel principles
of conflicts of law). Anything to the contrary notwithstanding, the provisions of this Section 10
shall not apply to the Registration Rights schedule, which shall be subject to the provisions thereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Entire Agreement; Amendment and Waiver</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant and the schedule hereto constitute the full and entire understanding and agreement between
the parties with regard to the subject matters hereof and thereof. Any term of this Warrant may be
amended and the observance of any term hereof may be waived (either prospectively or retroactively
and either generally or in a particular instance) only with the written consent of both the Holder
and the Company.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS
  WHEREOF</B>, the Company has caused this Ordinary Share Purchase Warrant to
  be executed as of the date first written above.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2><b>NUR MACROPRINTERS
      LTD.</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2>By: ____________________________________</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Agreed and Accepted:</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2>__________________</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2>By: ____________________________________</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align=left></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT A</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2><B>WARRANT
      EXERCISE FORM</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="25%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Date:____________________</FONT></td>
    <td width="25%">&nbsp;</td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>To:&nbsp; Nur Macroprinters
  Ltd.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Re:&nbsp;&nbsp; <U>Exercise of Warrant</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The undersigned hereby irrevocably elects to exercise the attached Warrant No. ___ to the extent of
___________________ Ordinary Shares of Nur Macroprinters Ltd. all in accordance with section 1.1(b)
of the Loan Undertaking Warrant . Payment to the Company of the total purchase price for such shares
has been made simultaneously with the delivery of this exercise of warrant. The undersigned requests
that certificates for such Ordinary Shares be registered in the name of ____________________ whose
address is ____________________ and that such certificates be delivered to whose address is _____________________________.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp; ___________________</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>Schedule
  of Warrant Holders</U></B></FONT></P>
<P><b><u><font size="2" face="Times New Roman, Times, Serif"></font></u></b></P>
<TABLE WIDTH=400 BORDER=1 align="center" CELLPADDING=2 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><B><font size="2" face="Times New Roman, Times, serif">Name/Entity</font></B></TD>
    <TD ALIGN=center><font size="2" face="Times New Roman, Times, serif"><B>Warrants</B></font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Dan and
      Edna Purjes</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">331,731</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">First Purjes
      Descendants, LP</font></TD>
    <TD WIDTH=20% ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Second
      Purjes Descendants, LP</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Y Securities
      Management, Ltd.</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Myles Wittenstein</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">288,462</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Barbara
      Stoller</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Mark Wittenstein</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Bridges
      and PIPES, LLC</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">86,538</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">United
      European Bank and Trust</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">86,538</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Richard
      Ornstein</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">28,846</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Len Knappmiller</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">JM Hull
      Associates, L.P.</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">28,846</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Drake Investments
      Ltd.</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">Gary Gelman</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">28,846</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">David Amir</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">The Purjes
      Foundation</font></TD>
    <TD ALIGN=right><font size="2" face="Times New Roman, Times, serif">14,423</font></TD>
  </TR>
</TABLE>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>7
<FILENAME>exhibit_2-19.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
</HEAD>

<BODY><HR style="MARGIN-TOP: -2px" align=left width="100%" noShade SIZE=4>

<HR style="MARGIN-TOP: -10px" align=left width="100%" noShade SIZE=1>

<P align=right><B><FONT face="Times New Roman, Times, serif" size=2><U>Exhibit 2.19</U></FONT></B></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>REGISTRATION RIGHTS AGREEMENT</B></U></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
 REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) is made as of the __day of _______, 2003
 by and among:</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters Ltd.</B>, a company organized
 under the laws of the State of Israel, registered under number 52-003986-8, with offices at 12 Abba
 Hilel Silver Street, Lod, Israel (the &#147;<B>Company</B>&#148;); and</FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>The <B>Investors </B>listed on <B><U>Schedule 1</U></B>
 hereto, each such Investor being an &#145;accredited investor&#146;, as defined in Regulation &#167;230.501 under the
 Securities Act (defined below). Each Investor is referred to in this Agreement as a &#147;<B>Holder</B>&#148;,
 and collectively as the &#147;<B>Holders</B>&#148;.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RECITALS: </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
 each Holder has advanced or will advance to the Company a loan amount (the &#147;<B>Loan</B>&#148;), convertible
 into Ordinary Shares of the Company, of nominal value NIS 1.00 each (the &#147;<B>Ordinary Shares</B>&#148;),
 pursuant to a Convertible Loan Agreement, dated _________, 2003 (the &#147;<B>Loan Agreement</B>&#148;). The Ordinary
 Shares resulting from conversion of the Loan are referred to as &#147;<B>Conversion Shares</B>&#148;; and</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
 pursuant to the Loan Agreement, the Company has and will issue to the each Holder warrants to purchase
 additional Ordinary Shares (the &#147;<B>Warrants</B>&#148;), all under the terms and conditions of the Loan Agreement
 (the &#147;<B>Warrant Shares</B>&#148;); and</FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
 the Company hereby undertakes to register the Conversion Shares purchased pursuant to the Loan Agreement
 and the Warrant Shares underlying the Warrants, on the terms more fully described in this Agreement.</FONT>
</P>


<P><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the foregoing,
 the parties agree as follows:</FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>1.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Definitions</U></B><B>.
 </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
 otherwise defined herein, all capitalized terms shall have the meanings ascribed thereto in the Loan
 Agreement and the Warrants. As used herein, the following terms have the following meanings:</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Commission</U></B>&#148;
 refers to the Securities and Exchange Commission</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Effective
 Date</U></B>&#148; means the date of the Closing of the Loan Agreement, as defined therein.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Register</U></B>&#148;,
 &#147;<B><U>registered</U></B>&#148;, and &#147;<B><U>registration</U></B>&#148; refer to a registration effected by filing
 a registration statement in compliance with the Securities Act and the declaration or ordering by the
 Commission of effectiveness of such registration statement, or the equivalent actions under the laws
 of another jurisdiction.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<HR style="MARGIN-TOP: -2px" noShade SIZE=1>
<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Registrable
 Shares</U></B>&#148; means the Conversion Shares issued or issuable to the Holders upon conversion of the
 Loan in accordance with the provisions of the Loan Agreement and any Warrant Shares issued or issuable
 upon exercise of the Warrants.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Securities
 Act</U></B>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar federal statute,
 and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the
 time.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Incidental Registration</U>.</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
 the Company at any time following the Effective Date, proposes to register any of its securities, (other
 than a registration statement on Form S-8 or any successor form for securities to be offered to employees
 of the Company pursuant to any employee benefit plan or a registration statement on form F-4 or any
 other successor form), for its own account or for the account of any other person, it shall give notice
 to the Holders of such intention. Upon the written request of Holders, given within twenty (20) days
 after receipt of any such notice, the Company shall include in such registration all of the Registrable
 Shares indicated in such request, so as to permit the disposition of the shares so registered in the
 manner requested by the Holders. Notwithstanding any other provision of this Section 2, with respect
 to an underwritten public offering by the Company, if the managing underwriter advises the Company in
 writing that marketing or other factors require a limitation of the number of shares to be underwritten,
 then there shall be excluded from such registration and underwriting to the extent necessary to satisfy
 such limitation, shares held by the Holders and by other shareholders of the Company who are entitled
 to have their shares included in such registration, pro rata among them to the extent necessary to satisfy
 such limitation. &nbsp;To the extent Registrable Shares are excluded from such underwriting, the Holders
 shall agree not to sell their Registrable Shares included in the registration statement for such period,
 not to exceed 180 days, as may be required by the managing underwriter, and the Company shall keep effective
 and current such registration statement for such period as may be required to enable the Holders to
 complete the distribution and resale of their Registrable Shares. &nbsp;Notwithstanding the provisions
 of this Section 2, the Company shall have the right at any time after it shall have given notice to
 the Holders, to elect not to file any such proposed registration statement; provided, however, that
 each key officer and director of the Company and each person who, at the time of the proposed filing
 of such public offering, beneficially owns 1% or more of the outstanding capital stock of the Company,
 on a fully-converted, fully-diluted basis, shall enter into the same agreement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Demand Registration</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
 the Effective Date, the Holders of Conversion Shares, holding more than fifty percent (50%) of the Conversion
 Shares then outstanding (the &#147;<B>Initiating Holders</B>&#148;), are entitled, once at the Company&#146;s expense
 and once at their own expense all as set forth in Section 7 hereof, to request in writing that all or
 part of the Conversion Shares they hold, be registered under the Securities Act (a &#147;<B>Demand</B>&#148;).
 Such Demand must request the registration of shares in a minimum of one million United States Dollars
 ($1,000,000). The Company shall give written notice of such request to all other Holders. If Holders,
 other than the Initiating Holders (&#147;<B>Joining Holders</B>&#148;), intend to participate in the registration
 under this Section 3, they shall notify the Company in writing (&#147;<B>Reply</B>&#148;) within twenty (20) days
 following receipt of the Company&#146;s notice and shall include in their Reply the number of Registrable
 Shares they desire to register. The Company shall effect, as soon as practicable, the registration,
 on Form F-1 or on Form F-3 (or any successor form for securities to be offered in a transaction of the
 type referred to in Rule 415 under the Securities Act, and any related qualification or compliance),
 of all Registrable Shares as to which it has received such request for registration as promptly as practicable;
 provided, however, that the Company shall not be required to effect any registration under this Section
 3 within a period of 180 (one hundred and eighty) days, (but shall be required to prepare and file the
 registration statement within such period), following the effective date of a previous registration
 in which the Holders had the right to participate pursuant to Section 2.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>2</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company represents as at the date hereof that it satisfies the Registrant Requirements (as defined in
 the general instructions for Form F-3) for the use of Form F-3 for the registration of the resale of
 securities under the Securities Act.<FONT style="FONT-WEIGHT: normal"></FONT></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
 the Initiating Holders intend to distribute Registrable Shares covered by their request by means of
 an underwriting, they shall so advise the Company as part of their request made pursuant to this Section
 3, and the Company shall include such information in its notice to the Joining Holders as described
 above. The underwriter shall be designated in accordance with the provisions of Section 6.1 below. In
 such event, the right of any Joining Holder to include his Registrable Shares in such registration shall
 be conditioned upon such Joining Holder&#146;s participation in the underwriting and the inclusion of the
 Joining Holder&#146;s Registrable Shares in the underwriting to the extent provided herein. All Holders proposing
 to distribute their Registrable Shares through the underwriter shall enter into an underwriting agreement
 in customary form with the underwriter(s) designated for such purpose. If any Holder disapproves of
 the terms of the underwriting, such Holder may elect to withdraw from the proposed registration by written
 notice to the Company, the underwriter and the Initiating Holders. The Registrable Shares so withdrawn
 from the underwriting shall also be withdrawn from the registration; provided that, if by the withdrawal
 of such Registrable Shares, a greater number of Registrable Shares held by other Holders may be in included
 in the registration (up to the maximum limitations imposed by the underwriters), then the Company shall
 offer to all Holders who have included Registrable Shares in the registration, the right to include
 additional Registrable Shares on a pro rata basis based on the number of Registrable Shares held by
 all such Holders (including the Initiating Holders).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
 anything contained herein to the contrary regarding the Conversion Shares convertible pursuant to the
 Convertible Loan Note (referred to in this Section 3.1 as the &#147;Convertible Loan Note Shares&#148;), in the
 event the Company, at any time, draws upon the Loan, the Company shall file a registration statement,
 within ninety (90) days, regarding that number of shares as may be convertible pursuant to the Convertible
 Loan Note underlying the amount of the Loan drawn down. The Company shall use its best efforts to file
 the registration statement regarding the Convertible Loan Note Shares within such ninety (90) day period.
 In the event a registration statement is not filed regarding the Convertible Loan Note Shares during
 this time, the Company shall lower the conversion price on the Convertible Loan Note Shares by $.05
 for every consecutive thirty (30) period beyond the initial ninety (90) day period a registration statement
 is not filed regarding the Convertible Loan Note Shares; provided, however, that the Conversion Price
 Per Share (as defined in the Convertible Loan Note) shall not be reduced below $.32.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Delay of Registration</U>.</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Company may delay the filing or effectiveness of any registration statement prepared pursuant to Section
 3 for a period of up to 180 days after the date of a request for registration pursuant to Section 3,
 if the Company determines, in good faith, that (a) it is in possession of material, non-public information
 concerning an acquisition, merger, recapitalization, consolidation, reorganization, or other material
 transaction by or of the Company, and (b) disclosure of such information would jeopardize any such transaction
 or otherwise materially harm the Company; provided, however, that the Company may exercise such right
 to delay the filing of a registration statement only once.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>3</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Termination of Registration Rights</U>.</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 Holders shall not be entitled to exercise any right provided for in Sections 2 or 3 hereof, after four
 (4) years following the date of the Closing of the Loan Agreement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 addition, the right of the Holders to request registration pursuant to Sections 2 and 3 shall terminate
 upon such date that all Registrable Shares held or entitled to be held upon exercise by the Holders
 may be sold under Rule 144(k) (or any successor rule).&nbsp;</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Designation of Underwriter</U>. </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the event of any registration effected pursuant to Section 3, the Holders may
  provide their recommendation of candidates to be the managing underwriter(s)
  in any underwritten offering and the Company shall have the discretion, subject
  to approval by the majority of the Holders (such approval not to be unreasonably
  withheld),&nbsp;to accept such candidate or offer a different managing underwriter(s).</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of any registration initiated by the Company, the Company shall have
  the right to designate the managing underwriter.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 <U>Expenses</U>.</B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  expenses incurred in connection with any registration under Section 2 or Section
  3 shall be borne by the Company, provided however, that the Holders shall pay
  their pro rata portion of the discounts payable to any underwriter. All expenses
  incurred in connection with any second registration under Section 3 shall be
  borne by the Initiating Holders, providing however, that all Joining Holders
  shall pay their pro rata portion of the discounts payable to any underwriter.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnities</U>.</B>&nbsp;&nbsp;If any Registrable Shares are included in a registration statement pursuant to this Agreement:</FONT>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>4</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Company will indemnify and hold harmless, to the fullest extent permitted by
  law, each Holder, any underwriter (as defined in the Securities Act) for such
  Holder, and each person, if any, who controls such Holder or such underwriter
  (collectively and individually referred to as the &#147;<B>Indemnified Party</B>&#148;),
  from and against any and all losses, damages, claims, liabilities, joint or
  several, costs, and expenses (including any amounts paid in any settlement effected
  with the Company&#146;s consent, which consent will not be unreasonably withheld)
  to which such Indemnified Party may become subject under applicable law or otherwise,
  insofar as such losses, damages, claims, liabilities (or actions or proceedings
  in respect thereof), costs, or expenses arise out of are based upon (i) any
  untrue statement or alleged untrue statement of any material fact contained
  in the registration statement or included in the prospectus, as amended or supplemented
  (including, in each case, all documents incorporated by reference therein, as
  such documents may have been updated by later dated documents), or (ii) the
  omission or alleged omission to state therein a material fact required to be
  stated therein or necessary to make the statements therein, in light of the
  circumstances in which they are made, not misleading&nbsp;or (iii) any violation
  or alleged violation by the Company of the Securities Act or the Securities
  and Exchange Act of 1934, as amended (the &#147;<B>Exchange Act</B>&#148;),
  or any rules or regulations promulgated thereunder, and the Company will reimburse
  each Indemnified Party, promptly upon demand, for any reasonable legal or any
  other expenses incurred by them in connection with investigating, preparing
  to defend, or defending against, or appearing as a third-party witness in connection
  with such loss, claim, damage, liability, action, or proceeding; <U>provided</U>,
  <U>however</U>, that the Company will not be liable in any such case to the
  extent that any such loss, damage, liability, cost, or expense arises solely
  out of or is based solely upon an untrue statement or alleged untrue statement,
  or omission or alleged omission, so made in conformity with information furnished
  to the Company by the Indemnified Party, in writing, specifically for inclusion
  therein; <U>provided</U>, <U>further</U>, that this indemnity shall not be deemed
  to relieve any underwriter of any of its due diligence obligations; and <U>provided</U>,
  <U>further</U>, that the indemnity agreement contained in this Section 8.1 shall
  not apply to amounts paid in settlement of any such claim, loss, damage, liability,
  or action if such settlement is effected without the Company&#146;s consent,
  which consent will not be unreasonably withheld. Such indemnity shall remain
  in full force and effect regardless of any investigation made by or on behalf
  of the Indemnified Party, and regardless of any sale in connection with such
  offering by such Holder. Such indemnity shall survive the transfer of securities
  by a Holder.</FONT> </P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Holder participating in a registration hereunder will indemnify and hold harmless
  the Company its Executive Officers, Directors, any underwriter for the Company,
  and each person, if any, who controls the Company or such underwriter (collectively
  and individually, the &#147;<B>Indemnifiable Parties</B>&#148;), from and against
  any and all losses, damages, claims, liabilities, costs, or expenses (including
  any amount paid in any settlement effected with such Holder&#146;s consent,
  which consent will not be unreasonably withheld) to any Indemnifiable Party
  may become subject under applicable law or otherwise, insofar as such losses,
  damages, claims, liabilities (or actions or proceedings in respect thereof),
  costs, or expense arise out of or are based on (i) any untrue statement&nbsp;or
  alleged untrue statement of any material fact contained in the registration
  statement or included in the prospectus, as amended or supplemented&nbsp;(including,
  in each case, all documents incorporated by reberence therein, as such documents
  may have been updated by later dated documents), or (ii) the omission or alleged
  omission to state therein a material fact required to be stated therein or necessary
  to make the statements therein, in light of the circumstances in which they
  are made, not misleading, or (iii) any violation or alleged violation by the
  Company of the Securities Act or the Securities and Exchange Act, or any rules
  or regulations promulgated thereunder and such Holder will reimburse each Indemnifiable
  Party, promptly upon demand, for any reasonable legal or other expenses incurred
  by such Indemnifiable Party in connection with investigating, preparing to defend,
  or defending against, or appearing as a third-party witness in connection with
  such loss, claim, damage, action, or proceeding; in each case to the extent,
  but only to the extent, that such untrue statement or alleged untrue statement
  or omission or alleged omission was so made in conformity with written information
  furnished&nbsp;&nbsp;by such Holder specifically for inclusion therein. The
  foregoing indemnity agreement is subject to the condition that, insofar as it
  relates to any such untrue statement (or alleged untrue statement), or omission
  (or alleged omission) made in the preliminary prospectus but eliminated or remedied
  in the amended prospectus at the time the registration statement becomes effective
  in the final prospectus, such indemnity agreement shall not inure to the benefit
  of (i) the Company, and (ii) any underwriter, if a copy of the final prospectus
  was not furnished to the person or entity asserting the loss, liability, claim,
  or damage at or prior to the time such furnishing is required by the Security
  Act; <U>provided, further</U>, that this indemnity shall not be deemed to relieve
  any underwriter of any of its due diligence obligations; <U>provided, further</U>,
  that the indemnity agreement contained in this Section 8.2 shall not apply to
  amounts paid in settlement of any such claim loss, damage, liability, or action
  if such settlement is effected without the consent of such Holder, as the case
  may be, which consent shall not be unreasonably withheld; and provided, further,
  that the maximum amount of liability in respect of such indemnification shall
  be limited, in the case of each Holder, to an amount equal to the net proceeds
  actually received by such Holder from the sale of Registrable Shares sold pursuant
  to such registration.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>5</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
  after receipt by an Indemnified and/or Indemnifiable Party pursuant to the provisions
  of Section 8.1 or 8.2 of notice of the commencement of any action involving
  the subject matter of the foregoing indemnity provisions, such Indemnified and/or
  Indemnifiable Party will, if a claim thereof is to be made against the indemnifying
  party pursuant to the provisions of said Section 8.1 or 8.2, promptly notify
  the indemnifying party of the commencement thereof; but the omission to notify
  the indemnifying party shall only relieve it from any liability which it may
  have to any Indemnified and/or Indemnifiable Party to the extent that such indemnifying
  party has been damaged by such omission to notify hereunder. In case such action
  is brought against any Indemnified and/or Indemnifiable party and it notifies
  the indemnifying party of the commencement thereof, the indemnifying party shall
  have the right to participate in, and, to the extent that it may wish, jointly
  with any other indemnifying party similarly notified, to assume the defense
  thereof with counsel reasonably satisfactory to such Indemnified or Indemnifiable
  Party; <U>provided, however</U>, that if the defendants in any action include
  both the Indemnified or Indemnifiable Party and the indemnifying party and if
  in the reasonable judgment of the Indemnified or Indemnifiable party there are
  separate defenses that are available to the Indemnified or Indemnifiable party
  or there is a conflict of interest which would prevent counsel for the indemnifying
  party from also representing the Indemnified or Indemnifiable party, the Indemnified
  or Indemnifiable Party(ies) shall have the right to select, at the expense of
  the indemnifying party, separate counsel to participate in the defense of such
  action; <U>provided, further, however</U>, that if the&nbsp;&nbsp;Holders are
  the Indemnified Party, the Holders shall be entitled to one (1) separate counsel
  at the expense of the Company and if underwriters are also Indemnified parties
  who are entitled to counsel separate from the indemnifying party, then all underwriters
  as a group shall be entitled to one (1) separate counsel at the expense of the
  Company. &nbsp;After notice from the indemnifying party of its election so to
  assume the defense thereof, the indemnifying party will not be liable to such
  Indemnified or Indemnifiable Party pursuant to the provisions of said Section
  8.1 or 8.2 above for any legal or other expense subsequently incurred by such
  Indemnified or Indemnifiable Party in connection with the defense thereof, unless
  (i) the Indemnified or Indemnifiable Party shall have employed counsel in accordance
  with the provision of the preceding sentence, (ii) the indemnifying party shall
  not have employed counsel reasonably satisfactory to the Indemnified or Indemnifiable
  Party to represent the same within a reasonable time after the notice of the
  commencement of the action and within fifteen (15) days after written notice
  of the Indemnified or Indemnifiable Party&#146;s intention to employ separate
  counsel pursuant to the previous sentence, (iii) the indemnifying party has
  authorized the employment of counsel for the Indemnified or Indemnifiable Party
  at the expense of the indemnifying party, or (iv) the indemnifying party has
  authorized the employment of counsel but such party or counsel fails to vigorously
  defend the action. &nbsp;No indemnifying party will consent to entry of any
  judgment or enter into any settlement, which does not include as an unconditional
  term thereof the giving by the claimant or plaintiff to such Indemnified or
  Indemnifiable Party of a release from all liability in respect to such claim
  or litigation.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>6</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  recovery is not available under the foregoing indemnification provisions, for
  any reason other than as specified therein, the parties entitled to indemnification
  by the terms thereof shall be entitled to contribution to liabilities and expenses.
  In determining the amount of contribution to which the respective parties are
  entitled, there shall be considered the parties&#146; relative knowledge and
  access to information concerning the matter with respect to which the right
  to indemnification was asserted, the opportunity to correct and prevent any
  statement or omission, and any other equitable consideration appropriate under
  the circumstances. In no event shall any party that is found liable for fraudulent
  misrepresentation within the meaning of Section 1(f) of the Securities Act be
  entitled to contribution hereunder from any party not found so liable.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Obligations
  of the Company</U>.</B> &nbsp;Whenever required under this Agreement to effect
  the registration of any Registrable Shares, the Company shall, as expeditiously
  as possible:</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepare
  and file with the Commission a registration statement with respect to such Registrable
  Shares and use its best efforts to cause such registration statement to become
  effective&nbsp;with the Commission or pursuant to the Blue Sky laws of such
  jurisdictions as shall be reasonably requested by the Holders, and, upon the
  request of the Holders of the majority of the Registrable Shares registered
  thereunder, keep such registration statement effective for a period of up to
  two (2) years for any registration under Form F-3 (which shall be kept effective
  subject to the provisions of Rule 415), or for nine (9) months for any registration
  under F-1, or if sooner until the distribution contemplated in the registration
  statement has been completed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepare
  and file with the Commission such amendments and supplements to such registration
  statement and the prospectus used in connection with such registration statement
  as may be necessary to comply with the provisions of the Securities Act with
  respect to the disposition of all Registrable Shares covered by such registration
  statement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furnish
  to the Holders and each duly authorized underwriter such numbers of copies of
  a prospectus, including a preliminary prospectus, in conformity with the requirement
  of the Securities Act, and such other documents as they may reasonably request
  in order to facilitate the disposition of Registrable Shares owned by the Holders.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the event of any underwritten public offering, enter into and perform its obligations
  under an underwriting agreement, in usual and customary form, with the managing
  underwriter of such offering. Each Holder participating in such underwriting
  shall also enter into and perform its obligations under such agreement.</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notify
  each Holder of Registrable Shares covered by such registration statement at
  any time when a prospectus relating thereto is required to be delivered under
  the Securities Act of the happening of any event as a result of which the prospectus
  included in such registration statement, as then in effect, includes an untrue
  statement of a material fact or omits to state a material fact required to be
  stated therein or necessary to make the statements therein not misleading in
  light of the circumstances then existing, and promptly amend such prospectus
  by filing a post effective supplement so that such prospectus does not contain
  an untrue statement of material fact or omit to state a material fact required
  to be stated therein or necessary to make the statements therein not misleading
  in light of the circumstances then existing, and deliver copies thereof to the
  Holder.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cause
  all Registrable Shares registered pursuant hereunder to be listed on each securities
  exchange or Nasdaq on which similar securities issued by the Company are then
  listed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provide
  a transfer agent and registrar for all Registrable Shares registered pursuant
  to this Agreement and a CUSIP number for all such Registrable Shares, in each
  case not later than the effective date of such registration.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furnish,
  at the request of any Holder, on the date that such Registrable Shares are delivered
  to the underwriters for sale in connection with a registration pursuant to this
  Agreement, if such securities are being sold through underwriters, or, if such
  securities are not being sold through underwriters, on the date that the registration
  statement with respect to such securities becomes effective, (i) an opinion,
  dated such date, of the counsel representing the Company for the purposes of
  such registration, in form and substance as is customarily given to underwriters
  in an underwritten public offering, addressed to the underwriters, if any, and
  to such Holder, and (ii) a letter dated such date, from the independent certified
  public accountants of the Company, in form and substance as is customarily given
  by independent certified public accountants to underwriters in an underwritten
  public offering addressed to the underwriters, if any, and to such Holder.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
  notify each Holder, if the Holder is selling Registrable Shares covered by a
  registration statement, of the issuance by the Commission of any stop order
  suspending the effectiveness of the registration statement or the initiation
  of any proceedings for that purpose. The Company shall use its reasonable best
  efforts to obtain the withdrawal of any order suspending the effectiveness of
  the registration statement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
  to Registration</U>. &nbsp;The Company shall not be obligated to effect the
  registration of the Registrable Shares pursuant to this Agreement unless the
  Holders participating therein consent to customary conditions of a reasonable
  nature that are imposed by the Company, including, but no limited to, the following:</FONT>
</P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions
  requiring the Holders to comply with all applicable provisions of the Securities
  Act and the Exchange Act, including, but not limited to, the prospectus delivery
  requirements; and</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions
  prohibiting the Holders, upon receipt of written notice from the Company that
  it is required by law to correct or update the registration statement or prospectus,
  from effecting sales of the Registrable Shares until the Company has completed
  the necessary correction or updating.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </B><U>Omitted</U> <B>&nbsp; </B></FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Customary Arrangements</U>.</B>
  &nbsp;&nbsp;Each Holder may not participate in any underwritten offering pursuant
  to a registration filed hereunder unless such person (a) agrees to sell such
  person&#146;s securities on the basis provided in customary underwriting arrangements,
  and (b) provides all relevant information and completes and executes all questionnaires,
  powers of attorney, indemnities, underwriting agreements, and other documents
  required under the terms of such underwriting arrangements; provided, however,
  that the Holders participating in the underwritten registration may appoint
  one legal or other representative to negotiate the underwriting arrangements,
  at such Holder&#146;s expense.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>8</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>12.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public Information</U>.</B>
  &nbsp;&nbsp;The Company shall undertake to make publicly available and available
  to the Holders adequate current public information within the meaning of, and
  as required pursuant to, Rule 144 and shall use its reasonable best efforts
  to satisfy the Registrant Requirements for the use of Form F-3 during the term
  of this Agreement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-United States Offering</U>.</B>
  &nbsp;In the event of a public offering of securities of the Company outside
  of the United States, the Company will afford the Holders registration rights
  in accordance with applicable law and comparable in substance to the foregoing
  registration rights.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignment of Registration
  Rights.</B>&nbsp;&nbsp;The rights to cause the Company to register Registrable
  Shares pursuant to this Agreement may only be assigned by a Holder (the <B>&#147;Assignment&#148;</B>)
  under the following conditions:</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
    <TD width=50>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assignment shall be concurrent with the sale or transfer of Registrable Shares and only with respect to the transferred Registrable Shares;</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD width=47>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Assignment, a Holder may only assign the registration rights contained herein on up to two (2) occasions, to no more than five (5) transferees on each occasion;</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD width=47>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assignees of the registration rights may not further assign the registration rights; and</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD width=47>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The right to request the Demand (whether in relation to Registrable Shares held by the Holder and/or by any assignee) may only be exercised by the Holder.</FONT></TD></TR>
<TR>
<TD></TD>
<TD>&nbsp;</TD></TR>
</TABLE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided,
  (a) the Company, is upon such transfer, furnished with written notice of the
  name and address of such transferee or assignee and the securities with respect
  to which such registration rights are being assigned, and (b) such transferee
  or assignee agrees in writing to be bound by and subject to the terms and conditions
  of this Agreement.</font></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>15</B>
  <B>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Changes
  in Registrable Shares</U>.</B>&nbsp; If, and as often as, there are any changes
  in the Registrable Shares by way of stock split, stock dividend, combination
  or reclassification, or through merger, consolidation, reorganization or recapitalization,
  or by any other means, appropriate adjustment shall be made in the provisions
  of this Agreement, as may be required, so that the rights and privileges granted
  hereby shall continue with respect to the Registrable Shares as so changed.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>16.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.&nbsp;
  </B>This Agreement constitutes the full and entire understanding and agreement
  among the parties hereto with respect to the subject matter hereof and supersedes
  all prior agreements (including, without limitation, the term sheet entered
  into between the Company and the Holders, and any and all negotiations and oral
  understandings with respect thereto) and any and all registration rights that
  the Company had previously granted to any party hereto in any capacity whatsoever.
  Nothing in this Agreement, express or implied, is intended to confer upon any
  Person, other than the parties hereto and their respective successors and assigns,
  any rights, remedies, obligations, or liabilities under or by reason of this
  Agreement, except as expressly provided herein.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>9</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>17.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.&nbsp;</B>
  This Agreement shall be governed in all respects by the laws of the State of
  New York, as such laws are applied to agreements between State of New York residents
  entered into and to be performed entirely within State of New York, whether
  or not all parties hereto are residents of State of New York.</font></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>18.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and
  Assigns</U>.&nbsp;&nbsp;</B> Subject to the provisions of Section 14 above,
  the provisions hereof shall inure to the benefit of, and be binding upon, the
  successors, assigns, heirs, executors and administrators of the parties hereto.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>19.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
  </B>&nbsp;Unless otherwise provided, any notice required or permitted under
  this Agreement shall be given in writing and if: (i) served or sent by post
  shall be deemed to have been served or delivered ten (10) days after the time
  when the letter was deposited in the mail, postage prepaid for first class mail
  or airmail, as applicable, or (ii) sent via facsimile or electronic mail, shall
  be deemed to have been served or delivered on the first business day following
  the date that the facsimile or electronic mail was sent, provided that, if no
  electronic mail confirmation is delivered by the recipient of such notice to
  the sender thereof within twenty-four (24) hours following the delivery of such
  notice, such notice has to be resent via facsimile and shall be deemed to have
  been served or delivered on the first business day following the date that such
  notice was resent via facsimile, all to the addresses of the Holders as set
  forth on <B><U>Schedule 1</U></B> hereto, or to such other address as such party
  shall furnish the Company in writing, and if to the Company, at its address
  set forth in the preamble to this Agreement or at such other address as the
  Company shall have furnished to the parties in writing.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>20.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.</B>&nbsp;&nbsp;Any
  invalidity, illegality or limitation on the enforceability of this Agreement
  or any part thereof, by any party whether arising by reason of the law of the
  respective party&#146;s domicile or otherwise, shall in no way affect or impair
  the validity, legality or enforceability of this Agreement with respect to other
  parties. If any provision of this Agreement shall be judicially determined to
  be invalid, illegal or unenforceable, the validity, legality and enforceability
  of the remaining provisions shall not in any way be affected or impaired thereby.
  </FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>21.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Titles and Subtitles</U>.&nbsp;</B>
  The titles of the Sections of this Agreement are for convenience of reference
  only and are not to be considered in construing this Agreement.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>22.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.&nbsp;</B>
  This Agreement may be executed in any number of counterparts, each of which
  shall be an original, but all of which together shall constitute one instrument.
  This Agreement may be executed by exchange of signatures via facsimile.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><FONT style="TEXT-TRANSFORM: uppercase">[the remainder
 of this page is intentionally left blank]</FONT></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>10</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>

<P><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF</B>, the parties have signed
 this Agreement, as of the date first appearing above.</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD width="30%"><FONT face="Times New Roman, Times, Serif" size=2>Nur Macroprinters Ltd.</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp; ______________________</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Name:</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Title:</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>INVESTOR</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>_________________________</FONT></TD>
<TD>&nbsp;</TD></TR>
<TR>
<TD align=center colSpan=2><FONT face="Times New Roman, Times, Serif" size=2>Name: </FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>11</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>
<PAGE>
<DIV align=center>

<P><FONT face="Times New Roman, Times, Serif" size=2><B><U>Schedule 1</U></B></FONT></P>
</DIV>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U><FONT style="TEXT-TRANSFORM: uppercase">List
 of Holders and Addresses</FONT></U></B></FONT></P>

<TABLE cellSpacing=0 cellPadding=2 width=600 align=center border=1>
<TR vAlign=bottom>
<TD align=left width="61%"><B><FONT face="Times New Roman, Times, Serif" size=2>Name/Entity</FONT></B></TD>
<TD align=left width="31%"><B><FONT face="Times New Roman, Times, Serif" size=2>Address</FONT></B></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Dan and Edna Purjes</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>First Purjes Descendants, LP</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Second Purjes Descendants, LP</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Y Securities Management, Ltd.</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Myles Wittenstein</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Barbara Stoller</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Mark Wittenstein</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Bridges and PIPES, LLC</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>United European Bank and Trust</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Richard Ornstein</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Len Knappmiller</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>JM Hull Associates, L.P.</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Drake Investments Ltd.</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Gary Gelman</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>David Amir</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>The Purjes Foundation</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>**************</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=center><FONT face="Times New Roman, Times, serif" size=2>12</FONT></P>

<HR style="MARGIN-TOP: -2px" noShade SIZE=1>

<HR style="MARGIN-TOP: -10px" noShade SIZE=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>8
<FILENAME>exhibit_2-20.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -2px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<P align=right><strong><font size="2" face="Times New Roman, Times, serif"><u>Exhibit 2.20</u></font></strong></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>WARRANT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>THIS WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;)
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE EXERCISED AND
THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD, TRANSFERRED, PLEDGED,
ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE,
TRANSFER, PLEDGE, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>to purchase</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Ordinary Shares</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>of</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>at a price of&nbsp; $0.52 per share</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>VOID AFTER 17:00 p.m. (prevailing Tel Aviv time)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>On the Expiration Date (as hereinafter defined)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>in favor of</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="33%"><FONT face="Times New Roman, Times, Serif" size=2><B>No. W-
      018</B></FONT></td>
    <td width="61%"><div align="right"><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;Date:
        October 15, 2003</B></FONT></div></td>
    <td width="6%">&nbsp;</td>
  </tr>
</table>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS
  LTD.,</B> an Israeli company with its principal offices at 12 Abba Hilel Silver
  Street, Lod, Israel (the &#147;<U>Company</U>&#148;), hereby grants to X Securities
  Ltd. (the &#147;<U>Holder</U>&#148;), the right to purchase, subject to the
  terms and conditions hereof, up to 32,654 (Thirty Two Thousand and Six Hundred
  and Fifty Four) of the Company&#146;s Ordinary Shares, par value NIS 1.00 per
  share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at any time from time
  to time, on or after the date hereof (the &#147;<U>Effective Date</U>&#148;),
  and until the fifth anniversary of such date (the &#147;<U>Expiration Date</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>(Hereinafter: (i) the Ordinary Shares purchasable hereunder or any other securities which may be issued
by the Company in substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the price of Fifty Two Cents ($0.52) payable hereunder for each of the Warrant Shares,
as adjusted in the manner set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148; and (iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the number of Warrant Shares are subject to adjustment as hereinafter
provided.)</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-1-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Warrant Period; Exercise of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Warrant may be exercised in whole at any time, or in part from time to time,
  beginning on the date hereof until the Expiration Date (the &#147;<U>Warrant
  Period</U>&#148;), by the surrender of this Warrant (with a duly executed exercise
  form in the form attached at the end hereof as <B>Exhibit A</B>), along with
  the Exercise Certificate or the Exercise Opinion (each as defined in Section
  1.1(b) below), at the principal office of the Company, set forth above, together
  with proper payment of the Exercise Price multiplied by the number of Warrant
  Shares for which the Warrant is being exercised. Payment for Warrant Shares
  shall be made by certified or official bank check or checks, payable to the
  order of the Company or by wire transfer to an account to be designated in writing
  by the Company. Payments shall be made in United States dollars.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  addition to the method of exercise set forth in Section 1.1(a) hereof, each
  Holder shall have the right to exercise the Warrant in whole or in part and,
  upon such exercise, to receive for each Warrant surrendered a fraction of one
  Ordinary Share as shall be determined by the formula set forth below, with no
  cash payment required other than a payment of Equivalent Par Value (as defined
  below) for each Ordinary Share issued upon the exercise of the Warrant in accordance
  with this Section 1.1(b). The number of Ordinary Shares the Holder shall be
  entitled to receive shall upon the exercise of the Warrant and surrender of
  the related warrant certificate in accordance with this Section 1.1(b) shall
  be equal to the product of (x) the total number of Ordinary Shares exchangeable
  for the Warrants being exercised (assuming exercise in accordance with Section
  1.1(a)) multiplied by (y) a fraction, the numerator of which is the aggregate
  Market Price (as defined below) of such Ordinary Shares plus Equivalent Par
  Value less the aggregate Exercise Price therefore, and the denominator of which
  is such aggregate Market Price. Upon exercise of the Warrants pursuant to this
  Section 1.1(b), the warrants so exercised shall no longer be exercisable. Solely
  for the purpose of this paragraph, &#147;Equivalent Par Value&#148; shall be
  an amount in U.S. Dollars equal to NIS 1.0 based on the Representative Rate
  of the U.S. Dollar as published by the Bank of Israel on the date of payment.
  Solely for the purposes of this paragraph, Market Price shall be calculated
  as the average of the five trading days immediately preceding the date on which
  the form of exercise attached (Exhibit A) is deemed to have been sent to the
  Company. For the purposes of this paragraph, &#147;Market Price&#148; shall
  be deemed to be the last reported sale price of the Ordinary Shares, or if no
  such reported sale takes place on such day, the average of the last reported
  sale prices for the last three (3) trading days.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder of a Warrant, by its acceptance thereof, covenants and agrees that the
  Warrants described herein are being acquired as an investment and not with a
  view to the distribution thereof and such Holder further covenants and agrees
  that it will not sell, transfer, pledge, assign, or hypothecate the Warrant
  or the ordinary shares issueable upon exercise of the Warrant unless there is
  an effective registration statement under the Securities Act of 1933 covering
  the Warrant or the ordinary shares issueable upon exercise of the Warrant, or
  the Holder of the Warrant and/or the ordinary shares receives an opinion of
  counsel satisfactory to the Company stating that such sale, transfer, pledge,
  assignment, or hypothecation is exempt from the registration and prospectus
  delivery requirements of the Securities Act of 1933 and the qualification requirements
  under applicable law.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  this Warrant should be exercised in part, the Company shall, upon surrender
  of this Warrant for cancellation, execute and deliver a new Warrant evidencing
  the rights of the Holder to purchase the remainder of the Ordinary Shares purchasable
  hereunder. The Company shall pay any and all expenses, taxes and other charges
  that may be payable in connection with the issuance of the Warrant Shares and
  the preparation and delivery of share certificates pursuant to this Section
  1 in the name of the Holder (including without limitation the applicable stamp
  duty), and to the extent required, the execution and delivery of a new Warrant,
  provided, however, that the Company shall only be required to pay taxes which
  are due as a direct result of the issuance of the Ordinary Shares or other securities,
  properties or rights underlying such Warrants (such as the applicable stamp
  duty), and will not be required to pay any tax which may be (i) due as a result
  of the specific identity of the Holder or (ii) payable in respect of any transfer
  involved in the issuance and delivery of any such certificates in a name other
  than that of the Holder and the Company shall not be required to issue or deliver
  such certificates unless or until the person or persons requesting the issuance
  thereof shall have paid to the Company the amount of such tax or shall have
  established to the satisfaction of the Company that such tax has been paid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  fractions of Ordinary Shares shall be issued in connection with the exercise
  of this Warrant, and the number of Ordinary Shares issued shall be rounded down
  to the nearest whole number.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon the issuance of Ordinary Shares resulting from the exercise in whole or in part of this Warrant,
the Company shall deliver to the Holder an irrevocable letter of instructions to the Company&#146;s
transfer agent to issue as soon as is reasonably practicable to the Holder share certificates reflecting
the Warrant Shares exercised thereby, together with any and all other documents required for the
issuance of such certificates by the transfer agent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Reservation of Shares</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Company covenants that: (i) at all times during the Warrant Period it shall have in reserve, and
will keep available solely for issuance or delivery upon exercise of the Warrant, such number of
Ordinary shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the Warrant
and payment of the Exercise Price therefor, the Warrant Shares issuable upon such exercise will be
validly issued, fully paid, non assessable, free and clear from any lien, encumbrance, pledge or
any other third party right and not subject to any preemptive rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Adjustments to Exercise Price and Number of Securities</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision
  and Combination</U>. &nbsp;In case the Company shall at any time subdivide or
  combine the outstanding Ordinary Shares, the Exercise Price shall forthwith
  be proportionately decreased in the case of subdivision or increased in the
  case of combination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock
  Dividends and Distributions</U>. &nbsp;In case the Company shall pay a dividend
  on, or make a distribution of, Ordinary Shares or of the Company&#146;s capital
  stock convertible into Ordinary Shares, the Exercise Price shall forthwith be
  proportionately decreased. An adjustment made pursuant to this Section 3.2 shall
  be made as of the record date for the subject stock dividend or distribution.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
  in Number of Securities</U>. &nbsp;Upon each adjustment of the Exercise Price
  pursuant to the provisions of this Section 3, the number of Ordinary Shares
  issuable upon the exercise of each Warrant shall be adjusted to the nearest
  full amount by multiplying a number equal to the Exercise Price in effect immediately
  prior to such adjustment by the number of Ordinary Shares issuable upon exercise
  of the Warrants immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition
  of Ordinary Shares</U>. &nbsp;For the purpose of this Warrant, the term &#147;Ordinary
  Shares&#148; shall mean (i) the class of stock designated as Ordinary Shares
  in the Articles of Association of the Company as may be amended as of the date
  hereof, or (ii) any other class of stock resulting from successive changes or
  reclassifications of such Ordinary Shares consisting solely of changes in nominal
  value, or from nominal value to no nominal value, or from no nominal value to
  nominal value.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment of Exercise Price in Certain Cases.</U> &nbsp;&nbsp;No adjustment of the Exercise Price shall be made if the amount of said adjustment shall
be less than 2 cents ($.02) per Ordinary Share, provided, however, that in such case any adjustment
that would otherwise be required then to be made shall be carried forward and shall be made at the
time of and together with the next subsequent adjustment which, together with any adjustment so carried
forward, shall amount to at least 2 cents ($.02) per Ordinary Share.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Merger
  or Consolidation.</U> &nbsp;In case of any consolidation of the Company with or merger
  of the Company with, or merger of the Company into, (other than a merger which
  does not result in any reclassification or change of the outstanding Ordinary
  Shares), the Company shall cause the corporation formed by such consolidation
  or merger to execute and deliver to the Holder a supplemental warrant agreement
  providing that the Holder of the Warrant then outstanding or to be outstanding
  shall have the right thereafter (until the expiration of such Warrant) to receive,
  upon exercise of such Warrant, the kind and amount of shares of stock and other
  securities and property receivable upon such consilidation or merger, by a holder
  of the number of Ordinary Shares of the Company for which such Warrant might
  have been exercised immediately prior to such consolidation, merger, sale or
  transfer. Such supplemental warrant agreement shall provide for adjustments
  which shall be identical to the adjustments provided in Section 3. The above
  provision of this Subsection shall similarly apply to successive consolidations
  or mergers.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Default.</U>
  In the event of a default by the Company on payments of interest and/or principal
  of the Loan Notes ((as defined in the Convertible Loan and Warrant Agreement
  dated __ July 2003 between the Company and Holder (the &#147;Agreement&#148;)
  and issued pursuant to the terms of the Agreement, the Exercise Price shall
  be reduced to the dollar equivalent of NIS 1.00.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Notices to Warrant Holders</U>. &nbsp;Nothing contained in
  this Warrant shall be construed as conferring upon the Holder the right to vote
  or to consent or to receive notice as a stockholder in respect of any meetings
  of stockholders for the election of directors or any other matter, or as having
  any rights whatsoever as a stockholder of the Company. If, however, at any time
  prior to the Expiration Date, any of the following events shall occur:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
Company shall take a record of the holders of its Ordinary Shares for the purpose of entitling them
to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the accounting treatment
of such dividend or distribution on the books of the Company; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
Company shall offer to all the holders of its Ordinary Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the
Company, or any option, right or warrant to subscribe therefor; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation
or merger) or a sale of all or substantially all of its property, assets and business as an entirety
shall be proposed;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>then, in any one or more of said events, the Company shall give to the Holder written notice of such
event at least fifteen (15) days prior to the date fixed as a record date or the date of closing
the transfer books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed
dissolution, liquidation, winding up or sale.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U>Non-Transferability</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-WEIGHT: normal">(a)</FONT>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Holder
  covenants and agrees that the Warrants are being acquired as an investment and
  not with a view to the distribution thereof.&nbsp;&nbsp; <FONT style="FONT-WEIGHT: normal">The
  Holder shall not sell, transfer, assign, encumber, pledge or otherwise dispose
  or undertake to dispose of (&#147;Sell&#148;) the Warrants until the first anniversary
  of the Effective Date. &nbsp;Thereafter, the Holder may, subject to applicable
  securities laws, Sell, all or any portion of the Warrants, provided that the
  Holder may only Sell the Warrants on two occasions, to no more than five (5)
  transferees on each occasion, provided further that on the second such occasion
  the Holder shall reimburse the Company with any and all direct costs incurred
  by the Company connected with such sale, transfer or assignment including any
  reasonable registration costs.</FONT></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless registered, the Warrant Shares
issued upon exercise of the Warrants shall be subject to a stop transfer order and the certificate
or certificates evidencing such Warrant Shares shall bear legend substantially similar to the following:</FONT></P>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD width=75>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;THE SHARES
      REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY,
      SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION
      STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B></FONT></TD>
    <TD width="75">&nbsp;</TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U></U><U>Loss, etc. of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed,
and upon surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the Holder a
new Warrant of like date, tenor and denomination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U></U><U>Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Holders of the Ordinary Shares shall be entitled to all of the rights and privileges relating to registration
rights afforded to the Holders under Registration Rights Agreement attached hereto as <U>Schedule A</U>  and expressly made a part hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U></U><U>Headings</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The headings of this Warrant have been inserted as a matter of convenience and shall not affect the
construction hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U></U><U>Notices</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing
and shall be deemed effectively given upon personal delivery to the party to be notified or seven
(7) days after deposit with the Post Authority, for dispatch by registered or certified mail, postage
prepaid and addressed to the Holder at the address set forth in the Company&#146;s books and to the
Company at the address of its principal offices set forth above, or when given by telecopier or other
form of rapid written communication, provided that confirming copies are sent by such airmail.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Governing Law</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant shall be governed by and construed and enforced in accordance with the laws of the State
of Israel (regardless of the laws that might otherwise govern under applicable Israel principles
of conflicts of law). Anything to the contrary notwithstanding, the provisions of this Section 10
shall not apply to the Registration Rights schedule, which shall be subject to the provisions thereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Entire Agreement; Amendment and Waiver</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant and the schedule hereto constitute the full and entire understanding and agreement between
the parties with regard to the subject matters hereof and thereof. Any term of this Warrant may be
amended and the observance of any term hereof may be waived (either prospectively or retroactively
and either generally or in a particular instance) only with the written consent of both the Holder
and the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF</B>, the Company has caused this Ordinary Share Purchase Warrant to be executed as of the date first written
above.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="25"><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</FONT></td>
    <td width="30%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Agreed and Accepted:</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>______________________</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: ____________________________________</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="25"><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT A</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>WARRANT EXERCISE FORM</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="33%">&nbsp;</td>
    <td width="33%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>Date:____________________</FONT></td>
    <td width="34%">&nbsp;</td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>To:&nbsp; Nur Macroprinters
  Ltd.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Re:&nbsp;&nbsp; <U>Exercise of Warrant</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The undersigned
  hereby irrevocably elects to exercise the attached Warrant No. ___ to the extent
  of ___________________ Ordinary Shares of Nur Macroprinters Ltd. all in accordance
  with section 1.1(b) of the Loan Undertaking Warrant . Payment to the Company
  of the total purchase price for such shares has been made simultaneously with
  the delivery of this exercise of warrant. The undersigned requests that certificates
  for such Ordinary Shares be registered in the name of ____________________ whose
  address is ____________________ and that such certificates be delivered to whose
  address is _____________________________.</FONT></P>
<P align=left>&nbsp;</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp; ___________________</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<p align="center"><FONT face="Times New Roman, Times, Serif" size=2><U><B>Schedule
  A<br>
  </B></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><B>REGISTRATION
  RIGHTS AGREEMENT</B></U></FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 15 day of October, 2003 by and among:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters Ltd.</B>, a company organized under the laws of the State of Israel, registered under number 52-003986-8, with
offices at 12 Abba Hilel Silver Street, Lod, Israel (the &#147;<B>Company</B>&#148;); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>X Securities, Ltd. &nbsp;</B>a company registered under the laws of ________, with offices at 830 3<SUP>rd</SUP>  Ave. 14<SUP>th</SUP>  Floor New York, NY 10022, (the &#147;Holder&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RECITALS: </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> the Company has issued to the Holder a certain Warrant dated October 15, 2003, (the &#147;Warrant&#148;)
to purchase 32,654 Ordinary Shares of the Company, par value NIS 1.00 per share (the &#147;Warrant
Shares&#148;); and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> the Company hereby undertakes to register the Warrant Shares underlying the Warrant in accordance with
the provisions of this Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the foregoing, the parties agree as follows:</FONT></P>
<p><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions.</u></FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in the Warrant
Agreement (as defined below). As used herein, the following terms have the following meaning:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
  refers to the Securities and Exchange Commission.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective
  Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;, &#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration effected by filing a registration statement in compliance with the Securities
Act and the declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of the Warrant.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar federal statute, and
the rules and regulations of the Commission thereunder, all as the same shall be in effect at the
time.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT face="Times New Roman, Times, serif" size=2>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u></u></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Piggyback
  Registration</U>.&nbsp; If the Company at any time following the Effective Date,
  proposes to register any of its securities (other than a registration statement
  on Form S-8 or any successor form for securities to be offered to employees
  of the Company pursuant to any employee benefit plan or a registration statement
  on form F-4 or any other successor form), for its own account or for the account
  of any other person, it shall give notice to the Holder of such intention. Upon
  the written request of the Holder given within twenty (20) days after receipt
  of any such notice, the Company shall include in such registration all of the
  Registrable Shares indicated in such request, so as to permit the disposition
  of the shares so registered in the manner requested by the Holder. Notwithstanding
  any other provision of this Section 2, with respect to an underwritten initial
  public offering by the Company, if the managing underwriter advises the Company
  in writing that marketing or other factors require a limitation of the number
  of shares to be underwritten, then there shall be excluded from such registration
  and underwriting to the extent necessary to satisfy such limitation, shares
  held by the Holder and by other shareholders of the Company who are entitled
  to have their shares included in such registration, pro rata among them to the
  extent necessary to satisfy such limitation. To the extent Registrable Shares
  are excluded from such underwriting, the Holder shall agree not to sell its
  Registrable Shares included in the registration statement for such period, not
  to exceed 180 days, as may be required by the managing underwriter, and the
  Company shall keep effective and current such registration statement for such
  period as may be required to enable the Holder to complete the distribution
  and resale of its Registrable Shares. Notwithstanding the provisions of this
  Section 2, the Company shall have the right at any time after it shall have
  given notice to the Holder, to elect not to file any such proposed registration
  statement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four years following
the date of the closing of the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the right of the Holder
to request registration pursuant to Sections 2 shall terminate upon such date that all Registrable
Shares held or entitled to be held upon conversion by the Holder may be sold without volume limitations
under Rule 144 (or any successor rule).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT face="Times New Roman, Times, serif" size=2>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u></u></FONT><FONT face="Times New Roman, Times, Serif" size=2><U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Designation
  of Underwriter.</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of any registration initiated by the Company, the Company shall have
  the right to designate the managing underwriter in any underwritten offering.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT face="Times New Roman, Times, serif" size=2>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u></u></FONT><FONT face="Times New Roman, Times, Serif" size=2><U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Expenses.</U>
  &nbsp;All expenses incurred in connection with any registration under Section
  2 shall be borne by the Company; provided, however, that the Holder shall pay
  its pro rata portion of the discounts payable to any underwriter.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnities</U>.&nbsp;&nbsp;In
  the event of any registered offering of Ordinary Shares pursuant to this Agreement:</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Company will indemnify and hold harmless, to the fullest extent permitted by
  law, the Holder, the officers and directors&nbsp;&nbsp;of the Holder and any
  underwriter for the Holder, and each person, if any, who controls the Holder
  or such underwriter, from and against any and all losses, damages, claims, liabilities,
  joint or several, costs, and expenses (including any amounts paid in any settlement
  effected with the Company&#146;s consent) to which the Holder or any such&nbsp;&nbsp;officers
  and directors of the Holder, underwriter or controlling person may become subject
  under applicable law or otherwise, insofar as such losses, damages, claims,
  liabilities (or actions or proceedings in respect thereof), costs, or expenses
  arise out of are based upon (i) any untrue statement or alleged untrue statement
  of any material fact contained in the registration statement or included in
  the prospectus, as amended or supplemented, or (ii) the omission or alleged
  omission to state therein a material fact required to be started therein or
  necessary to make the statement therein, in the light of the circumstances in
  which they are made, not misleading, and the Company will reimburse the Holder,
  such officers and directors of the Holder, such underwriter, and each such controlling
  person of the Holder or the underwriter, promptly upon demand, for any reasonable
  legal or any other expenses incurred by them in connection with investigating,
  preparing to defend, or defending against, or appearing as a third-party witness
  in connection with such loss, claim, damage, liability, action, or proceeding;
  <U>provided</U>, <U>however</U>, that the Company will not be liable in any
  such case to the extent that any such loss, damage, liability, cost, or expense
  arises solely out of or is based solely upon an untrue statement or alleged
  untrue statement, or omission or alleged omission, so made in conformity with
  information furnished to the Company in writing by the Holder, such underwriter,
  or such controlling persons in writing specifically for inclusion therein; <U>provided</U>,
  <U>further</U>, that this indemnity shall not be deemed to relieve any underwriter
  of any of its due diligence obligations; and <U>provided</U>, <U>further</U>,
  that the indemnity agreement contained in this Sub-Section 6.1 shall not apply
  to amounts paid in settlement of any such claim, loss, damage, liability, or
  action if such settlement is effected without the consent of the Company, which
  consent shall not be unreasonably withheld. Such indemnity shall remain in full
  force and effect regardless of any investigation made by or on behalf of the
  Holder, the officers and directors of the Holder, the underwriter, or any controlling
  person of the Holder or the underwriter, and regardless of any sale in connection
  with such offering by the Holder. Such indemnity shall survive the transfer
  of securities by a Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder participating in a registration hereunder will indemnify and hold harmless
  the Company, the officers and directors of the Company, any underwriter for
  the Company, and each person, if any, who controls the Company or such underwriter,
  from and against any and all losses, damages, claims, liabilities, costs, or
  expenses (including any amount paid in any settlement effected with the Holder&#146;s
  consent) to which the Company, the officers and directors of the Company or
  any such controlling person and/or any such underwriter may become subject under
  applicable law or otherwise, insofar as such losses, damages, claims, liabilities
  (or actions or proceedings in respect thereof), costs, or expense arise out
  of or are based on (i) any untrue or alleged untrue statement of any material
  fact contained in the registration statement or included in the prospectus,
  as amended or supplemented, or (ii) the omission or the alleged omission to
  state therein a material fact required to be stated therein or necessary to
  make the statements therein, in the light of the circumstances in which they
  were made, not misleading, and the Holder will reimburse the Company, the officers
  and directors of the Company, any underwriter, and each such controlling person
  of the Company or any underwriter, promptly upon demand, for any reasonable
  legal or other expenses incurred by them in connection with investigating, preparing
  to defend, or defending against, or appearing as a third-party witness in connection
  with such loss, claim, damage, action, or proceeding; in each case to the extent,
  but only to the extent, that such untrue statement or alleged untrue statement
  or omission or alleged omission was so made in strict conformity with written
  information furnished in a certificate by the Holder specifically for inclusion
  therein. The foregoing indemnity agreement is subject to the condition that,
  insofar as it relates to any such untrue statement (or alleged untrue statement),
  or omission (or alleged omission) made in the preliminary prospectus but eliminated
  or remedied in the amended prospectus at the time the registration statement
  becomes effective in the final prospectus, such indemnity agreement shall not
  inure to the benefit of (i) the Company and (ii) any underwriter, if a copy
  of the final prospectus was not furnished to the person or entity asserting
  the loss, liability, claim, or damage at or prior to the time such furnishing
  is required by the Security Act; <U>provided, further</U>, that this indemnity
  shall not be deemed to relieve any underwriter of any of its due diligence obligations;
  <U>provided, further</U>, that the indemnity agreement contained in this Sub-Section
  6.2 shall not apply to amounts paid in settlement of any such claim loss, damage,
  liability, or action if such settlement is effected without the consent of the
  Holder, as the case may be, which consent shall not be unreasonably withheld.
  In no event shall the liability of the Holder exceed the gross proceeds from
  the offering received by the Holder.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-10-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
  after receipt by an indemnified party pursuant to the provisions of Section
  6.1 or 6.2 of notice of the commencement of any action involving the subject
  matter of the foregoing indemnity provisions, such indemnified party will, if
  a claim thereof is to be made against the indemnifying party pursuant to the
  provisions of said Section 6.1 or 6.2, promptly notify the indemnifying party
  of the commencement thereof; but the omission to notify the indemnifying party
  shall only relieve it from any liability which it may have to any indemnified
  party to the extent that such indemnifying party has been damaged by such omission
  to notify hereunder. In case such action is brought against any indemnified
  party and it notifies the indemnifying party of the commencement thereof, the
  indemnifying party shall have the right to participate in, and, to the extent
  that it may wish, jointly with any other indemnifying party similarly notified,
  to assume the defense thereof with counsel reasonably satisfactory to such indemnified
  party; <U>provided, however</U>, that if the defendants in any action include
  both the indemnified party and the indemnifying party and if in the reasonable
  judgment of the indemnified party there are separate defenses that are available
  to the indemnified party or there is a conflict of interest which would prevent
  counsel for the indemnifying party from also representing the indemnified party,
  the indemnified party or parties shall have the right to select, at the expense
  of the indemnifying party, separate counsel to participate in the defense of
  such action on behalf of such indemnified party or parties; <U>provided, further,
  however</U>, that if the Holder are the indemnified party, the Holder shall
  be entitled to one separate counsel at the expense of the Company and if underwriters
  are also indemnified parties who are entitled to counsel separate from the indemnifying
  party, then all underwriters as a group shall be entitled to one separate counsel
  at the expense of the Company. &nbsp;After notice from the indemnifying party
  to such indemnified party of its election so to assume the defense thereof,
  the indemnifying party will not be liable to such indemnified party pursuant
  to the provisions of said Section 6.1 or 6.2 for any legal or other expense
  subsequently incurred by such indemnified party in connection with the defense
  thereof, unless (i) the indemnified party shall have employed counsel in accordance
  with the provision of the preceding sentence, (ii) the indemnifying party shall
  not have employed counsel reasonably satisfactory to the indemnified party to
  represent the indemnified party within a reasonable time after the notice of
  the commencement of the action and within 15 days after written notice of the
  indemnified party&#146;s intention to employ separate counsel pursuant to the
  previous sentence, or (iii) the indemnifying party has authorized the employment
  of counsel for the indemnified party at the expense of the indemnifying party.
  &nbsp;No indemnifying party will consent to entry of any judgment or enter into
  any settlement which does not include as an unconditional term thereof the giving
  by the claimant or plaintiff to such indemnified party of a release from all
  liability in respect to such claim or litigation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  recovery is not available under the foregoing indemnification provisions, for
  any reason other than as specified therein, the parties entitled to indemnification
  by the terms thereof shall be entitled to contribution to liabilities and expenses.
  In determining the amount of contribution to which the respective parties are
  entitled, there shall be considered the parties&#146; relative knowledge and
  access to information concerning the matter with respect to which was asserted,
  the opportunity to correct and prevent any statement or omission, and any other
  equitable consideration appropriate under the circumstances. In no event shall
  any party that is found liable for fraudulent misrepresentation within the meaning
  of Section 1(f) of the Securities Act be entitled to contribution hereunder
  from any party not found so liable, and in no event shall any contribution from
  the Holder be more than the gross proceeds that it receives from the offering
  .</FONT></P>
  <p align="center"><font size="2" face="Times New Roman, Times, serif">-11-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
  to Registration</U>. &nbsp;The Company shall not be obligated to effect the
  registration of the Registrable Shares pursuant to this Agreement unless the
  Holder participating therein consents to customary conditions of a reasonable
  nature that are imposed by the Company, including, but no limited to, the following:</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  prohibiting the sale of Registrable Shares by the Holder from 30 days before
  the filing of the registration statement until the registration statement becomes
  effective;</FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  requiring the Holder to comply with all applicable provisions of the Securities
  Act and the United States Securities Exchange Act of 1934, as amended, (the
  &#147;Exchange Act&#148;), including, but not limited to, the prospectus delivery
  requirements, and to furnish to the Company information about sales made in
  such public offering; and</FONT></P>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  prohibiting the Holder, upon receipt of written notice from the Company that
  it is required by law to correct or update the registration statement or prospectus,
  from effecting sales of the Registrable Shares until the Company has completed
  the necessary correction or updating.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lock-Up</U>.
  &nbsp;In any registration of the Company&#146;s shares, the Holder acknowledges
  that any sales of Registrable Shares may be subject to a &#147;lock-up&#148;
  period restricting such sales beginning thirty (30) days prior to, and for up
  to one hundred and eighty (180) days following, the effective date of such registration,
  and the Holder will agree to abide by such customary &#147;lock-up&#148; period
  as is required by the underwriter in such registration.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Customary
  Arrangements</U>. &nbsp;The Holder may not participate in any underwritten offering
  pursuant to a registration filed hereunder unless the Holder (a) agrees to sell
  it&#146;s securities on the basis provided in any customary underwriting arrangements,
  and (b) provides any relevant information and completes and executes all questionnaires,
  powers of attorney, indemnities, underwriting agreements, and other documents
  required under the terms of such underwriting arrangements; provided, however,
  that the Holder participating in the underwritten registration may appoint one
  legal or other representative to negotiate the underwriting arrangements.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public
  Information</U>. &nbsp;The Company shall undertake to make publicly available
  and available to the Holder adequate current public information within the meaning
  of, and as required pursuant to, Rule 144.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Non-United
  States Offering</U>. &nbsp;In the event of a public offering of securities of
  the Company outside of the United States, the Company will afford the Holder
  registration rights in accordance with applicable law and comparable in substance
  to the foregoing registration rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment of
  Registration Rights</U>.&nbsp;&nbsp;The rights to cause the Company to register
  Registrable Shares pursuant to this Agreement may not be assigned by the Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Changes in Registrable
  Shares</U>. &nbsp;If, and as often as, there are any changes in the Registrable
  Shares by way of stock split, stock dividend, combination or reclassification,
  or through merger, consolidation, reorganization or recapitalization, or by
  any other means, appropriate adjustment shall be made in the provisions of this
  Agreement, as may be required, so that the rights and privileges granted hereby
  shall continue with respect to the Registrable Shares as so changed. Without
  limiting the generality of the foregoing, the Company will require any successor
  by merger or consolidation to assume and agree to be bound by the terms of this
  Agreement, as a condition to any such merger or consolidation.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-12-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Entire
  Agreement</U>. &nbsp;This Agreement constitutes the full and entire understanding
  and agreement among the parties hereto with respect to the subject matter hereof
  and supersedes all prior agreements (including, without limitation, the term
  sheet entered into between the Company and the Holder, and any and all negotiations
  and oral understandings with respect thereto) and any and all registration rights
  that the Company had previously granted to any party hereto in any capacity
  whatsoever. Nothing in this Agreement, express or implied, is intended to confer
  upon any Person, other than the parties hereto and their respective successors
  and assigns, any rights, remedies, obligations, or liabilities under or by reason
  of this Agreement, except as expressly provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Governing
  Law</U>.<B>&nbsp;</B> This Agreement shall be governed in all respects by the
  laws of the State of New York, as such laws are applied to agreements between
  State of New York residents entered into and to be performed entirely within
  State of New York, whether or not all parties hereto are residents of State
  of New York.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Successors
  and Assigns</U>.<B>&nbsp;&nbsp;</B>The provisions hereof shall inure to the
  benefit of, and be binding upon, the successors, permitted assigns as provided
  in Section 12, heirs, executors and administrators of the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Notices</U>.
  &nbsp;Unless otherwise provided, any notice required or permitted under this
  Agreement shall be given in writing and shall be deemed effectively given upon
  receipt by the party to be notified (including by telecopier, receipt confirmed)
  or seven&nbsp;&nbsp;(7) days after deposit with the United States Post Office
  or three (3) days after deposit with the Israel Post Authority, by registered
  or certified mail, postage prepaid and addressed to the party to be notified
  (a) if to a party other than the Company, at such party&#146;s address set forth
  in this Agreement or at such other address as such party shall have furnished
  the Company in writing, or, until any such party so furnishes an address to
  the Company, then to and at the address of the last holder of the shares covered
  by this Agreement who has so furnished an address to the Company, or (b) if
  to the Company, at its address set forth at in this Agreement, or at such other
  address as the Company shall have furnished to the parties in writing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Severability</U>.&nbsp;&nbsp;Any
  invalidity, illegality or limitation on the enforceability of this Agreement
  or any part thereof, by any party whether arising by reason of the law of the
  respective party&#146;s domicile or otherwise, shall in no way affect or impair
  the validity, legality or enforceability of this Agreement with respect to other
  parties. If any provision of this Agreement shall be judicially determined to
  be invalid, illegal or unenforceable, the validity, legality and enforceability
  of the remaining provisions shall not in any way be affected or impaired thereby.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Titles
  and Subtitles</U>. &nbsp;The titles of the Sections of this Agreement are for
  convenience of reference only and are not to be considered in construing this
  Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Counterparts.</U>
  &nbsp;This Agreement may be executed in any number of counterparts, each of
  which shall be an original, but all of which together shall constitute one instrument.
  This Agreement may be executed by facsimile signatures.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS
      WHEREOF the parties have signed this Agreement.</FONT></td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>__________________</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>NUR Macroprinters Ltd.</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>X Securities, Ltd.</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: David Amir, CEO&nbsp;</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: __________</FONT></td>
    <td>&nbsp;</td>
  </tr>
</table>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-13-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</BODY></HTML>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>9
<FILENAME>exhibit_2-21.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">
<P align=right><strong><u><font size="2" face="Times New Roman, Times, serif">Exhibit 2.21</font></u></strong></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>WARRANT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>THIS WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;)
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE EXERCISED AND
THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD, TRANSFERRED, PLEDGED,
ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE,
TRANSFER, PLEDGE, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>to purchase</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Ordinary Shares</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>of</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>at a price of&nbsp; $0.52 per share</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>VOID AFTER 17:00 p.m. (prevailing Tel Aviv time)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>On the Expiration Date (as hereinafter defined)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>in favor of</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2><B>No. W-
      019</B></FONT></td>
    <td>&nbsp;</td>
    <td width="20%"><FONT face="Times New Roman, Times, Serif" size=2><B>Date:
      October 15, 2003</B></FONT></td>
  </tr>
</table>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>NUR
  MACROPRINTERS LTD.,</B> an Israeli company with its principal offices at 12
  Abba Hilel Silver Street, Lod, Israel (the &#147;<U>Company</U>&#148;), hereby
  grants to Matthew Norton (the &#147;<U>Holder</U>&#148;), the right to purchase,
  subject to the terms and conditions hereof, up to 2,000 (Two Thousand) of the
  Company&#146;s Ordinary Shares, par value NIS 1.00 per share (&#147;<U>Ordinary
  Shares</U>&#148;), exercisable at any time from time to time, on or after the
  date hereof (the &#147;<U>Effective Date</U>&#148;), and until the fifth anniversary
  of such date (the &#147;<U>Expiration Date</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>(Hereinafter: (i) the Ordinary Shares purchasable hereunder or any other securities which may be issued
by the Company in substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the price of Fifty Two Cents ($0.52) payable hereunder for each of the Warrant Shares,
as adjusted in the manner set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148; and (iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the number of Warrant Shares are subject to adjustment as hereinafter
provided.)</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-1-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Warrant Period; Exercise of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Warrant may be exercised in whole at any time, or in part from time to time,
  beginning on the date hereof until the Expiration Date (the &#147;<U>Warrant
  Period</U>&#148;), by the surrender of this Warrant (with a duly executed exercise
  form in the form attached at the end hereof as <B>Exhibit A</B>), along with
  the Exercise Certificate or the Exercise Opinion (each as defined in Section
  1.1(b) below), at the principal office of the Company, set forth above, together
  with proper payment of the Exercise Price multiplied by the number of Warrant
  Shares for which the Warrant is being exercised. Payment for Warrant Shares
  shall be made by certified or official bank check or checks, payable to the
  order of the Company or by wire transfer to an account to be designated in writing
  by the Company. Payments shall be made in United States dollars.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  addition to the method of exercise set forth in Section 1.1(a) hereof, each
  Holder shall have the right to exercise the Warrant in whole or in part and,
  upon such exercise, to receive for each Warrant surrendered a fraction of one
  Ordinary Share as shall be determined by the formula set forth below, with no
  cash payment required other than a payment of Equivalent Par Value (as defined
  below) for each Ordinary Share issued upon the exercise of the Warrant in accordance
  with this Section 1.1(b). The number of Ordinary Shares the Holder shall be
  entitled to receive shall upon the exercise of the Warrant and surrender of
  the related warrant certificate in accordance with this Section 1.1(b) shall
  be equal to the product of (x) the total number of Ordinary Shares exchangeable
  for the Warrants being exercised (assuming exercise in accordance with Section
  1.1(a)) multiplied by (y) a fraction, the numerator of which is the aggregate
  Market Price (as defined below) of such Ordinary Shares plus Equivalent Par
  Value less the aggregate Exercise Price therefore, and the denominator of which
  is such aggregate Market Price. Upon exercise of the Warrants pursuant to this
  Section 1.1(b), the warrants so exercised shall no longer be exercisable. Solely
  for the purpose of this paragraph, &#147;Equivalent Par Value&#148; shall be
  an amount in U.S. Dollars equal to NIS 1.0 based on the Representative Rate
  of the U.S. Dollar as published by the Bank of Israel on the date of payment.
  Solely for the purposes of this paragraph, Market Price shall be calculated
  as the average of the five trading days immediately preceding the date on which
  the form of exercise attached (Exhibit A) is deemed to have been sent to the
  Company. For the purposes of this paragraph, &#147;Market Price&#148; shall
  be deemed to be the last reported sale price of the Ordinary Shares, or if no
  such reported sale takes place on such day, the average of the last reported
  sale prices for the last three (3) trading days.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder of a Warrant, by its acceptance thereof, covenants and agrees that the Warrants described
herein are being acquired as an investment and not with a view to the distribution thereof and such
Holder further covenants and agrees that it will not sell, transfer, pledge, assign, or hypothecate
the Warrant or the ordinary shares issueable upon exercise of the Warrant unless there is an effective
registration statement under the Securities Act of 1933 covering the Warrant or the ordinary shares
issueable upon exercise of the Warrant, or the Holder of the Warrant and/or the ordinary shares receives
an opinion of counsel satisfactory to the Company stating that such sale, transfer, pledge, assignment,
or hypothecation is exempt from the registration and prospectus delivery requirements of the Securities
Act of 1933 and the qualification requirements under applicable law.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  this Warrant should be exercised in part, the Company shall, upon surrender
  of this Warrant for cancellation, execute and deliver a new Warrant evidencing
  the rights of the Holder to purchase the remainder of the Ordinary Shares purchasable
  hereunder. The Company shall pay any and all expenses, taxes and other charges
  that may be payable in connection with the issuance of the Warrant Shares and
  the preparation and delivery of share certificates pursuant to this Section
  1 in the name of the Holder (including without limitation the applicable stamp
  duty), and to the extent required, the execution and delivery of a new Warrant,
  provided, however, that the Company shall only be required to pay taxes which
  are due as a direct result of the issuance of the Ordinary Shares or other securities,
  properties or rights underlying such Warrants (such as the applicable stamp
  duty), and will not be required to pay any tax which may be (i) due as a result
  of the specific identity of the Holder or (ii) payable in respect of any transfer
  involved in the issuance and delivery of any such certificates in a name other
  than that of the Holder and the Company shall not be required to issue or deliver
  such certificates unless or until the person or persons requesting the issuance
  thereof shall have paid to the Company the amount of such tax or shall have
  established to the satisfaction of the Company that such tax has been paid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of Ordinary Shares
issued shall be rounded down to the nearest whole number.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon the issuance of Ordinary Shares resulting from the exercise in whole or in part of this Warrant,
the Company shall deliver to the Holder an irrevocable letter of instructions to the Company&#146;s
transfer agent to issue as soon as is reasonably practicable to the Holder share certificates reflecting
the Warrant Shares exercised thereby, together with any and all other documents required for the
issuance of such certificates by the transfer agent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Reservation of Shares</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Company covenants that: (i) at all times during the Warrant Period it shall have in reserve, and
will keep available solely for issuance or delivery upon exercise of the Warrant, such number of
Ordinary shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the Warrant
and payment of the Exercise Price therefor, the Warrant Shares issuable upon such exercise will be
validly issued, fully paid, non assessable, free and clear from any lien, encumbrance, pledge or
any other third party right and not subject to any preemptive rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Adjustments to Exercise Price and Number of Securities</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Subdivision
  and Combination</U>. &nbsp;In case the Company shall at any time subdivide or
  combine the outstanding Ordinary Shares, the Exercise Price shall forthwith
  be proportionately decreased in the case of subdivision or increased in the
  case of combination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock
  Dividends and Distributions</U>. &nbsp;In case the Company shall pay a dividend
  on, or make a distribution of, Ordinary Shares or of the Company&#146;s capital
  stock convertible into Ordinary Shares, the Exercise Price shall forthwith be
  proportionately decreased. An adjustment made pursuant to this Section 3.2 shall
  be made as of the record date for the subject stock dividend or distribution.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
  in Number of Securities</U>. &nbsp;Upon each adjustment of the Exercise Price
  pursuant to the provisions of this Section 3, the number of Ordinary Shares
  issuable upon the exercise of each Warrant shall be adjusted to the nearest
  full amount by multiplying a number equal to the Exercise Price in effect immediately
  prior to such adjustment by the number of Ordinary Shares issuable upon exercise
  of the Warrants immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition
  of Ordinary Shares</U>. &nbsp;For the purpose of this Warrant, the term &#147;Ordinary
  Shares&#148; shall mean (i) the class of stock designated as Ordinary Shares
  in the Articles of Association of the Company as may be amended as of the date
  hereof, or (ii) any other class of stock resulting from successive changes or
  reclassifications of such Ordinary Shares consisting solely of changes in nominal
  value, or from nominal value to no nominal value, or from no nominal value to
  nominal value.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
  Adjustment of Exercise Price in Certain Cases.</U> &nbsp;&nbsp;No adjustment
  of the Exercise Price shall be made if the amount of said adjustment shall be
  less than 2 cents ($.02) per Ordinary Share, provided, however, that in such
  case any adjustment that would otherwise be required then to be made shall be
  carried forward and shall be made at the time of and together with the next
  subsequent adjustment which, together with any adjustment so carried forward,
  shall amount to at least 2 cents ($.02) per Ordinary Share.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger
  or Consolidation.</U> &nbsp;In case of any consolidation of the Company with or merger
  of the Company with, or merger of the Company into, (other than a merger which
  does not result in any reclassification or change of the outstanding Ordinary
  Shares), the Company shall cause the corporation formed by such consolidation
  or merger to execute and deliver to the Holder a supplemental warrant agreement
  providing that the Holder of the Warrant then outstanding or to be outstanding
  shall have the right thereafter (until the expiration of such Warrant) to receive,
  upon exercise of such Warrant, the kind and amount of shares of stock and other
  securities and property receivable upon such consilidation or merger, by a holder
  of the number of Ordinary Shares of the Company for which such Warrant might
  have been exercised immediately prior to such consolidation, merger, sale or
  transfer. Such supplemental warrant agreement shall provide for adjustments
  which shall be identical to the adjustments provided in Section 3. The above
  provision of this Subsection shall similarly apply to successive consolidations
  or mergers.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default.</U>
  In the event of a default by the Company on payments of interest and/or principal
  of the Loan Notes ((as defined in the Convertible Loan and Warrant Agreement
  dated __ July 2003 between the Company and Holder (the &#147;Agreement&#148;)
  and issued pursuant to the terms of the Agreement, the Exercise Price shall
  be reduced to the dollar equivalent of NIS 1.00.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Notices to Warrant Holders</U>. &nbsp;Nothing contained in
  this Warrant shall be construed as conferring upon the Holder the right to vote
  or to consent or to receive notice as a stockholder in respect of any meetings
  of stockholders for the election of directors or any other matter, or as having
  any rights whatsoever as a stockholder of the Company. If, however, at any time
  prior to the Expiration Date, any of the following events shall occur:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
Company shall take a record of the holders of its Ordinary Shares for the purpose of entitling them
to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the accounting treatment
of such dividend or distribution on the books of the Company; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
Company shall offer to all the holders of its Ordinary Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the
Company, or any option, right or warrant to subscribe therefor; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation
or merger) or a sale of all or substantially all of its property, assets and business as an entirety
shall be proposed;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>then, in any one or more of said events, the Company shall give to the Holder written notice of such
event at least fifteen (15) days prior to the date fixed as a record date or the date of closing
the transfer books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such proposed
dissolution, liquidation, winding up or sale.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Non-Transferability</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-WEIGHT: normal">(a)</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Holder covenants and agrees that
the Warrants are being acquired as an investment and not with a view to the distribution thereof.
<FONT style="FONT-WEIGHT: normal">The Holder shall not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake to
dispose of (&#147;Sell&#148;) the Warrants until the first anniversary of the Effective Date. &nbsp;Thereafter,
the Holder may, subject to applicable securities laws, Sell, all or any portion of the Warrants,
provided that the Holder may only Sell the Warrants on two occasions, to no more than five (5) transferees
on each occasion, provided further that on the second such occasion the Holder shall reimburse the
Company with any and all direct costs incurred by the Company connected with such sale, transfer
or assignment including any reasonable registration costs.</FONT></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless registered, the Warrant Shares
issued upon exercise of the Warrants shall be subject to a stop transfer order and the certificate
or certificates evidencing such Warrant Shares shall bear legend substantially similar to the following:</FONT></P>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD width=75>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;THE SHARES
      REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY,
      SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION
      STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B></FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>6.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<U>Loss, etc. of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed,
and upon surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the Holder a
new Warrant of like date, tenor and denomination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Holders of the Ordinary Shares shall be entitled to all of the rights and privileges relating to registration
rights afforded to the Holders under Registration Rights Agreement attached hereto as <U>Schedule A</U>  and expressly made a part hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>8.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Headings</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The headings of this Warrant have been inserted as a matter of convenience and shall not affect the
construction hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Notices</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing
and shall be deemed effectively given upon personal delivery to the party to be notified or seven
(7) days after deposit with the Post Authority, for dispatch by registered or certified mail, postage
prepaid and addressed to the Holder at the address set forth in the Company&#146;s books and to the
Company at the address of its principal offices set forth above, or when given by telecopier or other
form of rapid written communication, provided that confirming copies are sent by such airmail.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Governing Law</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant shall be governed by and construed and enforced in accordance with the laws of the State
of Israel (regardless of the laws that might otherwise govern under applicable Israel principles
of conflicts of law). Anything to the contrary notwithstanding, the provisions of this Section 10
shall not apply to the Registration Rights schedule, which shall be subject to the provisions thereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Entire Agreement; Amendment and Waiver</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant and the schedule hereto constitute the full and entire understanding and agreement between
the parties with regard to the subject matters hereof and thereof. Any term of this Warrant may be
amended and the observance of any term hereof may be waived (either prospectively or retroactively
and either generally or in a particular instance) only with the written consent of both the Holder
and the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF</B>, the Company has caused this Ordinary Share Purchase Warrant to be executed as of the date first written
above.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS
  LTD.</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="25"><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</FONT></td>
    <td width="30%">&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Agreed and Accepted:</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>__________________</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: ____________________________________</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td height="25"><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/title</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT A</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>WARRANT EXERCISE
  FORM</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%">&nbsp;</td>
    <td width="40%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>Date:____________________</FONT></td>
    <td width="30%">&nbsp;</td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>To:&nbsp; Nur Macroprinters
  Ltd.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Re:&nbsp;&nbsp; <U>Exercise of Warrant</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The undersigned hereby irrevocably elects to exercise the attached Warrant No. ___ to the extent of
___________________ Ordinary Shares of Nur Macroprinters Ltd. all in accordance with section 1.1(b)
of the Loan Undertaking Warrant . Payment to the Company of the total purchase price for such shares
has been made simultaneously with the delivery of this exercise of warrant. The undersigned requests
that certificates for such Ordinary Shares be registered in the name of ____________________ whose
address is ____________________ and that such certificates be delivered to whose address is _____________________________.</FONT></P>
<P>&nbsp;</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp; ___________________</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>Schedule
  A<br>
  </B></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><B>REGISTRATION
  RIGHTS AGREEMENT</B></U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 15 day of October, 2003 by and among:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters Ltd.</B>, a company organized under the laws of the State of Israel, registered under number 52-003986-8, with
offices at 12 Abba Hilel Silver Street, Lod, Israel (the &#147;<B>Company</B>&#148;); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Matthew L. Norton, </B>43-19-41<SUP>st</SUP>  Street Apt. 3C, Sunnyside, NY 11104&nbsp;(the &#147;Holder&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RECITALS: </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> &nbsp;the Company has issued to the Holder a certain Warrant dated October 15, 2003, (the &#147;Warrant&#148;)
to purchase 2,000 Ordinary Shares of the Company, par value NIS 1.00 per share (the &#147;Warrant
Shares&#148;); and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> the Company hereby undertakes to register the Warrant Shares underlying the Warrant in accordance with
the provisions of this Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the foregoing, the parties agree as follows:</FONT></P>
<p><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions.</u></FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
  otherwise defined herein, all capitalized terms shall have the meaning ascribed
  thereto in the Warrant Agreement (as defined below). As used herein, the following
  terms have the following meaning:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
  refers to the Securities and Exchange Commission.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;, &#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration effected by filing a registration statement in compliance with the Securities
Act and the declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of the Warrant.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar federal statute, and
the rules and regulations of the Commission thereunder, all as the same shall be in effect at the
time.</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT face="Times New Roman, Times, serif" size=2>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u></u></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Piggyback
  Registration</U>.&nbsp;&nbsp;If the Company at any time following the Effective
  Date, proposes to register any of its securities (other than a registration
  statement on Form S-8 or any successor form for securities to be offered to
  employees of the Company pursuant to any employee benefit plan or a registration
  statement on form F-4 or any other successor form), for its own account or for
  the account of any other person, it shall give notice to the Holder of such
  intention. Upon the written request of the Holder given within twenty (20) days
  after receipt of any such notice, the Company shall include in such registration
  all of the Registrable Shares indicated in such request, so as to permit the
  disposition of the shares so registered in the manner requested by the Holder.
  Notwithstanding any other provision of this Section 2, with respect to an underwritten
  initial public offering by the Company, if the managing underwriter advises
  the Company in writing that marketing or other factors require a limitation
  of the number of shares to be underwritten, then there shall be excluded from
  such registration and underwriting to the extent necessary to satisfy such limitation,
  shares held by the Holder and by other shareholders of the Company who are entitled
  to have their shares included in such registration, pro rata among them to the
  extent necessary to satisfy such limitation. To the extent Registrable Shares
  are excluded from such underwriting, the Holder shall agree not to sell its
  Registrable Shares included in the registration statement for such period, not
  to exceed 180 days, as may be required by the managing underwriter, and the
  Company shall keep effective and current such registration statement for such
  period as may be required to enable the Holder to complete the distribution
  and resale of its Registrable Shares. Notwithstanding the provisions of this
  Section 2, the Company shall have the right at any time after it shall have
  given notice to the Holder, to elect not to file any such proposed registration
  statement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four years following
the date of the closing of the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the right of the Holder
to request registration pursuant to Sections 2 shall terminate upon such date that all Registrable
Shares held or entitled to be held upon conversion by the Holder may be sold without volume limitations
under Rule 144 (or any successor rule).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Designation of Underwriter.</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of any registration initiated by the Company, the Company shall have
  the right to designate the managing underwriter in any underwritten offering.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Expenses.</U> &nbsp;All expenses incurred in connection with any registration
  under Section 2 shall be borne by the Company; provided, however, that the Holder
  shall pay its pro rata portion of the discounts payable to any underwriter.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Indemnities</U>. &nbsp;In the event of any registered offering
  of Ordinary Shares pursuant to this Agreement:</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Company will indemnify and hold harmless, to the fullest extent permitted by
  law, the Holder, the officers and directors&nbsp;&nbsp;of the Holder and any
  underwriter for the Holder, and each person, if any, who controls the Holder
  or such underwriter, from and against any and all losses, damages, claims, liabilities,
  joint or several, costs, and expenses (including any amounts paid in any settlement
  effected with the Company&#146;s consent) to which the Holder or any such&nbsp;&nbsp;officers
  and directors of the Holder, underwriter or controlling person may become subject
  under applicable law or otherwise, insofar as such losses, damages, claims,
  liabilities (or actions or proceedings in respect thereof), costs, or expenses
  arise out of are based upon (i) any untrue statement or alleged untrue statement
  of any material fact contained in the registration statement or included in
  the prospectus, as amended or supplemented, or (ii) the omission or alleged
  omission to state therein a material fact required to be started therein or
  necessary to make the statement therein, in the light of the circumstances in
  which they are made, not misleading, and the Company will reimburse the Holder,
  such officers and directors of the Holder, such underwriter, and each such controlling
  person of the Holder or the underwriter, promptly upon demand, for any reasonable
  legal or any other expenses incurred by them in connection with investigating,
  preparing to defend, or defending against, or appearing as a third-party witness
  in connection with such loss, claim, damage, liability, action, or proceeding;
  <U>provided</U>, <U>however</U>, that the Company will not be liable in any
  such case to the extent that any such loss, damage, liability, cost, or expense
  arises solely out of or is based solely upon an untrue statement or alleged
  untrue statement, or omission or alleged omission, so made in conformity with
  information furnished to the Company in writing by the Holder, such underwriter,
  or such controlling persons in writing specifically for inclusion therein; <U>provided</U>,
  <U>further</U>, that this indemnity shall not be deemed to relieve any underwriter
  of any of its due diligence obligations; and <U>provided</U>, <U>further</U>,
  that the indemnity agreement contained in this Sub-Section 6.1 shall not apply
  to amounts paid in settlement of any such claim, loss, damage, liability, or
  action if such settlement is effected without the consent of the Company, which
  consent shall not be unreasonably withheld. Such indemnity shall remain in full
  force and effect regardless of any investigation made by or on behalf of the
  Holder, the officers and directors of the Holder, the underwriter, or any controlling
  person of the Holder or the underwriter, and regardless of any sale in connection
  with such offering by the Holder. Such indemnity shall survive the transfer
  of securities by a Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder participating in a registration hereunder will indemnify and hold harmless
  the Company, the officers and directors of the Company, any underwriter for
  the Company, and each person, if any, who controls the Company or such underwriter,
  from and against any and all losses, damages, claims, liabilities, costs, or
  expenses (including any amount paid in any settlement effected with the Holder&#146;s
  consent) to which the Company, the officers and directors of the Company or
  any such controlling person and/or any such underwriter may become subject under
  applicable law or otherwise, insofar as such losses, damages, claims, liabilities
  (or actions or proceedings in respect thereof), costs, or expense arise out
  of or are based on (i) any untrue or alleged untrue statement of any material
  fact contained in the registration statement or included in the prospectus,
  as amended or supplemented, or (ii) the omission or the alleged omission to
  state therein a material fact required to be stated therein or necessary to
  make the statements therein, in the light of the circumstances in which they
  were made, not misleading, and the Holder will reimburse the Company, the officers
  and directors of the Company, any underwriter, and each such controlling person
  of the Company or any underwriter, promptly upon demand, for any reasonable
  legal or other expenses incurred by them in connection with investigating, preparing
  to defend, or defending against, or appearing as a third-party witness in connection
  with such loss, claim, damage, action, or proceeding; in each case to the extent,
  but only to the extent, that such untrue statement or alleged untrue statement
  or omission or alleged omission was so made in strict conformity with written
  information furnished in a certificate by the Holder specifically for inclusion
  therein. The foregoing indemnity agreement is subject to the condition that,
  insofar as it relates to any such untrue statement (or alleged untrue statement),
  or omission (or alleged omission) made in the preliminary prospectus but eliminated
  or remedied in the amended prospectus at the time the registration statement
  becomes effective in the final prospectus, such indemnity agreement shall not
  inure to the benefit of (i) the Company and (ii) any underwriter, if a copy
  of the final prospectus was not furnished to the person or entity asserting
  the loss, liability, claim, or damage at or prior to the time such furnishing
  is required by the Security Act; <U>provided, further</U>, that this indemnity
  shall not be deemed to relieve any underwriter of any of its due diligence obligations;
  <U>provided, further</U>, that the indemnity agreement contained in this Sub-Section
  6.2 shall not apply to amounts paid in settlement of any such claim loss, damage,
  liability, or action if such settlement is effected without the consent of the
  Holder, as the case may be, which consent shall not be unreasonably withheld.
  In no event shall the liability of the Holder exceed the gross proceeds from
  the offering received by the Holder.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-10-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
  after receipt by an indemnified party pursuant to the provisions of Section
  6.1 or 6.2 of notice of the commencement of any action involving the subject
  matter of the foregoing indemnity provisions, such indemnified party will, if
  a claim thereof is to be made against the indemnifying party pursuant to the
  provisions of said Section 6.1 or 6.2, promptly notify the indemnifying party
  of the commencement thereof; but the omission to notify the indemnifying party
  shall only relieve it from any liability which it may have to any indemnified
  party to the extent that such indemnifying party has been damaged by such omission
  to notify hereunder. In case such action is brought against any indemnified
  party and it notifies the indemnifying party of the commencement thereof, the
  indemnifying party shall have the right to participate in, and, to the extent
  that it may wish, jointly with any other indemnifying party similarly notified,
  to assume the defense thereof with counsel reasonably satisfactory to such indemnified
  party; <U>provided, however</U>, that if the defendants in any action include
  both the indemnified party and the indemnifying party and if in the reasonable
  judgment of the indemnified party there are separate defenses that are available
  to the indemnified party or there is a conflict of interest which would prevent
  counsel for the indemnifying party from also representing the indemnified party,
  the indemnified party or parties shall have the right to select, at the expense
  of the indemnifying party, separate counsel to participate in the defense of
  such action on behalf of such indemnified party or parties; <U>provided, further,
  however</U>, that if the Holder are the indemnified party, the Holder shall
  be entitled to one separate counsel at the expense of the Company and if underwriters
  are also indemnified parties who are entitled to counsel separate from the indemnifying
  party, then all underwriters as a group shall be entitled to one separate counsel
  at the expense of the Company. &nbsp;After notice from the indemnifying party
  to such indemnified party of its election so to assume the defense thereof,
  the indemnifying party will not be liable to such indemnified party pursuant
  to the provisions of said Section 6.1 or 6.2 for any legal or other expense
  subsequently incurred by such indemnified party in connection with the defense
  thereof, unless (i) the indemnified party shall have employed counsel in accordance
  with the provision of the preceding sentence, (ii) the indemnifying party shall
  not have employed counsel reasonably satisfactory to the indemnified party to
  represent the indemnified party within a reasonable time after the notice of
  the commencement of the action and within 15 days after written notice of the
  indemnified party&#146;s intention to employ separate counsel pursuant to the
  previous sentence, or (iii) the indemnifying party has authorized the employment
  of counsel for the indemnified party at the expense of the indemnifying party.
  &nbsp;No indemnifying party will consent to entry of any judgment or enter into
  any settlement which does not include as an unconditional term thereof the giving
  by the claimant or plaintiff to such indemnified party of a release from all
  liability in respect to such claim or litigation.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  recovery is not available under the foregoing indemnification provisions, for
  any reason other than as specified therein, the parties entitled to indemnification
  by the terms thereof shall be entitled to contribution to liabilities and expenses.
  In determining the amount of contribution to which the respective parties are
  entitled, there shall be considered the parties&#146; relative knowledge and
  access to information concerning the matter with respect to which was asserted,
  the opportunity to correct and prevent any statement or omission, and any other
  equitable consideration appropriate under the circumstances. In no event shall
  any party that is found liable for fraudulent misrepresentation within the meaning
  of Section 1(f) of the Securities Act be entitled to contribution hereunder
  from any party not found so liable, and in no event shall any contribution from
  the Holder be more than the gross proceeds that it receives from the offering
  .</FONT></p>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-11-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
  to Registration</U>.&nbsp;&nbsp;The Company shall not be obligated to effect
  the registration of the Registrable Shares pursuant to this Agreement unless
  the Holder participating therein consents to customary conditions of a reasonable
  nature that are imposed by the Company, including, but no limited to, the following:</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>conditions
  prohibiting the sale of Registrable Shares by the Holder from 30 days before
  the filing of the registration statement until the registration statement becomes
  effective;</FONT></p>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>conditions
  requiring the Holder to comply with all applicable provisions of the Securities
  Act and the United States Securities Exchange Act of 1934, as amended, (the
  &#147;Exchange Act&#148;), including, but not limited to, the prospectus delivery
  requirements, and to furnish to the Company information about sales made in
  such public offering; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>conditions
  prohibiting the Holder, upon receipt of written notice from the Company that
  it is required by law to correct or update the registration statement or prospectus,
  from effecting sales of the Registrable Shares until the Company has completed
  the necessary correction or updating.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Lock-Up</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  any registration of the Company&#146;s shares, the Holder acknowledges that
  any sales of Registrable Shares may be subject to a &#147;lock-up&#148; period
  restricting such sales beginning thirty (30) days prior to, and for up to one
  hundred and eighty (180) days following, the effective date of such registration,
  and the Holder will agree to abide by such customary &#147;lock-up&#148; period
  as is required by the underwriter in such registration.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Customary
  Arrangements</U>.&nbsp;&nbsp;The Holder may not participate in any underwritten
  offering pursuant to a registration filed hereunder unless the Holder (a) agrees
  to sell it&#146;s securities on the basis provided in any customary underwriting
  arrangements, and (b) provides any relevant information and completes and executes
  all questionnaires, powers of attorney, indemnities, underwriting agreements,
  and other documents required under the terms of such underwriting arrangements;
  provided, however, that the Holder participating in the underwritten registration
  may appoint one legal or other representative to negotiate the underwriting
  arrangements.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Public
  Information</U>.&nbsp;&nbsp;The Company shall undertake to make publicly available
  and available to the Holder adequate current public information within the meaning
  of, and as required pursuant to, Rule 144.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-United
  States Offering</U>.&nbsp;&nbsp;In the event of a public offering of securities
  of the Company outside of the United States, the Company will afford the Holder
  registration rights in accordance with applicable law and comparable in substance
  to the foregoing registration rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment of
  Registration Rights</U>.&nbsp;&nbsp;The rights to cause the Company to register
  Registrable Shares pursuant to this Agreement may not be assigned by the Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Changes in Registrable
  Shares</U>.&nbsp;&nbsp;If, and as often as, there are any changes in the Registrable
  Shares by way of stock split, stock dividend, combination or reclassification,
  or through merger, consolidation, reorganization or recapitalization, or by
  any other means, appropriate adjustment shall be made in the provisions of this
  Agreement, as may be required, so that the rights and privileges granted hereby
  shall continue with respect to the Registrable Shares as so changed. Without
  limiting the generality of the foregoing, the Company will require any successor
  by merger or consolidation to assume and agree to be bound by the terms of this
  Agreement, as a condition to any such merger or consolidation.</FONT></P>
  <!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-12-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.&nbsp;&nbsp;This
  Agreement constitutes the full and entire understanding and agreement among
  the parties hereto with respect to the subject matter hereof and supersedes
  all prior agreements (including, without limitation, the term sheet entered
  into between the Company and the Holder, and any and all negotiations and oral
  understandings with respect thereto) and any and all registration rights that
  the Company had previously granted to any party hereto in any capacity whatsoever.
  Nothing in this Agreement, express or implied, is intended to confer upon any
  Person, other than the parties hereto and their respective successors and assigns,
  any rights, remedies, obligations, or liabilities under or by reason of this
  Agreement, except as expressly provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.&nbsp;&nbsp;This
  Agreement shall be governed in all respects by the laws of the State of New
  York, as such laws are applied to agreements between State of New York residents
  entered into and to be performed entirely within State of New York, whether
  or not all parties hereto are residents of State of New York.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and
  Assigns</U>.&nbsp;&nbsp;The provisions hereof shall inure to the benefit of,
  and be binding upon, the successors, permitted assigns as provided in Section
  12, heirs, executors and administrators of the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.&nbsp;&nbsp;Unless
  otherwise provided, any notice required or permitted under this Agreement shall
  be given in writing and shall be deemed effectively given upon receipt by the
  party to be notified (including by telecopier, receipt confirmed) or seven&nbsp;&nbsp;(7)
  days after deposit with the United States Post Office or three (3) days after
  deposit with the Israel Post Authority, by registered or certified mail, postage
  prepaid and addressed to the party to be notified (a) if to a party other than
  the Company, at such party&#146;s address set forth in this Agreement or at
  such other address as such party shall have furnished the Company in writing,
  or, until any such party so furnishes an address to the Company, then to and
  at the address of the last holder of the shares covered by this Agreement who
  has so furnished an address to the Company, or (b) if to the Company, at its
  address set forth at in this Agreement, or at such other address as the Company
  shall have furnished to the parties in writing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.&nbsp;&nbsp;Any
  invalidity, illegality or limitation on the enforceability of this Agreement
  or any part thereof, by any party whether arising by reason of the law of the
  respective party&#146;s domicile or otherwise, shall in no way affect or impair
  the validity, legality or enforceability of this Agreement with respect to other
  parties. If any provision of this Agreement shall be judicially determined to
  be invalid, illegal or unenforceable, the validity, legality and enforceability
  of the remaining provisions shall not in any way be affected or impaired thereby.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Titles and Subtitles</U>.&nbsp;&nbsp;The
  titles of the Sections of this Agreement are for convenience of reference only
  and are not to be considered in construing this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts.</U>&nbsp;&nbsp;This
  Agreement may be executed in any number of counterparts, each of which shall
  be an original, but all of which together shall constitute one instrument. This
  Agreement may be executed by facsimile signatures.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS
      WHEREOF the parties have signed this Agreement.</FONT></td>
  </tr>
  <tr>
    <td width="50%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>__________________</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>NUR Macroprinters Ltd.</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Matthew L. Norton</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: David Amir, CEO&nbsp;</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<p align="center"><font size="2" face="Times New Roman, Times, serif">-13-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>10
<FILENAME>exhibit_2-22.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">

<p align="right"><strong><u><font size="2" face="Times New Roman, Times, serif">Exhibit 2.22</font></u></strong></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>WARRANT</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>THIS WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;)
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE EXERCISED AND
THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD, TRANSFERRED, PLEDGED,
ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE HOLDER RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE,
TRANSFER, PLEDGE, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>to purchase</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Ordinary Shares</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>of</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>at a price of&nbsp; $0.52 per share</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>VOID AFTER 17:00 p.m. (prevailing Tel Aviv time)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>On the Expiration Date (as hereinafter defined)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>in favor of
  </FONT></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2><B>No. W-
      017</B></FONT></td>
    <td width="50%" align="right"><FONT face="Times New Roman, Times, Serif" size=2><B>Date:
      October 15, 2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></td>
  </tr>
</table>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS
  LTD.,</B> an Israeli company with its principal offices at 12 Abba Hilel Silver
  Street, Lod, Israel (the &#147;<U>Company</U>&#148;), hereby grants to David Fuchs
  (the &#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms
  and conditions hereof, up to 32,654 (Thirty Two Thousand and Six Hundred and
  Fifty Four) of the Company&#146;s Ordinary Shares, par value NIS 1.00 per share
  (&#147;<U>Ordinary Shares</U>&#148;), exercisable at any time from time to time,
  on or after the date hereof (the &#147;<U>Effective Date</U>&#148;), and until
  the fifth anniversary of such date (the &#147;<U>Expiration Date</U>&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>(Hereinafter:
  (i) the Ordinary Shares purchasable hereunder or any other securities which
  may be issued by the Company in substitution therefor, are referred to as the
  &#147;<U>Warrant Shares</U>&#148;; (ii) the price of Fifty Two Cents ($0.52)
  payable hereunder for each of the Warrant Shares, as adjusted in the manner
  set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148;
  and (iii) this Warrant and all warrants hereafter issued in exchange or substitution
  for this Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise
  Price and the number of Warrant Shares are subject to adjustment as hereinafter
  provided.)</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-1-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Warrant Period; Exercise of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  This Warrant may be exercised in whole at any time, or in part from time to
  time, beginning on the date hereof until the Expiration Date (the &#147;<U>Warrant
  Period</U>&#148;), by the surrender of this Warrant (with a duly executed exercise
  form in the form attached at the end hereof as <B>Exhibit A</B>), along with
  the Exercise Certificate or the Exercise Opinion (each as defined in Section
  1.1(b) below), at the principal office of the Company, set forth above, together
  with proper payment of the Exercise Price multiplied by the number of Warrant
  Shares for which the Warrant is being exercised. Payment for Warrant Shares
  shall be made by certified or official bank check or checks, payable to the
  order of the Company or by wire transfer to an account to be designated in writing
  by the Company. Payments shall be made in United States dollars.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In addition to the method of exercise set forth in Section 1.1(a) hereof, each
  Holder shall have the right to exercise the Warrant in whole or in part and,
  upon such exercise, to receive for each Warrant surrendered a fraction of one
  Ordinary Share as shall be determined by the formula set forth below, with no
  cash payment required other than a payment of Equivalent Par Value (as defined
  below) for each Ordinary Share issued upon the exercise of the Warrant in accordance
  with this Section 1.1(b). The number of Ordinary Shares the Holder shall be
  entitled to receive shall upon the exercise of the Warrant and surrender of
  the related warrant certificate in accordance with this Section 1.1(b) shall
  be equal to the product of (x) the total number of Ordinary Shares exchangeable
  for the Warrants being exercised (assuming exercise in accordance with Section
  1.1(a)) multiplied by (y) a fraction, the numerator of which is the aggregate
  Market Price (as defined below) of such Ordinary Shares plus Equivalent Par
  Value less the aggregate Exercise Price therefore, and the denominator of which
  is such aggregate Market Price. Upon exercise of the Warrants pursuant to this
  Section 1.1(b), the warrants so exercised shall no longer be exercisable. Solely
  for the purpose of this paragraph, &#147;Equivalent Par Value&#148; shall be
  an amount in U.S. Dollars equal to NIS 1.0 based on the Representative Rate
  of the U.S. Dollar as published by the Bank of Israel on the date of payment.
  Solely for the purposes of this paragraph, Market Price shall be calculated
  as the average of the five trading days immediately preceding the date on which
  the form of exercise attached (Exhibit A) is deemed to have been sent to the
  Company. For the purposes of this paragraph, &#147;Market Price&#148; shall
  be deemed to be the last reported sale price of the Ordinary Shares, or if no
  such reported sale takes place on such day, the average of the last reported
  sale prices for the last three (3) trading days.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder of a Warrant, by its acceptance thereof, covenants and agrees that the
  Warrants described herein are being acquired as an investment and not with a
  view to the distribution thereof and such Holder further covenants and agrees
  that it will not sell, transfer, pledge, assign, or hypothecate the Warrant
  or the ordinary shares issueable upon exercise of the Warrant unless there is
  an effective registration statement under the Securities Act of 1933 covering
  the Warrant or the ordinary shares issueable upon exercise of the Warrant, or
  the Holder of the Warrant and/or the ordinary shares receives an opinion of
  counsel satisfactory to the Company stating that such sale, transfer, pledge,
  assignment, or hypothecation is exempt from the registration and prospectus
  delivery requirements of the Securities Act of 1933 and the qualification requirements
  under applicable law.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Warrant should be exercised
in part, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver
a new Warrant evidencing the rights of the Holder to purchase the remainder of the Ordinary Shares
purchasable hereunder. The Company shall pay any and all expenses, taxes and other charges that may
be payable in connection with the issuance of the Warrant Shares and the preparation and delivery
of share certificates pursuant to this Section 1 in the name of the Holder (including without limitation
the applicable stamp duty), and to the extent required, the execution and delivery of a new Warrant,
provided, however, that the Company shall only be required to pay taxes which are due as a direct
result of the issuance of the Ordinary Shares or other securities, properties or rights underlying
such Warrants (such as the applicable stamp duty), and will not be required to pay any tax which
may be (i) due as a result of the specific identity of the Holder or (ii) payable in respect of any
transfer involved in the issuance and delivery of any such certificates in a name other than that
of the Holder and the Company shall not be required to issue or deliver such certificates unless
or until the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of Ordinary Shares
issued shall be rounded down to the nearest whole number.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon the issuance of Ordinary Shares resulting from the exercise in whole or in part of this Warrant,
the Company shall deliver to the Holder an irrevocable letter of instructions to the Company&#146;s
transfer agent to issue as soon as is reasonably practicable to the Holder share certificates reflecting
the Warrant Shares exercised thereby, together with any and all other documents required for the
issuance of such certificates by the transfer agent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Reservation of Shares</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The Company covenants that: (i) at all times during the Warrant Period it shall have in reserve, and
will keep available solely for issuance or delivery upon exercise of the Warrant, such number of
Ordinary shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the Warrant
and payment of the Exercise Price therefor, the Warrant Shares issuable upon such exercise will be
validly issued, fully paid, non assessable, free and clear from any lien, encumbrance, pledge or
any other third party right and not subject to any preemptive rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Adjustments to Exercise Price and Number of Securities</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision and Combination</U>. &nbsp;In case the Company shall at any time subdivide or combine the outstanding Ordinary Shares,
the Exercise Price shall forthwith be proportionately decreased in the case of subdivision or increased
in the case of combination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Dividends and Distributions</U>. &nbsp;In case the Company shall pay a dividend on, or make a distribution of, Ordinary Shares or
of the Company&#146;s capital stock convertible into Ordinary Shares, the Exercise Price shall forthwith
be proportionately decreased. An adjustment made pursuant to this Section 3.2 shall be made as of
the record date for the subject stock dividend or distribution.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
  in Number of Securities</U>. &nbsp;Upon each adjustment of the Exercise Price
  pursuant to the provisions of this Section 3, the number of Ordinary Shares
  issuable upon the exercise of each Warrant shall be adjusted to the nearest
  full amount by multiplying a number equal to the Exercise Price in effect immediately
  prior to such adjustment by the number of Ordinary Shares issuable upon exercise
  of the Warrants immediately prior to such adjustment and dividing the product
  so obtained by the adjusted Exercise Price.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition
  of Ordinary Shares</U>. &nbsp;For the purpose of this Warrant, the term &#147;Ordinary
  Shares&#148; shall mean (i) the class of stock designated as Ordinary Shares
  in the Articles of Association of the Company as may be amended as of the date
  hereof, or (ii) any other class of stock resulting from successive changes or
  reclassifications of such Ordinary Shares consisting solely of changes in nominal
  value, or from nominal value to no nominal value, or from no nominal value to
  nominal value.</FONT></P>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>No
  Adjustment of Exercise Price in Certain Cases.</U> &nbsp;&nbsp;No adjustment
  of the Exercise Price shall be made if the amount of said adjustment shall be
  less than 2 cents ($.02) per Ordinary Share, provided, however, that in such
  case any adjustment that would otherwise be required then to be made shall be
  carried forward and shall be made at the time of and together with the next
  subsequent adjustment which, together with any adjustment so carried forward,
  shall amount to at least 2 cents ($.02) per Ordinary Share.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Merger
  or Consolidation.</U>&nbsp;&nbsp;In case of any consolidation of the Company
  with or merger of the Company with, or merger of the Company into, (other than
  a merger which does not result in any reclassification or change of the outstanding
  Ordinary Shares), the Company shall cause the corporation formed by such consolidation
  or merger to execute and deliver to the Holder a supplemental warrant agreement
  providing that the Holder of the Warrant then outstanding or to be outstanding
  shall have the right thereafter (until the expiration of such Warrant) to receive,
  upon exercise of such Warrant, the kind and amount of shares of stock and other
  securities and property receivable upon such consilidation or merger, by a holder
  of the number of Ordinary Shares of the Company for which such Warrant might
  have been exercised immediately prior to such consolidation, merger, sale or
  transfer. Such supplemental warrant agreement shall provide for adjustments
  which shall be identical to the adjustments provided in Section 3. The above
  provision of this Subsection shall similarly apply to successive consolidations
  or mergers.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U>Default.</U>
  In the event of a default by the Company on payments of interest and/or principal
  of the Loan Notes ((as defined in the Convertible Loan and Warrant Agreement
  dated __ July 2003 between the Company and Holder (the &#147;Agreement&#148;)
  and issued pursuant to the terms of the Agreement, the Exercise Price shall
  be reduced to the dollar equivalent of NIS 1.00.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U>Notices to Warrant Holders</U>. &nbsp;Nothing contained in this Warrant
  shall be construed as conferring upon the Holder the right to vote or to consent
  or to receive notice as a stockholder in respect of any meetings of stockholders
  for the election of directors or any other matter, or as having any rights whatsoever
  as a stockholder of the Company. If, however, at any time prior to the Expiration
  Date, any of the following events shall occur:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;the
  Company shall take a record of the holders of its Ordinary Shares for the purpose
  of entitling them to receive a dividend or distribution payable otherwise than
  in cash, or a cash dividend or distribution payable otherwise than out of current
  or retained earnings, as indicated by the accounting treatment of such dividend
  or distribution on the books of the Company; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;the
Company shall offer to all the holders of its Ordinary Shares any additional shares of capital stock
of the Company or securities convertible into or exchangeable for shares of capital stock of the
Company, or any option, right or warrant to subscribe therefor; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation
or merger) or a sale of all or substantially all of its property, assets and business as an entirety
shall be proposed;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>then, in any one
  or more of said events, the Company shall give to the Holder written notice
  of such event at least fifteen (15) days prior to the date fixed as a record
  date or the date of closing the transfer books for the determination of the
  stockholders entitled to such dividend, distribution, convertible or exchangeable
  securities or subscription rights, or entitled to vote on such proposed dissolution,
  liquidation, winding up or sale.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Non-Transferability</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-WEIGHT: normal">(a)</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Holder covenants and agrees that
the Warrants are being acquired as an investment and not with a view to the distribution thereof.
<FONT style="FONT-WEIGHT: normal">The Holder shall not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake to
dispose of (&#147;Sell&#148;) the Warrants until the first anniversary of the Effective Date. &nbsp;Thereafter,
the Holder may, subject to applicable securities laws, Sell, all or any portion of the Warrants,
provided that the Holder may only Sell the Warrants on two occasions, to no more than five (5) transferees
on each occasion, provided further that on the second such occasion the Holder shall reimburse the
Company with any and all direct costs incurred by the Company connected with such sale, transfer
or assignment including any reasonable registration costs.</FONT></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless registered, the Warrant Shares
issued upon exercise of the Warrants shall be subject to a stop transfer order and the certificate
or certificates evidencing such Warrant Shares shall bear legend substantially similar to the following:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=75>&nbsp;</TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;THE SHARES
      REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY,
      SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION
      STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B></FONT></TD>
    <TD width="75">&nbsp;</TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U>Loss, etc. of Warrant</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed,
and upon surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the Holder a
new Warrant of like date, tenor and denomination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U>Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Holders of the Ordinary Shares shall be entitled to all of the rights and privileges relating to registration
rights afforded to the Holders under Registration Rights Agreement attached hereto as <U>Schedule A</U>  and expressly made a part hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U>Headings</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The headings of this Warrant have been inserted as a matter of convenience and shall not affect the
construction hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U></U><U></U><U></U><U>Notices</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Unless otherwise
  provided, any notice required or permitted under this Warrant shall be given
  in writing and shall be deemed effectively given upon personal delivery to the
  party to be notified or seven (7) days after deposit with the Post Authority,
  for dispatch by registered or certified mail, postage prepaid and addressed
  to the Holder at the address set forth in the Company&#146;s books and to the
  Company at the address of its principal offices set forth above, or when given
  by telecopier or other form of rapid written communication, provided that confirming
  copies are sent by such airmail.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
  Law</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant shall be governed by and construed and enforced in accordance with the laws of the State
of Israel (regardless of the laws that might otherwise govern under applicable Israel principles
of conflicts of law). Anything to the contrary notwithstanding, the provisions of this Section 10
shall not apply to the Registration Rights schedule, which shall be subject to the provisions thereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
  Agreement; Amendment and Waiver</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>This Warrant and the schedule hereto constitute the full and entire understanding and agreement between
the parties with regard to the subject matters hereof and thereof. Any term of this Warrant may be
amended and the observance of any term hereof may be waived (either prospectively or retroactively
and either generally or in a particular instance) only with the written consent of both the Holder
and the Company.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS
  WHEREOF</B>, the Company has caused this Ordinary Share Purchase Warrant to
  be executed as of the date first written above.</FONT></P>
<P align=left>&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="40%"><FONT face="Times New Roman, Times, Serif" size=2><B>NUR MACROPRINTERS
      LTD.</B></FONT></td>
    <td width="65%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2> /title</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2>Agreed
      and Accepted:</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">___________________</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left"><FONT face="Times New Roman, Times, Serif" size=2>By: ______________________________________</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>/title</FONT></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT A</B></FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2" align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>WARRANT
      EXERCISE FORM</B></FONT></td>
  </tr>
  <tr>
    <td width="53%">&nbsp;</td>
    <td width="47%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Date:______________________</FONT></td>
  </tr>
</table>

<br>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>To:&nbsp; Nur Macroprinters Ltd.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Re:&nbsp;&nbsp; <U>Exercise of Warrant</U></B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The undersigned
  hereby irrevocably elects to exercise the attached Warrant No. ___ to the extent
  of ___________________ Ordinary Shares of Nur Macroprinters Ltd. all in accordance
  with section 1.1(b) of the Loan Undertaking Warrant . Payment to the Company
  of the total purchase price for such shares has been made simultaneously with
  the delivery of this exercise of warrant. The undersigned requests that certificates
  for such Ordinary Shares be registered in the name of ____________________ whose
  address is ____________________ and that such certificates be delivered to whose
  address is _____________________________.</FONT></P>
<P align=left>&nbsp;</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp; ___________________</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>Schedule
  A<br>
  </B></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><B>REGISTRATION
  RIGHTS AGREEMENT</B></U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 15 day of October, 2003 by and among:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters Ltd.</B>, a company organized under the laws of the State of Israel, registered under number 52-003986-8, with
offices at 12 Abba Hilel Silver Street, Lod, Israel (the &#147;<B>Company</B>&#148;); and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>David Fuchs, </B>135 Rogers Drive, New Rochelle, NY 10804&nbsp;(the &#147;Holder&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>RECITALS: </B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> the Company has issued to the Holder a certain Warrant dated October 15, 2003, (the &#147;Warrant&#148;)
to purchase 32,654 Ordinary Shares of the Company, par value NIS 1.00 per share (the &#147;Warrant
Shares&#148;); and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B> the Company hereby undertakes to register the Warrant Shares underlying the Warrant in accordance with
the provisions of this Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE</B>, in consideration of the foregoing, the parties agree as follows:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>1.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Definitions</U>.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in the Warrant
Agreement (as defined below). As used herein, the following terms have the following meaning:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#147;<U>Commission</U>&#148;
      refers to the Securities and Exchange Commission.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;, &#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration effected by filing a registration statement in compliance with the Securities
Act and the declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable
  Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the
  exercise of the Warrant.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
  Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any
  similar federal statute, and the rules and regulations of the Commission thereunder,
  all as the same shall be in effect at the time.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>

<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Piggyback
  Registration</U>.&nbsp;&nbsp;If the Company at any time following the Effective
  Date, proposes to register any of its securities (other than a registration
  statement on Form S-8 or any successor form for securities to be offered to
  employees of the Company pursuant to any employee benefit plan or a registration
  statement on form F-4 or any other successor form), for its own account or for
  the account of any other person, it shall give notice to the Holder of such
  intention. Upon the written request of the Holder given within twenty (20) days
  after receipt of any such notice, the Company shall include in such registration
  all of the Registrable Shares indicated in such request, so as to permit the
  disposition of the shares so registered in the manner requested by the Holder.
  Notwithstanding any other provision of this Section 2, with respect to an underwritten
  initial public offering by the Company, if the managing underwriter advises
  the Company in writing that marketing or other factors require a limitation
  of the number of shares to be underwritten, then there shall be excluded from
  such registration and underwriting to the extent necessary to satisfy such limitation,
  shares held by the Holder and by other shareholders of the Company who are entitled
  to have their shares included in such registration, pro rata among them to the
  extent necessary to satisfy such limitation. To the extent Registrable Shares
  are excluded from such underwriting, the Holder shall agree not to sell its
  Registrable Shares included in the registration statement for such period, not
  to exceed 180 days, as may be required by the managing underwriter, and the
  Company shall keep effective and current such registration statement for such
  period as may be required to enable the Holder to complete the distribution
  and resale of its Registrable Shares. Notwithstanding the provisions of this
  Section 2, the Company shall have the right at any time after it shall have
  given notice to the Holder, to elect not to file any such proposed registration
  statement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder shall not be entitled to exercise any right provided for in Section 2,
  after four years following the date of the closing of the Warrant Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  addition, the right of the Holder to request registration pursuant to Sections
  2 shall terminate upon such date that all Registrable Shares held or entitled
  to be held upon conversion by the Holder may be sold without volume limitations
  under Rule 144 (or any successor rule).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp; <U>Designation of Underwriter.</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of any registration initiated by the Company, the Company shall have
  the right to designate the managing underwriter in any underwritten offering.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp; <U></U><U>Expenses.</U>&nbsp;&nbsp;All expenses incurred in connection
  with any registration under Section 2 shall be borne by the Company; provided,
  however, that the Holder shall pay its pro rata portion of the discounts payable
  to any underwriter.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnities</U>.
  &nbsp;In the event of any registered offering of Ordinary Shares pursuant to
  this Agreement:</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Company will indemnify and hold harmless, to the fullest extent permitted by
  law, the Holder, the officers and directors&nbsp;&nbsp;of the Holder and any
  underwriter for the Holder, and each person, if any, who controls the Holder
  or such underwriter, from and against any and all losses, damages, claims, liabilities,
  joint or several, costs, and expenses (including any amounts paid in any settlement
  effected with the Company&#146;s consent) to which the Holder or any such&nbsp;&nbsp;officers
  and directors of the Holder, underwriter or controlling person may become subject
  under applicable law or otherwise, insofar as such losses, damages, claims,
  liabilities (or actions or proceedings in respect thereof), costs, or expenses
  arise out of are based upon (i) any untrue statement or alleged untrue statement
  of any material fact contained in the registration statement or included in
  the prospectus, as amended or supplemented, or (ii) the omission or alleged
  omission to state therein a material fact required to be started therein or
  necessary to make the statement therein, in the light of the circumstances in
  which they are made, not misleading, and the Company will reimburse the Holder,
  such officers and directors of the Holder, such underwriter, and each such controlling
  person of the Holder or the underwriter, promptly upon demand, for any reasonable
  legal or any other expenses incurred by them in connection with investigating,
  preparing to defend, or defending against, or appearing as a third-party witness
  in connection with such loss, claim, damage, liability, action, or proceeding;
  <U>provided</U>, <U>however</U>, that the Company will not be liable in any
  such case to the extent that any such loss, damage, liability, cost, or expense
  arises solely out of or is based solely upon an untrue statement or alleged
  untrue statement, or omission or alleged omission, so made in conformity with
  information furnished to the Company in writing by the Holder, such underwriter,
  or such controlling persons in writing specifically for inclusion therein; <U>provided</U>,
  <U>further</U>, that this indemnity shall not be deemed to relieve any underwriter
  of any of its due diligence obligations; and <U>provided</U>, <U>further</U>,
  that the indemnity agreement contained in this Sub-Section 6.1 shall not apply
  to amounts paid in settlement of any such claim, loss, damage, liability, or
  action if such settlement is effected without the consent of the Company, which
  consent shall not be unreasonably withheld. Such indemnity shall remain in full
  force and effect regardless of any investigation made by or on behalf of the
  Holder, the officers and directors of the Holder, the underwriter, or any controlling
  person of the Holder or the underwriter, and regardless of any sale in connection
  with such offering by the Holder. Such indemnity shall survive the transfer
  of securities by a Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Holder participating in a registration hereunder will indemnify and hold harmless
  the Company, the officers and directors of the Company, any underwriter for
  the Company, and each person, if any, who controls the Company or such underwriter,
  from and against any and all losses, damages, claims, liabilities, costs, or
  expenses (including any amount paid in any settlement effected with the Holder&#146;s
  consent) to which the Company, the officers and directors of the Company or
  any such controlling person and/or any such underwriter may become subject under
  applicable law or otherwise, insofar as such losses, damages, claims, liabilities
  (or actions or proceedings in respect thereof), costs, or expense arise out
  of or are based on (i) any untrue or alleged untrue statement of any material
  fact contained in the registration statement or included in the prospectus,
  as amended or supplemented, or (ii) the omission or the alleged omission to
  state therein a material fact required to be stated therein or necessary to
  make the statements therein, in the light of the circumstances in which they
  were made, not misleading, and the Holder will reimburse the Company, the officers
  and directors of the Company, any underwriter, and each such controlling person
  of the Company or any underwriter, promptly upon demand, for any reasonable
  legal or other expenses incurred by them in connection with investigating, preparing
  to defend, or defending against, or appearing as a third-party witness in connection
  with such loss, claim, damage, action, or proceeding; in each case to the extent,
  but only to the extent, that such untrue statement or alleged untrue statement
  or omission or alleged omission was so made in strict conformity with written
  information furnished in a certificate by the Holder specifically for inclusion
  therein. The foregoing indemnity agreement is subject to the condition that,
  insofar as it relates to any such untrue statement (or alleged untrue statement),
  or omission (or alleged omission) made in the preliminary prospectus but eliminated
  or remedied in the amended prospectus at the time the registration statement
  becomes effective in the final prospectus, such indemnity agreement shall not
  inure to the benefit of (i) the Company and (ii) any underwriter, if a copy
  of the final prospectus was not furnished to the person or entity asserting
  the loss, liability, claim, or damage at or prior to the time such furnishing
  is required by the Security Act; <U>provided, further</U>, that this indemnity
  shall not be deemed to relieve any underwriter of any of its due diligence obligations;
  <U>provided, further</U>, that the indemnity agreement contained in this Sub-Section
  6.2 shall not apply to amounts paid in settlement of any such claim loss, damage,
  liability, or action if such settlement is effected without the consent of the
  Holder, as the case may be, which consent shall not be unreasonably withheld.
  In no event shall the liability of the Holder exceed the gross proceeds from
  the offering received by the Holder.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-10-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly
  after receipt by an indemnified party pursuant to the provisions of Section
  6.1 or 6.2 of notice of the commencement of any action involving the subject
  matter of the foregoing indemnity provisions, such indemnified party will, if
  a claim thereof is to be made against the indemnifying party pursuant to the
  provisions of said Section 6.1 or 6.2, promptly notify the indemnifying party
  of the commencement thereof; but the omission to notify the indemnifying party
  shall only relieve it from any liability which it may have to any indemnified
  party to the extent that such indemnifying party has been damaged by such omission
  to notify hereunder. In case such action is brought against any indemnified
  party and it notifies the indemnifying party of the commencement thereof, the
  indemnifying party shall have the right to participate in, and, to the extent
  that it may wish, jointly with any other indemnifying party similarly notified,
  to assume the defense thereof with counsel reasonably satisfactory to such indemnified
  party; <U>provided, however</U>, that if the defendants in any action include
  both the indemnified party and the indemnifying party and if in the reasonable
  judgment of the indemnified party there are separate defenses that are available
  to the indemnified party or there is a conflict of interest which would prevent
  counsel for the indemnifying party from also representing the indemnified party,
  the indemnified party or parties shall have the right to select, at the expense
  of the indemnifying party, separate counsel to participate in the defense of
  such action on behalf of such indemnified party or parties; <U>provided, further,
  however</U>, that if the Holder are the indemnified party, the Holder shall
  be entitled to one separate counsel at the expense of the Company and if underwriters
  are also indemnified parties who are entitled to counsel separate from the indemnifying
  party, then all underwriters as a group shall be entitled to one separate counsel
  at the expense of the Company. &nbsp;After notice from the indemnifying party
  to such indemnified party of its election so to assume the defense thereof,
  the indemnifying party will not be liable to such indemnified party pursuant
  to the provisions of said Section 6.1 or 6.2 for any legal or other expense
  subsequently incurred by such indemnified party in connection with the defense
  thereof, unless (i) the indemnified party shall have employed counsel in accordance
  with the provision of the preceding sentence, (ii) the indemnifying party shall
  not have employed counsel reasonably satisfactory to the indemnified party to
  represent the indemnified party within a reasonable time after the notice of
  the commencement of the action and within 15 days after written notice of the
  indemnified party&#146;s intention to employ separate counsel pursuant to the
  previous sentence, or (iii) the indemnifying party has authorized the employment
  of counsel for the indemnified party at the expense of the indemnifying party.
  &nbsp;No indemnifying party will consent to entry of any judgment or enter into
  any settlement which does not include as an unconditional term thereof the giving
  by the claimant or plaintiff to such indemnified party of a release from all
  liability in respect to such claim or litigation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  recovery is not available under the foregoing indemnification provisions, for
  any reason other than as specified therein, the parties entitled to indemnification
  by the terms thereof shall be entitled to contribution to liabilities and expenses.
  In determining the amount of contribution to which the respective parties are
  entitled, there shall be considered the parties&#146; relative knowledge and
  access to information concerning the matter with respect to which was asserted,
  the opportunity to correct and prevent any statement or omission, and any other
  equitable consideration appropriate under the circumstances. In no event shall
  any party that is found liable for fraudulent misrepresentation within the meaning
  of Section 1(f) of the Securities Act be entitled to contribution hereunder
  from any party not found so liable, and in no event shall any contribution from
  the Holder be more than the gross proceeds that it receives from the offering
  .</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp; <U></U><U>Conditions to Registration</U>.&nbsp;&nbsp;The Company shall
  not be obligated to effect the registration of the Registrable Shares pursuant
  to this Agreement unless the Holder participating therein consents to customary
  conditions of a reasonable nature that are imposed by the Company, including,
  but no limited to, the following:</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-11-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  prohibiting the sale of Registrable Shares by the Holder from 30 days before
  the filing of the registration statement until the registration statement becomes
  effective;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  requiring the Holder to comply with all applicable provisions of the Securities
  Act and the United States Securities Exchange Act of 1934, as amended, (the
  &#147;Exchange Act&#148;), including, but not limited to, the prospectus delivery
  requirements, and to furnish to the Company information about sales made in
  such public offering; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions
  prohibiting the Holder, upon receipt of written notice from the Company that
  it is required by law to correct or update the registration statement or prospectus,
  from effecting sales of the Registrable Shares until the Company has completed
  the necessary correction or updating.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Lock-Up</U>.&nbsp;&nbsp;In
  any registration of the Company&#146;s shares, the Holder acknowledges that
  any sales of Registrable Shares may be subject to a &#147;lock-up&#148; period
  restricting such sales beginning thirty (30) days prior to, and for up to one
  hundred and eighty (180) days following, the effective date of such registration,
  and the Holder will agree to abide by such customary &#147;lock-up&#148; period
  as is required by the underwriter in such registration.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Customary
  Arrangements</U>.&nbsp;&nbsp;The Holder may not participate in any underwritten
  offering pursuant to a registration filed hereunder unless the Holder (a) agrees
  to sell it&#146;s securities on the basis provided in any customary underwriting
  arrangements, and (b) provides any relevant information and completes and executes
  all questionnaires, powers of attorney, indemnities, underwriting agreements,
  and other documents required under the terms of such underwriting arrangements;
  provided, however, that the Holder participating in the underwritten registration
  may appoint one legal or other representative to negotiate the underwriting
  arrangements.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public Information</U>.&nbsp;&nbsp;The
  Company shall undertake to make publicly available and available to the Holder
  adequate current public information within the meaning of, and as required pursuant
  to, Rule 144.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Non-United States
  Offering</U>.&nbsp;&nbsp;In the event of a public offering of securities of
  the Company outside of the United States, the Company will afford the Holder
  registration rights in accordance with applicable law and comparable in substance
  to the foregoing registration rights.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment of
  Registration Rights</U>.&nbsp;&nbsp;The rights to cause the Company to register
  Registrable Shares pursuant to this Agreement may not be assigned by the Holder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Changes in Registrable
  Shares</U>.<B>&nbsp;</B>&nbsp;&nbsp; If, and as often as, there are any changes
  in the Registrable Shares by way of stock split, stock dividend, combination
  or reclassification, or through merger, consolidation, reorganization or recapitalization,
  or by any other means, appropriate adjustment shall be made in the provisions
  of this Agreement, as may be required, so that the rights and privileges granted
  hereby shall continue with respect to the Registrable Shares as so changed.
  Without limiting the generality of the foregoing, the Company will require any
  successor by merger or consolidation to assume and agree to be bound by the
  terms of this Agreement, as a condition to any such merger or consolidation.</FONT></P>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-12-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.&nbsp;&nbsp;This
  Agreement constitutes the full and entire understanding and agreement among
  the parties hereto with respect to the subject matter hereof and supersedes
  all prior agreements (including, without limitation, the term sheet entered
  into between the Company and the Holder, and any and all negotiations and oral
  understandings with respect thereto) and any and all registration rights that
  the Company had previously granted to any party hereto in any capacity whatsoever.
  Nothing in this Agreement, express or implied, is intended to confer upon any
  Person, other than the parties hereto and their respective successors and assigns,
  any rights, remedies, obligations, or liabilities under or by reason of this
  Agreement, except as expressly provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.&nbsp;&nbsp;This
  Agreement shall be governed in all respects by the laws of the State of New
  York, as such laws are applied to agreements between State of New York residents
  entered into and to be performed entirely within State of New York, whether
  or not all parties hereto are residents of State of New York.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors and
  Assigns</U>.&nbsp;&nbsp;The provisions hereof shall inure to the benefit of,
  and be binding upon, the successors, permitted assigns as provided in Section
  12, heirs, executors and administrators of the parties hereto.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.&nbsp;&nbsp;Unless
  otherwise provided, any notice required or permitted under this Agreement shall
  be given in writing and shall be deemed effectively given upon receipt by the
  party to be notified (including by telecopier, receipt confirmed) or seven&nbsp;&nbsp;(7)
  days after deposit with the United States Post Office or three (3) days after
  deposit with the Israel Post Authority, by registered or certified mail, postage
  prepaid and addressed to the party to be notified (a) if to a party other than
  the Company, at such party&#146;s address set forth in this Agreement or at
  such other address as such party shall have furnished the Company in writing,
  or, until any such party so furnishes an address to the Company, then to and
  at the address of the last holder of the shares covered by this Agreement who
  has so furnished an address to the Company, or (b) if to the Company, at its
  address set forth at in this Agreement, or at such other address as the Company
  shall have furnished to the parties in writing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.&nbsp;&nbsp;Any
  invalidity, illegality or limitation on the enforceability of this Agreement
  or any part thereof, by any party whether arising by reason of the law of the
  respective party&#146;s domicile or otherwise, shall in no way affect or impair
  the validity, legality or enforceability of this Agreement with respect to other
  parties. If any provision of this Agreement shall be judicially determined to
  be invalid, illegal or unenforceable, the validity, legality and enforceability
  of the remaining provisions shall not in any way be affected or impaired thereby.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Titles and Subtitles</U>.&nbsp;&nbsp;The
  titles of the Sections of this Agreement are for convenience of reference only
  and are not to be considered in construing this Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts.</U>&nbsp;&nbsp;This
  Agreement may be executed in any number of counterparts, each of which shall
  be an original, but all of which together shall constitute one instrument. This
  Agreement may be executed by facsimile signatures.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF
  the parties have signed this Agreement.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR></FONT></td>
    <td>____________________</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>NUR Macroprinters Ltd.
      </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>David Fuchs</FONT></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By: David Amir, CEO</FONT></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-13-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>11
<FILENAME>exhibit_2-23.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.23</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>WARRANT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS WARRANT AND THE ORDINARY
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE
EXERCISED AND THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE
HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to purchase </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ordinary Shares </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR MACROPRINTERS LTD. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at a price of $0.62 per
share </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VOID
AFTER 17:00 p.m. (prevailing Tel Aviv time) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Expiration Date (as hereinafter defined) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in favor of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BANK HAPOALIM B.M. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.,</B> an
Israeli company with its principal offices at12 Abba Hilel Silver Street, Lod, Israel (the
&#147;<U>Company</U>&#148;), hereby grants to Bank Hapoalim B.M. (the
&#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms and conditions
hereof, up to a Five Hundred and Five Thousand (505,000) of the Company&#146;s Ordinary
Shares, par value NIS 1.0 per share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at
any time from time to time, on or after the second anniversary of the date hereof (the
&#147;<U>Effective Date</U>&#148;), and until the second anniversary of such date (the
<U>&#147;Expiration Date</U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Hereinafter: (i) the Ordinary Shares
purchasable hereunder or any other securities which may be issued by the Company in
substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the
price of USD 0.62 payable hereunder for each of the Warrant Shares, as adjusted in the
manner set forth hereinafter, is referred to as the <U>&#147;Exercise Price</U>&#148; and
(iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the
number of Warrant Shares are subject to adjustment as hereinafter provided.) </FONT></P>

<p align=center>
<font size=2>- 1 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Warrant
Period; Exercise of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) This Warrant may be exercised in whole at any time, or in part from time to time,
beginning on the Effective Date until the Expiration Date (the &#147;<U>Warrant Period</U>&#148;),
by the surrender of this Warrant (with a duly executed exercise form in the form attached
at the end hereof as <B>Exhibit A</B>), along with the Exercise Certificate or the
Exercise Opinion (each as defined in Section 1.1(b) below), at the principal office of
the Company, set forth above, together with proper payment of the Exercise Price
multiplied by the number of Warrant Shares for which the Warrant is being exercised.
Payment for Warrant Shares shall be made by certified or official bank check or checks,
payable to the order of the Company or by wire transfer to an account to be designated in
writing by the Company. Payments shall be made in United States dollars.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          This Warrant may not be exercised unless the Holder delivers to the Company (a)
          written certification that it is not a &#147;U.S. person&#148; (as defined in
          Regulation S under the Securities Act) and the Warrant is not being exercised on
          behalf of a U.S person (an &#147;Exercise Certificate&#148;) or (b) a written
          opinion of counsel to the effect that the Warrant and the Warrant Shares have
          been registered under the Securities Act and applicable state securities laws or
          an exemption from such registration is available, which counsel and opinion
          shall be reasonable satisfactory to the Company (&#147;Exercise Opinion&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Warrant should be
exercised in part, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder to purchase the
remainder of the Ordinary Shares purchasable hereunder. The Company shall pay any and all
expenses, taxes and other charges that may be payable in connection with the issuance of
the Warrant Shares and the preparation and delivery of share certificates pursuant to this
Section 1 in the name of the Holder, and to the extent required, the execution and
delivery of a new Warrant, provided, however, that the Company shall only be required to
pay taxes which are due as a direct result of the issuance of the Ordinary Shares or other
securities, properties or rights underlying such Warrants (such as the applicable stamp
duty), and will not be required to pay any tax which may be (i) due as a result of the
specific identity of the Holder or (ii) payable in respect of any transfer involved in the
issuance and delivery of any such certificates in a name other than that of the Holder and
the Company shall not be required to issue or deliver such certificates unless or until
the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such
tax has been paid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of
Ordinary Shares issued shall be rounded down to the nearest whole number. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Reservation
of Shares</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company covenants that: (i) at
all times during the Warrant Period it shall have in reserve, and will keep available
solely for issuance or delivery upon exercise of the Warrant, such number of Ordinary
shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the
Warrant and payment of the Exercise Price therefor, the Warrant Shares issuable upon such
exercise will be validly issued, fully paid, nonassessable, free and clear from any lien,
encumbrance, pledge or any other third party right and not subject to any preemptive
rights. </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Adjustments
to Exercise Price and Number of Securities</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision and
Combination</U>. In case the Company shall at any time subdivide or combine the
outstanding Ordinary Shares, the Exercise Price shall forthwith be proportionately
decreased in the case of subdivision or increased in the case of combination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Dividends and
Distributions</U>. In case the Company shall pay a dividend on, or make a distribution of,
Ordinary Shares or of the Company&#146;s capital stock convertible into Ordinary Shares,
the Exercise Price shall forthwith be proportionately decreased. An adjustment made
pursuant to this Section 3.2 shall be made as of the record date for the subject stock
dividend or distribution. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment in Number of
Securities</U>. Upon each adjustment of the Exercise Price pursuant to the provisions of
this Section 3, the number of Ordinary Shares issuable upon the exercise of each Warrant
shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of Ordinary Shares
issuable upon exercise of the Warrants immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition of Ordinary
Shares</U>. For the purpose of this Agreement, the term &#147;Ordinary Shares&#148; shall
mean (i) the class of stock designated as Ordinary Shares in the Articles of Association
of the Company as may be amended as of the date hereof, or (ii) any other class of stock
resulting from successive changes or reclassifications of such Ordinary Shares consisting
solely of changes in nominal value, or from nominal value to no nominal value, or from no
nominal value to nominal value. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment of Exercise
Price in Certain Cases.</U> No adjustment of the Exercise Price shall be made if the
amount of said adjustment shall be less than 2 cents ($.02) per Ordinary Share, provided,
however, that in such case any adjustment that would otherwise be required then to be made
shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment so carried forward, shall amount
to at least 2 cents ($.02) per Ordinary Share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger or Consolidation.
</U>In case of any consolidation of the Company with or merger of the Company with, or
merger of the Company into, (other than a merger which does not result in any
reclassification or change of the outstanding Ordinary Shares), the Company shall cause
the corporation formed by such consolidation or merger to execute and deliver to the
Holder a supplemental warrant agreeement providing that the Holder of the Warrant then
outstanding or to be outstanding shall have the right thereafter (until the expiration of
such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of
stock and other securities and property receivable upon such consilidation or merger, by a
holder of the number of Ordinary Shares of the Company for which such Warrant might have
been exercised immediately prior ro such consolidation, merger, sale or transfer. Such
supplemental warrant agreement shall provide for adjustments which shall be identical to
the adjustments provided in Section 3. The above provision of this Subsection shall
similarly apply to successive consolidations or mergers. </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.
          <U>Notices to Warrant Holders</U>. Nothing contained in this Agreement shall be
          construed as conferring upon the Holder the right to vote or to consent or to
          receive notice as a stockholder in respect of any meetings of stockholders for
          the election of directors or any other matter, or as having any rights
          whatsoever as a stockholder of the Company. If, however, at any time prior to
          the Expiration Date, any of the following events shall occur: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
          the Company shall take a record of the holders of its Ordinary Shares for the
          purpose of entitling them to receive a dividend or distribution payable
          otherwise than in cash, or a cash dividend or distribution payable otherwise
          than out of current or retained earnings, as indicated by the accounting
          treatment of such dividend or distribution on the books of the Company; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          the Company shall offer to all the holders of its Ordinary Shares any additional
          shares of capital stock of the Company or securities convertible into or
          exchangeable for shares of capital stock of the Company, or any option, right or
          warrant to subscribe therefor; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
          a dissolution, liquidation or winding up of the Company (other than in
          connection with a consolidation or merger) or a sale of all or substantially all
          of its property, assets and business as an entirety shall be proposed; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, in any one or more of said
events, the Company shall give to the Holder written notice of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Non-Transferability</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Holder covenants and agrees that the Warrants are being acquired as an
          investment and not with a view to the distribution thereof. <B>The Holder shall
          not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake
          to dispose of (&#147;Sell&#148;) the Warrants until the Effective Date.
          Thereafter, the Holder may, subject to applicable securities laws and the
          conditions set forth herewith, Sell, all or any portion of the Warrants,
          provided that the Holder may only Sell the Warrants on one occasion, to no more
          than one (1) transferee.</B> Except as otherwise provided herein, the sale of
          the Warrant, shall confer upon the transferee all of the rights, privileges, and
          obligations set forth in, arising under, or created by this Agreement,
          <U>provided however</U> that such assignment shall with respect to the
          Registration Rights, only be assigned pursuant to the Registration Rights
          Schedule. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Unless registered, the Warrant Shares issued upon exercise of the Warrants shall
          be subject to a stop transfer order and the certificate or certificates
          evidencing such Warrant Shares shall bear legend substantially similar to the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>&#147;THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES </B><B>ACT
OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY, SUCH SHARES </B><B>MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER SUCH ACT, OR </B><B>AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Registration
Rights</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Holders of the Ordinary Shares
shall be entitled to the registration rights as provided for in the Registration Rights
Schedule attached thereto. </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Loss,
etc. of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon receipt of evidence satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant, and of
indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon
surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the
Holder a new Warrant of like date, tenor and denomination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Headings</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The headings of this Warrant have
been inserted as a matter of convenience and shall not affect the construction hereof.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          9.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Notices</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or seven (7) days
after deposit with the Post Authority, for dispatch by registered or certified mail,
postage prepaid and addressed to the Holder at the address set forth in the Company&#146;s
books and to the Company at the address of its principal offices set forth above, or when
given by telecopier or other form of rapid written communication, provided that confirming
copies are sent by such airmail. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Governing
Law</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant shall be governed by and
construed and enforced in accordance with the laws of the State of Israel (regardless of
the laws that might otherwise govern under applicable Israel principles of conflicts of
law). The Parties hereto shall submit to the exclusive jurisdiction of the competent
Courts of Tel-Aviv any dispute or matter arising out of or connected with this Warrant.
Anything to the contrary notwithstanding, the provisions of this Section 10 shall not
apply to the Registration Rights schedule, which shall be subject to the provisions
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Entire
Agreement; Amendment and Waiver</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant and the schedule hereto
constitute the full and entire understanding and agreement between the parties with regard
to the subject matters hereof and thereof. Any term of this Warrant may be amended and the
observance of any term hereof may be waived (either prospectively or retroactively and
either generally or in a particular instance) only with the written consent of both the
Holder and the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
Company has caused this Ordinary Share Purchase Warrant to be executed as of the date
first written above. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.</B><BR>
<BR>
By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR><BR>
David Amir, CEO<BR>
<BR>
Date: August1, 2003 </FONT>
</P>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR"  -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WARRANT EXERCISE FORM </FONT></H1>

<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:____________________</FONT></P>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: NUR Macroprinters Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Re: <U>Exercise of Warrant</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby irrevocably
elects to exercise the attached Warrant to the extent of ___________________ Ordinary
Shares of NUR Macroprinters Ltd. at $0.62 per Ordinary Share. Payment to the Company of
the total purchase price for such shares has been made simultaneously with the delivery of
this exercise of warrant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: ___________________ </FONT></P>


<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>12
<FILENAME>exhibit_2-24.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.24</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>REGISTRATION RIGHTS
AGREEMENT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 1 day
of August, 2003 by and among: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR
Macroprinters Ltd., </B>a company organized under the laws of the State of Israel,
registered under number 52-003986-8, with offices at 12 Abba Hilel Silver Street, Lod,
Israel (the "Company"); and </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Bank Hapoalim B.M., </B>a company
organized under the laws of the State of Israel, registered under number________, with
offices at _________ (the "Holder"). </FONT> </P>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS: </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company has issued to the Holder a certain Warrant dated August1, 2003 (the
&#147;Warrant&#148;) to purchase 505,000 Ordinary Shares of the Company, par value NIS
1.00 per share (the &#147;Warrant Shares&#148;); and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company hereby undertakes to register the Warrant Shares underlying the Warrant in
accordance with the provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOW, THEREFORE</B>, in
consideration of the foregoing, the parties agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in
the Warrant Agreement (as defined below). As used herein, the following terms have the
following meaning: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
refers to the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective
Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;,
&#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration
effected by filing a registration statement in compliance with the Securities Act and the
declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable
Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of
the Warrant . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. </FONT></P>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Piggyback Registration</U>. If the Company at any time following the
          Effective Date, proposes to register any of its securities (other than a
          registration statement on Form S-8 or any successor form for securities to be
          offered to employees of the Company pursuant to any employee benefit plan or a
          registration statement on form F-4 or any other successor form), for its own
          account or for the account of any other person, it shall give notice to the
          Holder of such intention. Upon the written request of the Holder given within
          twenty (20) days after receipt of any such notice, the Company shall include in
          such registration all of the Registrable Shares indicated in such request, so as
          to permit the disposition of the shares so registered in the manner requested by
          the Holder. Notwithstanding any other provision of this Section 2, with respect
          to an underwritten initial public offering by the Company, if the managing
          underwriter advises the Company in writing that marketing or other factors
          require a limitation of the number of shares to be underwritten, then there
          shall be excluded from such registration and underwriting to the extent
          necessary to satisfy such limitation, shares held by the Holder and by other
          shareholders of the Company who are entitled to have their shares included in
          such registration, pro rata among them to the extent necessary to satisfy such
          limitation. To the extent Registrable Shares are excluded from such
          underwriting, the Holder shall agree not to sell its Registrable Shares included
          in the registration statement for such period, not to exceed 180 days, as may be
          required by the managing underwriter, and the Company shall keep effective and
          current such registration statement for such period as may be required to enable
          the Holder to complete the distribution and resale of its Registrable Shares.
          Notwithstanding the provisions of this Section 2, the Company shall have the
          right at any time after it shall have given notice to the Holder, to elect not
          to file any such proposed registration statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Registration Rights</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four
years following the date of the closing of the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the right of the Holder to request registration pursuant to Sections 2 shall
terminate upon such date that all Registrable Shares held or entitled to be held upon
conversion by the Holder may be sold without volume limitations under Rule 144 (or any
successor rule). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Designation of Underwriter.</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the case of any registration initiated by the Company, the Company shall have the right to
designate the managing underwriter in any underwritten offering. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Expenses.</U> All expenses incurred in connection with any registration under
          Section 2 shall be borne by the Company; provided, however, that the Holder
          shall pay its pro rata portion of the discounts payable to any underwriter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Indemnities</U>. In the event of any registered offering of Ordinary Shares
          pursuant to this Agreement: </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will indemnify and hold harmless, to the fullest extent permitted by law, the
Holder, the officers and directors of the Holder and any underwriter for the Holder, and
each person, if any, who controls the Holder or such underwriter, from and against any and
all losses, damages, claims, liabilities, joint or several, costs, and expenses (including
any amounts paid in any settlement effected with the Company&#146;s consent) to which the
Holder or any such officers and directors of the Holder, underwriter or controlling person
may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs, or expenses
arise out of are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or alleged omission to state therein a
material fact required to be started therein or necessary to make the statement therein,
in the light of the circumstances in which they are made, not misleading, and the Company
will reimburse the Holder, such officers and directors of the Holder, such underwriter,
and each such controlling person of the Holder or the underwriter, promptly upon demand,
for any reasonable legal or any other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action, or proceeding;
<U>provided</U>, <U>however</U>, that the Company will not be liable in any such case to
the extent that any such loss, damage, liability, cost, or expense arises solely out of or
is based solely upon an untrue statement or alleged untrue statement, or omission or
alleged omission, so made in conformity with information furnished to the Company in
writing by the Holder, such underwriter, or such controlling persons in writing
specifically for inclusion therein; <U>provided</U>, <U>further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
and <U>provided</U>, <U>further</U>, that the indemnity agreement contained in this
Sub-Section 6.1 shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability, or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder,
the officers and directors of the Holder, the underwriter, or any controlling person of
the Holder or the underwriter, and regardless of any sale in connection with such offering
by the Holder. Such indemnity shall survive the transfer of securities by a Holder. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Holder participating in a registration hereunder will indemnify and hold harmless the
Company, the officers and directors of the Company, any underwriter for the Company, and
each person, if any, who controls the Company or such underwriter, from and against any
and all losses, damages, claims, liabilities, costs, or expenses (including any amount
paid in any settlement effected with the Holder&#146;s consent) to which the Company, the
officers and directors of the Company or any such controlling person and/or any such
underwriter may become subject under applicable law or otherwise, insofar as such losses,
damages, claims, liabilities (or actions or proceedings in respect thereof), costs, or
expense arise out of or are based on (i) any untrue or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances in which they were made, not misleading, and the Holder
will reimburse the Company, the officers and directors of the Company, any underwriter,
and each such controlling person of the Company or any underwriter, promptly upon demand,
for any reasonable legal or other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, action, or proceeding; in each case
to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in strict conformity with written
information furnished in a certificate by the Holder specifically for inclusion therein.
The foregoing indemnity agreement is subject to the condition that, insofar as it relates
to any such untrue statement (or alleged untrue statement), or omission (or alleged
omission) made in the preliminary prospectus but eliminated or remedied in the amended
prospectus at the time the registration statement becomes effective in the final
prospectus, such indemnity agreement shall not inure to the benefit of (i) the Company and
(ii) any underwriter, if a copy of the final prospectus was not furnished to the person or
entity asserting the loss, liability, claim, or damage at or prior to the time such
furnishing is required by the Security Act; <U>provided, further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
<U>provided, further</U>, that the indemnity agreement contained in this Sub-Section 6.2
shall not apply to amounts paid in settlement of any such claim loss, damage, liability,
or action if such settlement is effected without the consent of the Holder, as the case
may be, which consent shall not be unreasonably withheld. In no event shall the liability
of the Holder exceed the gross proceeds from the offering received by the Holder. </FONT></P>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Promptly after receipt by an indemnified party pursuant to the provisions of Section 6.1
or 6.2 of notice of the commencement of any action involving the subject matter of the
foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of said Section 6.1 or 6.2,
promptly notify the indemnifying party of the commencement thereof; but the omission to
notify the indemnifying party shall only relieve it from any liability which it may have
to any indemnified party to the extent that such indemnifying party has been damaged by
such omission to notify hereunder. In case such action is brought against any indemnified
party and it notifies the indemnifying party of the commencement thereof, the indemnifying
party shall have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; <U>provided, however</U>, that
if the defendants in any action include both the indemnified party and the indemnifying
party and if in the reasonable judgment of the indemnified party there are separate
defenses that are available to the indemnified party or there is a conflict of interest
which would prevent counsel for the indemnifying party from also representing the
indemnified party, the indemnified party or parties shall have the right to select, at the
expense of the indemnifying party, separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties; <U>provided, further, however</U>,
that if the Holder are the indemnified party, the Holder shall be entitled to one separate
counsel at the expense of the Company and if underwriters are also indemnified parties who
are entitled to counsel separate from the indemnifying party, then all underwriters as a
group shall be entitled to one separate counsel at the expense of the Company. After
notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of said Section 6.1 or 6.2 for any legal or other expense
subsequently incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed counsel in accordance with the
provision of the preceding sentence, (ii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after the notice of the commencement of the action and
within 15 days after written notice of the indemnified party&#146;s intention to employ
separate counsel pursuant to the previous sentence, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation. </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If recovery is not available under the foregoing indemnification provisions, for any
reason other than as specified therein, the parties entitled to indemnification by the
terms thereof shall be entitled to contribution to liabilities and expenses. In
determining the amount of contribution to which the respective parties are entitled, there
shall be considered the parties&#146; relative knowledge and access to information
concerning the matter with respect to which was asserted, the opportunity to correct and
prevent any statement or omission, and any other equitable consideration appropriate under
the circumstances. In no event shall any party that is found liable for fraudulent
misrepresentation within the meaning of Section 1(f) of the Securities Act be entitled to
contribution hereunder from any party not found so liable, and in no event shall any
contribution from the Holder be more than the gross proceeds that it receives from the
offering . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Conditions to Registration</U>. The Company shall not be obligated to effect
          the registration of the Registrable Shares pursuant to this Agreement unless the
          Holder participating therein consents to customary conditions of a reasonable
          nature that are imposed by the Company, including, but no limited to, the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the sale of Registrable Shares by the Holder from 30 days
          before the filing of the registration statement until the registration statement
          becomes effective; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions requiring the Holder to comply with all applicable provisions of the
          Securities Act and the United States Securities Exchange Act of 1934, as
          amended, (the &#147;Exchange Act&#148;), including, but not limited to, the
          prospectus delivery requirements, and to furnish to the Company information
          about sales made in such public offering; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the Holder, upon receipt of written notice from the
          Company that it is required by law to correct or update the registration
          statement or prospectus, from effecting sales of the Registrable Shares until
          the Company has completed the necessary correction or updating. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Lock-Up</U>. In any registration of the Company&#146;s shares, the Holder
          acknowledges that any sales of Registrable Shares may be subject to a
          &#147;lock-up&#148; period restricting such sales beginning thirty (30) days
          prior to, and for up to one hundred and eighty (180) days following, the
          effective date of such registration, and the Holder will agree to abide by such
          customary &#147;lock-up&#148; period as is required by the underwriter in such
          registration. </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Customary Arrangements</U>. The Holder may not participate in any
          underwritten offering pursuant to a registration filed hereunder unless the
          Holder (a) agrees to sell it&#146;s securities on the basis provided in any
          customary underwriting arrangements, and (b) provides any relevant information
          and completes and executes all questionnaires, powers of attorney, indemnities,
          underwriting agreements, and other documents required under the terms of such
          underwriting arrangements; provided, however, that the Holder participating in
          the underwritten registration may appoint one legal or other representative to
          negotiate the underwriting arrangements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Public Information</U>. The Company shall undertake to make publicly
          available and available to the Holder adequate current public information within
          the meaning of, and as required pursuant to, Rule 144. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Non-United States Offering</U>. In the event of a public offering of
          securities of the Company outside of the United States, the Company will afford
          the Holder registration rights in accordance with applicable law and comparable
          in substance to the foregoing registration rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Assignment of Registration Rights</U>. The rights to cause the Company to
          register Registrable Shares pursuant to this Agreement may only be assigned by
          the Holder (the &#147;Assignment&#148;) under the following conditions: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignment shall be concurrent with the sale or transfer of the Warrant or
               the Registrable Shares and only with respect to the transferred Registrable
               Shares; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Holder may only assign the Registration Rights pursuant to this Agreement on
               one occasion, to no more than one transferee; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignee of the Registration Rights may not further assign the Registration
               Rights. In addition, the Company shall have no obligation to amend an effective
               registration to reflect the name of a transferee in such registration statement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Changes in Registrable Shares</U>.<B> </B>If, and as often as, there are any
          changes in the Registrable Shares by way of stock split, stock dividend,
          combination or reclassification, or through merger, consolidation,
          reorganization or recapitalization, or by any other means, appropriate
          adjustment shall be made in the provisions of this Agreement, as may be
          required, so that the rights and privileges granted hereby shall continue with
          respect to the Registrable Shares as so changed. Without limiting the generality
          of the foregoing, the Company will require any successor by merger or
          consolidation to assume and agree to be bound by the terms of this Agreement, as
          a condition to any such merger or consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Entire Agreement</U>. This Agreement constitutes the full and entire
          understanding and agreement among the parties hereto with respect to the subject
          matter hereof and supersedes all prior agreements (including, without
          limitation, the term sheet entered into between the Company and the Holder, and
          any and all negotiations and oral understandings with respect thereto) and any
          and all registration rights that the Company had previously granted to any party
          hereto in any capacity whatsoever. Nothing in this Agreement, express or
          implied, is intended to confer upon any Person, other than the parties hereto
          and their respective successors and assigns, any rights, remedies, obligations,
          or liabilities under or by reason of this Agreement, except as expressly
          provided herein. </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Governing Law</U>. This Agreement shall be governed in all respects by the
          laws of the State of New York, as such laws are applied to agreements between
          State of New York residents entered into and to be performed entirely within
          State of New York, whether or not all parties hereto are residents of State of
          New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Successors and Assigns</U>. The provisions hereof shall inure to the benefit
          of, and be binding upon, the successors, permitted assigns as provided in
          Section 12, heirs, executors and administrators of the parties hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. Unless otherwise provided, any notice required or permitted
          under this Agreement shall be given in writing and shall be deemed effectively
          given upon receipt by the party to be notified (including by telecopier, receipt
          confirmed) or seven (7) days after deposit with the United States Post Office or
          three (3) days after deposit with the Israel Post Authority, by registered or
          certified mail, postage prepaid and addressed to the party to be notified (a) if
          to a party other than the Company, at such party&#146;s address set forth in
          this Agreement or at such other address as such party shall have furnished the
          Company in writing, or, until any such party so furnishes an address to the
          Company, then to and at the address of the last holder of the shares covered by
          this Agreement who has so furnished an address to the Company, or (b) if to the
          Company, at its address set forth at in this Agreement, or at such other address
          as the Company shall have furnished to the parties in writing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Severability</U>. Any invalidity, illegality or limitation on the
          enforceability of this Agreement or any part thereof, by any party whether
          arising by reason of the law of the respective party&#146;s domicile or
          otherwise, shall in no way affect or impair the validity, legality or
          enforceability of this Agreement with respect to other parties. If any provision
          of this Agreement shall be judicially determined to be invalid, illegal or
          unenforceable, the validity, legality and enforceability of the remaining
          provisions shall not in any way be affected or impaired thereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Titles and Subtitles</U>. The titles of the Sections of this Agreement are
          for convenience of reference only and are not to be considered in construing
          this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Counterparts.</U> This Agreement may be executed in any number of
          counterparts, each of which shall be an original, but all of which together
          shall constitute one instrument. This Agreement may be executed by facsimile
          signatures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IN
WITNESS WHEREOF the parties have signed this Agreement. </FONT></P>




<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.         <BR>
By: David Amir, President &amp; CEO<BR>
Date: August1, 2003
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_______________________<BR>
Bank Hapoalim B.M.<BR>
By: ___________________<BR>
Date: __________________
</FONT></TD></TR>
</TABLE>


<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>13
<FILENAME>exhibit_2-25.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.25</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>WARRANT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS WARRANT AND THE ORDINARY
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE
EXERCISED AND THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE
HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to purchase </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ordinary Shares </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR MACROPRINTERS LTD. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at a price of $0.62 per
share </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VOID
AFTER 17:00 p.m. (prevailing Tel Aviv time) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Expiration Date (as hereinafter defined) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in favor of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BANK LEUMI LE-ISRAEL
B.M. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.,</B> an
Israeli company with its principal offices at12 Abba Hilel Silver Street, Lod, Israel (the
&#147;<U>Company</U>&#148;), hereby grants to Bank Leumi le-Israel B.M. (the
&#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms and conditions
hereof, up to a Three Hundred and Fifty Thousand (350,000) of the Company&#146;s Ordinary
Shares, par value NIS 1.0 per share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at
any time from time to time, on or after the second anniversary of the date hereof (the
&#147;<U>Effective Date</U>&#148;), and until the second anniversary of such date (the
&#147;<U>Expiration Date&#148;)</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Hereinafter: (i) the Ordinary Shares
purchasable hereunder or any other securities which may be issued by the Company in
substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the
price of USD 0.62 payable hereunder for each of the Warrant Shares, as adjusted in the
manner set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148; and
(iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the
number of Warrant Shares are subject to adjustment as hereinafter provided.) </FONT></P>

<p align=center>
<font size=2>- 1 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Warrant
Period; Exercise of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) This Warrant may be exercised in whole at any time, or in part from time to time,
beginning on the Effective Date until the Expiration Date (the &#147;<U>Warrant Period</U>&#148;),
by the surrender of this Warrant (with a duly executed exercise form in the form attached
at the end hereof as <B>Exhibit A</B>), along with the Exercise Certificate or the
Exercise Opinion (each as defined in Section 1.1(b) below), at the principal office of
the Company, set forth above, together with proper payment of the Exercise Price
multiplied by the number of Warrant Shares for which the Warrant is being exercised.
Payment for Warrant Shares shall be made by certified or official bank check or checks,
payable to the order of the Company or by wire transfer to an account to be designated in
writing by the Company. Payments shall be made in United States dollars.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          This Warrant may not be exercised unless the Holder delivers to the Company (a)
          written certification that it is not a &#147;U.S. person&#148; (as defined in
          Regulation S under the Securities Act) and the Warrant is not being exercised
on           behalf of a U.S person (an &#147;Exercise Certificate&#148;) or (b) a
written           opinion of counsel to the effect that the Warrant and the Warrant
Shares have           been registered under the Securities Act and applicable state
securities laws or           an exemption from such registration is available, which
counsel and opinion           shall be reasonable satisfactory to the Company (&#147;Exercise
Opinion&#148;).  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Warrant should be
exercised in part, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder to purchase the
remainder of the Ordinary Shares purchasable hereunder. The Company shall pay any and all
expenses, taxes and other charges that may be payable in connection with the issuance of
the Warrant Shares and the preparation and delivery of share certificates pursuant to this
Section 1 in the name of the Holder, and to the extent required, the execution and
delivery of a new Warrant, provided, however, that the Company shall only be required to
pay taxes which are due as a direct result of the issuance of the Ordinary Shares or other
securities, properties or rights underlying such Warrants (such as the applicable stamp
duty), and will not be required to pay any tax which may be (i) due as a result of the
specific identity of the Holder or (ii) payable in respect of any transfer involved in the
issuance and delivery of any such certificates in a name other than that of the Holder and
the Company shall not be required to issue or deliver such certificates unless or until
the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such
tax has been paid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of
Ordinary Shares issued shall be rounded down to the nearest whole number. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Reservation
of Shares</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company covenants that: (i) at
all times during the Warrant Period it shall have in reserve, and will keep available
solely for issuance or delivery upon exercise of the Warrant, such number of Ordinary
shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the
Warrant and payment of the Exercise Price therefor, the Warrant Shares issuable upon such
exercise will be validly issued, fully paid, nonassessable, free and clear from any lien,
encumbrance, pledge or any other third party right and not subject to any preemptive
rights. </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Adjustments
to Exercise Price and Number of Securities</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision and
Combination</U>. In case the Company shall at any time subdivide or combine the
outstanding Ordinary Shares, the Exercise Price shall forthwith be proportionately
decreased in the case of subdivision or increased in the case of combination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Dividends and
Distributions</U>. In case the Company shall pay a dividend on, or make a distribution of,
Ordinary Shares or of the Company&#146;s capital stock convertible into Ordinary Shares,
the Exercise Price shall forthwith be proportionately decreased. An adjustment made
pursuant to this Section 3.2 shall be made as of the record date for the subject stock
dividend or distribution. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment in Number of
Securities</U>. Upon each adjustment of the Exercise Price pursuant to the provisions of
this Section 3, the number of Ordinary Shares issuable upon the exercise of each Warrant
shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of Ordinary Shares
issuable upon exercise of the Warrants immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition of Ordinary
Shares</U>. For the purpose of this Agreement, the term &#147;Ordinary Shares&#148; shall
mean (i) the class of stock designated as Ordinary Shares in the Articles of Association
of the Company as may be amended as of the date hereof, or (ii) any other class of stock
resulting from successive changes or reclassifications of such Ordinary Shares consisting
solely of changes in nominal value, or from nominal value to no nominal value, or from no
nominal value to nominal value. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment of Exercise
Price in Certain Cases.</U> No adjustment of the Exercise Price shall be made if the
amount of said adjustment shall be less than 2 cents ($.02) per Ordinary Share, provided,
however, that in such case any adjustment that would otherwise be required then to be made
shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment so carried forward, shall amount
to at least 2 cents ($.02) per Ordinary Share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger or Consolidation.
</U>In case of any consolidation of the Company with or merger of the Company with, or
merger of the Company into, (other than a merger which does not result in any
reclassification or change of the outstanding Ordinary Shares), the Company shall cause
the corporation formed by such consolidation or merger to execute and deliver to the
Holder a supplemental warrant agreeement providing that the Holder of the Warrant then
outstanding or to be outstanding shall have the right thereafter (until the expiration of
such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of
stock and other securities and property receivable upon such consilidation or merger, by a
holder of the number of Ordinary Shares of the Company for which such Warrant might have
been exercised immediately prior ro such consolidation, merger, sale or transfer. Such
supplemental warrant agreement shall provide for adjustments which shall be identical to
the adjustments provided in Section 3. The above provision of this Subsection shall
similarly apply to successive consolidations or mergers. </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.
          <U>Notices to Warrant Holders</U>. Nothing contained in this Agreement shall be
          construed as conferring upon the Holder the right to vote or to consent or to
          receive notice as a stockholder in respect of any meetings of stockholders for
          the election of directors or any other matter, or as having any rights
          whatsoever as a stockholder of the Company. If, however, at any time prior to
          the Expiration Date, any of the following events shall occur: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
          the Company shall take a record of the holders of its Ordinary Shares for the
          purpose of entitling them to receive a dividend or distribution payable
          otherwise than in cash, or a cash dividend or distribution payable otherwise
          than out of current or retained earnings, as indicated by the accounting
          treatment of such dividend or distribution on the books of the Company; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          the Company shall offer to all the holders of its Ordinary Shares any additional
          shares of capital stock of the Company or securities convertible into or
          exchangeable for shares of capital stock of the Company, or any option, right or
          warrant to subscribe therefor; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
          a dissolution, liquidation or winding up of the Company (other than in
          connection with a consolidation or merger) or a sale of all or substantially all
          of its property, assets and business as an entirety shall be proposed; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, in any one or more of said
events, the Company shall give to the Holder written notice of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Non-Transferability</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Holder covenants and agrees that the Warrants are being acquired as an
          investment and not with a view to the distribution thereof. <B>The Holder shall
          not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake
          to dispose of (&#147;Sell&#148;) the Warrants until the Effective Date.
          Thereafter, the Holder may, subject to applicable securities laws and the
          conditions set forth herewith, Sell, all or any portion of the Warrants,
          provided that the Holder may only Sell the Warrants on one occasion, to no more
          than one (1) transferee.</B> Except as otherwise provided herein, the sale of
          the Warrant, shall confer upon the transferee all of the rights, privileges, and
          obligations set forth in, arising under, or created by this Agreement,
          <U>provided however</U> that such assignment shall with respect to the
          Registration Rights, only be assigned pursuant to the Registration Rights
          Schedule. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Unless registered, the Warrant Shares issued upon exercise of the Warrants shall
          be subject to a stop transfer order and the certificate or certificates
          evidencing such Warrant Shares shall bear legend substantially similar to the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>&#147;THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES </B><B>ACT
OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY, SUCH SHARES </B><B>MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER SUCH ACT, OR </B><B>AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Registration
Rights</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Holders of the Ordinary Shares
shall be entitled to the registration rights as provided for in the Registration Rights
Schedule attached thereto. </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Loss,
etc. of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon receipt of evidence satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant, and of
indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon
surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the
Holder a new Warrant of like date, tenor and denomination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Headings</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The headings of this Warrant have
been inserted as a matter of convenience and shall not affect the construction hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Notices</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or seven (7) days
after deposit with the Post Authority, for dispatch by registered or certified mail,
postage prepaid and addressed to the Holder at the address set forth in the Company&#146;s
books and to the Company at the address of its principal offices set forth above, or when
given by telecopier or other form of rapid written communication, provided that confirming
copies are sent by such airmail. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Governing
Law</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant shall be governed by and
construed and enforced in accordance with the laws of the State of Israel (regardless of
the laws that might otherwise govern under applicable Israel principles of conflicts of
law). The Parties hereto shall submit to the exclusive jurisdiction of the competent
Courts of Tel-Aviv any dispute or matter arising out of or connected with this Warrant.
Anything to the contrary notwithstanding, the provisions of this Section 10 shall not
apply to the Registration Rights schedule, which shall be subject to the provisions
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Entire
Agreement; Amendment and Waiver</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant and the schedule hereto
constitute the full and entire understanding and agreement between the parties with regard
to the subject matters hereof and thereof. Any term of this Warrant may be amended and the
observance of any term hereof may be waived (either prospectively or retroactively and
either generally or in a particular instance) only with the written consent of both the
Holder and the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
Company has caused this Ordinary Share Purchase Warrant to be executed as of the date
first written above. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.</B><BR>
<BR>
By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>
David Amir, CEO<BR>
<BR>
Date: August1, 2003 </FONT>
</P>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR"  -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WARRANT EXERCISE FORM </FONT></H1>

<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:____________________</FONT></P>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: Nur Macroprinters Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Re: <U>Exercise of Warrant</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby irrevocably
elects to exercise the attached Warrant to the extent of ___________________ Ordinary
Shares of Nur Macroprinters Ltd. at $0.62 per Ordinary Share. Payment to the Company of
the total purchase price for such shares has been made simultaneously with the delivery of
this exercise of warrant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: ___________________ </FONT></P>


<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>14
<FILENAME>exhibit_2-26.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.26</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>REGISTRATION RIGHTS
AGREEMENT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 1 day
of August, 2003 by and among: </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR Macroprinters Ltd., </B>a company organized under the laws of the State of Israel, registered under number<BR>
52-003986-8, with offices at 12 Abba Hilel Silver Street, Lod, Israel (the "Company"); and<BR>
<BR>
<B>Bank Leumi le-Israel Ltd., </B>a company organized under the laws of the State of Israel, registered under<BR>
number________, with offices at _________ (the "Holder"). </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS: </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company has issued to the Holder a certain Warrant dated August 1, 2003, (the
&#147;Warrant&#148;) to purchase 350,000 Ordinary Shares of the Company, par value NIS
1.00 per share (the &#147;Warrant Shares&#148;); and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company hereby undertakes to register the Warrant Shares underlying the Warrant in
accordance with the provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOW, THEREFORE</B>, in
consideration of the foregoing, the parties agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in
the Warrant Agreement (as defined below). As used herein, the following terms have the
following meaning: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
refers to the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective
Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;,
&#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration
effected by filing a registration statement in compliance with the Securities Act and the
declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable
Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of
the Warrant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. </FONT></P>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Piggyback Registration</U>. If the Company at any time following the
          Effective Date, proposes to register any of its securities (other than a
          registration statement on Form S-8 or any successor form for securities to be
          offered to employees of the Company pursuant to any employee benefit plan or a
          registration statement on form F-4 or any other successor form), for its own
          account or for the account of any other person, it shall give notice to the
          Holder of such intention. Upon the written request of the Holder given within
          twenty (20) days after receipt of any such notice, the Company shall include in
          such registration all of the Registrable Shares indicated in such request, so as
          to permit the disposition of the shares so registered in the manner requested by
          the Holder. Notwithstanding any other provision of this Section 2, with respect
          to an underwritten initial public offering by the Company, if the managing
          underwriter advises the Company in writing that marketing or other factors
          require a limitation of the number of shares to be underwritten, then there
          shall be excluded from such registration and underwriting to the extent
          necessary to satisfy such limitation, shares held by the Holder and by other
          shareholders of the Company who are entitled to have their shares included in
          such registration, pro rata among them to the extent necessary to satisfy such
          limitation. To the extent Registrable Shares are excluded from such
          underwriting, the Holder shall agree not to sell its Registrable Shares included
          in the registration statement for such period, not to exceed 180 days, as may be
          required by the managing underwriter, and the Company shall keep effective and
          current such registration statement for such period as may be required to enable
          the Holder to complete the distribution and resale of its Registrable Shares.
          Notwithstanding the provisions of this Section 2, the Company shall have the
          right at any time after it shall have given notice to the Holder, to elect not
          to file any such proposed registration statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four
years following the date of the closing of the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the right of the Holder to request registration pursuant to Sections 2 shall
terminate upon such date that all Registrable Shares held or entitled to be held upon
conversion by the Holder may be sold without volume limitations under Rule 144 (or any
successor rule). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Designation of Underwriter.</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the case of any registration initiated by the Company, the Company shall have the right to
designate the managing underwriter in any underwritten offering. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Expenses.</U> All expenses incurred in connection with any registration under
          Section 2 shall be borne by the Company; provided, however, that the Holder
          shall pay its pro rata portion of the discounts payable to any underwriter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Indemnities</U>. In the event of any registered offering of Ordinary Shares
          pursuant to this Agreement: </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will indemnify and hold harmless, to the fullest extent permitted by law, the
Holder, the officers and directors of the Holder and any underwriter for the Holder, and
each person, if any, who controls the Holder or such underwriter, from and against any and
all losses, damages, claims, liabilities, joint or several, costs, and expenses (including
any amounts paid in any settlement effected with the Company&#146;s consent) to which the
Holder or any such officers and directors of the Holder, underwriter or controlling person
may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs, or expenses
arise out of are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or alleged omission to state therein a
material fact required to be started therein or necessary to make the statement therein,
in the light of the circumstances in which they are made, not misleading, and the Company
will reimburse the Holder, such officers and directors of the Holder, such underwriter,
and each such controlling person of the Holder or the underwriter, promptly upon demand,
for any reasonable legal or any other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action, or proceeding;
<U>provided</U>, <U>however</U>, that the Company will not be liable in any such case to
the extent that any such loss, damage, liability, cost, or expense arises solely out of or
is based solely upon an untrue statement or alleged untrue statement, or omission or
alleged omission, so made in conformity with information furnished to the Company in
writing by the Holder, such underwriter, or such controlling persons in writing
specifically for inclusion therein; <U>provided</U>, <U>further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
and <U>provided</U>, <U>further</U>, that the indemnity agreement contained in this
Sub-Section 6.1 shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability, or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder,
the officers and directors of the Holder, the underwriter, or any controlling person of
the Holder or the underwriter, and regardless of any sale in connection with such offering
by the Holder. Such indemnity shall survive the transfer of securities by a Holder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Holder participating in a registration hereunder will indemnify and hold harmless the
Company, the officers and directors of the Company, any underwriter for the Company, and
each person, if any, who controls the Company or such underwriter, from and against any
and all losses, damages, claims, liabilities, costs, or expenses (including any amount
paid in any settlement effected with the Holder&#146;s consent) to which the Company, the
officers and directors of the Company or any such controlling person and/or any such
underwriter may become subject under applicable law or otherwise, insofar as such losses,
damages, claims, liabilities (or actions or proceedings in respect thereof), costs, or
expense arise out of or are based on (i) any untrue or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances in which they were made, not misleading, and the Holder
will reimburse the Company, the officers and directors of the Company, any underwriter,
and each such controlling person of the Company or any underwriter, promptly upon demand,
for any reasonable legal or other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, action, or proceeding; in each case
to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in strict conformity with written
information furnished in a certificate by the Holder specifically for inclusion therein.
The foregoing indemnity agreement is subject to the condition that, insofar as it relates
to any such untrue statement (or alleged untrue statement), or omission (or alleged
omission) made in the preliminary prospectus but eliminated or remedied in the amended
prospectus at the time the registration statement becomes effective in the final
prospectus, such indemnity agreement shall not inure to the benefit of (i) the Company and
(ii) any underwriter, if a copy of the final prospectus was not furnished to the person or
entity asserting the loss, liability, claim, or damage at or prior to the time such
furnishing is required by the Security Act; <U>provided, further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
<U>provided, further</U>, that the indemnity agreement contained in this Sub-Section 6.2
shall not apply to amounts paid in settlement of any such claim loss, damage, liability,
or action if such settlement is effected without the consent of the Holder, as the case
may be, which consent shall not be unreasonably withheld. In no event shall the liability
of the Holder exceed the gross proceeds from the offering received by the Holder. </FONT></P>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Promptly after receipt by an indemnified party pursuant to the provisions of Section 6.1
or 6.2 of notice of the commencement of any action involving the subject matter of the
foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of said Section 6.1 or 6.2,
promptly notify the indemnifying party of the commencement thereof; but the omission to
notify the indemnifying party shall only relieve it from any liability which it may have
to any indemnified party to the extent that such indemnifying party has been damaged by
such omission to notify hereunder. In case such action is brought against any indemnified
party and it notifies the indemnifying party of the commencement thereof, the indemnifying
party shall have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; <U>provided, however</U>, that
if the defendants in any action include both the indemnified party and the indemnifying
party and if in the reasonable judgment of the indemnified party there are separate
defenses that are available to the indemnified party or there is a conflict of interest
which would prevent counsel for the indemnifying party from also representing the
indemnified party, the indemnified party or parties shall have the right to select, at the
expense of the indemnifying party, separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties; <U>provided, further, however</U>,
that if the Holder are the indemnified party, the Holder shall be entitled to one separate
counsel at the expense of the Company and if underwriters are also indemnified parties who
are entitled to counsel separate from the indemnifying party, then all underwriters as a
group shall be entitled to one separate counsel at the expense of the Company. After
notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of said Section 6.1 or 6.2 for any legal or other expense
subsequently incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed counsel in accordance with the
provision of the preceding sentence, (ii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after the notice of the commencement of the action and
within 15 days after written notice of the indemnified party&#146;s intention to employ
separate counsel pursuant to the previous sentence, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation. </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If recovery is not available under the foregoing indemnification provisions, for any
reason other than as specified therein, the parties entitled to indemnification by the
terms thereof shall be entitled to contribution to liabilities and expenses. In
determining the amount of contribution to which the respective parties are entitled, there
shall be considered the parties&#146; relative knowledge and access to information
concerning the matter with respect to which was asserted, the opportunity to correct and
prevent any statement or omission, and any other equitable consideration appropriate under
the circumstances. In no event shall any party that is found liable for fraudulent
misrepresentation within the meaning of Section 1(f) of the Securities Act be entitled to
contribution hereunder from any party not found so liable, and in no event shall any
contribution from the Holder be more than the gross proceeds that it receives from the
offering . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Conditions to Registration</U>. The Company shall not be obligated to effect
          the registration of the Registrable Shares pursuant to this Agreement unless the
          Holder participating therein consents to customary conditions of a reasonable
          nature that are imposed by the Company, including, but no limited to, the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the sale of Registrable Shares by the Holder from 30 days
          before the filing of the registration statement until the registration statement
          becomes effective; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions requiring the Holder to comply with all applicable provisions of the
          Securities Act and the United States Securities Exchange Act of 1934, as
          amended, (the &#147;Exchange Act&#148;), including, but not limited to, the
          prospectus delivery requirements, and to furnish to the Company information
          about sales made in such public offering; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the Holder, upon receipt of written notice from the
          Company that it is required by law to correct or update the registration
          statement or prospectus, from effecting sales of the Registrable Shares until
          the Company has completed the necessary correction or updating. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Lock-Up</U>. In any registration of the Company&#146;s shares, the Holder
          acknowledges that any sales of Registrable Shares may be subject to a
          &#147;lock-up&#148; period restricting such sales beginning thirty (30) days
          prior to, and for up to one hundred and eighty (180) days following, the
          effective date of such registration, and the Holder will agree to abide by such
          customary &#147;lock-up&#148; period as is required by the underwriter in such
          registration. </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Customary Arrangements</U>. The Holder may not participate in any
          underwritten offering pursuant to a registration filed hereunder unless the
          Holder (a) agrees to sell it&#146;s securities on the basis provided in any
          customary underwriting arrangements, and (b) provides any relevant information
          and completes and executes all questionnaires, powers of attorney, indemnities,
          underwriting agreements, and other documents required under the terms of such
          underwriting arrangements; provided, however, that the Holder participating in
          the underwritten registration may appoint one legal or other representative to
          negotiate the underwriting arrangements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Public Information</U>. The Company shall undertake to make publicly
          available and available to the Holder adequate current public information within
          the meaning of, and as required pursuant to, Rule 144. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Non-United States Offering</U>. In the event of a public offering of
          securities of the Company outside of the United States, the Company will afford
          the Holder registration rights in accordance with applicable law and comparable
          in substance to the foregoing registration rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Assignment of Registration Rights</U>. The rights to cause the Company to
          register Registrable Shares pursuant to this Agreement may only be assigned by
          the Holder (the &#147;Assignment&#148;) under the following conditions: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignment shall be concurrent with the sale or transfer of the Warrant or
               the Registrable Shares and only with respect to the transferred Registrable
               Shares; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Holder may only assign the Registration Rights pursuant to this Agreement on
               one occasion, to no more than one transferee; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignee of the Registration Rights may not further assign the Registration
               Rights. In addition, the Company shall have no obligation to amend an effective
               registration to reflect the name of a transferee in such registration statement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Changes in Registrable Shares</U>. If, and as often as, there are any changes
          in the Registrable Shares by way of stock split, stock dividend, combination or
          reclassification, or through merger, consolidation, reorganization or
          recapitalization, or by any other means, appropriate adjustment shall be made in
          the provisions of this Agreement, as may be required, so that the rights and
          privileges granted hereby shall continue with respect to the Registrable Shares
          as so changed. Without limiting the generality of the foregoing, the Company
          will require any successor by merger or consolidation to assume and agree to be
          bound by the terms of this Agreement, as a condition to any such merger or
          consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Entire Agreement</U>. This Agreement constitutes the full and entire
          understanding and agreement among the parties hereto with respect to the subject
          matter hereof and supersedes all prior agreements (including, without
          limitation, the term sheet entered into between the Company and the Holder, and
          any and all negotiations and oral understandings with respect thereto) and any
          and all registration rights that the Company had previously granted to any party
          hereto in any capacity whatsoever. Nothing in this Agreement, express or
          implied, is intended to confer upon any Person, other than the parties hereto
          and their respective successors and assigns, any rights, remedies, obligations,
          or liabilities under or by reason of this Agreement, except as expressly
          provided herein. </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Governing Law</U>. This Agreement shall be governed in all respects by the
          laws of the State of New York, as such laws are applied to agreements between
          State of New York residents entered into and to be performed entirely within
          State of New York, whether or not all parties hereto are residents of State of
          New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Successors and Assigns</U>. The provisions hereof shall inure to the benefit
          of, and be binding upon, the successors, permitted assigns as provided in
          Section 12, heirs, executors and administrators of the parties hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. Unless otherwise provided, any notice required or permitted
          under this Agreement shall be given in writing and shall be deemed effectively
          given upon receipt by the party to be notified (including by telecopier, receipt
          confirmed) or seven (7) days after deposit with the United States Post Office or
          three (3) days after deposit with the Israel Post Authority, by registered or
          certified mail, postage prepaid and addressed to the party to be notified (a) if
          to a party other than the Company, at such party&#146;s address set forth in
          this Agreement or at such other address as such party shall have furnished the
          Company in writing, or, until any such party so furnishes an address to the
          Company, then to and at the address of the last holder of the shares covered by
          this Agreement who has so furnished an address to the Company, or (b) if to the
          Company, at its address set forth at in this Agreement, or at such other address
          as the Company shall have furnished to the parties in writing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Severability</U>. Any invalidity, illegality or limitation on the
          enforceability of this Agreement or any part thereof, by any party whether
          arising by reason of the law of the respective party&#146;s domicile or
          otherwise, shall in no way affect or impair the validity, legality or
          enforceability of this Agreement with respect to other parties. If any provision
          of this Agreement shall be judicially determined to be invalid, illegal or
          unenforceable, the validity, legality and enforceability of the remaining
          provisions shall not in any way be affected or impaired thereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Titles and Subtitles</U>. The titles of the Sections of this Agreement are
          for convenience of reference only and are not to be considered in construing
          this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Counterparts.</U> This Agreement may be executed in any number of
          counterparts, each of which shall be an original, but all of which together
          shall constitute one instrument. This Agreement may be executed by facsimile
          signatures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IN
WITNESS WHEREOF the parties have signed this Agreement. </FONT></P>



<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR>
By: David Amir, CEO   <BR>
Date: August1, 2003
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">__________________<BR>
Bank Leumi le-Israel Ltd.<BR>
By: ________________<BR>
Date: _____________
</FONT></TD></TR>
</TABLE>

<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>15
<FILENAME>exhibit_2-27.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.27</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>WARRANT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS WARRANT AND THE ORDINARY
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE
EXERCISED AND THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE
HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to purchase </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ordinary Shares </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR MACROPRINTERS LTD. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at a price of $0.72 per
share </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VOID
AFTER 17:00 p.m. (prevailing Tel Aviv time) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Expiration Date (as hereinafter defined) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in favor of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ISRAEL DISCOUNT BANK </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.,</B> an
Israeli company with its principal offices at12 Abba Hilel Silver Street, Lod, Israel (the
&#147;<U>Company</U>&#148;), hereby grants to Israel Discount Bank (the
&#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms and conditions
hereof, up to a Twenty Seven Thousand (27,000) of the Company&#146;s Ordinary Shares, par
value NIS 1.0 per share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at any time from
time to time, on or after the second anniversary of the date hereof (the
&#147;<U>Effective Date</U>&#148;), and until the second anniversary of such date (the
<U>&#147;Expiration Date</U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Hereinafter: (i) the Ordinary Shares
purchasable hereunder or any other securities which may be issued by the Company in
substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the
price of USD 0.72 payable hereunder for each of the Warrant Shares, as adjusted in the
manner set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148; and
(iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the
number of Warrant Shares are subject to adjustment as hereinafter provided.) </FONT></P>

<p align=center>
<font size=2>- 1 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Warrant
Period; Exercise of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a) This Warrant may be exercised in whole at any time, or in part from time to time,
beginning on the Effective Date until the Expiration Date (the &#147;<U>Warrant Period</U>&#148;),
by the surrender of this Warrant (with a duly executed exercise form in the form attached
at the end hereof as <B>Exhibit A</B>), along with the Exercise Certificate or the
Exercise Opinion (each as defined in Section 1.1(b) below), at the principal office of
the Company, set forth above, together with proper payment of the Exercise Price
multiplied by the number of Warrant Shares for which the Warrant is being exercised.
Payment for Warrant Shares shall be made by certified or official bank check or checks,
payable to the order of the Company or by wire transfer to an account to be designated in
writing by the Company. Payments shall be made in United States dollars.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          This Warrant may not be exercised unless the Holder delivers to the Company (a)
          written certification that it is not a &#147;U.S. person&#148; (as defined in
          Regulation S under the Securities Act) and the Warrant is not being exercised on
          behalf of a U.S person (an &#147;Exercise Certificate&#148;) or (b) a written
          opinion of counsel to the effect that the Warrant and the Warrant Shares have
          been registered under the Securities Act and applicable state securities laws or
          an exemption from such registration is available, which counsel and opinion
          shall be reasonable satisfactory to the Company (&#147;Exercise Opinion&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Warrant should be
exercised in part, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder to purchase the
remainder of the Ordinary Shares purchasable hereunder. The Company shall pay any and all
expenses, taxes and other charges that may be payable in connection with the issuance of
the Warrant Shares and the preparation and delivery of share certificates pursuant to this
Section 1 in the name of the Holder, and to the extent required, the execution and
delivery of a new Warrant, provided, however, that the Company shall only be required to
pay taxes which are due as a direct result of the issuance of the Ordinary Shares or other
securities, properties or rights underlying such Warrants (such as the applicable stamp
duty), and will not be required to pay any tax which may be (i) due as a result of the
specific identity of the Holder or (ii) payable in respect of any transfer involved in the
issuance and delivery of any such certificates in a name other than that of the Holder and
the Company shall not be required to issue or deliver such certificates unless or until
the person or persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company that such
tax has been paid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of
Ordinary Shares issued shall be rounded down to the nearest whole number. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Reservation
of Shares</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company covenants that: (i) at
all times during the Warrant Period it shall have in reserve, and will keep available
solely for issuance or delivery upon exercise of the Warrant, such number of Ordinary
shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the
Warrant and payment of the Exercise Price therefor, the Warrant Shares issuable upon such
exercise will be validly issued, fully paid, nonassessable, free and clear from any lien,
encumbrance, pledge or any other third party right and not subject to any preemptive
rights. </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Adjustments
to Exercise Price and Number of Securities</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision and
Combination</U>. In case the Company shall at any time subdivide or combine the
outstanding Ordinary Shares, the Exercise Price shall forthwith be proportionately
decreased in the case of subdivision or increased in the case of combination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Dividends and
Distributions</U>. In case the Company shall pay a dividend on, or make a distribution of,
Ordinary Shares or of the Company&#146;s capital stock convertible into Ordinary Shares,
the Exercise Price shall forthwith be proportionately decreased. An adjustment made
pursuant to this Section 3.2 shall be made as of the record date for the subject stock
dividend or distribution. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment in Number of
Securities</U>. Upon each adjustment of the Exercise Price pursuant to the provisions of
this Section 3, the number of Ordinary Shares issuable upon the exercise of each Warrant
shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of Ordinary Shares
issuable upon exercise of the Warrants immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition of Ordinary
Shares</U>. For the purpose of this Agreement, the term &#147;Ordinary Shares&#148; shall
mean (i) the class of stock designated as Ordinary Shares in the Articles of Association
of the Company as may be amended as of the date hereof, or (ii) any other class of stock
resulting from successive changes or reclassifications of such Ordinary Shares consisting
solely of changes in nominal value, or from nominal value to no nominal value, or from no
nominal value to nominal value. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment of Exercise
Price in Certain Cases.</U> No adjustment of the Exercise Price shall be made if the
amount of said adjustment shall be less than 2 cents ($.02) per Ordinary Share, provided,
however, that in such case any adjustment that would otherwise be required then to be made
shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment so carried forward, shall amount
to at least 2 cents ($.02) per Ordinary Share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger or Consolidation.
</U>In case of any consolidation of the Company with or merger of the Company with, or
merger of the Company into, (other than a merger which does not result in any
reclassification or change of the outstanding Ordinary Shares), the Company shall cause
the corporation formed by such consolidation or merger to execute and deliver to the
Holder a supplemental warrant agreeement providing that the Holder of the Warrant then
outstanding or to be outstanding shall have the right thereafter (until the expiration of
such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of
stock and other securities and property receivable upon such consilidation or merger, by a
holder of the number of Ordinary Shares of the Company for which such Warrant might have
been exercised immediately prior ro such consolidation, merger, sale or transfer. Such
supplemental warrant agreement shall provide for adjustments which shall be identical to
the adjustments provided in Section 3. The above provision of this Subsection shall
similarly apply to successive consolidations or mergers. </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  <U>Notices to Warrant Holders</U>. Nothing contained in this Agreement shall be
          construed as conferring upon the Holder the right to vote or to consent or to
          receive notice as a stockholder in respect of any meetings of stockholders for
          the election of directors or any other matter, or as having any rights
          whatsoever as a stockholder of the Company. If, however, at any time prior to
          the Expiration Date, any of the following events shall occur: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
          the Company shall take a record of the holders of its Ordinary Shares for the
          purpose of entitling them to receive a dividend or distribution payable
          otherwise than in cash, or a cash dividend or distribution payable otherwise
          than out of current or retained earnings, as indicated by the accounting
          treatment of such dividend or distribution on the books of the Company; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          the Company shall offer to all the holders of its Ordinary Shares any additional
          shares of capital stock of the Company or securities convertible into or
          exchangeable for shares of capital stock of the Company, or any option, right or
          warrant to subscribe therefor; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
          a dissolution, liquidation or winding up of the Company (other than in
          connection with a consolidation or merger) or a sale of all or substantially all
          of its property, assets and business as an entirety shall be proposed; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, in any one or more of said
events, the Company shall give to the Holder written notice of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Non-Transferability</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Holder covenants and agrees that the Warrants are being acquired as an
          investment and not with a view to the distribution thereof. <B>The Holder shall
          not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake
          to dispose of (&#147;Sell&#148;) the Warrants until the Effective Date.
          Thereafter, the Holder may, subject to applicable securities laws and the
          conditions set forth herewith, Sell, all or any portion of the Warrants,
          provided that the Holder may only Sell the Warrants on one occasion, to no more
          than one (1) transferee.</B> Except as otherwise provided herein, the sale of
          the Warrant, shall confer upon the transferee all of the rights, privileges, and
          obligations set forth in, arising under, or created by this Agreement,
          <U>provided however</U> that such assignment shall with respect to the
          Registration Rights, only be assigned pursuant to the Registration Rights
          Schedule. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Unless registered, the Warrant Shares issued upon exercise of the Warrants shall
          be subject to a stop transfer order and the certificate or certificates
          evidencing such Warrant Shares shall bear legend substantially similar to the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>&#147;THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES </B><B>ACT
OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY, SUCH SHARES </B><B>MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER SUCH ACT, OR </B><B>AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Registration
Rights</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Holders of the Ordinary Shares
shall be entitled to the registration rights as provided for in the Registration Rights
Schedule attached thereto. </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Loss,
etc. of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon receipt of evidence satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant, and of
indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon
surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the
Holder a new Warrant of like date, tenor and denomination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Headings</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The headings of this Warrant have
been inserted as a matter of convenience and shall not affect the construction hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Notices</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or seven (7) days
after deposit with the Post Authority, for dispatch by registered or certified mail,
postage prepaid and addressed to the Holder at the address set forth in the Company&#146;s
books and to the Company at the address of its principal offices set forth above, or when
given by telecopier or other form of rapid written communication, provided that confirming
copies are sent by such airmail. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Governing
Law</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant shall be governed by and
construed and enforced in accordance with the laws of the State of Israel (regardless of
the laws that might otherwise govern under applicable Israel principles of conflicts of
law). The Parties hereto shall submit to the exclusive jurisdiction of the competent
Courts of Tel-Aviv any dispute or matter arising out of or connected with this Warrant.
Anything to the contrary notwithstanding, the provisions of this Section 10 shall not
apply to the Registration Rights schedule, which shall be subject to the provisions
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Entire
Agreement; Amendment and Waiver</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant and the schedule hereto
constitute the full and entire understanding and agreement between the parties with regard
to the subject matters hereof and thereof. Any term of this Warrant may be amended and the
observance of any term hereof may be waived (either prospectively or retroactively and
either generally or in a particular instance) only with the written consent of both the
Holder and the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
Company has caused this Ordinary Share Purchase Warrant to be executed as of the date
first written above. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.</B><BR>
<BR>
By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>
David Amir, CEO<BR>
<BR>
Date: June 27, 2003 </FONT>
</P>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR"  -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WARRANT EXERCISE FORM </FONT></H1>

<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:____________________</FONT></P>



<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: NUR Macroprinters Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Re: <U>Exercise of Warrant</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby irrevocably
elects to exercise the attached Warrant to the extent of ___________________ Ordinary
Shares of NUR Macroprinters Ltd. at $0.72 per Ordinary Share. Payment to the Company of
the total purchase price for such shares has been made simultaneously with the delivery of
this exercise of warrant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: ___________________ </FONT></P>


<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">



</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>16
<FILENAME>exhibit_2-28.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.28</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>REGISTRATION RIGHTS
AGREEMENT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 27
day of June, 2003 by and among: </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR Macroprinters Ltd., </B>a company organized under the laws of the State of Israel, registered under number
52-003986-8, with offices at 12 Abba Hilel Silver Street, Lod, Israel (the "Company"); and<BR>
<BR>
<B>Israel Discount Bank, </B>a company organized under the laws of the State of Israel, registered under
number________, with offices at _________ (the "Holder"). </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS: </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company has issued to the Holder a certain Warrant dated June 27, 2003 (the
&#147;Warrant&#148;) to purchase 27,000 Ordinary Shares of the Company, par value NIS 1.00
per share (the &#147;Warrant Shares&#148;); and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company hereby undertakes to register the Warrant Shares underlying the Warrant in
accordance with the provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOW, THEREFORE</B>, in
consideration of the foregoing, the parties agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in
the Warrant Agreement (as defined below). As used herein, the following terms have the
following meaning: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
refers to the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective
Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;,
&#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration
effected by filing a registration statement in compliance with the Securities Act and the
declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable
Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of
the Warrant . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. </FONT></P>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Piggyback Registration</U>. If the Company at any time following the
          Effective Date, proposes to register any of its securities (other than a
          registration statement on Form S-8 or any successor form for securities to be
          offered to employees of the Company pursuant to any employee benefit plan or a
          registration statement on form F-4 or any other successor form), for its own
          account or for the account of any other person, it shall give notice to the
          Holder of such intention. Upon the written request of the Holder given within
          twenty (20) days after receipt of any such notice, the Company shall include in
          such registration all of the Registrable Shares indicated in such request, so as
          to permit the disposition of the shares so registered in the manner requested by
          the Holder. Notwithstanding any other provision of this Section 2, with respect
          to an underwritten initial public offering by the Company, if the managing
          underwriter advises the Company in writing that marketing or other factors
          require a limitation of the number of shares to be underwritten, then there
          shall be excluded from such registration and underwriting to the extent
          necessary to satisfy such limitation, shares held by the Holder and by other
          shareholders of the Company who are entitled to have their shares included in
          such registration, pro rata among them to the extent necessary to satisfy such
          limitation. To the extent Registrable Shares are excluded from such
          underwriting, the Holder shall agree not to sell its Registrable Shares included
          in the registration statement for such period, not to exceed 180 days, as may be
          required by the managing underwriter, and the Company shall keep effective and
          current such registration statement for such period as may be required to enable
          the Holder to complete the distribution and resale of its Registrable Shares.
          Notwithstanding the provisions of this Section 2, the Company shall have the
          right at any time after it shall have given notice to the Holder, to elect not
          to file any such proposed registration statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four
years following the date of the closing of the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the right of the Holder to request registration pursuant to Sections 2 shall
terminate upon such date that all Registrable Shares held or entitled to be held upon
conversion by the Holder may be sold without volume limitations under Rule 144 (or any
successor rule). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Designation of Underwriter.</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the case of any registration initiated by the Company, the Company shall have the right to
designate the managing underwriter in any underwritten offering. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Expenses.</U> All expenses incurred in connection with any registration under
          Section 2 shall be borne by the Company; provided, however, that the Holder
          shall pay its pro rata portion of the discounts payable to any underwriter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Indemnities</U>. In the event of any registered offering of Ordinary Shares
          pursuant to this Agreement: </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will indemnify and hold harmless, to the fullest extent permitted by law, the
Holder, the officers and directors of the Holder and any underwriter for the Holder, and
each person, if any, who controls the Holder or such underwriter, from and against any and
all losses, damages, claims, liabilities, joint or several, costs, and expenses (including
any amounts paid in any settlement effected with the Company&#146;s consent) to which the
Holder or any such officers and directors of the Holder, underwriter or controlling person
may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs, or expenses
arise out of are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or alleged omission to state therein a
material fact required to be started therein or necessary to make the statement therein,
in the light of the circumstances in which they are made, not misleading, and the Company
will reimburse the Holder, such officers and directors of the Holder, such underwriter,
and each such controlling person of the Holder or the underwriter, promptly upon demand,
for any reasonable legal or any other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action, or proceeding;
<U>provided</U>, <U>however</U>, that the Company will not be liable in any such case to
the extent that any such loss, damage, liability, cost, or expense arises solely out of or
is based solely upon an untrue statement or alleged untrue statement, or omission or
alleged omission, so made in conformity with information furnished to the Company in
writing by the Holder, such underwriter, or such controlling persons in writing
specifically for inclusion therein; <U>provided</U>, <U>further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
and <U>provided</U>, <U>further</U>, that the indemnity agreement contained in this
Sub-Section 6.1 shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability, or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder,
the officers and directors of the Holder, the underwriter, or any controlling person of
the Holder or the underwriter, and regardless of any sale in connection with such offering
by the Holder. Such indemnity shall survive the transfer of securities by a Holder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Holder participating in a registration hereunder will indemnify and hold harmless the
Company, the officers and directors of the Company, any underwriter for the Company, and
each person, if any, who controls the Company or such underwriter, from and against any
and all losses, damages, claims, liabilities, costs, or expenses (including any amount
paid in any settlement effected with the Holder&#146;s consent) to which the Company, the
officers and directors of the Company or any such controlling person and/or any such
underwriter may become subject under applicable law or otherwise, insofar as such losses,
damages, claims, liabilities (or actions or proceedings in respect thereof), costs, or
expense arise out of or are based on (i) any untrue or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances in which they were made, not misleading, and the Holder
will reimburse the Company, the officers and directors of the Company, any underwriter,
and each such controlling person of the Company or any underwriter, promptly upon demand,
for any reasonable legal or other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, action, or proceeding; in each case
to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in strict conformity with written
information furnished in a certificate by the Holder specifically for inclusion therein.
The foregoing indemnity agreement is subject to the condition that, insofar as it relates
to any such untrue statement (or alleged untrue statement), or omission (or alleged
omission) made in the preliminary prospectus but eliminated or remedied in the amended
prospectus at the time the registration statement becomes effective in the final
prospectus, such indemnity agreement shall not inure to the benefit of (i) the Company and
(ii) any underwriter, if a copy of the final prospectus was not furnished to the person or
entity asserting the loss, liability, claim, or damage at or prior to the time such
furnishing is required by the Security Act; <U>provided, further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
<U>provided, further</U>, that the indemnity agreement contained in this Sub-Section 6.2
shall not apply to amounts paid in settlement of any such claim loss, damage, liability,
or action if such settlement is effected without the consent of the Holder, as the case
may be, which consent shall not be unreasonably withheld. In no event shall the liability
of the Holder exceed the gross proceeds from the offering received by the Holder. </FONT></P>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Promptly after receipt by an indemnified party pursuant to the provisions of Section 6.1
or 6.2 of notice of the commencement of any action involving the subject matter of the
foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of said Section 6.1 or 6.2,
promptly notify the indemnifying party of the commencement thereof; but the omission to
notify the indemnifying party shall only relieve it from any liability which it may have
to any indemnified party to the extent that such indemnifying party has been damaged by
such omission to notify hereunder. In case such action is brought against any indemnified
party and it notifies the indemnifying party of the commencement thereof, the indemnifying
party shall have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; <U>provided, however</U>, that
if the defendants in any action include both the indemnified party and the indemnifying
party and if in the reasonable judgment of the indemnified party there are separate
defenses that are available to the indemnified party or there is a conflict of interest
which would prevent counsel for the indemnifying party from also representing the
indemnified party, the indemnified party or parties shall have the right to select, at the
expense of the indemnifying party, separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties; <U>provided, further, however</U>,
that if the Holder are the indemnified party, the Holder shall be entitled to one separate
counsel at the expense of the Company and if underwriters are also indemnified parties who
are entitled to counsel separate from the indemnifying party, then all underwriters as a
group shall be entitled to one separate counsel at the expense of the Company. After
notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of said Section 6.1 or 6.2 for any legal or other expense
subsequently incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed counsel in accordance with the
provision of the preceding sentence, (ii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after the notice of the commencement of the action and
within 15 days after written notice of the indemnified party&#146;s intention to employ
separate counsel pursuant to the previous sentence, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation. </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If recovery is not available under the foregoing indemnification provisions, for any
reason other than as specified therein, the parties entitled to indemnification by the
terms thereof shall be entitled to contribution to liabilities and expenses. In
determining the amount of contribution to which the respective parties are entitled, there
shall be considered the parties&#146; relative knowledge and access to information
concerning the matter with respect to which was asserted, the opportunity to correct and
prevent any statement or omission, and any other equitable consideration appropriate under
the circumstances. In no event shall any party that is found liable for fraudulent
misrepresentation within the meaning of Section 1(f) of the Securities Act be entitled to
contribution hereunder from any party not found so liable, and in no event shall any
contribution from the Holder be more than the gross proceeds that it receives from the
offering . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Conditions to Registration</U>. The Company shall not be obligated to effect
          the registration of the Registrable Shares pursuant to this Agreement unless the
          Holder participating therein consents to customary conditions of a reasonable
          nature that are imposed by the Company, including, but no limited to, the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the sale of Registrable Shares by the Holder from 30 days
          before the filing of the registration statement until the registration statement
          becomes effective; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions requiring the Holder to comply with all applicable provisions of the
          Securities Act and the United States Securities Exchange Act of 1934, as
          amended, (the &#147;Exchange Act&#148;), including, but not limited to, the
          prospectus delivery requirements, and to furnish to the Company information
          about sales made in such public offering; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the Holder, upon receipt of written notice from the
          Company that it is required by law to correct or update the registration
          statement or prospectus, from effecting sales of the Registrable Shares until
          the Company has completed the necessary correction or updating. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Lock-Up</U>. In any registration of the Company&#146;s shares, the Holder
          acknowledges that any sales of Registrable Shares may be subject to a
          &#147;lock-up&#148; period restricting such sales beginning thirty (30) days
          prior to, and for up to one hundred and eighty (180) days following, the
          effective date of such registration, and the Holder will agree to abide by such
          customary &#147;lock-up&#148; period as is required by the underwriter in such
          registration. </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Customary Arrangements</U>. The Holder may not participate in any
          underwritten offering pursuant to a registration filed hereunder unless the
          Holder (a) agrees to sell it&#146;s securities on the basis provided in any
          customary underwriting arrangements, and (b) provides any relevant information
          and completes and executes all questionnaires, powers of attorney, indemnities,
          underwriting agreements, and other documents required under the terms of such
          underwriting arrangements; provided, however, that the Holder participating in
          the underwritten registration may appoint one legal or other representative to
          negotiate the underwriting arrangements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Public Information</U>. The Company shall undertake to make publicly
          available and available to the Holder adequate current public information within
          the meaning of, and as required pursuant to, Rule 144. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Non-United States Offering</U>. In the event of a public offering of
          securities of the Company outside of the United States, the Company will afford
          the Holder registration rights in accordance with applicable law and comparable
          in substance to the foregoing registration rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Assignment of Registration Rights</U>. The rights to cause the Company to
          register Registrable Shares pursuant to this Agreement may only be assigned by
          the Holder (the &#147;Assignment&#148;) under the following conditions: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignment shall be concurrent with the sale or transfer of the Warrant or
               the Registrable Shares and only with respect to the transferred Registrable
               Shares; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Holder may only assign the Registration Rights pursuant to this Agreement on
               one occasion, to no more than one transferee; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignee of the Registration Rights may not further assign the Registration
               Rights. In addition, the Company shall have no obligation to amend an effective
               registration to reflect the name of a transferee in such registration statement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Changes in Registrable Shares</U>.<B> </B>If, and as often as, there are any
          changes in the Registrable Shares by way of stock split, stock dividend,
          combination or reclassification, or through merger, consolidation,
          reorganization or recapitalization, or by any other means, appropriate
          adjustment shall be made in the provisions of this Agreement, as may be
          required, so that the rights and privileges granted hereby shall continue with
          respect to the Registrable Shares as so changed. Without limiting the generality
          of the foregoing, the Company will require any successor by merger or
          consolidation to assume and agree to be bound by the terms of this Agreement, as
          a condition to any such merger or consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Entire Agreement</U>. This Agreement constitutes the full and entire
          understanding and agreement among the parties hereto with respect to the subject
          matter hereof and supersedes all prior agreements (including, without
          limitation, the term sheet entered into between the Company and the Holder, and
          any and all negotiations and oral understandings with respect thereto) and any
          and all registration rights that the Company had previously granted to any party
          hereto in any capacity whatsoever. Nothing in this Agreement, express or
          implied, is intended to confer upon any Person, other than the parties hereto
          and their respective successors and assigns, any rights, remedies, obligations,
          or liabilities under or by reason of this Agreement, except as expressly
          provided herein. </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Governing Law</U>. This Agreement shall be governed in all respects by the
          laws of the State of New York, as such laws are applied to agreements between
          State of New York residents entered into and to be performed entirely within
          State of New York, whether or not all parties hereto are residents of State of
          New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Successors and Assigns</U>. The provisions hereof shall inure to the benefit
          of, and be binding upon, the successors, permitted assigns as provided in
          Section 12, heirs, executors and administrators of the parties hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. Unless otherwise provided, any notice required or permitted
          under this Agreement shall be given in writing and shall be deemed effectively
          given upon receipt by the party to be notified (including by telecopier, receipt
          confirmed) or seven (7) days after deposit with the United States Post Office or
          three (3) days after deposit with the Israel Post Authority, by registered or
          certified mail, postage prepaid and addressed to the party to be notified (a) if
          to a party other than the Company, at such party&#146;s address set forth in
          this Agreement or at such other address as such party shall have furnished the
          Company in writing, or, until any such party so furnishes an address to the
          Company, then to and at the address of the last holder of the shares covered by
          this Agreement who has so furnished an address to the Company, or (b) if to the
          Company, at its address set forth at in this Agreement, or at such other address
          as the Company shall have furnished to the parties in writing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Severability</U>. Any invalidity, illegality or limitation on the
          enforceability of this Agreement or any part thereof, by any party whether
          arising by reason of the law of the respective party&#146;s domicile or
          otherwise, shall in no way affect or impair the validity, legality or
          enforceability of this Agreement with respect to other parties. If any provision
          of this Agreement shall be judicially determined to be invalid, illegal or
          unenforceable, the validity, legality and enforceability of the remaining
          provisions shall not in any way be affected or impaired thereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Titles and Subtitles</U>. The titles of the Sections of this Agreement are
          for convenience of reference only and are not to be considered in construing
          this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Counterparts.</U> This Agreement may be executed in any number of
          counterparts, each of which shall be an original, but all of which together
          shall constitute one instrument. This Agreement may be executed by facsimile
          signatures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IN
WITNESS WHEREOF the parties have signed this Agreement. </FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.         <BR>
<BR>
By: David Amir, President &amp; CEO<BR>
Date: June 27, 2003
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_______________________<BR>
Israel Discount Bank.<BR>
<BR>
By: ___________________<BR>
Date: __________________
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>


<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>17
<FILENAME>exhibit_2-29.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.29</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>WARRANT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THIS WARRANT AND THE ORDINARY
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT (the &#147;SECURITIES&#148;) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, (the &#147;SECURITIES ACT&#148;)
OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAW, AND THE WARRANT MAY NOT BE
EXERCISED AND THE WARRANT AND THE ORDINARY SHARES ISSUABLE UPON EXERCISE MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, ASSIGNED OR HYPOTHECATED, UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT COVERING THIS WARRANT AND/OR SUCH SECURITIES, OR THE
HOLDER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE WARRANT AND/OR SUCH SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE LAW.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>to purchase </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ordinary Shares </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR MACROPRINTERS LTD. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>at a price of $0.62 per
share </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VOID
AFTER 17:00 p.m. (prevailing Tel Aviv time) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
the Expiration Date (as hereinafter defined) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in favor of </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ISRAEL DISCOUNT BANK </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.,</B> an
Israeli company with its principal offices at12 Abba Hilel Silver Street, Lod, Israel (the
&#147;<U>Company</U>&#148;), hereby grants to Israel Discount Bank (the
&#147;<U>Holder</U>&#148;), the right to purchase, subject to the terms and conditions
hereof, up to a Ninety Eight Thousand (98,000) of the Company&#146;s Ordinary Shares, par
value NIS 1.0 per share (&#147;<U>Ordinary Shares</U>&#148;), exercisable at any time from
time to time, on or after the second anniversary of the date hereof (the
&#147;<U>Effective Date</U>&#148;), and until the second anniversary of such date (the
<U>&#147;Expiration Date</U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Hereinafter: (i) the Ordinary Shares
purchasable hereunder or any other securities which may be issued by the Company in
substitution therefor, are referred to as the &#147;<U>Warrant Shares</U>&#148;; (ii) the
price of USD 0.62 payable hereunder for each of the Warrant Shares, as adjusted in the
manner set forth hereinafter, is referred to as the &#147;<U>Exercise Price</U>&#148; and
(iii) this Warrant and all warrants hereafter issued in exchange or substitution for this
Warrant are referred to as the &#147;<U>Warrants</U>&#148;. The Exercise Price and the
number of Warrant Shares are subject to adjustment as hereinafter provided.) </FONT></P>

<p align=center>
<font size=2>- 1 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Warrant
Period; Exercise of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Warrant may be exercised
in whole at any time, or in part from time to time, beginning on the Effective Date until
the Expiration Date (the &#147;<U>Warrant Period</U>&#148;), by the surrender of this
Warrant (with a duly executed exercise form in the form attached at the end hereof as
<B>Exhibit A</B>), along with the Exercise Certificate or the Exercise Opinion (each as
defined in Section 1.1(b) below), at the principal office of the Company, set forth above,
together with proper payment of the Exercise Price multiplied by the number of Warrant
Shares for which the Warrant is being exercised. Payment for Warrant Shares shall be made
by certified or official bank check or checks, payable to the order of the Company or by
wire transfer to an account to be designated in writing by the Company. Payments shall be
made in United States dollars. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          This Warrant may not be exercised unless the Holder delivers to the Company (a)
          written certification that it is not a &#147;U.S. person&#148; (as defined in
          Regulation S under the Securities Act) and the Warrant is not being exercised on
          behalf of a U.S person (an &#147;Exercise Certificate&#148;) or (b) a written
          opinion of counsel to the effect that the Warrant and the Warrant Shares have
          been registered under the Securities Act and applicable state securities laws or
          an exemption from such registration is available, which counsel and opinion
          shall be reasonable satisfactory to the Company (&#147;Exercise Opinion&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If this Warrant should be exercised in part, the Company shall, upon surrender of this
Warrant for cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder to purchase the remainder of the Ordinary Shares purchasable hereunder. The
Company shall pay any and all expenses, taxes and other charges that may be payable in
connection with the issuance of the Warrant Shares and the preparation and delivery of
share certificates pursuant to this Section 1 in the name of the Holder, and to the
extent required, the execution and delivery of a new Warrant, provided, however, that the
Company shall only be required to pay taxes which are due as a direct result of the
issuance of the Ordinary Shares or other securities, properties or rights underlying such
Warrants (such as the applicable stamp duty), and will not be required to pay any tax
which may be (i) due as a result of the specific identity of the Holder or (ii) payable
in respect of any transfer involved in the issuance and delivery of any such certificates
in a name other than that of the Holder and the Company shall not be required to issue or
deliver such certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established
to the satisfaction of the Company that such tax has been paid.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No fractions of Ordinary Shares
shall be issued in connection with the exercise of this Warrant, and the number of
Ordinary Shares issued shall be rounded down to the nearest whole number. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Reservation
of Shares</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company covenants that: (i) at
all times during the Warrant Period it shall have in reserve, and will keep available
solely for issuance or delivery upon exercise of the Warrant, such number of Ordinary
shares as shall be issuable upon the exercise thereof, and (ii) upon exercise of the
Warrant and payment of the Exercise Price therefor, the Warrant Shares issuable upon such
exercise will be validly issued, fully paid, nonassessable, free and clear from any lien,
encumbrance, pledge or any other third party right and not subject to any preemptive
rights. </FONT></P>

<p align=center>
<font size=2>- 2 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Adjustments
to Exercise Price and Number of Securities</U>. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subdivision and
Combination</U>. In case the Company shall at any time subdivide or combine the
outstanding Ordinary Shares, the Exercise Price shall forthwith be proportionately
decreased in the case of subdivision or increased in the case of combination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Stock Dividends and
Distributions</U>. In case the Company shall pay a dividend on, or make a distribution of,
Ordinary Shares or of the Company&#146;s capital stock convertible into Ordinary Shares,
the Exercise Price shall forthwith be proportionately decreased. An adjustment made
pursuant to this Section 3.2 shall be made as of the record date for the subject stock
dividend or distribution. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment in Number of
Securities</U>. Upon each adjustment of the Exercise Price pursuant to the provisions of
this Section 3, the number of Ordinary Shares issuable upon the exercise of each Warrant
shall be adjusted to the nearest full amount by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of Ordinary Shares
issuable upon exercise of the Warrants immediately prior to such adjustment and dividing
the product so obtained by the adjusted Exercise Price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition of Ordinary
Shares</U>. For the purpose of this Agreement, the term &#147;Ordinary Shares&#148; shall
mean (i) the class of stock designated as Ordinary Shares in the Articles of Association
of the Company as may be amended as of the date hereof, or (ii) any other class of stock
resulting from successive changes or reclassifications of such Ordinary Shares consisting
solely of changes in nominal value, or from nominal value to no nominal value, or from no
nominal value to nominal value. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Adjustment of Exercise
Price in Certain Cases.</U> No adjustment of the Exercise Price shall be made if the
amount of said adjustment shall be less than 2 cents ($.02) per Ordinary Share, provided,
however, that in such case any adjustment that would otherwise be required then to be made
shall be carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment so carried forward, shall amount
to at least 2 cents ($.02) per Ordinary Share. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Merger or Consolidation.
</U>In case of any consolidation of the Company with or merger of the Company with, or
merger of the Company into, (other than a merger which does not result in any
reclassification or change of the outstanding Ordinary Shares), the Company shall cause
the corporation formed by such consolidation or merger to execute and deliver to the
Holder a supplemental warrant agreeement providing that the Holder of the Warrant then
outstanding or to be outstanding shall have the right thereafter (until the expiration of
such Warrant) to receive, upon exercise of such Warrant, the kind and amount of shares of
stock and other securities and property receivable upon such consilidation or merger, by a
holder of the number of Ordinary Shares of the Company for which such Warrant might have
been exercised immediately prior ro such consolidation, merger, sale or transfer. Such
supplemental warrant agreement shall provide for adjustments which shall be identical to
the adjustments provided in Section 3. The above provision of this Subsection shall
similarly apply to successive consolidations or mergers. </FONT></P>

<p align=center>
<font size=2>- 3 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.
          <U>Notices to Warrant Holders</U>. Nothing contained in this Agreement shall be
          construed as conferring upon the Holder the right to vote or to consent or to
          receive notice as a stockholder in respect of any meetings of stockholders for
          the election of directors or any other matter, or as having any rights
          whatsoever as a stockholder of the Company. If, however, at any time prior to
          the Expiration Date, any of the following events shall occur: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
          the Company shall take a record of the holders of its Ordinary Shares for the
          purpose of entitling them to receive a dividend or distribution payable
          otherwise than in cash, or a cash dividend or distribution payable otherwise
          than out of current or retained earnings, as indicated by the accounting
          treatment of such dividend or distribution on the books of the Company; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
          the Company shall offer to all the holders of its Ordinary Shares any additional
          shares of capital stock of the Company or securities convertible into or
          exchangeable for shares of capital stock of the Company, or any option, right or
          warrant to subscribe therefor; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
          a dissolution, liquidation or winding up of the Company (other than in
          connection with a consolidation or merger) or a sale of all or substantially all
          of its property, assets and business as an entirety shall be proposed; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, in any one or more of said
events, the Company shall give to the Holder written notice of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the transfer
books for the determination of the stockholders entitled to such dividend, distribution,
convertible or exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Non-Transferability</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Holder covenants and agrees that the Warrants are being acquired as an
          investment and not with a view to the distribution thereof. <B>The Holder shall
          not sell, transfer, assign, encumber, pledge or otherwise dispose or undertake
          to dispose of (&#147;Sell&#148;) the Warrants until the Effective Date.
          Thereafter, the Holder may, subject to applicable securities laws and the
          conditions set forth herewith, Sell, all or any portion of the Warrants,
          provided that the Holder may only Sell the Warrants on one occasion, to no more
          than one (1) transferee.</B> Except as otherwise provided herein, the sale of
          the Warrant, shall confer upon the transferee all of the rights, privileges, and
          obligations set forth in, arising under, or created by this Agreement,
          <U>provided however</U> that such assignment shall with respect to the
          Registration Rights, only be assigned pursuant to the Registration Rights
          Schedule. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Unless registered, the Warrant Shares issued upon exercise of the Warrants shall
          be subject to a stop transfer order and the certificate or certificates
          evidencing such Warrant Shares shall bear legend substantially similar to the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>&#147;THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES </B><B>ACT
OF 1933, AS AMENDED, PURSUANT TO A REGISTRATION STATEMENT. ACCORDINGLY, SUCH SHARES </B><B>MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION STATEMENT UNDER SUCH ACT, OR </B><B>AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT.&#148;</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Registration
Rights</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Holders of the Ordinary Shares
shall be entitled to the registration rights as provided for in the Registration Rights
Schedule attached thereto. </FONT></P>

<p align=center>
<font size=2>- 4 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Loss,
etc. of Warrant</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon receipt of evidence satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant, and of
indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon
surrender and cancellation of this Warrant, if mutilated, and upon reimbursement of the
Company&#146;s reasonable direct expenses, the Company shall execute and deliver to the
Holder a new Warrant of like date, tenor and denomination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Headings</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The headings of this Warrant have
been inserted as a matter of convenience and shall not affect the construction hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified or seven (7) days
after deposit with the Post Authority, for dispatch by registered or certified mail,
postage prepaid and addressed to the Holder at the address set forth in the Company&#146;s
books and to the Company at the address of its principal offices set forth above, or when
given by telecopier or other form of rapid written communication, provided that confirming
copies are sent by such airmail. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Governing
Law</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant shall be governed by and
construed and enforced in accordance with the laws of the State of Israel (regardless of
the laws that might otherwise govern under applicable Israel principles of conflicts of
law). The Parties hereto shall submit to the exclusive jurisdiction of the competent
Courts of Tel-Aviv any dispute or matter arising out of or connected with this Warrant.
Anything to the contrary notwithstanding, the provisions of this Section 10 shall not
apply to the Registration Rights schedule, which shall be subject to the provisions
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Entire
Agreement; Amendment and Waiver</U> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Warrant and the schedule hereto
constitute the full and entire understanding and agreement between the parties with regard
to the subject matters hereof and thereof. Any term of this Warrant may be amended and the
observance of any term hereof may be waived (either prospectively or retroactively and
either generally or in a particular instance) only with the written consent of both the
Holder and the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IN WITNESS WHEREOF</B>, the
Company has caused this Ordinary Share Purchase Warrant to be executed as of the date
first written above. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR MACROPRINTERS LTD.</B><BR>
<BR>
By: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>
David Amir, CEO<BR>
<BR>
Date: August1, 2003 </FONT>
</P>

<p align=center>
<font size=2>- 5 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>EXHIBIT A</B> </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WARRANT EXERCISE FORM</B> </FONT></P>

<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:____________________</FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To: NUR Macroprinters Ltd.<BR>
<BR>
<B>Re: <U>Exercise of Warrant</U></B> </FONT>
</P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned hereby  irrevocably  elects to exercise the attached Warrant to the extent of  ___________________
Ordinary  Shares of NUR  Macroprinters  Ltd.  at $0.62 per  Ordinary  Share.  Payment to the  Company of the total
purchase price for such shares has been made simultaneously with the delivery of this exercise of warrant.
</FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:  ___________________
</FONT></P>

<p align=center>
<font size=2>- 6 -</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>18
<FILENAME>exhibit_2-30.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 2.30</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>REGISTRATION RIGHTS
AGREEMENT</U> </FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS
REGISTRATION RIGHTS AGREEMENT</B> (this &#147;<B>Agreement</B>&#148;) made as of the 1 day
of August, 2003 by and among: </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NUR Macroprinters Ltd., </B>a company organized under the laws of the State of Israel, registered under number
52-003986-8, with offices at 12 Abba Hilel Silver Street, Lod, Israel (the "Company"); and
<BR><BR>
<B>Israel Discount Bank, </B>a company organized under the laws of the State of Israel, registered under
number________, with offices at _________ (the "Holder"). </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS: </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company has issued to the Holder a certain Warrant dated August1, 2003 (the
&#147;Warrant&#148;) to purchase 98,000 Ordinary Shares of the Company, par value NIS 1.00
per share (the &#147;Warrant Shares&#148;); and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>
the Company hereby undertakes to register the Warrant Shares underlying the Warrant in
accordance with the provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NOW, THEREFORE</B>, in
consideration of the foregoing, the parties agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Definitions</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise defined herein, all capitalized terms shall have the meaning ascribed thereto in
the Warrant Agreement (as defined below). As used herein, the following terms have the
following meaning: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commission</U>&#148;
refers to the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective
Date</U>&#148; shall have the meaning as set forth in the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;,
&#147;<U>registered</U>&#148;, and &#147;<U>registration</U>&#148; refer to a registration
effected by filing a registration statement in compliance with the Securities Act and the
declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable
Shares</U>&#148; means the Company&#146;s Ordinary Shares issuable upon the exercise of
the Warrant . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities
Act</U>&#148; shall mean the U.S. Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time. </FONT></P>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Piggyback Registration</U>. If the Company at any time following the
          Effective Date, proposes to register any of its securities (other than a
          registration statement on Form S-8 or any successor form for securities to be
          offered to employees of the Company pursuant to any employee benefit plan or a
          registration statement on form F-4 or any other successor form), for its own
          account or for the account of any other person, it shall give notice to the
          Holder of such intention. Upon the written request of the Holder given within
          twenty (20) days after receipt of any such notice, the Company shall include in
          such registration all of the Registrable Shares indicated in such request, so as
          to permit the disposition of the shares so registered in the manner requested by
          the Holder. Notwithstanding any other provision of this Section 2, with respect
          to an underwritten initial public offering by the Company, if the managing
          underwriter advises the Company in writing that marketing or other factors
          require a limitation of the number of shares to be underwritten, then there
          shall be excluded from such registration and underwriting to the extent
          necessary to satisfy such limitation, shares held by the Holder and by other
          shareholders of the Company who are entitled to have their shares included in
          such registration, pro rata among them to the extent necessary to satisfy such
          limitation. To the extent Registrable Shares are excluded from such
          underwriting, the Holder shall agree not to sell its Registrable Shares included
          in the registration statement for such period, not to exceed 180 days, as may be
          required by the managing underwriter, and the Company shall keep effective and
          current such registration statement for such period as may be required to enable
          the Holder to complete the distribution and resale of its Registrable Shares.
          Notwithstanding the provisions of this Section 2, the Company shall have the
          right at any time after it shall have given notice to the Holder, to elect not
          to file any such proposed registration statement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination of Registration Rights</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Holder shall not be entitled to exercise any right provided for in Section 2, after four
years following the date of the closing of the Warrant Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the right of the Holder to request registration pursuant to Sections 2 shall
terminate upon such date that all Registrable Shares held or entitled to be held upon
conversion by the Holder may be sold without volume limitations under Rule 144 (or any
successor rule). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Designation of Underwriter.</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
the case of any registration initiated by the Company, the Company shall have the right to
designate the managing underwriter in any underwritten offering. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Expenses.</U> All expenses incurred in connection with any registration under
          Section 2 shall be borne by the Company; provided, however, that the Holder
          shall pay its pro rata portion of the discounts payable to any underwriter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Indemnities</U>. In the event of any registered offering of Ordinary Shares
          pursuant to this Agreement: </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will indemnify and hold harmless, to the fullest extent permitted by law, the
Holder, the officers and directors of the Holder and any underwriter for the Holder, and
each person, if any, who controls the Holder or such underwriter, from and against any and
all losses, damages, claims, liabilities, joint or several, costs, and expenses (including
any amounts paid in any settlement effected with the Company&#146;s consent) to which the
Holder or any such officers and directors of the Holder, underwriter or controlling person
may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs, or expenses
arise out of are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or alleged omission to state therein a
material fact required to be started therein or necessary to make the statement therein,
in the light of the circumstances in which they are made, not misleading, and the Company
will reimburse the Holder, such officers and directors of the Holder, such underwriter,
and each such controlling person of the Holder or the underwriter, promptly upon demand,
for any reasonable legal or any other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action, or proceeding;
<U>provided</U>, <U>however</U>, that the Company will not be liable in any such case to
the extent that any such loss, damage, liability, cost, or expense arises solely out of or
is based solely upon an untrue statement or alleged untrue statement, or omission or
alleged omission, so made in conformity with information furnished to the Company in
writing by the Holder, such underwriter, or such controlling persons in writing
specifically for inclusion therein; <U>provided</U>, <U>further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
and <U>provided</U>, <U>further</U>, that the indemnity agreement contained in this
Sub-Section 6.1 shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability, or action if such settlement is effected without the consent of the
Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder,
the officers and directors of the Holder, the underwriter, or any controlling person of
the Holder or the underwriter, and regardless of any sale in connection with such offering
by the Holder. Such indemnity shall survive the transfer of securities by a Holder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Holder participating in a registration hereunder will indemnify and hold harmless the
Company, the officers and directors of the Company, any underwriter for the Company, and
each person, if any, who controls the Company or such underwriter, from and against any
and all losses, damages, claims, liabilities, costs, or expenses (including any amount
paid in any settlement effected with the Holder&#146;s consent) to which the Company, the
officers and directors of the Company or any such controlling person and/or any such
underwriter may become subject under applicable law or otherwise, insofar as such losses,
damages, claims, liabilities (or actions or proceedings in respect thereof), costs, or
expense arise out of or are based on (i) any untrue or alleged untrue statement of any
material fact contained in the registration statement or included in the prospectus, as
amended or supplemented, or (ii) the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances in which they were made, not misleading, and the Holder
will reimburse the Company, the officers and directors of the Company, any underwriter,
and each such controlling person of the Company or any underwriter, promptly upon demand,
for any reasonable legal or other expenses incurred by them in connection with
investigating, preparing to defend, or defending against, or appearing as a third-party
witness in connection with such loss, claim, damage, action, or proceeding; in each case
to the extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in strict conformity with written
information furnished in a certificate by the Holder specifically for inclusion therein.
The foregoing indemnity agreement is subject to the condition that, insofar as it relates
to any such untrue statement (or alleged untrue statement), or omission (or alleged
omission) made in the preliminary prospectus but eliminated or remedied in the amended
prospectus at the time the registration statement becomes effective in the final
prospectus, such indemnity agreement shall not inure to the benefit of (i) the Company and
(ii) any underwriter, if a copy of the final prospectus was not furnished to the person or
entity asserting the loss, liability, claim, or damage at or prior to the time such
furnishing is required by the Security Act; <U>provided, further</U>, that this indemnity
shall not be deemed to relieve any underwriter of any of its due diligence obligations;
<U>provided, further</U>, that the indemnity agreement contained in this Sub-Section 6.2
shall not apply to amounts paid in settlement of any such claim loss, damage, liability,
or action if such settlement is effected without the consent of the Holder, as the case
may be, which consent shall not be unreasonably withheld. In no event shall the liability
of the Holder exceed the gross proceeds from the offering received by the Holder. </FONT></P>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Promptly after receipt by an indemnified party pursuant to the provisions of Section 6.1
or 6.2 of notice of the commencement of any action involving the subject matter of the
foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of said Section 6.1 or 6.2,
promptly notify the indemnifying party of the commencement thereof; but the omission to
notify the indemnifying party shall only relieve it from any liability which it may have
to any indemnified party to the extent that such indemnifying party has been damaged by
such omission to notify hereunder. In case such action is brought against any indemnified
party and it notifies the indemnifying party of the commencement thereof, the indemnifying
party shall have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; <U>provided, however</U>, that
if the defendants in any action include both the indemnified party and the indemnifying
party and if in the reasonable judgment of the indemnified party there are separate
defenses that are available to the indemnified party or there is a conflict of interest
which would prevent counsel for the indemnifying party from also representing the
indemnified party, the indemnified party or parties shall have the right to select, at the
expense of the indemnifying party, separate counsel to participate in the defense of such
action on behalf of such indemnified party or parties; <U>provided, further, however</U>,
that if the Holder are the indemnified party, the Holder shall be entitled to one separate
counsel at the expense of the Company and if underwriters are also indemnified parties who
are entitled to counsel separate from the indemnifying party, then all underwriters as a
group shall be entitled to one separate counsel at the expense of the Company. After
notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of said Section 6.1 or 6.2 for any legal or other expense
subsequently incurred by such indemnified party in connection with the defense thereof,
unless (i) the indemnified party shall have employed counsel in accordance with the
provision of the preceding sentence, (ii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after the notice of the commencement of the action and
within 15 days after written notice of the indemnified party&#146;s intention to employ
separate counsel pursuant to the previous sentence, or (iii) the indemnifying party has
authorized the employment of counsel for the indemnified party at the expense of the
indemnifying party. No indemnifying party will consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all liability in
respect to such claim or litigation. </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If recovery is not available under the foregoing indemnification provisions, for any
reason other than as specified therein, the parties entitled to indemnification by the
terms thereof shall be entitled to contribution to liabilities and expenses. In
determining the amount of contribution to which the respective parties are entitled, there
shall be considered the parties&#146; relative knowledge and access to information
concerning the matter with respect to which was asserted, the opportunity to correct and
prevent any statement or omission, and any other equitable consideration appropriate under
the circumstances. In no event shall any party that is found liable for fraudulent
misrepresentation within the meaning of Section 1(f) of the Securities Act be entitled to
contribution hereunder from any party not found so liable, and in no event shall any
contribution from the Holder be more than the gross proceeds that it receives from the
offering . </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Conditions to Registration</U>. The Company shall not be obligated to effect
          the registration of the Registrable Shares pursuant to this Agreement unless the
          Holder participating therein consents to customary conditions of a reasonable
          nature that are imposed by the Company, including, but no limited to, the
          following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the sale of Registrable Shares by the Holder from 30 days
          before the filing of the registration statement until the registration statement
          becomes effective; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions requiring the Holder to comply with all applicable provisions of the
          Securities Act and the United States Securities Exchange Act of 1934, as
          amended, (the &#147;Exchange Act&#148;), including, but not limited to, the
          prospectus delivery requirements, and to furnish to the Company information
          about sales made in such public offering; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          conditions prohibiting the Holder, upon receipt of written notice from the
          Company that it is required by law to correct or update the registration
          statement or prospectus, from effecting sales of the Registrable Shares until
          the Company has completed the necessary correction or updating. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Lock-Up</U>. In any registration of the Company&#146;s shares, the Holder
          acknowledges that any sales of Registrable Shares may be subject to a
          &#147;lock-up&#148; period restricting such sales beginning thirty (30) days
          prior to, and for up to one hundred and eighty (180) days following, the
          effective date of such registration, and the Holder will agree to abide by such
          customary &#147;lock-up&#148; period as is required by the underwriter in such
          registration. </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Customary Arrangements</U>. The Holder may not participate in any
          underwritten offering pursuant to a registration filed hereunder unless the
          Holder (a) agrees to sell it&#146;s securities on the basis provided in any
          customary underwriting arrangements, and (b) provides any relevant information
          and completes and executes all questionnaires, powers of attorney, indemnities,
          underwriting agreements, and other documents required under the terms of such
          underwriting arrangements; provided, however, that the Holder participating in
          the underwritten registration may appoint one legal or other representative to
          negotiate the underwriting arrangements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Public Information</U>. The Company shall undertake to make publicly
          available and available to the Holder adequate current public information within
          the meaning of, and as required pursuant to, Rule 144. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Non-United States Offering</U>. In the event of a public offering of
          securities of the Company outside of the United States, the Company will afford
          the Holder registration rights in accordance with applicable law and comparable
          in substance to the foregoing registration rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Assignment of Registration Rights</U>. The rights to cause the Company to
          register Registrable Shares pursuant to this Agreement may only be assigned by
          the Holder (the &#147;Assignment&#148;) under the following conditions: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignment shall be concurrent with the sale or transfer of the Warrant or
               the Registrable Shares and only with respect to the transferred Registrable
               Shares; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Holder may only assign the Registration Rights pursuant to this Agreement on
               one occasion, to no more than one transferee; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The assignee of the Registration Rights may not further assign the Registration
               Rights. In addition, the Company shall have no obligation to amend an effective
               registration to reflect the name of a transferee in such registration statement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Changes in Registrable Shares</U>.<B> </B>If, and as often as, there are any
          changes in the Registrable Shares by way of stock split, stock dividend,
          combination or reclassification, or through merger, consolidation,
          reorganization or recapitalization, or by any other means, appropriate
          adjustment shall be made in the provisions of this Agreement, as may be
          required, so that the rights and privileges granted hereby shall continue with
          respect to the Registrable Shares as so changed. Without limiting the generality
          of the foregoing, the Company will require any successor by merger or
          consolidation to assume and agree to be bound by the terms of this Agreement, as
          a condition to any such merger or consolidation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Entire Agreement</U>. This Agreement constitutes the full and entire
          understanding and agreement among the parties hereto with respect to the subject
          matter hereof and supersedes all prior agreements (including, without
          limitation, the term sheet entered into between the Company and the Holder, and
          any and all negotiations and oral understandings with respect thereto) and any
          and all registration rights that the Company had previously granted to any party
          hereto in any capacity whatsoever. Nothing in this Agreement, express or
          implied, is intended to confer upon any Person, other than the parties hereto
          and their respective successors and assigns, any rights, remedies, obligations,
          or liabilities under or by reason of this Agreement, except as expressly
          provided herein. </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Governing Law</U>. This Agreement shall be governed in all respects by the
          laws of the State of New York, as such laws are applied to agreements between
          State of New York residents entered into and to be performed entirely within
          State of New York, whether or not all parties hereto are residents of State of
          New York. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Successors and Assigns</U>. The provisions hereof shall inure to the benefit
          of, and be binding upon, the successors, permitted assigns as provided in
          Section 12, heirs, executors and administrators of the parties hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Notices</U>. Unless otherwise provided, any notice required or permitted
          under this Agreement shall be given in writing and shall be deemed effectively
          given upon receipt by the party to be notified (including by telecopier, receipt
          confirmed) or seven (7) days after deposit with the United States Post Office or
          three (3) days after deposit with the Israel Post Authority, by registered or
          certified mail, postage prepaid and addressed to the party to be notified (a) if
          to a party other than the Company, at such party&#146;s address set forth in
          this Agreement or at such other address as such party shall have furnished the
          Company in writing, or, until any such party so furnishes an address to the
          Company, then to and at the address of the last holder of the shares covered by
          this Agreement who has so furnished an address to the Company, or (b) if to the
          Company, at its address set forth at in this Agreement, or at such other address
          as the Company shall have furnished to the parties in writing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Severability</U>. Any invalidity, illegality or limitation on the
          enforceability of this Agreement or any part thereof, by any party whether
          arising by reason of the law of the respective party&#146;s domicile or
          otherwise, shall in no way affect or impair the validity, legality or
          enforceability of this Agreement with respect to other parties. If any provision
          of this Agreement shall be judicially determined to be invalid, illegal or
          unenforceable, the validity, legality and enforceability of the remaining
          provisions shall not in any way be affected or impaired thereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Titles and Subtitles</U>. The titles of the Sections of this Agreement are
          for convenience of reference only and are not to be considered in construing
          this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Counterparts.</U> This Agreement may be executed in any number of
          counterparts, each of which shall be an original, but all of which together
          shall constitute one instrument. This Agreement may be executed by facsimile
          signatures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IN
WITNESS WHEREOF the parties have signed this Agreement. </FONT></P>





<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.         <BR>
<BR>
By: David Amir, President &amp; CEO<BR>
Date: August1, 2003
</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">_______________________<BR>
Israel Discount Bank.<BR>
<BR>
By: ___________________<BR>
Date: __________________
</FONT></TD></TR>
</TABLE>

<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>19
<FILENAME>exhibit_4-6.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<P align=right><font size="2" face="Times New Roman, Times, serif"><strong><u>Exhibit
  4.6</u></strong></font></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>NUR Macroprinters
  Ltd.<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(Previously,
  NUR Advanced Technologies Ltd.)<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>2000 Stock Option
  Plan<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(As amended
  on July 15, 2003)</B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">

<TR>
<TD valign="top"></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Establishment,
      Purpose, and Definitions</U></B></FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>This, the
      2000 Stock Option Plan As Amended (the &#147;<B>Plan</B>&#148;) of NUR Macroprinters
      Ltd. (the &#147;<B>Company</B>&#148;), has been adopted and approved by
      the Board of Directors of the Company (the &#147;<B>Board</B>&#148;) on
      August 9, 2002 and amended on July 15, 2003.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The purpose
      of the Plan is to provide a means whereby Eligible Individuals (as defined
      in paragraph 4, below) may acquire ordinary shares of the Company par value
      NIS 1.0 each (the &#147;<B>Shares</B>&#148;) pursuant to the exercise of
      options granted under the Plan (respectively the &#147;<B>Options</B>&#148;
      and &#147;<B>Grant</B>&#148;). &nbsp;Options may be Granted on the basis
      of past or future services by employees of the Company or of Affiliates
      (&#147;<B>Service Options</B>&#148;), or on the basis of past or future
      services by non-employees of the Company or of Affiliates (&#147;<B>Non-Employee
      Options</B>&#148;).</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(c) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The term
      &#147;<B>Affiliate</B>&#148; or &#147;<B>Affiliates</B>&#148; as used in
      the Plan means a present or future company that either (i) Controls the
      Company or is Controlled by the Company; or (ii) is Controlled by the same
      person or entity that Controls the Company.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(d) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The term
      &#147;<B>Control</B>&#148; as used in the Plan shall have the meaning ascribed
      thereto in Section 102 of the Israeli Income Tax Ordinance [New Version],
      1961, as amended, and any regulations, rules, orders or procedures promulgated
      thereunder (all referred to together as &#147;Section 102&#148;).</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(e) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The term
      &#147;<B>Employee</B>&#148; as used in this Plan means an employee, officer
      - &#147;<I>Nosei Misra</I>&#148;&nbsp;&nbsp;- as such term is defined in
      the Companies law 5759-1999 (&#147;Officers&#148; and the &#147;Companies
      law&#148; respectively), or director of the Company or any Affiliate, provided
      that such person does not Control the Company.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(f) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The term
      &#147;<B>Non-Employees</B>&#148; as used in this Plan means consultants
      or Employees if such Employees Control the Company.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(g) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The terms
      &#147;Participant&#148; Participant as used in this Plan shall mean any
      Employee or Non-Employee Granted Options under this Plan.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-1-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>2.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Administration
      of the Plan</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Plan
      shall be administered by the Board or by a committee elected by the Board
      (the &#147;<B>Committee</B>&#148;), under such terms and conditions, as
      the Board shall determine. Members of the Committee shall serve at the pleasure
      of the Board. At least one member of the Committee shall be an independent
      director, such that such person would be qualified to serve on the Committee
      under the provisions of paragraph 2(b)(ii) below. The Committee shall select
      one of its members as chairman, and the provisions of the Articles of Association
      of the Company as to committees of the Board shall apply to the meetings
      of the Committee, including the provisions relating to the convening of
      meetings, the adoption of resolutions, and the adoption of resolutions in
      writing. Until such time as the Board shall delegate the administration
      of the Plan to the Committee or if the Board chooses not to delegate the
      administration of the Plan to the Committee, each reference in this Plan
      to &#147;the Committee&#148; shall be construed to refer to the Board.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In the event that the
      Company becomes subject to the requirements of Rule 16b-3 promulgated under
      the Securities Exchange Act of 1934, as amended (&#147;Rule 16b-3&#148;),
      then, notwithstanding the provisions of paragraph 2(a) above, (i) the Committee
      shall consist of two or more members of the board or such lesser number
      of members of the Board as permitted by Rule 16b-3, and (ii) none of the
      members of the Committee shall receive, while serving on the committee,
      or during the one-year period preceding appointment to the Committee, a
      grant or award of equity securities under (y) the plan, or (z) any other
      plan of the Company or its Affiliates under which the Participants are entitled
      to acquire Shares (including restricted Shares), stock, options, stock bonuses,
      related rights, or stock appreciation rights of the company or any of its
      Affiliates, other than pursuant to transactions in any such other plan which
      do not disqualify a director form being a disinterested person under Rule
      16b-3. The limitations set forth in this paragraph 2(b) shall automatically
      incorporate any additional requirements that may in the future be necessary
      for the Plan to comply with Rule 16b-3.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(c) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>None of the members
      of the Committee shall receive, while serving on the Committee, or during
      the one-year period preceding appointment to the Committee, a Grant or award
      of Options or Shares under the Plan.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(d) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Committee shall
      determine, from time to time, which Eligible Individuals (as defined and
      detailed in paragraph 4, below) shall be granted Options under the Plan,
      the timing of such Grants, the terms thereof (including any restrictions
      on the Shares), and the number of Shares subject to such Options.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(e) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to paragraph
      13(b) below, the Committee may amend the terms of any outstanding Option
      Granted under this Plan, provided however that the Exercise Price (as defined
      in paragraph 5 below) of an outstanding Option may not be amended, and further
      provided that any amendment which would adversely affect the Participant&#146;s
      rights under an outstanding Option shall not be made without the Participant&#146;s
      written consent. The Committee may, with the Participant&#146;s written
      consent, cancel any outstanding Options or accept any outstanding Option
      in exchange for a new Option.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="48"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD width="46" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(f)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to paragraph
      13(b) below, the Committee shall have the sole authority, in its absolute
      discretion, to adopt, amend, and rescind such rules and regulations as,
      in its opinion, may be advisable in the administration of the Plan; to construe
      and interpret the Plan, the rules and regulations, and the instruments evidencing
      Options Granted under the Plan; and to make all other determinations deemed
      necessary or advisable for the administration of the Plan. All decisions,
      determinations, and interpretations of the Committee shall be binding on
      all Participants.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD valign="top"></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>3. </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Shares Subject to the Plan</U></B></FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width="46" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The aggregate number
      of Shares available through the Grant of Options under the Plan (the &#147;Option
      Shares&#148; or &#147;Underlying Shares&#148;) shall be as provided for
      by the Board and approved by the Shareholders of the Company from time to
      time. The Option Shares shall be available through Service Options and/or
      Non-Employee Options.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=94><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>If an Option is surrendered
      (except surrender for the exercise into Shares) or for any other reason
      ceases to be exercisable in whole or in part, the Underlying Shares which
      were subject to such Option but as to which the Option had not been exercised
      shall continue to be available under the Plan.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>If there is any change
      in the Shares subject to the Plan, or the Shares subject to any Option Granted
      under the Plan, through merger, consolidation, reorganization, recapitalization,
      reincorporation share split, distribution of bonus shares, a rights offering,
      or other change in the corporate structure of the Company, appropriate adjustments
      shall be made by the Committee in order to preserve but not to increase
      the benefits to the individual, including adjustments to the aggregate number
      and kind of Shares subject to the Plan, and the number and kind of Shares
      and the Exercise Price, as defined in paragraph 5 below.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD valign="top"></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>4. </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Eligible Individuals</U></B></FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to paragraph
      2(c) above: (i) Employees shall be eligible to receive Service Options;
      and (ii) Non Employees shall be eligible to receive Non-Employee Options,
      as the Committee, in its discretion, shall designate from time to time.
      Notwithstanding this paragraph 4(a) all Grant of Options to Officers of
      any Israeli Company, shall be authorized and implemented only in accordance
      with the provisions of the Companies Law, as in effect from time to time.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Employees of the Company
      or an Affiliate who are subject to payment in Israel of tax on their income
      from the Company or an Affiliate (other than withholding tax), as the Committee,
      in its discretion shall determine, shall be defined for the purpose of the
      Plan as &#147;Israeli Employees&#148;. All other Employees of the Company
      or an Affiliate shall be defined for the purpose of the Plan as &#147;Non-Israeli
      Employees&#148;. Israeli Employees who Control the Company, or are otherwise
      not entitled to the benefits granted pursuant to Section 102, shall be defined
      for the purpose of the Plan as &#147;Controlling Employees&#148;.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD valign="top"></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>5. </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>The Option Price</U></B></FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><font size="2" face="Times New Roman, Times, serif">(a)</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The exercise price of
      the Shares covered by each Option (the &#147;<B>Exercise Price</B>&#148;)
      shall be as determined by the Committee; provided, however, that the Exercise
      Price of any Option Granted, shall not be less than eighty percent (80%)
      of the Stock Value at the time of issuance of such Options. The &#147;<B>Stock
      Value</B>&#148; at any time shall be equal to the then current Fair Market
      Value of the Shares. &nbsp;For purposes hereof, the &#147;<B>Fair Market
      Value</B>&#148; shall mean, as of any date, the last closing price, on Date
      of Grant, of the Shares in respect of which options Granted under the Plan
      may then be exercised on the NASDAQ National Market System (or, in the event
      that the National Market System is not the principal securities exchange
      on which the Shares are then traded, on such other principal securities
      exchange), or, in the event that no sales of the Shares took place on such
      date, the last closing price of the Shares on such principal securities
      exchange on the most recent prior date on which a sale of the Shares took
      place; provided, however, that if the Shares are not publicly traded on
      the date on which the Fair Market Value is to be determined, then the &#147;Fair
      Market Value&#148; shall mean the per share Fair Market Value of the Company
      as determined by the Board of Directors. &nbsp;If the Committee is unable
      to agree on the Fair Market Value, then the Fair Market Value shall be determined
      by an independent valuation expert satisfactory to the Committee. &nbsp;The
      Fair Market Value as determined by such independent valuation expert shall
      be conclusive. &nbsp;The Exercise Price of an Option shall be subject to
      adjustment to the extent provided in paragraph 3(b) above.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">(b)</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Options Granted to Employees
      subject to US Tax: at an Exercise Price which is not less than the &#147;fair
      market value&#148; (as described in Section 422 of the Internal Revenue
      Code of 1986 (the &#147;<B>Code</B>&#148;)) of the Shares on the grant date
      (110% of such fair market value in the case of an individual who owns more
      than 10% of the combined voting power of all classes of stock in the Company
      or an Affiliate (a &#147;<B>10% Stockholder</B>&#148;)).</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD valign="top"></TD>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>6. </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Grant of Options: Dividends and Voting Rights</U></B></FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD width="48" vAlign=top>&nbsp;</TD>
    <TD width="46" vAlign=top><font size="2" face="Times New Roman, Times, serif">(a)</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The effective date of
      the Grant of an Option (the &#147;<B>Date of Grant</B>&#148;) shall be the
      date specified by the Committee in its determination relating to the award
      of such Option. The Committee shall promptly give the Participant written
      notice (the &#147;<B>Notice of Grant</B>&#148;) of the Grant of an Option.
      The terms of such Notice of Grant shall be determined by the Committee,
      subject to the terms of the Plan.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="48" vAlign=top>&nbsp;</TD>
    <TD width="46" vAlign=top><font size="2" face="Times New Roman, Times, serif">(b)</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to the vesting
      provisions of paragraph 9(c), each Option may be exercised, in whole or
      in part, at any time during the period (the &#147;<B>Option Period</B>&#148;)
      set forth in the Notice of Grant. However, Underlying Shares derived from
      Options Granted under one of the Section 102 Trustee Tracks, may not be
      sold or transferred from the Trustee (as hereinafter defined) before the
      end of the applicable Holding Period as defined in Section 102 and paragraph
      7 of this Plan. Options not exercised during the Option Period shall terminate
      upon the expiration thereof.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="48" vAlign=top>&nbsp;</TD>
    <TD width="46" vAlign=top><font size="2" face="Times New Roman, Times, serif">(c)</font></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To the extent that any
      dividend is payable on the Shares under applicable law, or the Articles
      of Association of the Company, all Underlying Shares (whether or not held
      in Trust) shall entitle beneficial Participants (&#147;Beneficial Employees&#148;)
      to receive dividends with respect thereto. For so long as such Shares are
      held in Trust, any and all dividends received by the Trustee on such Underlying
      Shares shall be paid by the Trustee to the Beneficial Employees thereof,
      subject to any required withholding of tax in respect thereof.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(e)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Except as provided in
      the immediately following sentence, in order to exercise an Option, the
      Participant shall complete and execute a notice of exercise (&#147;<B>Notice
      of Exercise</B>&#148;) in such form as may be prescribed by the Committee
      from time to time and shall deliver the same to the Company together with
      the purchase price of the Shares pursuant to paragraph 13 hereof. In the
      case of any Beneficial Employee who&#146;s Options are held by the Trustee,
      such Beneficial Employee shall instruct the Trustee to countersign such
      Notice of Exercise (the same having been signed by such Beneficial Employee)
      and to deliver the same to the Company.</FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR>

<TR>
    <TD valign="top"></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(f) </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Participant shall have no rights as a shareholder with respect to Shares under a Grant of Options
until a share certificate has been delivered to the Participant and is fully paid for. No adjustment
shall be made for dividends or other rights for which the record date is prior to the date such share
certificate is issued</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=48><strong><FONT face="Times New Roman, Times, Serif" size=2>7.</FONT></strong></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Trust Arrangement
      and Holding Period</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;
      </FONT></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Option Subject to
      Section 102:</U> Grants to Israeli Employees shall be made under the provisions
      of Section 102. Grants to Non-Israeli Employees or Controlling Employees
      shall not be made under Section 102. Anything herein to the contrary notwithstanding,
      the Date of Grant of Options to Israeli Employees, who are not Controlling
      Employees, and elected to have their Options issued under the Trustee Track
      of Section 102 that the Company has selected, shall not be earlier than
      the date at which the Option Plan was approved by the Israeli Tax Authorities.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;
      </FONT></TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Trustee Tax Tracks:</U>
      If the Company elects to Grant Options through (i) the Capital Gains Track
      Through a Trustee, or (ii) the Income Tax Track Through a Trustee then,
      in accordance with the requirements of Section 102, the Company shall appoint
      a Trustee who will hold in trust on behalf of each Participant the Options
      and the Underlying Shares issued upon exercise of such Options in trust
      on behalf of each Participant. The Company shall allocate such Options to
      the Trustee on behalf of such Israeli Employees in a letter specifying all
      details required under Section 102 Rules (&#147;<B>Allocation</B>&#148;).</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48>&nbsp;</TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
      holding period for the Options will be as follows (&#147;<B>Holding Period</B>&#148;):</FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=94>&nbsp;</TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The Capital Gains Tax Track Through a Trustee</I> &#150; if the Company elects to Allocate the Options according to the provisions of this track, then
the Holding Period will be 24 months from the end of the tax year in which the Options were Allocated
to the Trustee on behalf of the Participant, or such shorter period as may be approved by the Israeli
Tax Authorities.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR>

<TR>
    <TD width=94>&nbsp;</TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Income Tax Track Through a Trustee</I> &#150; if the Company elects to Allocate Options according to the provisions of this track, then the
Holding Period will be 12 months from the end of the tax year in which the Options were Allocated
to the Trustee on behalf of the Participant, or such shorter period as may be approved by the Israeli
Tax Authorities.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=94>&nbsp;</TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to Section 102, Israeli Employees shall not be able to receive from the Trustee, nor shall
they be able to sell or dispose of Underlying Shares before the end of the applicable Holding Period.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR>

<TR>
<TD width=94>&nbsp;</TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In the event of a distribution of rights, including an issuance of bonus shares, in connection with
Options originally Granted (the &#147;Additional Rights&#148;), all such Additional Rights shall
be Allocated and/or issued to the Trustee for the benefit of Israeli Employees, and shall be held
by the Trustee for the remainder of the Holding Period applicable to the Options originally Allocated.
Such Additional Rights shall be treated in accordance with the provisions of the applicable Tax Track.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD width="1148"><FONT face="Times New Roman, Times, Serif" size=2><U>Income
      Tax Track Without a Trustee</U>: &nbsp;If the Company elects to Allocate
      Options according to the provisions of this track, then the Options will
      not be subject to a Holding Period.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=41 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(d)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Track
      Selection:</U>&nbsp;&nbsp;The Company, in its sole discretion, shall elect
      under which (and if to Allocate Options under one) of the above three Tracks,
      Allocations to Israeli Employees shall be made.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Concurrent Conditions:
      </U> The Holding Period, if any, is in addition to the vesting period as
      specified in paragraph 9 (c) of the Plan. The Holding Period and vesting
      period may run concurrently, but neither is a substitute for the other,
      and each are independent terms and conditions for Options Granted.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(f)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Trust Agreement:</U></FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(i)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The terms and conditions
      applicable to the Trust relating to the Trustee Tax Track selected by the
      Company, as appropriate, shall be set forth in an agreement signed by the
      Company and the Trustee (the &#147;Trust Agreement&#148;).</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(ii)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company shall cause
      the Trustee (subject to the vesting provisions of paragraph 9(c) hereof)
      to exercise the Options by countersigning and delivering to the Company
      a Notice of Exercise, upon receipt of written instructions from the Beneficial
      Employee thereof, provided the Beneficial Employee has made appropriate
      arrangements for the payment of the Exercise Price of the Shares issuable
      upon such exercise.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(iii)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Subject to paragraph
      9(a) of this Plan, Options and/or Underlying Shares held by the Trustee
      shall continue to be held by the Trustee, on behalf of the Beneficial Employee
      at least until the end of the later of the (a) applicable Holding Period
      and (b) Vesting Period&nbsp;&nbsp;(&#147;<B>Release Date</B>&#148;). At
      any time after the Release Date and upon the receipt of a written request
      of any Beneficial Employee, the Trustee shall release from the Trust the
      Underlying Shares, by executing and delivering to the Company such instrument(s)
      as the Company may require, giving due notice of such release to such Beneficial
      Employee, provided, however, that the Trustee shall not so release any such
      Shares to such Beneficial Employee unless the latter, prior to, or concurrently
      with, such release, provides the Trustee with evidence, satisfactory in
      form and substance to the Trustee, that all taxes, if any, required to be
      paid upon such release have, in fact, been paid.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=96></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(iv)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Alternatively, from
      and after the Release Date, upon the written instructions of the Beneficial
      Employee to sell any Shares issued upon exercise of Options, the Trustee
      shall take such steps as may be required to effect such sale and shall transfer
      such Shares to the purchaser concurrently with the receipt, or after having
      made suitable arrangements to secure the payment of the proceeds of the
      purchase price in such transaction. The Trustee shall withhold from such
      proceeds any and all taxes required to be paid in respect of such sale,
      shall remit the amount so withheld to the appropriate tax authorities and
      shall pay the balance thereof directly to the Beneficial Employee, reporting
      to such Beneficial Employee and to the Company the amount so withheld and
      paid to said tax authorities.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(g)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Option Subject to
      the Trustee Tax Track without a Trustee:</U> &nbsp;If the Company determines
      to Allocate Options subject to a Trustee Tax Track without a Trustee, the
      Company shall Allocate all Options Granted under the Plan to Israeli Employees
      (and a copy of the Notice of Grant shall be given) to a trustee designated
      by the Board (who may be the Trustee). The Trustee shall hold each such
      Option in trust (the &#147;<B>Trust</B>&#148;) for the Beneficial Employee.
      No Options shall be released from the Trust until the vesting of such Option
      pursuant to paragraph 9(c) hereof (the &#147;<B>Vesting Date</B>&#148;).
      From and after the Vesting Date, upon the written request of any Beneficial
      Employee, the Trustee shall release from the Trust the Options Allocated
      and exercise them on behalf of such Beneficial Employee, by executing and
      delivering to the Company such instrument(s) as the Company may require,
      giving due notice of such release to such Beneficial Employee, provided,
      however, that the Trustee shall not so release and exercise any such Options
      on behalf of the Beneficial Employee unless the latter, prior to, or concurrently
      with, such release and exercise, provides the Trustee with evidence, satisfactory
      in form and substance to the Trustee, that all taxes and/or compulsory payments,
      if any, required to be paid upon such release and exercise have, in fact,
      been paid.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=96>&nbsp;</TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>If prior to the exercise of any and/or all of the Options Allocated under this Tax Track, such Israeli
Employee ceases to be an employee, director, or Officer of the Company or Affiliate, the Israeli
Employee shall deposit with the Company or Affiliate a guarantee or other security as required by
law, in order to ensure the payment of applicable taxes upon the exercise of such Options.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>8.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Option Subject to Section 3(i)</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All Options Granted
      under the Plan to Controlling Employees shall be Granted&nbsp;&nbsp;(and
      a copy of the Notice of Grant shall be given) under Section 3(i) to the
      Income Tax Ordinance. The Company shall Allocate the Options to a trustee
      designated by the Board (who may be the Trustee). The Trustee shall hold
      each such Option in trust (the &#147;Trust&#148;) for the Beneficial Controlling
      Employee. No Options shall be released from the Trust until the vesting
      of such Option pursuant to paragraph 9(c) hereof (the &#147;Release Date&#148;).
      From and after the Release Date, upon the written request of any Beneficial
      Controlling Employee, the Trustee shall release from the Trust the Allocated
      Options and exercise them on behalf of such Beneficial Employee, by executing
      and delivering to the Company such instrument(s) as the Company may require,
      giving due notice of such release to such Beneficial Controlling Employee,
      provided, however, that the Trustee shall not so release and exercise any
      such Options on behalf of the Beneficial Controlling Employee unless the
      latter, prior to, or concurrently with, such release and exercise, provides
      the Trustee with evidence, satisfactory in form and substance to the Trustee,
      that all taxes and/or compulsory payments, if any, required to be paid upon
      such release and exercise have, in fact, been paid.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>9.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Options Granted
      to Non-Israeli Employees</U>:</B></FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;
      </FONT></TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All Options Granted
      under the Plan to Non Israeli Employees shall be Granted&nbsp;&nbsp;(and
      a copy of the Notice of Grant shall be given) subject to all applicable
      laws, rules and regulations, whether of Belgium, Hong Kong or of the United
      States of America, or of any other country or state having jurisdiction
      over the Company and the Participant. The Company shall Allocate the Options
      to a trustee designated by the Board (who may be the Trustee). The Trustee
      shall hold each such Option in trust (the &#147;Trust&#148;) for the Non
      Israeli Employee. No Options shall be released from the Trust until the
      vesting of such Option pursuant to Section 10 hereof (the &#147;<B>Release
      Date</B>&#148;). From and after the Release Date, upon the written request
      of any Non Israeli Employee, the Trustee shall release from the Trust the
      Allocated Options and exercise them on behalf of such Non Israeli Employee,
      by executing and delivering to the Company such instrument(s) as the Company
      may require, giving due notice of such release to such Non Israeli Employee,
      provided, however, that the Trustee shall not so release and exercise any
      such Options on behalf of the Non Israeli Employee unless the latter, prior
      to, or concurrently with, such release and exercise, provides the Trustee
      with evidence, satisfactory in form and substance to the Trustee, that all
      taxes and/or compulsory payments, if any, required to be paid upon such
      release and exercise have, in fact, been paid.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Options
      Granted subject to this Plan to Employees subject to payment in the US of
      tax on their income from the Company or an Affiliate are intended to be
      &#147;incentive stock option&#148; as described in Section 422 of the Code
      (&#147;<B>ISOs</B>&#148;). &nbsp;To the extent some or all of the Options
      subject to a certain Grant exceed the $100,000 rule of Code Section 422(d),
      the certain Option Grant or the lesser excess part will be treated as a
      nonqualified stock option under the United States tax law. Notwithstanding
      any inconsistent or contrary provision of this Plan, if an Option Grant
      has not expired on the relevant date as provided for in section 10 below,
      the Options shall cease to be treated as ISOs 91 days after the Participant
      ceases to be a common law employee of the Company or an Affiliate corporation
      as defined in Code Sections 424(e) and 424(f)) (a &#147;<B>Common</B> <B>Law</B>
      <B>Employee</B>&#148;), unless the Participant ceases to be a Common Law
      Employee by reason of death or disability (as defined in code Section 22(e)(3)),
      in which case the term &#147;1 year and 1 day&#148; shall replace the term
      &#147;91 days&#148; in this clause above.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>10.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <B><U>Terms and Conditions of Options</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD width=48></TD>
    <TD vAlign=top width=26><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Committee shall determine
      the term of each Option Granted under the Plan; <U>provided</U>, <U>however</U>,
      that the term of an Option shall not be for more than ten (10) years.</FONT></TD>
  </TR>
  </Table>

<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=26><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Upon termination of
      employment (regardless of whether or not termination is by the employee
      or employer, due to death or disability), all unvested Options shall lapse,
      and within three (3) months from such termination all vested but not-exercised
      Options shall lapse.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=26><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Upon termination of
      the service contract with a Participant, which is not employed by the Company
      or an Affiliate, all unvested Options shall lapse, and within three months
      from such termination all vested but not exercised Options shall lapse.
      In the event that the termination is the result of a material breach of
      the service contract by the Participant, all unvested and vested but not
      exercised Options shall lapse immediately.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=26><FONT face="Times New Roman, Times, Serif" size=2>(d)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Upon termination of
      employment by employer for cause (as defined hereunder), all unvested and
      vested but not exercised Options shall lapse immediately.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Cause shall mean, henceforth
      and hereinafter, with respect to both Employees and Service Providers (i)
      conviction of any felony involving moral turpitude or affecting the Company;
      (ii) embezzlement of funds of the Company or its subsidiaries or its affiliates;
      (iii) any breach of the Participants fiduciary duties or duties of care
      of the Company or serious breach of trust, including without limitation
      disclosure of confidential information of the Company or its subsidiaries;
      (iv) engaging in business competitive with the business of the Company;
      and (v) any conduct (other than conduct in good faith) reasonably determined
      by the Board of Directors to be materially detrimental to the Company or
      its subsidiaries.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All Granted Service
      Options shall vest over a three or four- year period as detailed in the
      Notice of Grant. One-third of such Options will vest after the first or
      second anniversary of the Date of Grant, the second third will vest after
      the second or third anniversary of the Date of Grant, and the remaining
      Options will vest after the third or fourth anniversary of the Date of Grant.
      Notwithstanding the foregoing and subject to paragraph 2(f) above, the Committee
      may determine different vesting schedules for Service Options. Non-Employee
      Options shall vest at the discretion of the Committee.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(f)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding the
      aforesaid, if the Participant ceases to be a full-time Employee of the Company
      or any of its Affiliates and becomes a part-time Employee, such Options
      (to the extent exercisable at the time the Participant ceases to be a full-time
      Employee) shall be exercisable for a period of six (6) months following
      such cessation of the full-time employment, and shall thereafter terminate.
      All Options that are not vested at the time of cessation of the full-time
      employment shall <I>ipso facto</I> expire and be of no legal effect.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(g)
      </FONT></TD>
    <TD valign="top"><font face="Times New Roman, Times, Serif" size=2>If a Participant should
      retire(as such term is defined by the Committee at its sole and absolute
      discretion), he shall, subject to the approval of the Committee, continue
      to enjoy such rights, if any, under the Plan and on such terms and conditions,
      with such limitations and subject to such requirements as the Committee
      in its discretion may determine.</font></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-10-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="48"></TD>
    <TD vAlign=top width=26><FONT face="Times New Roman, Times, Serif" size=2>(h)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding the
      foregoing provisions of Section&nbsp;10, the Committee may provide, either
      at the time an Option is granted or thereafter, that such Option may be
      exercised after the periods provided for in Section&nbsp;9 above, but in
      no event beyond the Option Period.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(i) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Company or any of
      its Affiliates are not obligated by the Plan or by a Grant of Options to
      continue the Participant&#146;s employment or service engagement.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>12.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Use of Proceeds</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Cash proceeds realized
      from the exercise Options Granted under the Plan shall constitute general
      funds of the Company.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>13.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Amendment, Suspension,
      or Termination of the Plan</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="48"></TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Board may at any
      time amend, extend, suspend, or terminate the Plan as it deems advisable;
      provided that such amendment, extension, suspension, or termination complies
      with all applicable legal requirements.</FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR>

<TR>
<TD valign="top"></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything
      herein to the contrary, the Board shall in no event amend the Plan in the
      following respects without the consent of shareholders then sufficient to
      approve the Plan in the first instance:</FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">

<TR>
<TD width=94></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, Serif" size=2>(i) </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To increase the maximum number Shares subject to Options issued under the Plan; or</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR>

<TR>
<TD width=94></TD>
<TD vAlign=top width=47><FONT face="Times New Roman, Times, Serif" size=2>(ii) </FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To change the designation or class of persons eligible to receive Options under the Plan.</FONT></TD></TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="48"></TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>No Option may be Granted
      under the Plan during any suspension of, or after the termination of, the
      Plan, and no amendment, suspension, or termination of the Plan, shall without
      the affected individual&#146;s consent, alter or impair any rights or obligations
      under any Option previously Granted under the Plan.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Plan shall terminate
      with respect to the Grant of Options on &shy;&shy;&shy;August 31, 2008 unless
      previously terminated or extended by the Board pursuant to this paragraph
      11.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>12.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Assignability</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>No Option Granted pursuant
      to this Plan shall, whether fully paid or not, shall be assignable, transferable
      or given as collateral or any right with respect to them given to any third
      party whatsoever, and during the Participant&#146;s lifetime, each and all
      of the Participant&#146;s rights to purchase Option Shares hereunder shall
      be exercisable only by him or her or by his or her legal guardian, and neither
      the Option nor any right hereunder shall be transferable by Participant
      by operation of law or otherwise other than by will or the laws of descent
      and distribution. Any such action made directly or oblique, for an immediate
      validation or for a future one, shall be void.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-11-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>13.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Payment Upon Exercise
      of Options</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Payment of the Exercise
      Price upon exercise of any Option Granted under this Plan shall be made
      in cash in such currency as the Committee shall specify in the applicable
      Share Option Agreement; provided, however that, subject to applicable Israeli
      laws (including, without limitation, currency control laws), the Committee,
      in its sole discretion, may permit a Participant to pay the Exercise Price
      in whole or in part (i) by delivery on a form prescribed by the Committee
      of an irrevocable direction to a securities broker approved by the Committee
      to sell Shares and deliver all or a portion of the proceeds to the Company
      in payment for the Shares; (ii) by delivery of the Participant&#146;s promissory
      note with such recourse, interest, security, and redemption provisions as
      the Committee in its discretion determines appropriate; (iii) in any combination
      of the foregoing.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>14.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Restrictions on
      Transfer of Shares</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Shares acquired
      pursuant to the Plan shall be subject to such restrictions and agreements
      regarding sale, assignment, encumbrances, or other transfer as are in effect
      among the Shareholders of the Company at the time such Share is acquired,
      as well as to such other restrictions as the Committee shall deem advisable.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"><font face="Times New Roman, Times, Serif" size=2>15.&nbsp;</font></TD>
    <TD valign="top"><font face="Times New Roman, Times, Serif" size=2><b><u>Tax Matters</u></b></font></TD>
  </TR>
</TABLE>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All tax consequences
      under any applicable law which may arise from the Grant of an Option, from
      the exercise thereof, from the sale of Underlying Share by the Participant
      or from any other act of the Company and/of Affiliate or such Participant
      in connection with any of the foregoing shall be borne solely by such Participant,
      and such Participant shall indemnify the Company and each Affiliate of the
      Company, and hold them harmless, against and from any liability for any
      such tax or any penalty, interest or indexation thereon or thereof.</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Whenever an amount with
      respect to withholding tax relating to Options Granted to a Participant
      and/or Underlying Shares issued upon the exercise thereof is due from the
      Participant and/or the Company and/or an Affiliate, the Company and/or an
      Affiliate shall have the right to demand from a Participant such amount
      sufficient to satisfy any applicable withholding tax requirements related
      thereto, and whenever Shares or any other non-cash assets are to be delivered
      pursuant to the exercise of an Option, or transferred thereafter, the Company
      and/or an Affiliate shall have the right to require the Participant to remit
      to the Company and/or to the Affiliate, or to the Trustee an amount in cash
      sufficient to satisfy any applicable withholding tax requirements related
      thereto, and if such amount is not timely remitted, the Company and/or the
      Affiliate shall have the right to withhold or set-off (subject to Law) such
      Shares or any other non-cash assets pending payment by the Participant of
      such amounts.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-12-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Until all taxes have
      been paid in accordance with Rule 7 of the Section 102 rules, Options and/or
      Underlying Shares may not be sold, transferred, assigned, pledged, encumbered,
      or otherwise willfully hypothecated or disposed of, and no power of attorney
      or deed of transfer, whether for immediate or future use may be validly
      given. Notwithstanding the foregoing, the Options and/or Underlying Shares
      may be validly transferred in a transfer made by will or laws of descent,
      provided that the transferee thereof shall be subject to the provisions
      of Section 102 and the Section 102 Rules as would have been applicable to
      the deceased Participant were he or she to have survived<B>.</B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>16.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Miscellaneous</U></B></FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">

<TR>
    <TD width="48"></TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Currency Control Provisions:</U>
      &nbsp;&nbsp;For so long as, and to the extent that, the Israel Currency
      Control Law, 1978 (the &#147;Control Law&#148;) shall so require, the following
      provisions shall apply:</FONT></TD>
  </TR>
<TR>
<TD valign="top"></TD>
<TD valign="top"></TD>
<TD valign="top">&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=96 vAlign=top>&nbsp;</TD>
    <TD width=47 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(i)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Certificates, if any,
      representing Shares issued hereunder shall be delivered to a bank in Israel
      which is an authorized dealer in foreign currency (within the meaning of
      the Control Law) (&#147;Authorized Dealer&#148;) to hold the same for the
      benefit of the Participant pursuant to the terms of the Plan and any applicable
      Share Option Agreement, and in conformity with the applicable requirements
      of the Controller of Foreign Currency in the Bank of Israel;</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(ii) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>All payments of the
      purchase price shall be effected by the Participants through an Authorized
      Dealer; and</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(iii) </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The proceeds of any
      sale by the Participant (or by the Trustee at the discretion and on behalf
      of any Participant) of Shares which is effected in foreign currency shall
      be remitted to Israel, and deposited with an Authorized Dealer, immediately
      upon receipt thereof, and in all events not later than sixty (60) days after
      the date on which the certificate, if any, representing such Shares is received
      by the Trustee (on behalf of such Participant) for purposes of sale.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48 vAlign=top>&nbsp;</TD>
    <TD width=46 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Governing Law:</U>
      The Plan, and the Granting and exercise of the Options thereunder, and the
      Company&#146;s obligation to sell and deliver the Option Shares or cash
      under the Options, are subject to all applicable laws, rules and regulations,
      whether of Israel, Belgium, Hong Kong or of the United States of America,
      or of any other country or state having jurisdiction over the Company and
      the Participant, including the registration of the Option Shares under the
      United States Securities Act of 1933, and to such approvals by any governmental
      agencies or national securities exchanges as may be required.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-13-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>17.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Participant Undertakings</U></B></FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD valign="top"></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>If the Options shall
      be Granted to a Participant under one of the Section 102 Tax Tracks, then
      in the [Notice of Grant?] the Participant shall: (1) agree and acknowledge
      that he or she have received and read the Plan, and the Option Agreement
      and the Notice of Grant; (2) undertake all the provisions set forth in:
      Section 102 (including provisions regarding the applicable Tax Track under
      which the Options have been Granted), the 102 Rules, the Plan, the Notice
      of Grant and the Trust Agreement; and (3) subject to the provisions of Section
      102 and the Section 102 Rules, undertake not to sell or release the Underlying
      Shares from Trust before the end of the applicable Holding Period (if any).</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Agreement to Purchase
      for Investment</U>. &nbsp;The Shares represented by the Options Granted
      under the terms of the Plan are subject to registration and prospectus requirements
      of the United States Securities Act of 1933, as amended (&#147;<B>Unregistered</B>
      <B>Shares</B>&#148;). &nbsp;By acceptance of Options, the Participant agrees
      that a purchase of Unregistered Shares under such Options will not be made
      with a view to their distribution, as that term is used in the aforesaid
      Act, unless in the opinion of counsel to the Company such distribution is
      in compliance with or exempt from the said registration and prospectus requirements,
      and the Participant agrees, if required by the Board at the time of exercise,
      to sign a certificate to such effect at the time or times he exercises the
      Options in respect of Unregistered Shares. The Participant further acknowledges
      and understands that the Unregistered Shares purchased upon exercise of
      these Options must be held indefinitely unless they are subsequently registered
      under the United States Securities Act or an exemption from such registration
      is available. The Participant understands that the certificate evidencing
      the Unregistered Shares will be imprinted with a legend in substantially
      the following form:</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=96><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#147;The Shares represented
      by this Certificate have not been registered under the United States Securities
      Act of 1933. The Shares have been acquired for investment and may not be
      sold, transferred or assigned in the absence of an effective registration
      statement for these Shares under the United States Securities Act of 1933,
      or an opinion of NUR Macroprinters Ltd&#146;s counsel, that registration
      is not required under the said Act.&#148;</FONT></TD>
  </TR>
  <TR>
    <TD valign="top"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=48></TD>
    <TD vAlign=top width=46><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In the event Participant
      sells or otherwise disposes of Shares within one year of exercise or two
      years of Grant, Participant agrees to notify the Company in advance in writing
      of this action.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-14-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>20
<FILENAME>exhibit_4-17.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.17</B></U> </FONT> </P>




<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Bank HaPoalim Ltd.</U></B> </FONT>
</TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: August 7, 2003
</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear sir, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Workstation" -->
<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>re: </I><U><B>Our undertaking of
March 11, 2003 (hereafter: &#147;the undertaking&#148;)</B></U> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Further to our aforementioned
undertaking, and on the basis of what has been agreed between us, we are amending the
undertaking as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Paragraph 1 of the undertaking shall be amended such that the amount that we
               shall be entitled to borrow from non-banking institutions that appears in the
               last line of the paragraph shall be $&nbsp;4,000,000 (four million US dollars)
               instead of $&nbsp;3,000,000 (three million US dollars). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Paragraphs 3 (a) (1), (2) and (3) shall be cancelled and they shall be replaced
               by the following paragraphs: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
any time and as long as we have not repaid to you the aforesaid credit, we will maintain
the financial ratios set out below and as shall appear in our financial statements for
each quarter: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tangible
net worth&nbsp;&#151; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 3-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In each of the quarters of 2003&nbsp;&#151; not less than a sum of
          $&nbsp;7,000,000 (seven million US dollars) and not less than 7% of the whole
          balance sheet total. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 3-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In 2004&nbsp;&#151; not less than $&nbsp;9,500,000 (nine million and five
          hundred thousand US dollars) and not less than 10% of the whole balance sheet
          total. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 3-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In 2005&nbsp;&#151; not less than $&nbsp;15,500,000 (fifteen million and five
          hundred thousand US dollars) and not less than 16% of the whole balance sheet
          total. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
3 (b) shall be amended such that the EBITDA for the year 2003 shall be           as
follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    The second quarter shall not be less than a sum of $ -2,000,000 (minus two
                    million US dollars) cumulatively for the first two quarters. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    The third quarter shall not be less than a cumulative negative amount of $
                    1,600,000 (minus one million, six hundred thousand US dollars). </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    The fourth quarter shall not be less than a cumulative negative amount (for all
                    four quarters) of $ -200,000 (minus two hundred thousand US dollars). </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
for the aforesaid, there shall be no change whatsoever in the           undertaking.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Confirmation
of lawyer  </FONT></TD>
</TR>
</TABLE>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">I the undersigned, <U>Neta Block </U>, Adv., being the legal adviser of the company NUR Macroprinters Ltd., hereby
confirm that the authorized signatories of the company, Messrs. <U>David Amir </U>signed the above document
and I recognize their signature, and their signature binds the company. </FONT>
</P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Advocate <BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We the undersigned agree to the aforesaid: <BR><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Bank HaPoalim Ltd.<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>21
<FILENAME>exhibit_4-18.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.18</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: July 30, 2003 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Additional Amending Letter to the
Supplement to the General Terms for Opening a Credit Account in <BR>Foreign Currency </U><U>and
Israeli Currency dated February 11, 2002, and the Amending Appendix, dated <BR>March 12,
2003, to the Supplement to the aforesaid Terms
of Management </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Further to the General Terms for
Opening a Credit Account in Foreign Currency and Israel Currency dated June 13, 2000, and
further to the Supplement to the General Terms for Opening a Credit Account in Foreign
Currency and Israeli Currency dated February 11, 2002, and the Amending Letter dated March
24, 2002 (hereafter: &#147;the Supplement to the Terms of Management&#148;) and further to
the &#147;Amending Appendix to the Supplement to the General Terms for Opening a Credit
Account in Foreign Currency and Israeli Currency dated February 11, 2002&#148; which was
signed by us on March 12, 2003 (hereafter: &#147;the Amending Appendix&#148;), we declare
that in the Supplement to the Terms of Management and in the Amending Appendix the
following changes shall apply: <BR>The terms in this document shall have
the same meaning as they have in the Supplement to the Terms of Management and in the
Amending Appendix. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We declare that in the Supplement to
the Terms of Management the following changes shall apply. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
paragraph 3.3.2.2 to the Supplement to the Terms of Management the following
               changes shall apply:  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
paragraph beginning with the words: &#147;During 2003                they shall pay&#148; and
ending with the words &#147;250 thousand US dollars                each&#148; shall be
cancelled.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
paragraph beginning with the words: &#147;During 2004 they shall pay&#148; and ending
with the words &#147;500 thousand US dollars each&#148; shall be cancelled.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
paragraph beginning with the words: &#147;During 2005 they shall pay&#148; and ending
with the words &#147;which shall remain after all the aforesaid payments have been made&#148; shall
be cancelled.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Instead
  of the cancelled paragraphs, the following shall be written:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;Starting
at the end of the third quarter of 2003, the company shall pay the balance of long-term
credit in accordance with the table attached to this document and marked as Appendix A&#148;.
The dates of payment of the capital shall occur on each first of the month after the end
of each quarter.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
the removal of doubt, it is clarified that there will be no change to the dates of
interest payments.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In addition we declare that in the
Amending Appendix the following changes shall apply: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
4 of the Amending Appendix shall be amended as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
the line beginning with the words &#147;At every time in 2003&#148; instead of &#147;20%&#148; it
should say &#147;6%&#148; and instead of &#147;20 million US dollars&#148; it should say
&#147;4.8 million US dollars&#148;. <BR><BR>In the line beginning with the words &#147;At every
time in 2004&#148; instead of &#147;24%&#148; it should say &#147;10%&#148; and instead
of &#147;22 million US dollars&#148; it should say &#147;9.5 million US dollars&#148;.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
the line beginning with the words &#147;At every time in 2005&#148; instead of &#147;27%&#148; it
should say &#147;16%&#148; and instead of &#147;27 million US dollars&#148; it should say
&#147;15.5 million US dollars&#148;.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
5 of the Amending Appendix shall be amended as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the line beginning with the words: &#147;In the second quarter of 2003&#148;                    instead
of &#147;positive cumulative in a sum of 200 thousand dollars&#148; it
                    should read &#147;negative cumulative in a sum of 2,000 thousand US
                    dollars&#148;.  </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
the line beginning with the words: &#147;In the third quarter of 2003&#148; instead of
&#147;positive cumulative in a sum of 1,300 thousand US dollars&#148; it should read
&#147;negative cumulative in a sum of 1,600 thousand US dollars&#148;.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
the line beginning with the words: &#147;In the fourth quarter of 2003&#148; instead of
&#147;positive cumulative in a sum of 3.4 million US dollars&#148; it should read &#147;negative
cumulative in a sum of 200 thousand US dollars&#148;.  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the paragraph beginning with the words: &#147;In addition to the aforesaid
                    the company undertakes&#148;, the existing table shall be cancelled
and the                     following table shall replace it:  </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TD WIDTH=19% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;On date</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.06.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.09.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.05</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.06.05</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.09.05</FONT></TD>
     <TD WIDTH=9% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.06</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;The ratio</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 10</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the paragraph beginning with the words: &#147;The company also
                    undertakes&#133;&#148; the existing table shall be cancelled and the
following                     table shall replace it:  </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=200>
<TR VALIGN=Bottom>
     <TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Year</FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;2004</FONT></TD>
     <TD WIDTH=24% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;2005</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;The ratio</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 6.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 4.5</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the other Terms of Management and the Supplement to the Terms of Management
               and the Amending Appendix there shall be no change, except what is stated
in the                letter of the bank, dated July 30, 2003, with regard to the
interest and                commission rates for issuing this letter.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
addition to the aforesaid, the company agrees and undertakes as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Until
no later than August 30, 2003, the bank shall receive an option to buy 350,000 shares of
NUR Macroprinters Ltd. with a nominal value of NIS 1 each (hereafter: &#147;the shares&#148;).
The exercise price as defined in the option document dated February 12, 2002 (&#147;exercise
price&#148;) for the shares shall be equal to US&nbsp;$&nbsp;0.62 per share. The company
shall sign, until no later than September 30, 2003, a Warrant Agreement and the other
documents that will be required with regard to the aforesaid option.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
the removal of doubt, it is hereby clarified:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
aforementioned option is <U>in addition</U> to the existing options from
                    February 12, 2002, to purchase 50,000 shares for an exercise price of
                    US&nbsp;$&nbsp;5 per share, and <U>also</U> in addition to the
options that will                     be received in accordance with the Amending
Appendix dated March 12, 2003, for                     the purchase of 100,000 shares at
an exercise price of US&nbsp;$&nbsp;0.34 per                     share.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With
regard to what is stated in the options document dated February 12, 2002,
                    with regard to the cancellation of the option should the company pay $&nbsp;5
                    million in excess of the repayment schedule (hereafter: &#147;the
mechanism for                     canceling the option&#148;), we would like to clarify
as follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
repayment schedule to which the mechanism refers for canceling the option is
          the repayment schedule which existed on the date of signing the options
document           on February 12, 2002, and all the changes that have occurred thereto
          subsequently are irrelevant for the purpose of what is stated in the mechanism
          for canceling the option.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>What
is stated in the mechanism for canceling the option shall not apply with           regard
to granting the new option mentioned in the first part of clause 5 above           (the
option for the purchase of 350,000 shares).  </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We agree to the aforesaid:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Bank Leumi le Israel Ltd.<BR></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appendix A </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the &#147;Amending Letter to the
Supplement to the General Terms for Opening a Credit Account in Foreign Currency and
Israeli Currency dated February 11, 2002, and to the Amending Appendix dated March 12,
2003, to the aforesaid Supplement to the Terms of Management&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Updated Table of
Repayments of Capital &#151; July 2003 </FONT></H1>



















<TABLE BORDER="1" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In thousands of dollars</B> </FONT>
</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Repayment for quarter</B> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Total repayment of capital for<BR>
long-term credit</B> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 1/2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 2/2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 3/2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 4/2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 1/2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 2/2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 3/2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 4/2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 1/2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 2/2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 3/2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;Q 4/2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,050
</FONT></TD></TR>
</TABLE>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>22
<FILENAME>exhibit_4-19.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.19</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>July 30, 2003 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Israel Discount Bank Ltd. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sir, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>re: </I><U><B>Undertaking</B></U> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas we have received and/or we
are about to receive from you credit and other banking services and we have signed and/or
we will sign undertakings and guarantees as collateral for debts and liabilities of other
bodies to you; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wherefore we hereby undertake to you
that as long as we do not repay to you all our debts and liabilities to you, the following
shall apply: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The total of all our short-term credit at banks (including discounts, guarantees
          and balance-sheet and non-balance-sheet liabilities) shall not exceed
          $&nbsp;19,000,000 (nineteen million US dollars) of which short-term credit as
          aforesaid which shall be given to us or to our subsidiaries by banks abroad
          shall not exceed $&nbsp;1,600,000 (one million and six hundred thousand US
          dollars) and also discounts that shall not exceed $&nbsp;10,000,000 (ten million
          dollars). It is hereby clarified that we shall be entitled to borrow&nbsp;&#151;
          not from banks&nbsp;&#151; additional credit in excess of the aforesaid amount
          up to an amount of $&nbsp;4,000,000 (four million US dollars). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Upon repayment by us of any credit at any of the banks, we will repay to you
          simultaneously credit which you made available to us in an amount equal to the
          ratio between the amount that is paid to that bank and the amount of all our
          debts to that pay, multiplied by the total of all our debts and liabilities to
          you. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          At all times and as long as we have not repaid you the aforesaid credit we will
          maintain the financial ratios set out below as shall appear in our financial
          statements for each quarter: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tangible
net worth&nbsp;&#151; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
each of the quarters of 2003, this shall not be less than a sum of           $&nbsp;7,000,000
(seven million US dollars) and not less than 7% of the total of           the whole
balance sheet.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
each of the quarters of 2004, this shall not be less than a sum of           $&nbsp;9,500,000
(nine million and five hundred thousand US dollars) and not           less than 10% of
the total of the whole balance sheet.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3)  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
each of the quarters of 2005, this shall not be less than a sum of           $&nbsp;15,500,000
(fifteen million and five hundred thousand million US dollars)           and not less
than 16% of the total of the whole balance sheet.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
this purpose, &#147;tangible net worth&#148; means&nbsp;&#151; net worth from the audited
financial statements less deferred expenses, goodwill, patents, copyrights, etc., debtors
who are principal shareholders and/or affiliated companies, guarantees given as
collateral for the debts of principal shareholders and/or affiliated companies.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
we raise capital in any way, the aforesaid ratios shall be amended such that the amount
of capital raised shall be added to the amount of the tangible net worth.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
EBITDA shall not be less than the following:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
January
to June 2003 &#151; $&nbsp;-2,000,000 (minus two million US dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Januaryto
September 2003 &#151; $ -1,600,000 (minus one million and six hundred thousand US
dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
January
to December 2003 &#151; $ -200,000 (minus two hundred thousand US dollars). <BR><BR>In 2004 the
EBITDA in each quarter shall not be less than a sum of $&nbsp;1,750,000 (one million and
seven hundred and fifty thousand US dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In2005
the EBITDA in each quarter shall not be less than a sum of $&nbsp;2,500,000 (two and a
half million US dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>III.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
ratio between all the long-term (more than 12 months) debts and liabilities
                    of the company to the banking system and other financial institutions
(including                     abroad) together with the current maturities for the
long-term debts and                     liabilities and the annual EBITDA shall not
exceed 1:3.9 in 2004 and shall not                     exceed 1:2.3 in 2005.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IV.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
total of all the short-term credit that will be made available to us by you
                    and by third parties shall not exceed 70% of the total of all of our
debtors for                     a period of up to 180 days, less provisions.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
balance of our cash shall not be less, at the end of each quarter, than an
                    amount of $&nbsp;9,000,000 (nine million US dollars).  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VI.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We
will submit to you quarterly and annual financial statements in the format
                    and on the dates as required by the provisions of the law to which we
are                     subject, including under the provisions of the securities laws in
force in the                     United States of America.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
shall also submit to you within 45 days of the end of each quarter a report giving
details of our debts and liabilities to banks, the cash balance in the cash account, the
balance of inventory according to type, the balance of debtors according to amount and
the total of all sales, and also within 14 days of the end of each month a report giving
details of the total of all our debts and liabilities to banks and the cash balance in
the previous month. These reports shall be issued to you for each company separately,
i.e., for us and for each of our subsidiaries.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 2-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
aforesaid terms shall be interpreted in accordance with accepted accounting rules.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          All the collateral and/or guarantees that the company gave or will give to the
          bank and/or which were given and/or will be given to us by a third party for the
          company shall be used also as collateral for credit. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Without
derogating from the aforesaid, the floating charge that the company made in your favor
shall also serve as collateral for the credit. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
will give you, no later than September 30, 2003, an undertaking of each of the companies
NUR Asia Pacific Ltd, NUR Media Solution S.A., NUR Europe S.A. and NUR America, according
to which each of the companies shall give undertakings to the bank for various liabilities
concerning its assets, its property and its rights, and <I>inter alia</I> it shall
undertakes not to create a charge of any kind on its assets, property and right or any
part thereof, without the prior written consent of the bank. The language of the aforesaid
letter of undertaking is attached as Appendix A. In addition, the company shall produce,
by the aforesaid date, a resolution of the company from each of the subsidiaries to sign
the aforesaid letter of undertaking. <BR>The company shall also produce, until the aforesaid
date, a confirmation of a lawyer, who shall declare that he knows the law applicable in
the country where the relevant subsidiary was incorporated, with regard to the validity of
the aforesaid undertakings and the aforesaid resolutions under the law applying in the
country where the subsidiary was incorporated. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
company undertakes that until no later than September 30, 2003, the subsidiary NUR America
shall sign a perpetual guarantee for an unlimited amount in favor of the bank, as
collateral for all the debts and liabilities of the company to the bank, including a
signature on a company resolution confirmed by a lawyer for signing a guarantee as
aforesaid, all of which on terms and in the form that shall be required by the bank and to
its satisfaction. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Until September 30 2003 we will issue to you an option to buy 27,000 shares of
          ours at an exercise price of $&nbsp;0.60 (60 cents) per share. The option and
          the rights of registration for the shares, which shall arise from the conversion
          of the options, shall be regulated in a registration rights agreement, a copy of
          which has been given to us by you. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          We know that if we breach the aforesaid undertakings, you shall be entitled to
          adopt against us all the measures that you deem fit, including demanding the
          immediate repayment of all our debts and liabilities to you, and this shall be
          in addition to any other remedy and/or relief to which you are entitled under
          the various documents that we have signed and/or we will sign in your favor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          These undertakings of ours are irrevocable and we shall not be entitled to
          cancel them and/or to change them without receiving your prior written consent
          thereto. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The aforesaid is not intended to derogate from, but to add to, our other
          undertakings to you under various documents that we have signed and/or that we
          shall sign in your favor. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On the occasion of signing this document and as a condition for it coming into
          effect, the company shall pay a commission for the undertaking and preparation
          of documents in an amount of $&nbsp;10,000 (ten thousand US dollars), and this
          shall be in addition to the commissions involved in the management of its
          accounts and carrying out transactions. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Confirmation of lawyer</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I the undersigned,
<U>&nbsp;&nbsp;&nbsp;Simon Jafa&nbsp;&nbsp;&nbsp;</U>, Adv., being the legal adviser of
the company NUR Macroprinters Ltd., hereby confirm that the authorized signatories of the
company, Messrs. <U>&nbsp;&nbsp;&nbsp;David Amir and Hillel
Kremer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> signed the above
document in my presence, and their signature binds the company. </FONT></P>




<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Signature and Stamp<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>






<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We the undersigned agree to the aforesaid:<BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Israel Discount Bank Ltd.<BR>Business Division</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>23
<FILENAME>exhibit_4-20.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.20</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: <U>February 18, 2004</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Bank HaPoalim Ltd.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sir / Madam, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>re: </I><U><B>Undertaking</B></U> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Whereas:</B> we have received
and/or we are about to receive from you credit and other banking services and we have also
signed and/or will sign undertakings and guarantees as collateral for debts and
liabilities of other bodies to you: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>And whereas: </B>among our other
liabilities to you we have signed a credit framework letter dated February 10, 2002, and
also letters of undertaking signed March 11, 2003, and August 7, 2003 (hereafter:
<B>&#147;the letters of undertaking&#148;</B>); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>And whereas:</B> we are applying
to you with a request to amend the letters of undertaking as set out below; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wherefore we hereby undertake to you
that as long as we do not repay to you our debts and liabilities to you the following
shall apply: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Paragraph 2 (a) (2) of the letter of undertaking dated August 7, 2003, shall be
          cancelled and it shall be replaced by the following: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
every time whatsoever and as long as we have not repaid to you the aforesaid credit, we
will maintain the following financial ratios, as shall appear in our financial statements
for each quarter: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tangible
net worth&nbsp;&#151; </FONT></TD>
</TR>
</TABLE>
<BR>




<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
2.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
3.     <BR>
4.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></TD>
     <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In the first  quarter  of  2004--  not less than a sum of $ 500,000  (five  hundred  thousand  US<BR>
dollars).<BR>
In the second  quarter  of 2004-- not less than a sum of $ 700,000  (seven  hundred  thousand  US<BR>
dollars).<BR>
In the third quarter of 2004-- not less than a sum of $ 1,000,000 (one million US dollars).<BR>
In the  fourth  quarter  of 2004--  not less than a sum of $  1,300,000  (one  million  and three<BR>
hundred thousand US dollars).
</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Paragraph 3 of the letter of undertaking of August 7, 2003, shall be amended so
          that the EBITDA for 2004 shall be as follows: </FONT></TD>
          </TR>
          </TABLE>
          <BR>





<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">a.     <BR>
b.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
c.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
d.
</FONT></TD>
     <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The first quarter shall not be less than an amount of $ 800,000 (eight hundred thousand US dollars).<BR>
The second  quarter  shall not be less than a cumulative  amount of  $ 1,800,000  (one million and eight<BR>
hundred thousand US dollars).<BR>
The third  quarter  shall not be less than a cumulative  amount of  $ 3,600,000  (three  million and six<BR>
hundred thousand US dollars).<BR>
The fourth quarter shall not be less than a cumulative amount of $ 6,000,000 (six million US dollars).
</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
3(c) of the letter of undertaking dated March 11, 2003, shall be cancelled. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
3(d) of the letter of undertaking dated August 7, 2003, shall be amended as follows: </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
"Our
cash balance  shall not be less, at the end of each quarter,  than an amount of  $
6,000,000  (six million        US dollars)."  </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
e(2) of our letter concerning the credit framework dated February 2, 2002, shall be
cancelled. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except
for the aforesaid, there shall be no change whatsoever in the letters of undertaking. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Confirmation of lawyer</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I the undersigned,
<U>&nbsp;&nbsp;&nbsp;Doron Faibish&nbsp;&nbsp;&nbsp;</U>, Adv., being the legal adviser of
the company NUR Macroprinters Ltd., hereby confirm that the authorized signatories of the
company, Messrs. <U>&nbsp;&nbsp;&nbsp;David Amir and David Zeleman
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> signed the above
document and I recognize their signature, and their signature binds the company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Advocate <BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We the undersigned agree to the aforesaid:<BR><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Bank HaPoalim Ltd.<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>24
<FILENAME>exhibit_4-21.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.21</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: <U>February 18, 2004</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>AmendingLetter to the Supplement
to the General Terms for Opening a Credit Account in Foreign Currency and Israeli </U> <BR><U>Currency
dated February 11, 2002, and the Amending Appendix, dated March 12, 2003, to the
Supplement to the</U> <BR>
<U>aforesaid Terms of
Management </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Further to the General Terms for
Opening a Credit Account in Foreign Currency and Israel Currency dated June 13, 2000, and
further to the Supplement to the General Terms for Opening a Credit Account in Foreign
Currency and Israeli Currency dated February 11, 2002, and the Amending Letter dated March
24, 2002 (hereafter: &#147;the Supplement to the Terms of Management&#148;) and further to
the &#147;Amending Appendix to the Supplement to the General Terms for Opening a Credit
Account in Foreign Currency and Israeli Currency dated February 11, 2002&#148; which was
signed by us on March 12, 2003 (hereafter: &#147;the Amending Appendix&#148;) and the
additional amending letter dated July 30, 2003 (&#147;the Additional Amending
Letter&#148;), we declare that in the Supplement to the Terms of Management and in the
Amending Appendix and in the Additional Amending Letter the following changes shall apply: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The terms in this document shall have
the same meaning as they have in the Supplement to the Terms of Management, in the
Amending Appendix and in the Additional Amending Letter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
paragraph 4 of the Amending Agreement the following changes shall apply: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
line beginning with the words: &#147;At every time in 2004&#148; shall be replaced with
the line: &#147;In 2004, at the end of every quarter, no less than the following: first
quarter &#151;&nbsp;$&nbsp;500,000, second quarter&nbsp;&#151; $&nbsp;700,000, third
quarter&nbsp;&#151; $&nbsp;1,000,000, fourth quarter&nbsp;&#151; $&nbsp;1,300,000.&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
5 of the Amending Appendix shall be amended as follows: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
line beginning with the words &#147;In 2004&#148; shall be deleted and it           shall
be replaced by: &#147;In 2004, the cumulative EBITDA in each quarter shall           not
be less than the following amounts: first quarter           &#151;&nbsp;$&nbsp;800,000,
second quarter&nbsp;&#151; $&nbsp;1,800,000, third           quarter&nbsp;&#151; $&nbsp;3,600,000,
fourth quarter&nbsp;&#151;          $&nbsp;6,000,000.&#148;</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the paragraph beginning with the words: &#147;In addition to the aforesaid           the
company undertakes&#148;, the existing table shall be cancelled and the
          following table shall replace it: </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TD WIDTH=19% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;On date</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.06.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.09.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.12.04</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.05</FONT></TD>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.06.05</FONT></TD>
     <TD WIDTH=9% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.09.05</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;The ratio</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 58</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 52</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 42</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 32</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 11</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c. </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the paragraph beginning with the words: &#147;The company also           undertakes&#133;&#148; the
existing table shall be cancelled and the following           table shall replace it: </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=200>
<TR VALIGN=Bottom>
     <TD WIDTH=46% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Year</FONT></TD>
     <TD WIDTH=29% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;2004</FONT></TD>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;2005</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;The ratio</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 4.5</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
5.3 of the Supplement to the Terms of Management shall be deleted. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
paragraph 6 of the Amending Appendix &#147;6&#148; shall be written instead
                    of &#147;9&#148;. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
the other Terms of Management and the Supplement to the Terms of Management
                    and the Amending Appendix there shall be no change. </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This
document shall come into effect when we sign the accompanying document
                    concerning the liability for commission for this letter. </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We agree to the aforesaid:<BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Bank Leumi le Israel Ltd.<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">



</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>25
<FILENAME>exhibit_4-22.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40596\a40596.eep -->
     <!-- Control Number: 40596                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   20-F                                                             -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>20-F</TITLE>
</HEAD>
<BODY>
<!-- MARKER FORMAT-SHEET="Scotch Rule Top-TNR" FSL="Workstation" -->
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -5px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">

<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.22</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: February 22, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Israel Discount Bank Ltd.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Sir, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1-TNR" FSL="Workstation" -->
<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>re: </I><U><B>Undertaking</B></U> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Whereas we have received and/or we
are about to receive from you credit and other banking services and we have also signed
and/or will sign undertakings and guarantees as collateral for debts and liabilities of
other bodies to you: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas among our other
liabilities to you we have signed letters of undertaking dated July 30, 2003, and
September 18, 2003 (hereafter: <B>&#147;the letters of undertaking&#148;</B>); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>And whereas we are applying to you
with a request to amend the letters of undertaking as set out below; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wherefore we hereby undertake to you
that as long as we do not repay to you our debts and liabilities to you the following
shall apply: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Paragraph 3.I.2 of the letter of undertaking dated July 30, 2003, shall be
          cancelled and it shall be replaced by the following: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Tangible
net worth&nbsp;&#150;</FONT></TD>
</TR>
</TABLE>
<BR>





<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.     <BR>
2.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
3.     <BR>
4.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></TD>
     <TD WIDTH="90%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In the first quarter of 2004-- not less than a sum of $ 500,000 (five hundred thousand US dollars).<BR>
In the  second  quarter  of 2004--  not less  than a sum of $ 700,000  (seven  hundred  thousand  US<BR>
dollars).<BR>
In the third quarter of 2004-- not less than a sum of $ 1,000,000 (one million US dollars).<BR>
In the fourth  quarter of 2004-- not less than a sum of $ 1,300,000  (one million and three  hundred<BR>
thousand US dollars).
</FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
For
this purpose, &#147;tangible net worth&#148; means&nbsp;&#150; net work from the audited
financial statements less intangible property (including: deferred expenses, goodwill,
patents, copyrights, etc.). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Paragraph 3.II of the letter of undertaking of July 30, 2003, shall be amended
          so that the EBITDA for 2004 shall be as follows: </FONT></TD>
          </TR>
          </TABLE>
          <BR>












<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">a.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
b.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
c.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
d.     <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></TD>
     <TD WIDTH="90%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The  first  quarter  shall  not be less  than an amount of  $ 800,000  (eight  hundred  thousand  US<BR>
dollars).<BR>
The second  quarter  shall not be less than a  cumulative  amount of  $ 1,800,000  (one  million and<BR>
eight hundred thousand US dollars).<BR>
The third quarter shall not be less than a cumulative  amount of $ 3,600,000  (three million and six<BR>
hundred thousand US dollars).<BR>
The  fourth  quarter  shall not be less than a  cumulative  amount of  $ 6,000,000  (six  million US<BR>
dollars).
</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Paragraph 3.III of the letter of undertaking dated July 30, 2003, shall be
          cancelled, and it shall be replaced by the following: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
ratio between the cumulative EBITDA and the total of debts and liabilities to the banking
institutions and other financial institutions (including abroad) together with current
maturities for debts and liabilities and together with the bank debt of the NUR Europe
subsidiaries shall be: </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TD WIDTH=26% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;As of date</FONT></TD>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.03.04</FONT></TD>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.06.04</FONT></TD>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;30.09.04</FONT></TD>
     <TD WIDTH=14% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;31.12.04</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;The ratio</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 58</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1 : 26</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1: 13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;1: 8</FONT></TD></TR>
</TABLE>

<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
3.IV of the letter of undertaking dated July 30, 2003, shall be           cancelled.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Paragraph
3.V of the letter of undertaking dated July 30, 2003, shall be amended           as
follows:  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;Our
cash balance shall not be less, at the end of each quarter, than an amount of
$&nbsp;6,000,000 (six million US dollars).&#148; </FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Until March 31, 2004, we shall raise capital in a total amount of at least
          $&nbsp;3,000,000 (three million US dollars), from an investor group, by issuing
          shares. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          We have signed similar financial terms also with Bank HaPoalim and Bank Leumi, a
          copy of which has been delivered to you. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On the occasion of signing this document, and as a condition for it coming into
          force, we will pay you a commission for the undertaking and preparing documents
          in a sum of $&nbsp;7,500 (seven thousand and five hundred US dollars) and this
          shall be in addition to the commissions involved in managing the account and
          carrying out transactions. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Except for the aforesaid, there shall be no change whatsoever in the letters of
          undertaking. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely,<BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
NUR Macroprinters Ltd.<BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Confirmation of lawyer</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I the undersigned,
<U>&nbsp;&nbsp;&nbsp;Doron Faibish&nbsp;&nbsp;&nbsp;</U>, Adv., being the legal adviser of
the company NUR Macroprinters Ltd, hereby confirm that the authorized signatories of the
company, Messrs. <U>&nbsp;&nbsp;&nbsp;David Amir and David Zeleman
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> signed the above
document before me and their signature binds the company. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Advocate <BR></FONT></TD>
<TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We the undersigned agree to the aforesaid: <BR><BR>
<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Israel Discount Bank Ltd. <BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>


<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>26
<FILENAME>exhibit_4-30.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">

<p align="right"><strong><u><font size="2" face="Times New Roman, Times, serif">Exhibit
  4.30</font></u></strong></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>AGREEMENT</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;Drawn up and signed in Ramat Gan on May 11, 2003</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Between:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Nur Macroprinters Ltd.<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Public Company 52-003986-8<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  of 12 Abba Hillel Silver St., Lod<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (hereinafter: <B>&#147;NMP&#148;</B>)</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=50%>&nbsp;</TD>
    <TD width="50%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B><U>of
      the one part</U></B></FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>And:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Gera Eron<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  ID No. 050722719<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  of 50 Haseifan St., Tel-Mond<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (hereinafter: <B>&#147;Eron&#148;</B>)</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <B>Ogen Dialogix Ltd.<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Private Company 51-283374-0<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  of 50 Haseifan St., Tel-Mond<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (hereinafter: <B>&#147;Ogen&#148;</B>)<br>
  <br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (Eron and Ogen, jointly and severally, hereinafter: <B>&#147;Gera&#148;</B>)
  </FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=50%>&nbsp;</TD>
    <TD width="50%" align="right"><FONT face="Times New Roman, Times, Serif" size=2><B><U>of
      the second part</U></B></FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>And between:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Nur Pro Engineering Ltd.<br>
  </B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Private Company 51-283551-3<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  of 8-10 Hamelacha St., Rosh Ha&#146;ayin<br>
  </FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (hereinafter: <B>&#147;NPE&#148;</B>)</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width=50%>&nbsp;</TD>
    <TD width="50%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B><U>of
      the third part</U></B><B></B></FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=94><FONT face="Times New Roman, Times, Serif" size=2><B>Whereas&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NPE was
      established by in accordance with a founders&#146; agreement dated September
      30, 1999, drawn up between NMP and Gera (hereinafter: <B>&#147;the Founders&#146;
      Agreement&#148;</B>) and its shares are held in equal shares by NMP and
      Ogen;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=94><FONT face="Times New Roman, Times, Serif" size=2><strong>And
      whereas</strong></FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><FONT style="FONT-WEIGHT: normal">in
      accordance with provisions of the Founders&#146; Agreement, the Articles
      of Association of NPE (hereinafter:</FONT> <strong>&#147;the Articles&#148;</strong><FONT style="FONT-WEIGHT: normal">)
      and the composition and framework agreement for development work, of October
      4, 1999, both drawn up between NPE and NMP (hereinafter jointly:</FONT>
      <strong>&#147;the work agreements&#148;</strong><FONT style="FONT-WEIGHT: normal">),
      NPE has been engaged since its establishment in joint operations, as defined
      in the Founders&#146; Agreement, which include implementation for NMP of
      development and assembly work of printer series of NMP known as Blueboard
      and Fresco (hereinafter:</FONT> <strong>&#147;the existing printers&#148;</strong><FONT style="FONT-WEIGHT: normal">);</FONT></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=94><FONT face="Times New Roman, Times, Serif" size=2><B>And
      whereas</B></FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP and
      Gera wish to terminate the cooperation between them in the framework of
      NPE and/or in everything connected with the joint fields of operation, as
      defined in the Founders&#146; Agreement, including that NMP will purchase
      from Ogen all its NPE shares (hereinafter: <B>&#147;the purchased shares&#148;</B>);</FONT></TD>
  </TR>
</TABLE>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=94><FONT face="Times New Roman, Times, Serif" size=2><B>And
      whereas</B> &nbsp;&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>the parties
      wish to arrange and establish in writing the conditions, which will apply
      to the termination of the cooperation between them in the framework of NPE
      and the method in which they will divide its assets and liabilities between
      them, and the acquisition of the shares purchased by NMP from Ogen, and
      all as set forth in this Agreement.</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>Therefore,
  it is agreed, declared and conditioned between the parties as follows:</B></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>1.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Preamble
      and interpretation</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>1.1</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The appendices
      and the preamble to this Agreement are an integral part thereof.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>1.2</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The headings
      to the clauses in this Agreement are for convenience and referral only and
      should not be used to interpret the Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>1.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The appendices
      to this Agreement include:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 2.2(c)1 - the DGP machine;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 2.2(c)2 - NPE&#146;s customers, which will be included in Other
      Work;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 3.1 - the equipment purchased;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 4.2 - interim stages;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 4.3a - document of intentions;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 4.3b - diagram;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appendix
      5.4 - key of schedule of Ogen&#146;s payments to NPE during the interim
      period, including the division of employee costs;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 6.1(b) - required documentation;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 9.4 - Share certificate and the shares transfer deed;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 9.12 - debenture and form giving details of liens;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Appendix 9.13 &#150; cancellation letter</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Appendix
      10.1(c)&nbsp;- list of employees on the date of termination, including the
      mixed employees who will be transferred to Ogen.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>2.
      </FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2><B><U>Termination of
      joint operations</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>2.1</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>During the period starting
      from April 1, 2003 (hereinafter: <B>&#147;the Relevant Date&#148;</B>) and
      ending on March 31, 2004 (hereinafter: <B>&#147;the Termination Date&#148;</B>)
      the parties will terminate their joint operations in the framework of NPE,
      including NMP purchasing from Ogen the purchased shares, and all this as
      detailed in this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>2.2</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>Termination of the joint
      operations of the parties in the framework of NPE will be implemented in
      the following way:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Ogen
      will purchase the Purchased Equipment from NPE as detailed in clause 3 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On
      the Relevant Date until the Termination Date (hereinafter: <B>&#147;the
      Interim Period&#148;</B>) NPE will continue to carry out the production
      and assembly work of NMP printers (hereinafter jointly: <B>&#147;Nur Printers&#148;</B>),
      including the existing printers and the Tempo and Salsa printers and/or
      other printers that NMP will choose to transfer for execution in NPE&#146;s
      plant (hereinafter: <B>&#147;the New Printers&#148;</B>) as detailed in
      clause 4 below;</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-2-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period NPE will execute on behalf of Gera development, production
      and assembly work of the machine to print on safety glass known as DGP,
      as described in <U>Appendix 2.2(c)1</U> to this Agreement (hereinafter:
      <B>&#147;the DGP Machine&#148;</B>), and other development, production and
      assembly work for Gera and their customers, including for the customers
      detailed in <U>Appendix 2.2(c)2</U> who, up to the relevant date, were customers
      of NPE (hereinafter: <B>&#147;the Other Work&#148;</B>) as detailed in clause
      5 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period Ogen will continue to provided management services to
      NPE, and NPE will pay Ogen the debt for management services to which Ogen
      is entitled for the period prior to the Relevant Date (hereinafter: <B>&#147;the
      Management Fees Debt&#148;</B>) as detailed in clause 6 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NPE
      will repay the owners&#146; loan provided to it by Ogen (hereinafter: <B>&#147;the
      Owners&#146; Loan&#148;</B>) as detailed in clause 7 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(f)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NPE
      will distribute to Ogen and to NPE a dividend for its accumulated profits,
      as detailed in clause 8 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(g)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP
      will purchase the purchased shares from Ogen, as detailed in clause 9 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(h)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On
      the termination date the cooperation between the parties in the framework
      of NPE will terminate, as detailed in clause 10 below.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2> It is
      hereby clarified and agreed that the termination of the cooperation between
      the parties in the framework of NPE, as mentioned in clause 2.2 above and
      as detailed in this Agreement, will be performed with the purpose and intention
      that after the termination date, subject to full compliance with the obligations
      of payments by NPE and NMP to Gera, Gera will not have any additional right
      in NPE, NMP will continue to carry out the production and assembly work
      of the Nur printers (whether in the framework of NPE or in another framework),
      while Ogen (itself or through another company controlled by Eron) will continue
      to make use of the Purchased Equipment in order to perform the development
      and production work of the DGP Machine (hereinafter: <B>&#147;the DGP work&#148;</B>)
      and the Other Work.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>3.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Acquisition
      of the equipment</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>3.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The list
      attached to this Agreement as <U>Appendix 3.1</U> includes equipment and
      assets, which Ogen wishes to purchase from NPE including equipment and assets
      used for the production and assembly of the DGP Machine, including machinery,
      tooling, production software, etc (hereinafter jointly: <B>&#147;the Purchased
      Equipment&#148;</B>).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The Purchased
      Equipment does not include equipment and assets used and/or that will be
      used by NPE in the development, production and assembly of Nur printers,
      including machinery, tooling, spare parts, production software, etc. (hereinafter
      jointly: <B>&#147;the Printers Equipment&#148;</B>).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>3.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On the
      Relevant Date Ogen will purchase the Purchased Equipment and in consideration
      will pay NPE an amount of NIS 187,000 plus VAT as required by law (hereinafter:
      <B>&#147;the Equipment Consideration&#148;</B>). The Equipment Consideration
      will be paid to NPE in 4 equal monthly installments of NIS 46,750 each (linked
      to the consumer price index based on the known index on March 31, 2003 until
      the date of payment), and this as of the first month after the Relevant
      Date up to the end of the fourth month from the Relevant Date. The ownership
      and possession of the Purchased Equipment will be transferred to Ogen on
      completion of payment for the Equipment Consideration, free of any lien,
      charge, attachment, pledge or any other third party right.</FONT></TD>
  </TR>

</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-3-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>3.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2> Notwithstanding
      the provisions of clause 3.2 above, on receipt of the ownership of the Purchased
      Equipment Ogen will not remove the equipment from NPE&#146;s plant (hereinafter:
      <B>&#147;the Plant&#148;</B>), and up to the end of the Interim Period the
      purchased equipment will continue to be used by NPE in its operations, as
      mentioned in clause 4 below and, subject to reasonable wear and tear, NPE
      will maintain the purchased equipment and perform current maintenance work
      according to those safeguarding and maintenance procedures, which were applied
      by NPE regarding the printers equipment. Without derogating from the aforesaid
      it is hereby agreed that the Isuzu vehicle will be transferred for Gera&#146;s
      use together with the transfer of ownership of the purchased equipment.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>3.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Regarding
      the inventory of spare parts and parts owned by NPE the following provisions
      will apply:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      value of the inventory, which is in the framework of the preparation of
      the financial report (as defined in clause 8.1 below) will be reduced to
      0, and this not as agreed by Gera, will be transferred gratis to the ownership
      of Gera within 30 days from completing the said financial report;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      inventory known as the &#147;Gera Warehouse&#148; (which is not used for
      the production, assembly and maintenance of the Nur printers and whose value
      in NPE&#146;s books is 0) - will be divided equally (as far as possible)
      between Gera and NPE, and half of it will be transferred gratis to Gera;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      balance of the inventory (i.e. which is not the inventory as mentioned in
      sub-clauses (a) and/or (b) above) - will remain in the ownership of NPE.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Gera will
      be entitled to leave in NPE&#146;s warehouses the inventory, which will
      be transferred to his ownership (as mentioned in sub-clauses (a) and (b)
      above) provided that the inventory will be marked and separated in such
      a way that will facilitate a separation between it and NPE&#146;s inventory.
      NPE will not be entitled to payment for the storage of this inventory, while
      Gera will not be entitled to payment should NPE makes use, in coordination
      with Gera, of items included in the inventory.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Interim
      period</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.1</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2> During
      the interim period NPE will perform the following work:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      production and assembly of the Nur printers (hereinafter: <B>&#147;the Printers
      Work&#148;</B>);</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      DGP work and other work (hereinafter: <B>&#147;the Gera work&#148;</B>)
      subject to the conditions of clause 5 below.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In every
      case NPE will give preference to performing the Printers Work, provided
      that should the volume of the Printer Work together with the Gera Work exceed
      the production capacity of the plant, Ogen will be permitted to make use
      of up to 10% of the plant&#146;s production capacity.</FONT></TD>
  </TR>

</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-4-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period NPE will continue to carry out the printers work on the
      Existing Printers in accordance with the existing procedures on the relevant
      date, and will perform the Printer Work regarding the New Printers in accordance
      with procedures to be determined by agreement with NMP. The operations of
      NPE will change gradually during the Interim Period divided into four quarterly
      stages whose period and characteristics will be as detailed in <U>Appendix
      4.2</U> to this Agreement. NMP will act to recruit additional personnel
      and to prepare additional production areas for NPE, if and as far as these
      may be required in order to perform the Printers Work on the New Printers.
      It is hereby clarified that these provisions are not an undertaking by NMP
      to perform the Printers Work on the New Printers, fully or partly, in the
      framework of NPE.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.3
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period NPE will be managed by Eron in the framework of the management
      services (as defined in clause 6.1 below). The management of NPE by Eron
      during the Interim Period will be performed in accordance with the principles
      described in the document attached to this Agreement as <U>Appendix 4.3a</U>
      (hereinafter: <B>&#147;the Document of Intentions&#148;</B>). Should, due
      to his other activities, Eron not devote the attention required to manage
      NPE and as a result the objects mentioned in the document of intentions
      will not be achieved, subject to a joint decision of Eron and NMP, a manager
      will be appointed on behalf of NMP who will be responsible for all the printers
      work in NPE and Gera will assist him by providing full cooperation. It is
      agreed that the appointment of such a manager by NMP will be the sole remedy
      that NMP will have against Gera by virtue of the document of intentions.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The diagram
      attached to this Agreement as <U>Appendix 4.3b</U> includes the organizational
      structure of NPE as will exist after the end of 90 days from the relevant
      date, where the functions and employees marked in the diagram in yellow
      will engage in Nur printers (hereinafter: <B>&#147;the Printers Workers&#148;</B>),
      the functions and the employees marked in the diagram in white will engage
      in Gera work (hereinafter: <B>&#147;the Gera Workers&#148;</B>), while the
      functions and employees marked in blue will engage both in the printers
      work and in Gera work (hereinafter: <B>&#147;the mixed workers&#148;</B>).
      It is hereby clarified that the printer workers will be responsible for
      all purchase of materials, parts and equipment required in order to perform
      the Printers Work.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>At NMP&#146;s
      choice, the printers workers who on the relevant date are not engaged by
      NPE (including employees who will be recruited during the interim period
      for work in connection with Nur printers), will be engaged by NPE or directly
      by NMP, while those printers workers already engaged by NPE will continue
      to be engaged by NPE up to the end of the interim period. It is hereby clarified
      the printers workers who will be engaged directly by NMP, will be subject
      to NPE&#146;s organizational and management structure regarding everything
      connected with their work in the framework of the plant.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.5
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period Gera will do his best to support and assist in training
      the Printers Workers in the use and operation of the Printer Equipment and
      performing the Printer Work, and this so that after the Termination Date
      those employees will be able to perform the Printer Work without the participation
      and support of Gera workers. Moreover, during the Interim Period NMP will
      be entitled, subject to the prior agreement of Gera, to place its employees
      in the NPE engineering team and in such a case Gera will train those people
      in performing the various tasks, and this in order that those remaining
      in the engineering team at the end of the Interim Period will be able to
      continue completing the tasks.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-5-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>4.6
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Within
      90 days from the relevant date the employment of Gera workers by NPE will
      terminate, and including the payment by NPE to those employees of all their
      rights up to the date of termination of their employment. Gera workers who
      will be absorbed for work in the framework of Ogen will be entitled, at
      their choice, not to receive these payments but to keep the continuity of
      their rights, and this subject to signing suitable letters of release to
      NPE. Regarding employees who will so choose, NPE will transfer to Ogen the
      provisions made by NPE to their credit in the financial statements of NPE
      on March 31, 2003 plus funds accumulated to their credit from April 1, 2003
      up to the date of termination of their employment.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>At any
      time during the interim period NMP may, by giving prior notice of 30 days
      to NPE, terminate the employment by NPE of any of the engineering employees
      of NPE (excluding Ofer Shemesh) and in such a case the provisions of this
      clause 4.6 above with the necessary changes, will apply to the termination
      of employment of those employees in NPE and the possibility of their employment
      in Ogen. Notwithstanding the aforesaid, in the case of Tamara Priskel there
      will be need for 60 days prior notice.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Moreover,
      should a decline in the level of work of the printer work occur, NPE&#146;s
      personnel will be reduced by the dismissal of Printer Workers and Mixed
      Workers, in accordance with what is expected on the Termination Date between
      the Printer Workers and the additional Gera workers (as defined in clause
      10.1 below).</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period weekly coordination meetings will take place in NPE in
      order to supervise the regular work of NPE and the achievement of the various
      goals, in accordance with the division of the stages detailed in <U>Appendix
      4.2</U> to this Agreement. Moreover, bi-weekly technical meetings take place
      and bi-weekly meeting about financial matters. Suitable representatives
      of the parties will participate in the meetings, which will discuss and
      decide on matters on the agenda. At the end of every meeting proper minutes
      will be prepared and distributed, which will include the decisions taken.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>5.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Gera
      work</U></B></FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>5.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period NPE will carry out the Gera work subject to the conditions
      detailed in this clause 5.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>5.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Gera hereby
      declares and undertakes as follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      the development and production of the DGP machine and/or other work did
      not use and will not use commercial secrets or intellectual property rights
      (including patents, patent applications, copyrights and any industrial or
      intellectual ownership rights) of NMP and/or of any of its subsidiaries;
      and that the development and production of the DGP machine and/or implementation
      of the other work will not cause the violation of any of the obligations
      of Ogen or Eron under the agreements;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      the DGP machine, including any further development to it, will be used only
      for printing on safety glass and will not be adjusted to perform digital
      printing on substrates with a width exceeding 3 feet - 91.5 cm (hereinafter:
      <B>&#147;Wide Format&#148;</B>), or on other types of substrates.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-6-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      the other work will not include work connected, directly or indirectly,
      with the field of wide format digital printing and/or to factors engaged
      in the field of wide format digital printing.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      as of the relevant date the engagement with Gera work customers and with
      third parties required for Gera work, will be done by Gera and on his responsibility,
      where NPE will serve as a sub-contractor of Gera in order to perform the
      work and will not bear any responsibility for the Gera work.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Should
      NPE engage in an agreement with any third party regarding the DGP work,
      then up to the end of the interim period Gera will obtain the agreement
      of those third parties for the assignment of all rights and obligations
      of NPE under those agreements to Ogen or to any other factor on behalf of
      Gera, in such a way that after such assignment NPE will not bear any obligation
      regarding the NPE work.</FONT></TD>
  </TR>
  <TR>
    <TD height="20" vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(f)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      Gera will indemnify NPE for any expense or loss causes to NPE or to NMP
      relating to the Gera work on the DGP machine.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>That
      they know that the agreement of NMP to the acquisition of the DGP equipment
      by Ogen and the performance of the Gera work were given based on the above
      declarations and undertakings.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>5.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2> In this
      Agreement and/or in NMP&#146;s agreement to the acquisition of the DGP equipment
      by Ogen and performing the Gera work, there is no approval for Gera or anyone
      on his behalf, specifically or implied, to make use of any of the commercial
      secrets and/or intellectual property rights of NMP or of any of its subsidiaries,
      and they do not derogate from any right or contention that NMP will have
      against any of them regarding commercial secrets, intellectual property
      rights and the undertaking not to compete.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP&#146;s
      rights relating and connected with commercial secrets and/or intellectual
      property rights in the new printers, and Gera&#146;s undertakings to avoid
      making use of them, will be limited to commercial secrets and/or intellectual
      property rights (including patents, patent applications, copyrights and
      any industrial or intellectual property rights) of NMP and/or any of its
      subsidiaries.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>5.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In consideration
      for NPE&#146;s agreement to perform the Gera work in its framework and to
      perform actual Gera work, Ogen will pay NPE during the interim period as
      follows:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      cost of the Gera workers, including the cost of provisions for those workers,
      up to the date of termination or their employment as mentioned in clause
      4.6 above;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Participation
      in the cost of the mixed workers (according to the key attached as <U>Appendix
      5.4</U>), which will include the full social provisions for those mixed
      workers who will move to Ogen on the termination date mentioned in clause
      10.1(c) below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Payment
      for the use of equipment in the framework of the Gera work (according to
      the key attached as <U>Appendix 5.4</U>);</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Participation
      in the overhead costs of NPE (according to the key attached as <U>Appendix
      5.4</U>); and</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Refund
      of NPE expenses to third parties, should there be any&#146; regarding the
      performance of the Gera work.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-7-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The payments
      mentioned above will be paid by Ogen to NPE on a current monthly basis,
      plus VAT as required by law. It is hereby clarified that apart from these
      payments NPE will not be entitled to any additional payment for the Gera
      work.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>6.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Management
      services</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>6.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period Ogen will continue to provide management services to
      NPE through Eron (hereinafter: <B>&#147;the Management Services&#148;</B>),
      and this in accordance with the provisions of the Management Services Agreement
      of October 4, 1999 as updated in Appendix B to the Management Agreement
      (hereinafter: <B>&#147;the Management Agreement&#148;</B>), subject to the
      following conditions:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In
      the framework of the management services Ogen will assist and support the
      transfer and assimilation of management in performing the Printers Work
      to the Printer Workers and to anyone decided by Nur;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Within
      90 days from the relevant date NMP will deliver production files of the
      existing printers according to the form attached to this Agreement as <U>Appendix
      6.1(b)</U>;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>At
      the request of NMP it will assist, to the best of its ability, in absorbing
      the performance of the production and assembly work of the additional printers
      in the plant, including the preparation of production files of the additional
      printers;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      management fees to which Ogen is entitled under the management agreement
      will be updated and paid as mentioned in clause 6.2 below;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Gera
      will be entitled to engage in marketing, sale, development, production,
      assembly and performance of the Gera work.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>6.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>During
      the Interim Period the management fees to which Ogen is entitled from NPE
      will be updated to a monthly amount in NIS equal to 16,667 US dollarss (hereinafter:
      <B>&#147;the Current Management Fees&#148;</B>). The current management
      fees will be paid to Ogen at the end of every month from the relevant date
      plus VAT as required by law, in such a way that on the termination date
      Ogen will be paid the 12<SUP>th</SUP> and last payment of the current management
      fees. It is agreed that the current management fees also include the full
      consideration to which Ogen will be entitled for the use that NPE will make
      of the equipment purchased during the interim period.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>6.3
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In addition
      to the current management fees NPE owes Ogen the management fee debt, which
      includes on the relevant date NIS 597,000 for the fourth quarter of 2002,
      and an estimated amount of NIS 625,000 for the first quarter of 2003.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The management
      fee debt for the fourth quarter of 2002 will be paid to Ogen in two equal
      monthly installments of NIS 298,500 each (being linked to the consumer price
      index based on the known index of March 31, 2003 up to the date of payment
      plus VAT as required by law), and this at the end of the first month after
      the relevant date and at the end of the second month after the relevant
      date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The management
      fee debt for the first quarter of 2003 will be paid to Ogen in four monthly
      installments as follows:</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-8-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>- Two payments
      of NIS 60,000 each, a third payment of NIS 360,000 and a fourth payment
      of an estimated NIS 145,000 (adjusted according to the final amount of the
      management fees). These four payments will be paid (being linked to the
      consumer price index based on the known index method on March 31, 2003 up
      to the date of the payment plus VAT as required by law), and this as of
      the end of the first month after the relevant date up to the end of the
      fourth month from the relevant date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>6.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Apart from
      the Current Management Fees and the payment for the Management Fee Debt
      Ogen will not be entitled to any additional payment (including by way of
      refund of expenses) for the management services that it will provide up
      to the relevant date and up to the end of the interim period.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>7.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Shareholders
      loan</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>7.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NPE will
      pay to Ogen the shareholders loan whose balance on the relevant date is
      193,160 US dollars, and this in three monthly installments where each installment
      will be equal to a third of the principal of the shareholders loan, plus
      linkage differences and interest accumulated from the date of providing
      the loan and until the date of repayment (and plus VAT on the linkage differences
      and interest). The first installment of the shareholders loan will be paid
      at the end of the first month after the relevant date and up to the third
      month after the relevant date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>8.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Distribution
      of dividend</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>8.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Up to 90
      days from the Relevant Date NPE will prepare an audited financial statement
      as of March 31, 2003, which will include full provisions including for all
      the rights of NPE employees, the management fee debt, and the rights due
      to NMP for the period up to the relevant date and the reduction of inventory
      as mentioned clause 3.4 (hereinafter: <B>&#147;the Financial Statement&#148;</B>).
      In the framework of the Financial Statements an amortization will be included
      for the decline in value of the improvements to the plant&#146;s rented
      premises according to the rules applying to NPE&#146;s financial statements
      for 2002 and there will be no general amortization of the improvements to
      the rented premises.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>8.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Immediately
      after completing the Financial Statements NPE will distribute to Ogen and
      to NMP a dividend in amount equal to the accumulated profits of NPE according
      to the financial statement (hereinafter: <B>&#147;the dividend&#148;</B>).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>8.3
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The amount
      of the dividend will be paid by NPE to Ogen and to NMP in three monthly
      installments in equal amounts of 36%, 36% and 28% of the amount of the dividend
      respectively (being linked to the consumer price index according to the
      basic index known on March 31, 2003 until the date of payment), and this
      as of the end of the fourth month after relevant date up to the end of the
      sixth month from the relevant date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>8.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Apart from
      its share in the dividend Ogen will not be entitled to any payment or other
      assets for the profits of NPE including for the period after the relevant
      date.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-9-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><B><U>Acquisition
      of the purchased shares</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.1
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP will
      purchase from Ogen the purchased shares and Ogen will sell to NMP the purchased
      shares and all this subject to the provisions of this clause 9.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.2
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Gera hereby
      declares and confirms that from the relevant date up to the date of the
      transfer of ownership to NMP, Ogen is the owner of all the rights in the
      purchased shares and that the purchased shares are and will be free of any
      pledge, charge, attachment, lien or any other right in favor of any third
      party.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.3
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In consideration
      for the purchased shares NMP will pay Ogen an amount equal to 850,000 US
      dollars (hereinafter: <B>&#147;the Shares Consideration&#148;</B>) divided
      into 8 monthly installments, where the first installment will be of 20,000
      US dollars, the second installment will be of 50,000 US dollars while the
      balance of the 6 installments will be of 130,000 US dollars each. The first
      payment of the shares consideration will be paid to Ogen at the end of the
      fifth month after the relevant date and the eighth and last payment will
      be paid on the termination date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.4
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On the
      relevant date Ogen will deliver to Adv. Itzhak Behar (hereinafter: <B>&#147;the
      Trustee&#148;</B>) a certificate for the purchased shares prepared in the
      name of Ogen (hereinafter: <B>&#147;the Share Certificate&#148;</B>), and
      this together with share transfer deed prepared in blank for the purchased
      shares (hereinafter: <B>&#147;the Deed&#148;</B>). The wording of the Share
      Certificate and the Deed is attached to this Agreement as <U>Appendix 9.4</U>.
      The Trustee will hold the Share Certificate and the Deed up to the date
      of their transfer, as mentioned in clause 9.7 below.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.5
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding
      the provisions of clause 9.1 above the ownership of the purchased shares
      to NMP will be transferred to NMP on the later of the following dates:</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Date
      of termination; or</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      date where Ogen will be paid the full amount of the Shares Consideration,
      and the Current Management Fees, the Management Fee Debt, the repayment
      of the shareholders loan and the dividend to which Gera is entitled under
      this Agreement (hereinafter jointly: <B>&#147;the Payments&#148;</B>).</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>It is hereby
      clarified that the transfer of ownership in the purchased shares to NMP
      will be subject only to making full payments and that this transfer will
      not be carried out prior to the Termination Date.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.6
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On payment
      to Ogen of the full amount of the payments Ogen and NMP will deliver a certificate
      of this to the Trustee (hereinafter: <B>&#147;the Certificate of Payment&#148;</B>).
      The parties will not prevent delivering the certificates of payment to the
      Trustee unless any of the payments was not fully made (and provided that
      also in the event of a dispute, which is not significant, regarding the
      method of calculation of the payments whose amounts have not yet been finally
      determined in this Agreement, this will not prevent the parties from delivering
      the certificate of payment to the Trustee).</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-10-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE  cellSpacing="0" cellPadding="0" border="0">
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.7
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On the
      submission of the certificate of payment by one of the parties, the Trustee
      will hand over a copy of the certificate to the other party. Within 7 days
      from the date of receiving the certificate of payment by the Trustee, the
      other party will deliver its certificate of payment or, alternatively, will
      deliver a notice which will detail the amounts of payments, which according
      to it, have not yet been paid. In such a case the first party will be entitled
      to deliver to the Trustee, within 7 additional days, documents (which will
      include for this purpose a bank document or other proof) that prove performance
      of actual payment of the said payments.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.8
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The parties
      hereby instruct the Trustee, with an irrevocable instruction, that on receipt
      of the certificates of payments signed by the two parties, but in any case
      not earlier than the date of termination, the Trustee will fill the details
      of NMP on the deed and deliver the deed and the share certificate to anyone
      on behalf of NMP.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Should
      only one of the parties deliver to the Trustee a certificate of payment
      while the other party delivers a notice regarding missing payments, then
      upon the receipt of the documents for the missing payments from the first
      party (as mentioned in clause 9.7 above), the Trustee will deliver a copy
      of the documents to the other party. In such a case the Trustee will complete
      and deliver the deed and the share certificate only after 7 business days
      from the date in which he received these documents. On transfer of the deed
      and the share certificate to NMP the trustee&#146;s trusteeship will terminate.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.9
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On receipt
      of the share certificate and the deed, NMP will act to transfer the ownership
      registered in the purchased shares in its name and at the same time Eron
      and Benzi Bezalel will resign from the Board of Directors of NPE and Gera
      will no longer have any rights in the purchased shares.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.10&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To avoid
      doubt it is hereby clarified that should NMP choose to advance and complete
      the payments prior to the date of termination, this will not require (unless
      otherwise agreed by Gera) bringing forward the transfer of the deed and
      the share certificate to NMP. Moreover, should the Trustee not deliver to
      NMP the deed and the share certificate, this will not deny the right of
      NMP to receive ownership of the purchased shares.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.11</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>It is also
      clarified and agreed that the completion of transfer of the purchased shares
      to NMP is subject only to making the payments and that their transfer for
      NMP will be performed only after the termination date. Accordingly, should
      prior or after the termination date a dispute break out between the parties
      connected directly to the making the payments, or in the event of a dispute,
      which is not significant regarding the method of calculation of the payments
      whose amounts have not yet been finally determined in this Agreement (hereinafter:
      <B>&#147;the other dispute&#148;</B>), the other dispute, or any proceeding
      to be opened between the parties regarding it, will not cancel or delay
      the right of NMP to receive the purchased shares and, notwithstanding the
      other dispute, the transfer of the purchased shares to NMP will be completed,
      and accordingly the parties will deliver to the trustee the certificate
      of payment and the trustee will deliver to NMP the deed and the share certificate.
      The parties hereby waive any relief which is likely to be due to them regarding
      the other dispute, which will prevent the transfer of the purchased shares
      to NMP.</FONT></TD>
  </TR>

</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-11-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.12</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To secure
      the right of NMP to receive the purchased shares in accordance with the
      provisions of this Agreement, Ogen will create a first charge on its rights
      in the purchased shares in favor of NMP and this in accordance with the
      terms of the debenture and the form of details of the charges attached to
      this Agreement as <U>Appendix 9.12</U> (hereinafter: <B>&#147;Pledge on
      the Shares&#148;</B>). The pledge on the shares will be created and registered
      with the Registrar of Companies immediately after signing this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.13&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Concurrently
      with creating the pledge on the shares NMP will deposit with the trustee
      an irrevocable letter to the Registrar of Companies, which confirms the
      agreement of NMP to remove the pledge on the shares (hereinafter: <B>&#147;the
      Cancellation Letter&#148;</B>).</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>9.14</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In the
      event that the consideration for the shares will not be paid to Ogen in
      due time and fully as defined in this Agreement (hereinafter: <B>&#147;Violation
      of the Obligation to Purchase the Shares&#148;</B>) Ogen and only it will
      be entitled to act as follows:</FONT></TD>
  </TR>
  <TR>
    <TD width="37"></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Ogen
      only (and not NMP) will have the right to cancel the part of this Agreement,
      which relates to the sale of Ogen&#146;s shares in the Company (hereinafter:
      <B>&#147;Cancellation of the Sale of Shares&#148;</B>). The cancellation
      of the sale of shares will be performed by giving written notice to NMP
      and to the Trustee detailing the amounts of the consideration for the shares,
      which Ogen contends have not yet been paid. The right of Ogen to cancel
      the sale of shares will be due to it only in the event of non-performance
      by NMP or NPE of over 60 days in making any of the shares consideration
      payments.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Together
      with delivering Ogen&#146;s notice on cancellation of the sale of shares
      Ogen will deposit with the Trustee, for NMP, the amounts of consideration
      of the shares already received, linked to the rate of exchange of the dollar
      at that time (hereinafter: <B>&#147;the amounts returned&#148;</B>).</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP
      is entitled to delivery to the Trustee, within 7 business days from receiving
      notice of cancellation of the sale of shares, documents (that for this purpose
      include a bank document, or other proof), which prove the performance and
      actual payment of the amounts lacking for the shares consideration.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>If
      up to the end of 7 days NMP will not delivery to the Trustee such documents,
      the Trustee give to the representative of Ogen the cancellation letter and
      at the same time the trustee will transfer to NMP the amounts returned.
      It is hereby clarified that apart from the repayment of the amounts returned
      through the Trustee, Gera will not be required to refund any of the other
      payments paid to him under this agreement as a condition for receiving the
      cancellation letter from the trustee.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On
      receipt of the cancellation letter Ogen will be entitled to cancel the pledge
      on the shares registered with the Registrar of Companies.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(f)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In
      the event of Cancellation of the Sale of Shares, the principals of the business
      arrangement the parties have been following prior to the execution of this
      Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="2" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      right of Ogen to cancel the sale of shares, as mentioned above, will not
      derogate from Ogen&#146;s right to demand enforcement of the sale of the
      shares purchased by NMP in accordance with the provisions of this Agreement.
      Moreover, the removal of the pledge on the shares and/or the repayment of
      the amount of the share consideration to NMP will not derogate from the
      rights or contentions that the parties will have by law.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-12-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>10.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><strong><u>Termination
      date</u></strong></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>10.1&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On the
      termination date:</FONT></TD>
  </TR>
</TABLE>

<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Ogen
      will take the purchased equipment out of the plant and all the other equipment
      used for Gera work.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Ogen
      will pay NPE the balance of amounts to which NPE is entitled under clause
      5.4 above and this up to the termination date.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The
      mixed employees detailed in the list attached to this Agreement as <U>Appe</U>
      ndix 10.1(c) and who on the termination date were not yet NPE employees
      (hereinafter: <B>&#147;the additional Gera employees&#148;</B>) will discontinue
      being NPE employees. NPE and Gera will do their best in order to ensure
      that any of the printer employees who at that time will remain as NPE employees,
      will remain as NPE employees or be transferred to NMP (at NMP&#146;s discretion)
      and NMP and NPE will do their best to ensure that any of the additional
      Gera employees who at that time will remain as NPE employees, will be absorbed
      as Ogen employees. In the framework of the aforesaid, for a period of not
      less than a year from the termination date NPE and NMP will avoid employing
      the additional Gera employees and Gera will avoid employing the printer
      employees. On the termination date NPE will pay the additional Gera employees
      all their rights up to the date of termination of their employment. The
      additional Gera employees who will be absorbed into work in the framework
      of Ogen will be entitled, at their choice, not to receive these payments
      but to maintain continuity of their rights, and this subject to signature
      on relative release letters to NPE. Regarding employees who so choose, NPE
      will transfer to Ogen the provisions made for them by NPE in the financial
      statements of NPE on March 31, 2003 plus funds accumulated to their credit
      as of April 1, 2003 up to the date of termination of their employment as
      mentioned in clause 5.4(b) above.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(d)</FONT></TD>
    <TD align="left" valign="top"><font size="2" face="Times New Roman, Times, serif">The balance of NPE&#146;s liability
      regarding the Gera work will be assigned and transferred from NPE to Ogen
      or to anyone on its behalf.</font></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Without
      derogating from the aforesaid, on the termination date Gera will take every
      action required in order to ensure that on the termination date NPE will
      discontinue performing the Gera work and from that date onward NPE will
      not bear any expense or liability regarding the Gera work.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>10.2&nbsp;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>60 days
      prior to the date of termination Ogen will be entitled to transfer to its
      ownership the ISO approval given to NPE. Up to the date of termination and
      thereafter Gera will assist, to the best of its ability, NPE or NMP to obtain
      an alternative ISO approval for the printers work.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-13-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>10.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>On the
      termination date the Founders&#146; Agreement, the labor agreement and the
      Management Agreement (hereinafter jointly: <B>&#147;the Agreements&#148;</B>)
      will expire and from that date on none of the parties will have any right
      or undertaking under and/or in connection with the agreements. The parties
      hereby confirm, to each other, that subject to performance of the undertakings
      of the parties under this Agreement they do not have and will not have any
      claims or contentions regarding any of the agreement and/or their rights
      as shareholders in NPE, and that the fulfillment of the said undertakings
      will be a discharge of all their rights under the agreements and/or as shareholders
      in NPE. It is hereby clarified that the aforesaid does not derogate from
      the liabilities and rights of the parties under any of the agreements, which
      according to their terms will continue to bind also after termination.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>11.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><strong><u>Assignment
      of rights and liabilities</U></strong></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>11.1</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Gera will
      not be entitled to assign its rights and liabilities under this Agreement
      but will be entitled to assign to another company fully owned and controlled
      by Eron, the rights of Ogen under this Agreement and to purchase and receive
      the purchased equipment, to perform the Gera work, to take in the Gera employees
      and to receive the ISO approval. It is hereby clarified and agreed that
      such assignment will not derogate from any of the obligations of Gera under
      this Agreement and that as a result of the assignment the assignee company
      will be liable, jointly and severally, to all of Gera obligations under
      this Agreement. The assignment will be effected by giving written notice
      to NMP and NPE in the framework of which the assignee company will agree
      to the application of the provisions of this Agreement to it, provided that
      it will not be liable to NMP for any obligations under this Agreement, which
      do not relate to the rights assigned to it as mentioned above. Apart from
      the aforesaid Gera will not be entitled to assign its rights or obligations
      under this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>11.2</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP will
      not be entitled to assign its rights and obligations under this Agreement
      unless to another company, which is fully owned and controlled by NMP or
      to a third party in the framework of a sale or transfer to that third party
      of the operations of NMP in the field of the Nur printers. The assignment
      will be effected by giving written notice to Gera and to NPE in the framework
      of which the assignee third party will agree to accept all NMP&#146;s obligations
      under this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.
      </FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2><strong><u>Payments</u></strong></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.1</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The amounts
      stated in this Agreement in US dollars will be paid in accordance with the
      representative rate of the US dollar last published prior to the date of
      every payment.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.2</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP will
      provide NPE from its own sources or from other sources, which will be arranged
      by it and under its responsibility, the funds required and that will be
      required by NPE in order to make the make the payments, which NPE must make
      to Gera under this Agreement, and in the event of violation of this undertaking
      NMP will make these payments directly to Gera. Subject to providing funds
      by NMP as aforesaid, Gera will not take any action or omission, in the framework
      of managing NPE, which will prevent NPE from making the payments to Gera,
      fully and in due time.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-14-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP and
      NPE, jointly and severally, will not be entitled to set off from the amounts
      of payments to Gera, amounts which any of them claim that it is entitled
      to receive from Gera (apart from payments and expenses whose payment Gera
      undertakes regarding the purchased equipment and in connection with the
      Gera work, as mentioned in clause 5 above), and they waive to Gera the right
      of setting off they have under law regarding these amounts. It is hereby
      clarified that apart from waiving the right of set off as mentioned, the
      aforesaid is in no way a waiver of any right or contention that NPE and
      NMP may have.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.4</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Payments
      whose due date has arrived in accordance with this Agreement, and which
      are due prior to the date of signature of the parties on this Agreement,
      will be paid within 3 business days from the date of such signature.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>12.5</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In every
      case of a delay in making any of the payments included in this Agreement
      exceeding 5 business days, the amount in arrears will bear interest at the
      arrears interest rate for non-approved credit with Bank Leumi Le&#146;Israel
      B.M. and this as of the date from the original payment until the date of
      actual payment.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><b><u>Miscellaneous</U></B></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.1</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The terms
      of this Agreement fully include what has been conditioned and agreed between
      the parties regarding termination of their joint operations in the framework
      of NPE. This Agreement should supercede, unless stated otherwise in this
      Agreement, all engagements, agreements, presentations and undertakings prior
      to signing this Agreement, which were prepared whether in writing or verbally.
      In any case of contradiction between the provisions of this Agreement and
      the provisions of such agreements, the provisions of this Agreement will
      apply, and in every case of a contradiction between the provisions of this
      Agreement and the provisions of the Articles, the provisions of this Agreement
      will apply and the parties will take every action required in order to amend
      the provisions of the Articles so that there will be no contradiction between
      them and the provisions of this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.2</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Every change
      and/or cancellation of one of the provisions of this Agreement will be done
      only in a written document, which will be signed by the two parties.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.3</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>In every
      case where any party will not make use of any right whatsoever given to
      it under this Agreement or under any law, this will not be considered as
      a waiver by that party of any right and it will be entitled to again demand
      its rights and the contention of delay or waiver will not assist the violating
      party.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.4</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The parties
      will take all additional steps, including signature on additional documents,
      required in order to implement and execute this Agreement in word and in
      spirit.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.5</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Each of
      the parties will bear the tax liabilities applying to it under the law in
      connection with this Agreement and, including NPE, will be entitled to deduct
      at source from any payment it is obligated to any of the parties, and this
      unless it receives an exemption from the aforesaid deduction at source.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-15-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.6</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>A notice
      sent by one of the parties to the other by registered mail will be seen
      as if received by the other party after 72 hours from the date of its dispatch.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>13.7</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>The addresses
      of the parties for the purposes of this Agreement are as detailed in the
      preamble to this Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>In witness whereof, the parties hereby sign:</B></FONT></P>
<TABLE width="600" border="0" align="center" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=50%><FONT face="Times New Roman, Times, Serif" size=2>_______________________&nbsp;</FONT></TD>
    <TD width="50%" align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_____________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nur
      Macroprinters Ltd. </FONT></TD>
    <TD align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Ogen
      Dialogics Ltd&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="right">&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT face="Times New Roman, Times, Serif" size=2>_______________________&nbsp;&nbsp;</FONT></TD>
    <TD align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_____________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nur
      Pro Engineering Ltd.</FONT></TD>
    <TD align="right"><FONT face="Times New Roman, Times, Serif" size=2>Gera Eron&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-16-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
<TD></TD>
<TD vAlign=top width=37></TD>
    <TD align="right"><FONT face="Times New Roman, Times, Serif" size=2><U>Appendix
      4.2</U></FONT></TD>
  </TR>
<TR>
<TD></TD>
<TD></TD>
<TD>&nbsp;</TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>Stages of the interim period</B></U></FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U><B>First
      stage</B></U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Duration
      of the stage</U> - second quarter 2003 (April 1, 2003 to June 30, 2003).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Definition
      of the stage</U> - period of preparations for the change.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Characteristics
      of the stage</U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Continuing
      work in the existing framework;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Preparing
      work procedures for the absorption and production of the Tempo series;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Preparations
      for absorbing Salsa;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Ofer
      Shemesh will assist in absorbing an engineer to Tempo and an engineer to
      Salsa.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Preparations
      for absorbing personnel from NMP and recruiting new employees for the production
      of printers for NMP - engineering, assembly, purchasing, warehouse;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Preparation of production areas for NMP printers;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Preparation
      of storage areas for NMP printers;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Preparation
      of office areas for employees for NMP: purchasing, production management,
      engineers;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Start of absorbing Tempo;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Absorption
      and completion of engineering material for the production of Salsa printers,
      including purchasing parts for pilot in Q3 for 5000/3200 printers - after
      prior coordination.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U><B>Second
      stage</B></U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Duration
      of the stage</u> - third quarter 2003 July 1, 2003 to September 30, 2003).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Definition
      of the stage</U> - implementing the change.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Characteristics
      of the stage</u></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Absorbing
      personnel from NMP and recruiting new employees for the production of NMP
      printers - purchasing, warehouse, engineering, assembly;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Absorbing
      NMP stores into NPE;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Continuing
      the absorption of Tempo and start of production of series;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Pilot
      of 3200/5000 Salsa Ultima;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Consolidation
      of warehouses under the responsibility of NMP&#146;s warehouse manager.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U><B>Third
      stage</B></U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Duration
      of the stage</u> - fourth quarter 2003 (October 1, 2003 to December 31,
      2003).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Definition
      of the stage</U> - extending the change.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Characteristics
      of the stage</u></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Start of production of Salsa series;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Start of production of Tempo series.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-17-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2><b>13.8</b></font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U><B> Fourth
      stage</B></U></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(a)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Duration
      of the stage</u> - first quarter 2004 (January 1, 2004 to March 31, 2004).</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(b)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><U>Definition
      of the stage</U> &#150; Backing up and organization of transfer of responsibility
      to NMP.</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD valign="top">&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>(c)
      </FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2><u>Characteristics
      of the stage</u></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Serial production of Salsa and Tempo;</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Backing up of all management factors including the plant manager;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Well-organized
      transfer of functions to NMP personnel or to NPE personnel who remain in
      the company;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Organizing
      the transfer of Ogen&#146;s operations to another production site.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-18-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<PAGE>
<br>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD></TD>
    <TD vAlign=top width=37></TD>
    <TD align="right"><FONT face="Times New Roman, Times, Serif" size=2><U>Appendix
      4.3(a)</U></FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><B>Document of Intentions &#150; management of NPE during the interim period</B></U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>The intention
  is that the management of NPE&#146;s operations during the interim period will
  be based on the following principles:
  </FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Single
      management without any duplications;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Applying
      the existing management concept of NPE during the entire transition period
      until its completion</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>NMP agrees to
  the above principles and to leaving the existing management structure in NPE
  (i.e. without the involvement of NMP in the daily management of NPE), subject
  to NPE achieving the goals mentioned below. NMP and Gera will act to the best
  of their ability to assist NPE in achieving its goals.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>NMP requires that
  during the interim period NPE will achieve three goals:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Transfer
      of the production line of the Nur Ultima HiQ printer by the end of July
      2003;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top width=37><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Performing
      of all the functions required (R&amp;D, purchasing, engineering and production)
      in order to reduce costs (COGS) of the Fresco printers up to 40% by the
      end of 2003;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>To establish
      an operating production line for the Tempo printers and to start a process
      of reducing costs.</FONT></TD>
  </TR>
</TABLE>
<p> <FONT face="Times New Roman, Times, Serif" size=2>These goals are in addition
  to the continued operation of the production lines in a full and professional
  manner, which include a professional and trained engineering team.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>In order to achieve these
  objects Gera, in the framework of managing NPE:</FONT></p>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="37" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2> <U>Absorbing the Ultima
      printers</U></FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Will act to absorb the Nur Ultima HiQ printer production line in NPE&#146;s
      plant (on the assumption that it will obtain full assistance from the relative
      factors in NMP), and subject to setting a timetable at the end of a short
      evaluation process that Gera will prepare regarding the transfer.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Will start to work with Eli Shalev and his team in order to obtain the information
      required and will have access to the printer installed in the NMP plant.
      Regarding additional needs connected with absorbing the Ultima, Gera will
      contact NMP, and when necessary directly the CEO of NMP.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Will
      appoint a team from among NPE employees who will be responsible for the
      Ultima absorption project, and he will prepare a work program for the project
      by April ___, 2003</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>NMP
      will appoint its representative to participate in the project</FONT></TD>
  </TR>
</TABLE>
<br>

<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD width="37" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#149;</FONT></TD>
    <TD><FONT face="Times New Roman, Times, Serif" size=2> <U>Reducing the Fresco
      costs</U></FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0"  cellSpacing="0">
  <TR>
    <TD vAlign=top width=37></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD  align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Will also take responsibility for reducing costs (COGS). It is clarified
      that Gera cannot undertake, at this stage, a reduction target.</FONT></TD>
  </TR>
  <TR>
    <TD width="37" vAlign=top></TD>
    <TD width="30" align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&#149;&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>
      Will appoint a team from among NPE employees who will work with the relevant
      people from NMP, and this in order to prepare a presentation, within a short
      time, which will describe all the potential cost reductions. This presentation
      will be examined by NMP and according to the decision of NMP and Gera, Gera
      will take the responsibility to reduce costs, their extent and timing.</FONT></TD>
  </TR>
</TABLE>
<p align="center"><font size="2" face="Times New Roman, Times, serif">-19-</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>27
<FILENAME>exhibit-8.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body>
<HR ALIGN=LEFT WIDTH=100%  SIZE=4 NOSHADE STYLE="margin-top: -2px">
<HR ALIGN=LEFT WIDTH=100%  SIZE=1 NOSHADE STYLE="margin-top: -10px">
<p align="right"><font size="2" face="Times New Roman, Times, serif"><strong><u>Exhibit
  8</u></strong></font></p>
<table width="650" border="0" align="center" cellpadding="0" cellspacing="0">
  <tr align="center">
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">LIST OF
      SUBSIDIARIES</font></td>
  </tr>
  <tr>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="432"><font size="2" face="Times New Roman, Times, serif">NAME OF
      SUBSIDIARY</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">PERCENT
      OWNED</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">DIRECTLY
      OR INDIRECTLY </font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">BY
      REGISTRANT</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<table width="650" border="0" align="center" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif"><u>Active</u></font></td>
  </tr>
  <tr>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="66%"><font size="2" face="Times New Roman, Times, serif">Encre
      Consumables B.V.</font></td>
    <td width="34%" align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR America, Inc.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Asia Pacific (Hong
      Kong) Ltd.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR DO Brazil Ltda.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Europe S.A.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Hungary Trading
      and Software Licensing Limited Liability Company</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Macroprinters
      (Shanghai) Ltd.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Media Solutions
      S.A.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">Salsa Digital Printers
      Ltd.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Japan Ltd.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">100%</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">NUR Pro Engineering
      Ltd.</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;50%</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>28
<FILENAME>exhibit_11.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<title>Untitled Document</title>

</head>

<body>
  <HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">


  <div align="left"><img src="logo.jpg" width="146" height="67"></div>

<div align="center"><font size="2" face="Times New Roman, Times, serif"><u><strong>NUR MACROPRINTERS LTD. </strong></u></font></div>

<p align="center"><strong><u><font size="2" face="Times New Roman, Times, serif">CODE
  OF ETHICS<br>
  FOR<br>
  SENIOR FINANCIAL OFFICERS</font></u></strong></p>
<p><font size="2" face="Times New Roman, Times, serif">This Code of Ethics applies
  to the Chief Executive Officer, Managing Director, President, General Manager,
  Chief Financial Officer, Vice President of Finance, Controller and any other
  person bearing the title of Vice President or higher in the Finance Department
  or any person holding a position in finance and who is reporting to Chief Executive
  Officer, Managing Director, President or General Manager (collectively, the
  &#147;<strong>Senior Financial Officers</strong>&#148;) of NUR Macroprinters
  Ltd. and its subsidiaries (collectively, the &#147;<strong>Company</strong>&#148;).
  Its purpose is to promote honest and ethical conduct and compliance with the
  law, particularly as related to the preparation and maintenance of the Company&#146;s
  financial records and the preparation of financial statements filed with or
  submitted to the shareholders or any government agency. The obligations of this
  Code of Ethics supplement, but do not replace, the Code of Business Conduct
  and Ethics applicable to all Company directors, officers and employees.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="4%"><font size="2"><font size="2" face="Times New Roman, Times, serif">1.
      </font></font></td>
    <td colspan="2"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers are expected to carry out their responsibilities honestly
      and with integrity, exercising at all times their best independent judgment.</font></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">2.
      </font></font></td>
    <td colspan="2"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers should avoid, situations in which their own interests
      conflict, or appear to conflict, with the interests of the Company. In any
      case in which a Senior Financial Officer finds himself with an actual or
      apparent material conflict of interest, he should promptly disclose it to
      the Company&#146;s Legal Department, who will review the transaction or relationship.
      If the Legal Department determines that a conflict does exist, it will refer
      the matter to the Audit Committee of the Board of Directors, which shall
      determine how the situation should be resolved. </font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">3.
      </font></font></td>
    <td colspan="2"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers are responsible for assuring full, fair, accurate, timely
      and understandable disclosure of relevant financial and other information
      to shareholders and investors. In particular, they are responsible for ensuring
      that the Company complies with all legal requirements governing disclosure
      of financial information and that financial press releases and other public
      communications relating to the Company&#146;s finances are full, fair, accurate,
      understandable and timely made. Among other things, Senior Financial Officers
      should:</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td width="4%" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">3.1.
      </font></font></td>
    <td width="92%"><font size="2"><font size="2" face="Times New Roman, Times, serif">Establish
      and maintain internal control over financial reporting and disclosure controls
      and procedures designed to assure that financial information is recorded,
      processed and transmitted to those responsible for preparing periodic reports
      and other public communications containing financial information so that
      they are full, fair, accurate, understandable and timely.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">3.2.
      </font></font></td>
    <td><font size="2"><font size="2" face="Times New Roman, Times, serif">Carefully
      review each periodic report for accuracy and completeness before it is submitted
      to the Board of Directors or any of its committees and before it is filed
      with any governmental agency, and carefully review each public communication
      containing financial information before it is released.</font></font></td>
  </tr>
</table>
<br>
<font size="2"> </font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR SIZE="5" NOSHADE  STYLE="margin-top: -2px"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<PAGE>
<br>
<font size="2"> </font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%" valign="top">&nbsp;</td>
    <td width="4%" valign="top"><font size="2"><font size="2"><font size="2" face="Times New Roman, Times, serif">3.3.
      </font></font><font size="2" face="Times New Roman, Times, serif"> </font></font></td>
    <td width="92%"><font size="2"><font size="2" face="Times New Roman, Times, serif">Promptly
      disclose to their superiors and to the Audit Committee of the Board of Directors
      and the Company&#146;s independent auditors, any material weaknesses in, or concerns
      regarding, the Company&#146;s disclosure controls or internal control over financial
      reporting. Such disclosure may be reported, at the anonymously at Senior
      Financial Officer&#146;s discretion, according to the Company&#146;s &#147;Whistle
      Blower Procedure&#148;.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">4.
      </font></font></td>
    <td colspan="2" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers should comply at all times with applicable governmental
      laws, rules and regulations.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">5.
      </font></font></td>
    <td colspan="2" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers should promptly bring to the attention of the Audit Committee:</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">5.1.
      </font></font></td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Any
      matters that could compromise the integrity of the Company&#146;s financial reports;</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">5.2.
      </font></font></td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Any
      disagreement with respect to any material accounting matter; and</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">5.3.
      </font></font></td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Any
      violation of this Code of Ethics or of any law or regulation related to
      the Company&#146;s business, operations or accounting or financial affairs.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">6.
      </font></font></td>
    <td colspan="2" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">The
      approval of the Board of Directors shall be required for amendment to this
      Code of Ethics.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">7.
      </font></font></td>
    <td colspan="2" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">Senior
      Financial Officers should recognize that a violation of the standards contained
      in this Code of Ethics will result in corrective action, including possible
      dismissal for cause.</font></font></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">While
      strict adherence to this Code of Ethics is required of all Senior Financial
      Officers, this document is not intended to be an exhaustive statement concerning
      matters of ethics. Senior Financial Officers are expected to apply the highest
      ethical standards in considering actions and decisions that are not directly
      addressed by this document.</font></font></td>
  </tr>
</table>

<p align="center"><font size="2" face="Times New Roman, Times, serif">***</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><div align="center"><font size="2" face="Times New Roman, Times, serif">2</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><HR SIZE="5" NOSHADE  STYLE="margin-top: -2px"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>29
<FILENAME>exhibit_13-1.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<title>Untitled Document</title>

</head>

<body>
  <HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">
<div align="right"><font size="2" face="Times New Roman, Times, serif">Exhibit
  13.1</font> </div>
<p align="center"><font size="2" face="Times New Roman, Times, serif"><br>
  Section 906 Certification<br>
  CERTIFICATION OF CHIEF EXECUTIVE OFFICER<br>
  PURSUANT TO 18 U.S.C. SECTION 1350 </font><font size="2"> </font><font size="2">
  </font></p>

<p><font size="2" face="Times New Roman, Times, serif"><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  connection with the accompanying Annual Report on Form 20-F of NUR Macroprinters
  Ltd. for the year ended December 31, 2003, the undersigned officer, being the
  Chief Executive Officer of NUR Macroprinters Ltd., hereby certifies pursuant
  to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
  Act of 2002, that:</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%">&nbsp;</td>
    <td width="4%" valign="top"><font size="2" face="Times New Roman, Times, serif">(1)</font></td>
    <td width="92%" valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">such
      Annual Report on Form 20-F for the year ended December 31, 2003 fully complies
      with the requirements of Section 13(a) or 15(d) of the Securities Exchange
      Act of 1934; and</font></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">(2)</font></td>
    <td valign="top"><font size="2"><font size="2" face="Times New Roman, Times, serif">the
      information contained in such Annual Report on Form 20-F for the year ended
      December 31, 2003 fairly presents, in all material respects, the financial
      condition and results of operations of NUR Macroprinters Ltd..</font></font></td>
  </tr>
</table>

<p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  written statement is being furnished to the Securities and Exchange Commission
  as an exhibit to such Form 20-F.</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">March
      30, 2004</font></td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%"><HR align="left" width="80%" SIZE="1" NOSHADE  STYLE="margin-top: -2px"></td>
    <td width="41%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><p><font size="2" face="Times New Roman, Times, serif">Date</font></p></td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">/s/ David
      </font><font size="2"><font size="2" face="Times New Roman, Times, serif">Amir</font></font></td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td width="8%"><HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"></td>
    <td width="43%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">David
      </font><font size="2"><font size="2" face="Times New Roman, Times, serif">Amir</font></font><font size="2" face="Times New Roman, Times, serif"><br>
      </font><font size="2"><font size="2" face="Times New Roman, Times, serif">Chief
      Executive Officer </font></font></td>
  </tr>
</table>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">

<p>&nbsp;</p>
<font size="2"></font>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>30
<FILENAME>exhibit_13-2.htm
<TEXT>
<html>
<head>
<title>SHARE PURCHASE AGREEMENT</title>

</head>
<body >

  <HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">
<div align="right"><font size="2" face="Times New Roman, Times, serif">Exhibit
  13.2</font> </div>
<p align=center><font size="2" face="Times New Roman, Times, serif">Section 906
  Certification<br>
  </font><font size="2" face="Times New Roman, Times, serif">CERTIFICATION OF
  CHIEF FINANCIAL OFFICER<br>
  </font><font size="2" face="Times New Roman, Times, serif">PURSUANT TO 18 U.S.C.
  SECTION 1350</font></p>

<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  connection with the accompanying Annual Report on Form 20-F of NUR Macroprinters
  Ltd. for the year ended December 31, 2003, the undersigned officer, being the
  Chief Financial Officer of NUR Macroprinters Ltd., hereby certifies pursuant
  to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
  Act of 2002, that:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%">&nbsp;</td>
    <td width="3%" valign="top"><font size="2" face="Times New Roman, Times, serif">(1)</font></td>
    <td width="93%" valign="top"><font size="2" face="Times New Roman, Times, serif">
      such Annual Report on Form 20-F for the year ended December 31, 2003 fully
      complies with the requirements of Section 13(a) or 15(d) of the Securities
      Exchange Act of 1934; and</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">(2)</font></td>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif"> the
      information contained in such Annual Report on Form 20-F for the year ended
      December 31, 2003 fairly presents, in all material respects, the financial
      condition and results of operations of NUR Macroprinters Ltd..</font></td>
  </tr>
</table>
<p><font size="2" face="Times New Roman, Times, serif">This written statement
    is being furnished to the Securities and Exchange Commission as an exhibit
    to such Form 20-F.</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">March
      30, 2004</font></td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%"><HR align="left" width="80%" SIZE="1" NOSHADE  STYLE="margin-top: -2px"></td>
    <td width="41%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><p><font size="2" face="Times New Roman, Times, serif">Date</font></p></td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">/s/ David
      Seligman</font></td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td width="8%"><HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"></td>
    <td width="43%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2">&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">David
      Seligman <br>
      Chief Financial Officer </font></td>
  </tr>
</table>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>31
<FILENAME>exhibit_14-1.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<title>Untitled Document</title>

</head>

<body>
  <HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">
<div align="right"><font size="2" face="Times New Roman, Times, serif">Exhibit
  14.1 </font><font size="2"> </font></div>

<p align="center"><strong><font size="2" face="Times New Roman, Times, serif">Consent
  of Independent Auditors</font></strong></p>
<p><font size="2" face="Times New Roman, Times, serif">We consent to the incorporation
  by reference in the Registration Statements (Form S-8 No. 333- 92491 and No.
  333-102288) filed with the Securities and Exchange Commission pertaining to
  the 1995 Israel stock option Plan, 1997 Stock Option Plan and 1998 Non-Employee
  Director Share Option Plan and pertaining to the 2000 Stock Option Plan of NUR
  Macroprinters Ltd., of our report dated March 30, 2004, with respect to the
  consolidated financial statements and schedules of NUR Macroprinters Ltd. included
  in this Annual Report (Form 20-F) for the year ended December 31, 2003.</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2"><font size="2" face="Times New Roman, Times, serif">Tel-Aviv,
      Israel </font><font size="2"><font size="2" face="Times New Roman, Times, serif"><br>
      March 30, 2004 <br>
      </font> </font><font size="2" face="Times New Roman, Times, serif"> </font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="56%">&nbsp;</td>
    <td width="4%"> <p><font size="2"></font></p></td>
    <td width="40%"><font size="2"><font size="2" face="Times New Roman, Times, serif">Yours
      truly,</font></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      KOST FORER &amp; GABBAY<br>
      &nbsp;A Member of Ernst &amp; Young Global </font></td>
  </tr>
</table>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">


<p>&nbsp;</p>

<p> <font size="2" face="Times New Roman, Times, serif"><br>
  </font></p>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>32
<FILENAME>exhibit_14-2.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<title>Untitled Document</title>

</head>

<body>
  <HR SIZE="4" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="1" NOSHADE  STYLE="margin-top: -10px">
<div align="right"><font size="2" face="Times New Roman, Times, serif">Exhibit
  14.2</font> </div>
<p align="center"><strong><font size="2" face="Times New Roman, Times, serif"><br>
  Consent of Independent Auditors </font></strong></p>

<p><font size="2" face="Times New Roman, Times, serif">We consent to the incorporation
  by reference in the Registration Statements (Form F-3 No. 333-47842 and No.
  333-92493), of our report dated March 30, 2004, with respect to the consolidated
  financial statements and schedules of NUR Macroprinters Ltd. included in this
  Annual Report (Form 20-F) for the year ended December 31, 2003.</font></p>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font size="2"><font size="2" face="Times New Roman, Times, serif">Tel-Aviv,
      Israel </font><font size="2"><font size="2" face="Times New Roman, Times, serif"><br>
      March 30, 2004 <br>
      </font> </font><font size="2" face="Times New Roman, Times, serif"> </font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="56%">&nbsp;</td>
    <td width="4%">

      </td>
    <td width="40%"><font size="2"><font size="2" face="Times New Roman, Times, serif">Yours
      truly,</font></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      KOST FORER &amp; GABBAY<br>
      &nbsp;A Member of Ernst &amp; Young Global </font></td>
  </tr>
</table>
<br>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<font size="2" face="Times New Roman, Times, serif"> </font>
<p> <font size="2" face="Times New Roman, Times, serif"> </font></p>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
