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<SEC-DOCUMENT>0001178913-04-000697.txt : 20040528
<SEC-HEADER>0001178913-04-000697.hdr.sgml : 20040528
<ACCEPTANCE-DATETIME>20040528123713
ACCESSION NUMBER:		0001178913-04-000697
CONFORMED SUBMISSION TYPE:	424B4
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20040528

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:		424B4
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-115826
		FILM NUMBER:		04837470

	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>424B4
<SEQUENCE>1
<FILENAME>zk40746.htm
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File
Pursuant to Rule 424(b)(4) <BR>File No. 333-115826 </FONT></TD>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROSPECTUS </FONT></H1>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>9,834,395</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>NUR MACROPRINTERS LTD.</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>ORDINARY SHARES</B></FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders identified in this prospectus are offering up to 9,834,395 of
our ordinary shares. Our ordinary shares are traded on the Nasdaq SmallCap
Market under the symbol &#147;NURM.&#148;&#160; The
last reported sale price for our ordinary shares on the Nasdaq SmallCap Market
on May 27, 2004 was $1.05 per share.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not
receive any proceeds from the sale of ordinary shares by the selling security
holders. We are not offering any ordinary shares for sale under this
prospectus. See &#147;Selling Security Holders&#148; beginning on page 18 for a list of
the selling security holders. See &#147;Plan of Distribution&#148; beginning on page 21
for a description of how the ordinary shares can be sold.</FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investing
in our ordinary shares includes risks.&#160;
For more information, please see &#147;Risk Factors&#148; beginning on page 10.</B></FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined whether this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.</B></FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">The date of this prospectus is May 28, 2004</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>TABLE OF CONTENTS</B></FONT></P>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>PAGE</B></FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A001">Available Information</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A002">Incorporated Documents</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">3</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A003">The Company</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">4</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A004">Risk Factors</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">10</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A005">Special Note Regarding Forward-Looking Statements</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">17</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A006">Use of Proceeds</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">17</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A007">Selling Security Holders</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">18</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A008">Plan of Distribution</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">21</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A009">Legal Matters</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">23</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A010">Experts</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">23</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><A HREF="#A011">SEC Position on Indemnification for Securities Act Liabilities</A></FONT></P>  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">23</FONT></P>  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should
rely only on the information incorporated by reference or provided in this
prospectus or any supplement.&#160; We have
not authorized anyone else to provide you with different information.&#160; The ordinary shares are not being offered in
any state where the offer is not permitted.&#160;
You should not assume that the information in this prospectus or any
supplement is accurate after the date of such document.</FONT></P>
<P ALIGN=CENTER><A NAME=A001></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>AVAILABLE
INFORMATION</B></FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are
subject to the information reporting requirements of the Securities and
Exchange Act of 1934 as a foreign private issuer as defined in Rule 3b-4 of the
Exchange Act. In accordance with these reporting requirements, we will file
reports and other information with the Securities and Exchange Commission. Such
reports and other information can be inspected and copied at the Public
Reference Room of the Commission, 450 Fifth Street, N.W., Washington, D.C.
20549, at prescribed rates.&#160; The
Commission also maintains a web site that contains reports, proxy and
information statements and other information regarding registrants, such as
ourselves, that file electronically with the Commission. The address of such
web site is <U>http://www.sec.gov.</U>&#160; You may
also obtain information from the Public Reference Room by calling the
Commission at 1-800-SEC-0330. In addition, our ordinary shares are quoted on
the Nasdaq SmallCap Market System, so our reports and other information can be
inspected at the offices of the National Association of Securities Dealers,
Inc. at 1735 K Street, N.W., Washington, D.C. 20006.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend
to furnish our security holders with annual reports containing additional
financial statements and a report thereon by independent certified public
accountants prior to each of our annual meetings.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">2</FONT></P>

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<P ALIGN=CENTER><A NAME=A002></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>INCORPORATED
DOCUMENTS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Securities and Exchange Commission allows us to &#147;incorporate by reference&#148;
information into this prospectus.&#160; This
means that we can disclose important information to you by referring you to
another document filed by us with the Commission. Information incorporated by
reference is deemed to be part of this prospectus, except for any information
superseded by this prospectus.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following documents are incorporated herein by reference:</FONT></P>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT></P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Our Annual
  Report on Form 20-F for the fiscal year ended December 31, 2003 as filed with
  the Commission on March 31, 2004;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Our Current
  Report on Form 6-K as filed with the Commission on April 2, 2004; </FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Our Current
  Report on Form 6-K as filed with the Commission on April 29, 2004; and</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="9%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT></P>  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">The
  description of our ordinary shares contained in the registration statements
  under the Exchange Act on Form 8-A as filed with the Commission on July 25,
  1995 and September 15, 1995, and including any subsequent amendment or report
  filed for the purpose of updating such description.</FONT></P>  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, all documents we have filed or subsequently file under Sections
13(a), 13(c) and 15(d) of the Exchange Act, before the termination of this
offering, are incorporated by reference.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will
provide without charge to any person (including any beneficial owner) to whom
this prospectus has been delivered, upon the oral or written request of such
person a copy of any document incorporated by reference in the registration
statement (not including exhibits to the information that is incorporated by
reference unless such exhibits are specifically incorporated by reference into
the information that the registration statement incorporates), of which this prospectus
forms a part. Such requests should be directed to David Seligman, Chief
Financial Officer, NUR Macroprinters Ltd., P.O. Box 1281, Lod 71111, Israel.
Our telephone number at that location is +972-8-914-5555. Our corporate web
site address is http:/www.nur.com. The information on our web site is not
intended to be a part of this prospectus.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">3</FONT></P>

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<PAGE>

<P ALIGN=CENTER><A NAME=A003></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>THE COMPANY</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Introduction</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR
Macroprinters Ltd. (&#147;NUR&#148;) 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.&#160; We also supply our customers
with inks and solvents for use with our printers.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July
2000, we acquired substantially all assets and specified liabilities of Salsa
Digital, Ltd. and related entities, previously one of our competitors in the
digital printing market.&#160; 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.&#160; 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&#160; $36 million and $61
million.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">4</FONT></P>

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<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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.&#160;
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.&#160; 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.&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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 became effective on March 31,
2004. As of May 2004 the parties fulfilled their material commitments and
undertakings under the agreement. Upon completion of the transaction, NUR Pro
Engineering shall 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.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">5</FONT></P>

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<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 30,
2003, NUR secured a convertible loan commitment from several investors pursuant
to which the investors undertook to provide NUR with a convertible loan in the
aggregate amount of $3.5 million. Under the terms of the loan agreement, the
loan was convertible at any time into an aggregate of 5,645,160 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 issued to the
investors five-year warrants to purchase an aggregate of up to 1,009,614
ordinary shares of NUR at an exercise price of $0.52 per share. NUR also issued
five-year warrants to its placement agent to purchase an aggregate of 180,211
ordinary shares at an exercise price of $0.52 per share and paid the placement
agent a cash fee of $70,000. Duncan Capital Group, LLC is the successor to the
placement agent that received the placement agent fee. Dan Purjes is a manager
of Duncan Capital Group, LLC. On December 31, 2003, the investors elected to
convert $2 million of the loan into 3,225,805 ordinary shares at the conversion
rate of $0.62 per share. On March 31, 2004, the investors elected to convert
the remaining $1.5 million of the loan into 2,419,355 ordinary shares at the
conversion rate of $0.62 per share. NUR&#146;s chairman and largest shareholder, Dan
Purjes, provided $1.3 million of the loan and received an aggregate of
1,854,839 ordinary shares and warrants to purchase up to 331,731 ordinary
shares. Mr. Purjes is the chairman of one of the other investors, Y Securities
Management, Ltd., which provided $50,000 of the loan and received an aggregate
of 80,645 ordinary shares and warrants to purchase up to 14,423 ordinary shares.
Mr. Purjes is also the chairman of X Securities Ltd., which received placement
agent warrants to purchase 111,799 ordinary shares. David Amir, NUR&#146;s president
and chief executive office, provided $50,000 of the loan and received an
aggregate of 80,645 ordinary shares and warrants to purchase up to 14,423
ordinary shares.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">6</FONT></P>

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<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 31
and April 1, 2004, NUR issued 2,586,140 ordinary shares to several investors
for $1.16 per share for proceeds of $2,999,923 in a private placement. The
investors also received five-year warrants to purchase an aggregate of up to
646,542 ordinary shares at an exercise price of $1.54 per share, exercisable
until March 31, 2009.&#160; NUR also issued
five-year warrants to its placement agent to purchase an aggregate of up to
129,310 ordinary shares at an exercise price of $1.16 per share and paid the
placement agent, Duncan Capital Group, LLC, a cash fee of $147,798. Dan Purjes
is a manager of Duncan Capital Group, LLC. Mr. Purjes is the chairman of one
of the investors, X Securities Ltd., which purchased 81,897 ordinary shares for
$95,000 and received warrants to purchase 20,474 ordinary shares.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our shares
are listed on the Nasdaq SmallCap Market under the symbol NURM. There is no
non-United States trading market for our shares.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Our products</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
printers allow customers to print large color images on demand, generally in
substantially less time, with less labor and at a lower cost than traditional
methods of printing.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Super wide format printers</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April
2004 NUR presented the NUR Expedio, a new 5-meter superwide inkjet production
printer. The NUR Expedio uses UV-curable inks and it provides a combination of
speed, quality, and versatility. It is anticipated that the machine is to be
released for beta tests towards the second half of 2004 and it is expected to
be commercially available during the first quarter of 2005. The NUR Expedio
will be capable of printing 8-colour photo-realistic graphics for close-up
viewing at up to 720 dpi, as well as 5-meter superwide prints for billboards at
super-fast speeds &#150; 360 dpi at up to 180 square meters per hour.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Wide format printers</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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 SIZE=2 FACE="TIMES NEW ROMAN">7</FONT></P>

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<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2002, we released 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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April
2004 NUR presented the new NUR Fresco II series that will replace the NUR
Fresco HiQ models when commercial availability. The Fresco II, which is
currently in beta tests, is expected to be commercially released on June 2004.
It would be possible to upgrade former Fresco models to the Fresco II level of
performance. The Fresco II entails improved printing speed, which allows the
machine to print up to 120 square meters per hour, as well as features such as
double sided printing registration that extends the machines versatility and
allows its users for even greater range of applications.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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&#160; (up to 82 square meters per hour) 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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April
2004 NUR introduced the Tempo L, a new mid-range, 4-color flatbed printer joining
the NUR Tempo&#153; flatbed inkjet press product line. The new NUR Tempo L model is
targeted at customers who wish to enter the UV-curable inks flatbed printing
market with a lower up-front capital investment than is required for the
top-of-the-line 8-color NUR Tempo model, while securing the growth path for
future increase in performance. The NUR Tempo L prints at a speed of up to 50
square meters per hour and is based on the platform of the top-of-the-line
Tempo with the same printing format and robust design. It is possible to easily
upgrade the Tempo L to the Tempo level of performance, thus allowing for a
&#147;two-step&#148; entry to the flatbed arena. This may expand the potential market for
the Tempo product line.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">8</FONT></P>

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<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Consumables</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also
sell specialized inks for use with our printers.&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Our customers</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Our strategy</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR&#146;s
strategy is to:</FONT></P>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">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></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">enable the
  printers to produce digitally a large portion of the graphics currently
  produced with screen printing processes;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">be our
  customers&#146; vendor of choice for their ink needs;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">enable our
  customers to develop new ways to profit from our printing systems; and</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></P>  </TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">provide our
  customers with highly responsive and capable support, service and supplies.</FONT></P>  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where you
can obtain additional information:</FONT></P>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN"><U>Mailing Address</U></FONT></P>
  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN"><U>Executive Office</U></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">12 Abba Hillel Silver Street</FONT></P>
  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">12 Abba Hillel Silver Street</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">P.O. Box 1281, Lod 71111</FONT></P>  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">P.O. Box 1281, Lod 71111</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">Israel</FONT></P>  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">Israel</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="48%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">Telephone: 972-8-914-5555</FONT></P>  </TD>
  <TD WIDTH="51%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">Website: <U>http://www.nur.com</U></FONT></P>  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">The information on our web site is not
intended to be a part of this prospectus.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">9</FONT></P>

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<P ALIGN=CENTER><A NAME=A004></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>RISK FACTORS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
depend on a few key products in a business subject to rapid technological
change.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
currently have no commitments for additional financing.</B>&#160; 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. We currently have no commitments for
additional financing.&#160; We cannot
guarantee that additional financing will be available or that, if available,
will be obtained on terms we find favorable.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 B.M. (&#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. The 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.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">10</FONT></P>

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<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
depend on sole source suppliers for the inkjet printheads for our printers.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
rely on subcontractors to help us manufacture our products.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
market for our printers is very competitive.</B>&#160; 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
printers. 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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">11</FONT></P>

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<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
face strong competition in the market for printing supplies.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
depend on our executive officers and other key employees.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
rely on trade secrets, licenses and patents to protect our proprietary rights.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may be subject to environmental related liabilities due to our use of hazardous
materials such as methyl ethyl-ketone solvent.&#160;
</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 SIZE=2 FACE="TIMES NEW ROMAN">12</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
benefit from government grants, tax benefits and other funding from third
parties.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Political
instability in Israel may disrupt important operations and our business.</B>&#160; 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.&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
may have difficulty enforcing U.S. judgments against us in Israel.</B>&#160; 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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">13</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
operating results fluctuate from period-to-period.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
business is subject to risks from international operations.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currency
fluctuations are a risk we face on a daily basis.</B>&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
stock price may be volatile.</B>&#160; 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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">14</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
may not comply with The Nasdaq SmallCap Market standards</B>.&#160; 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.&nbsp;by April 7, 2004&nbsp;setting
forth how we intend to achieve and sustain compliance with The Nasdaq SmallCap
Market listing requirements.&nbsp; On April 5, 2004, we responded to The Nasdaq
Stock Market, Inc.&#146;s letter, stating that we believe we are in compliance with
the stockholders&#146; equity and market value of listed securities standards due to
the issuance of (i) 3,225,805 shares on December 31, 2003 pursuant to the
conversion of a portion of the convertible loan at US $0.62 per share for
aggregate proceeds of $2.0 million, (ii) 2,419,355 shares pursuant to the
conversion of the remainder of the convertible loan at $0.62 per share for
aggregate proceeds of $1.5 million and (iii) 2,586,140 ordinary shares at $1.16
per share in the private placement for aggregate proceeds of $2,999,923, and
that we believe we will be in compliance with the net income from continuing
operations in 2004.&#160; We are continuing
to discuss with The Nasdaq Stock Market, Inc. the listing requirements relating
to NUR. If The Nasdaq Stock Market, Inc. determines that we nevertheless 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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our
ordinary shares are 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.&#160; 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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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><FONT SIZE=2 FACE="TIMES NEW ROMAN">&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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">15</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can
be no assurance that we can continue to meet the continued listing requirements
of The Nasdaq SmallCap Market.&#160; 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=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">16</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P ALIGN=CENTER><A NAME=A005></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus, and the other reports we have filed from time to time with the
Securities and Exchange Commission, contain forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act.&#160; Forward-looking
statements deal with our current plans, intentions, beliefs and expectations
and statements of future economic performance.&#160;
Statements containing terms like &#147;believes,&#148; &#147;does not believe,&#148;
&#147;plans,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;estimates,&#148; &#147;anticipates,&#148; and other phrases of
similar meaning are considered to imply uncertainty and are forward-looking
statements.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward-looking
statements involve known and unknown risks and uncertainties that may cause our
actual results in future periods to differ materially from what is currently
anticipated.&#160; We make cautionary
statements throughout this prospectus, including under &#147;Risk Factors.&#148;&#160; You should read these cautionary statements
as being applicable to all related forward-looking statements wherever they
appear in this prospectus, the materials referred to in this prospectus, the
materials incorporated by reference into this prospectus and our press
releases.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot
guarantee our future results, levels of activity, performance or
achievements.&#160; Neither we nor any other
person assumes responsibility for the accuracy and completeness of these
statements.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are
under no duty to update any of the forward-looking statements after the date of
this prospectus.</FONT></P>
<P ALIGN=CENTER><A NAME=A006></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>USE
OF PROCEEDS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not
receive any of the proceeds from the sale of ordinary shares by the selling
security holders.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">17</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P ALIGN=CENTER><A NAME=A007></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>SELLING
SECURITY HOLDERS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ordinary shares to which this prospectus relates are being registered for
resales by the selling security holders.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders may resell all, a portion or none of such ordinary shares from
time to time.&#160; The table below sets
forth with respect to each selling security holder, based upon information
available to us as of May 19, 2004, the number of ordinary shares beneficially
owned, the number of ordinary shares registered by this prospectus and the
number and percent of outstanding ordinary shares that will be owned after the
sale of the registered ordinary shares assuming the sale of all of the
registered ordinary shares.</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="700">
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="19%" COLSPAN="6" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Shares
  Beneficially <BR>
  Owned Before <BR>
  the Offering<SUP>(1) (2)</SUP></B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" ROWSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Shares<BR>
  Offered</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="20%" COLSPAN="6" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Shares
  Beneficially <BR>
  Owned After<BR>
  the Offering<SUP>(1) (3)</SUP></B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="19%" COLSPAN="6" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="20%" COLSPAN="6" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT   SIZE=1 FACE="TIMES NEW ROMAN"><B>Holder and address</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Shares</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Percent</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Shares</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Percent</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="9%" COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Alpha
  Capital AG(4)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">434,783</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1.7</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">431,035</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">3,748</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Bank
  Hapoalim B.M.(5)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">70,000</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">715,000</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Bank
  Leumi le Israel B.M. (6)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">50,000</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">500,000</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Baruch,
  Shulamith(7)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">26,940</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">26,940</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Duncan
  Capital Group, LLC(8)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">129,310</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">129,310</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Excellence
  Hishtalmut(9)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,731</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,731</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">H.E.E.F.
  Holdings Ltd.(10)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">26,940</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">26,940</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Hamblett,
  Michael R. (11)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">96,983</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">96,983</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Harel
  Insurance Company Ltd.(12)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,731</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,731</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">IBD
  International Limited(13)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">193,965</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">193,965</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Investment
  Corp. of United Mizrahi Bank Ltd.(14)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2,945,833</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">10.2</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2,945,833</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Israel
  Discount Bank Ltd.(15)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">125,000</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Kohlberg,
  Elon (16)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,759</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,759</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Medistart
  Limited(17)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">431,034</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1.6</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">431,034</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Purjes,
  Dan and Edna(18)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2,907,144</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">10.1</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2,186,570</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">720,574</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2.8</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">TCMP<SUP>3</SUP>
  Partners(19)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,759</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,759</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">UVE
  Partners LLC(20)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">134,699</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">134,699</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield
  Partners Small Cap Value LP(21)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">428,875</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1.6</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">428,875</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield
  Partners Small Cap Value LP I(22)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">483,625</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1.8</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">483,625</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield&nbsp;Partners&nbsp;Small&nbsp;Cap&nbsp;Value&nbsp;Offshore&nbsp;Fund, Ltd.(23)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">337,500</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1.3</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">%</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">337,500</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">X
  Securities Ltd.(24)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">102,371</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">102,371</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="45%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Y.A.Z.
  Investments &amp; Assets Ltd.(25)</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,735</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">107,735</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">0</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
</TABLE>
<BR>

<HR SIZE=1 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=LEFT>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">*</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Less than 1%</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(1)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">As used in
  this table, &#147;beneficial ownership&#148; means the sole or shared voting and
  investment power of ordinary shares.&#160;
  Unless otherwise indicated, each selling security holder listed below
  has sole voting and investment power with respect to the ordinary shares
  indicated as beneficially owned thereby.&#160;
  A person is deemed to have &#147;beneficial ownership&#148; of any ordinary
  shares that such person has a right to acquire within sixty days of the date
  of this prospectus.&#160; In accordance
  with Rule 13d-3 of the Exchange Act, any ordinary shares that any selling
  security holder has the right to acquire within sixty days of May 19, 2004
  are deemed to be outstanding for the purpose of computing the beneficial
  ownership percentage of such selling security holder, but have not been
  deemed outstanding for the purpose of computing the percentage for any other
  selling security holder.</FONT></P></TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">18</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(2)</FONT></P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">These
  ordinary shares include an aggregate of 3,060,083 ordinary shares which may
  be acquired by the selling security holders within sixty days of May 19, 2004
  upon the exercise of warrants granted by us.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(3)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">With respect
  to the selling security holders, it has been assumed that all ordinary shares
  so offered will be sold.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(4)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Alpha
  Capital AG&#146;s address is Pradafant 7, 9490 Furstentums, Vaduz, Lichtenstein.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(5)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Bank
  Hapoalim B.M. was granted with warrants to purchase 140,000 ordinary shares
  and 505,000 ordinary shares on March 11, 2003 and August 1, 2003,
  respectively. The terms of such warrants provide that they will become
  exercisable on the second anniversary of the respective date of grant, thus,
  those warrants are not deemed beneficially owned by Bank Hapoalim B.M. before
  the offering. Bank Hapoalim B.M.&#146;s address is 63 Yehuda Halevi Street, Tel
  Aviv, Israel.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(6)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Bank
  Leumi le Israel B.M. was granted with warrants to purchase 100,000 ordinary
  shares and 350,000 ordinary shares on March 11, 2003 and August 1, 2003,
  respectively. The terms of such warrants provide that they will become
  exercisable on the second anniversary of the respective date of grant, thus,
  those warrants are not deemed beneficially owned by Bank Leumi le Israel B.M.
  before the offering. Bank Leumi le Israel B.M.&#146;s address is 24-32 Yehuda
  Halevi Street, Tel Aviv 65546, Israel.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(7)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Ms. Baruch&#146;s
  address is 7 Berkley Place, Lawrence, NY 11559, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(8)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Dan Purjes
  is a manager of Duncan Capital Group, LLC and the Chairman of NUR. Duncan
  Capital Group, LLC&#146;s address is 830 Third Avenue, 14<SUP>th</SUP>
  Floor, New York, NY 10022, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(9)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Excellence
  Hishtalmut&#146;s address is 7 Jabotinsky Street, Ramat Gan 52520, Israel.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(10)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">H.E.E.F.
  Holdings Ltd.&#146;s address is Morning Star, Box 556 Main Street, Charlestwon,
  Nevis. </FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(11)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Mr. Hamblett&#146;s
  address is 34 Waterbory Avenue, Madison, CT 06443, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(12)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Harel
  Insurance Company Ltd.&#146;s address is 3 Abba Hillel Silver Street, Ramat Gan
  52118, Israel.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(13)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">IBD
  International Limited&#146;s address is 50 Town Range, Suites 7B &amp; 8B,
  Gibraltar.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(14)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Investment
  Corp. of United Mizrahi Bank Ltd.&#146;s address is 37 Shaul Hamelech Blvd., P.O.
  Box 33676, Tel Aviv 61336, Israel.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(15)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Israel
  Discount Bank Ltd. was granted with warrants to purchase 27,000 ordinary
  shares and 98,000 ordinary shares on June 27, 2003 and August 1, 2003,
  respectively. The terms of such warrants provide that they will become
  exercisable on the second anniversary of the respective date of grant, thus,
  those warrants are not deemed beneficially owned by Israel Discount Bank Ltd.
  before the offering. Israel Discount Bank Ltd.&#146;s address is 27 Yehuda Halevi
  Street, Tel Aviv, Israel. </FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(16)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Mr. Kohlberg&#146;s
  address is Morgan Hall Room 235, Harvard Business School, Boston MA 02163,
  United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(17)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Medistart
  Limited&#146;s address is 50 Town Range, Suites 7B &amp; 8B, Gibraltar.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(18)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Mr.
  Purjes is the Chairman of NUR. Ms. and Mr. Purjes&#146;s address is 830
  Third Avenue, 14<SUP>th</SUP> Floor, New York, NY 10022, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(19)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">TCMP<SUP>3</SUP>
  Partners&#146; address is 7 Century Drive, Suite 201 &#150; Parcippany, New Jersey
  07054, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(20)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">UVE
  Partners LLC&#146;s address is 1270 Avenue of the Americas, Suite 1800, New York,
  NY 10020, United States of America.</FONT></P></TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">19</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(21)</FONT></P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield
  Partners Small Cap Value LP&#146;s address is 450 Seventh Avenue, Suite 509, New
  York, NY 10123, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(22)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield
  Partners Small Cap Value LP&#146;s address is 450 Seventh Avenue, Suite 509, New
  York, NY 10123, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(23)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Wynnefield
  Partners Small Cap Value Offshore Fund, Ltd.&#146;s address is 450 Seventh Avenue,
  Suite 509, New York, NY 10123, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(24)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Dan Purjes
  is the Chairman of X Securities, Ltd. and the Chairman of NUR.&#160; X Securities, Ltd.&#146;s address is 830 Third
  Avenue, 14<SUP>th</SUP> Floor, New York, NY 10022, United States of America.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(25)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Y.A.Z.
  Investments &amp; Assets Ltd.&#146;s address is 24 Lilenblum Street, Tel Aviv,
  Israel.</FONT></P></TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information provided in the table above with respect to the selling security
holders has been obtained from such selling security holders.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as
otherwise disclosed above or in documents incorporated herein by reference, the
selling security holders have not within the past three years had any position,
office or other material relationship with our company. Because the selling
security holders may sell all or some portion of the ordinary shares
beneficially owned by them, only an estimate (assuming the selling security
holders sells all of the shares offered hereby) can be given as to the number
of ordinary shares that will be beneficially owned by the selling security
holders after this offering. In addition, the selling security holders may have
sold, transferred or otherwise disposed of, or may sell, transfer or otherwise
dispose of, at any time or from time to time since the dates on which they
provided the information regarding the ordinary shares beneficially owned by
them, all or a portion of the ordinary shares beneficially owned by them in
transactions exempt from the registration requirements of the Securities Act. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">20</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P ALIGN=CENTER><A NAME=A008></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>PLAN
OF DISTRIBUTION</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus covers the sale of ordinary shares by the selling security
holders.&#160; As used herein, &#147;selling
security holders&#148; include donees, pledgees, transferees or other successors in
interest selling shares received from a selling security holder after the date
of this prospectus as a gift, pledge, partnership distribution or other
non-sale related transfer.&#160; Any
distribution of any such securities by the selling security holders in interest
may be effected from time to time in one or more of the following transactions:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">ordinary
  brokerage transactions and transactions in which the broker/dealer solicits
  purchasers;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">block trades
  in which the broker/dealer will attempt to sell the shares as agent but may
  position and resell a portion of the block as principal to facilitate the
  transaction;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">purchases by
  a broker/dealer as principal and resale by the broker/dealer for its account;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">an exchange
  distribution in accordance with the Rules&nbsp;of the applicable exchange;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">privately
  negotiated transactions;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">settlement
  of short sales;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">broker/dealers
  may agree with the selling security holders to sell a specified number of
  such shares at a stipulated price per share;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">a
  combination of any such methods of sale; and</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&#149;</FONT></P></TD>
  <TD WIDTH="92%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">any other
  method permitted pursuant to applicable law.</FONT></P></TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not
receive any proceeds from the sale of the ordinary shares.&#160; The aggregate proceeds to the selling
security holders from the securities offered hereby will be the offering price
less applicable commissions or discounts, if any.&#160; We do not know if the selling security holders will sell any of
the securities offered hereby.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders and such underwriters, brokers, dealers or agents, upon effecting
a sale of securities, may be considered &#147;underwriters&#148; as that term is defined
in the Securities Act. The selling security holders will be subject to the
prospectus delivery requirements because the selling security holders may be
deemed to be &#147;underwriters&#148; within meaning of Section 2(11) of the Securities
Act.&#160; Sales effected through agents,
brokers or dealers will ordinarily involve payment of customary brokerage
commissions although some brokers or dealers may purchase such securities as
agents for others or as principals for their own account.&#160; The selling security holders will pay any
sales commissions or similar selling expenses applicable to the sale of
ordinary shares.&#160; A portion of any
proceeds of sales and discounts, commissions or other sellers&#146; compensation may
be deemed to be underwriting compensation for purposes of the Securities Act.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders may also sell shares under Rule&nbsp;144 under the Securities
Act, if available, rather than under this prospectus.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">21</FONT></P>

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<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker/dealers
engaged by the selling security holders may arrange for other brokers/dealers
to participate in sales. Broker/dealers may receive commissions from the
selling security holders (or, if any broker/dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
selling security holders do not expect these commissions to exceed what is
customary in the types of transactions involved.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders may from time to time pledge or grant a security interest in
some or all of the ordinary shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell the ordinary shares from time to time under this prospectus, or
under an amendment to this prospectus under Rule&nbsp;424(b)(3) or other
applicable provision of the Securities Act amending the list of selling
security holders to include the pledgee, transferee or other successors in
interest as selling security holders under this prospectus.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling
security holders and any broker/dealers or agents that are involved in selling
the shares may be deemed to be &#147;underwriters&#148; within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker/dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions under the
Securities Act. The selling security holders have informed NUR that it does not
have any agreement or understanding, directly or indirectly, with any person to
distribute the ordinary shares.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to
applicable rules and regulations under the Exchange Act, any person engaged in
the distribution of the securities offered hereby may not simultaneously engage
in market activities for the ordinary shares for a period of five business days
prior to the commencement of such distribution.&#160; In addition, each selling security holder and any other person
who participates in a distribution of the securities will be subject to
applicable provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which provisions may limit the timing of
purchases and may affect the marketability of the securities and the ability of
any person to engage in market activities for the ordinary shares.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time
a particular offering of securities is made, to the extent required, a
prospectus supplement will be distributed which will set forth the number of
securities being offered and the terms of the offering, including the purchase
price or the public offering price, the name or names of any underwriters,
dealers or agents, the purchase price paid by any underwriters for securities
purchased from the selling security holders, any discounts, commissions and
other items constituting compensation from the selling security holders and any
discounts, commissions or concessions allowed or reallowed or paid to
dealers.&#160; In addition, we will file a
supplement to this prospectus upon a selling security holder notifying us that
a donee, pledgee, transferee or other successor-in-interest intends to sell
more than 500 shares.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to
comply with the securities laws of certain states, if applicable, the
securities will be sold in such jurisdictions, if required, only through
registered or licensed brokers or dealers.&#160;
In addition, in certain states the securities may not be sold unless the
securities have been registered or qualified for sale in such state or an
exemption from registration or qualification is available and the conditions of
such exemption have been satisfied.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">22</FONT></P>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=1>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have
agreed that we will bear all costs, expenses and fees in connection with the
registration or qualification of the ordinary shares under federal and state
securities laws.&#160; We and each selling
security holder have agreed to indemnify each other and certain other persons
against certain liabilities in connection with the offering of the securities,
including liabilities arising under the Securities Act.</FONT></P>
<P ALIGN=CENTER><A NAME=A009></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>LEGAL
MATTERS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
validity of the ordinary shares offered hereby will be passed upon for NUR by
Doron Faibish.</FONT></P>
<P ALIGN=CENTER><A NAME=A010></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>EXPERTS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kost Forer
Gabbay &amp; Kassierer, a member of Ernst &amp; Young Global, independent
auditors, have audited our consolidated financial statements as of December 31,
2002, and 2003 and for each of the three years in the period ended December 31,
2003 included in our annual report on Form 20-F, as set forth in their report,
which is incorporated by reference in this prospectus and elsewhere in the
registration statement. Our financial statements are incorporated by reference
in reliance on Kost Forer Gabbay &amp; Kassierer&#146;s report, given on their
authority as experts in accounting and auditing. </FONT></P>
<P ALIGN=CENTER><A NAME=A011></A><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>SEC
POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as
indemnification for liabilities arising under the Securities Act may be
permitted to our directors, officers and controlling persons pursuant to the
foregoing provisions, or otherwise, we have been advised that in the opinion of
the Commission such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable.&#160; In the event that a claim for indemnification against such liabilities
(other than the payment by us of expenses incurred or paid by one of our
directors, officers or controlling persons in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, we will,
unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by us is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">23</FONT></P>

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<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=4>
<PAGE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>9,834,395</B></FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>NUR MACROPRINTERS LTD.</B></FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>ORDINARY SHARES</B></FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">PROSPECTUS</FONT></P>

<HR SIZE=2 WIDTH="25%" NOSHADE COLOR=BLACK ALIGN=CENTER>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">May 28, 2004</FONT></P>

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