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<SEC-DOCUMENT>0001178913-04-000684.txt : 20040525
<SEC-HEADER>0001178913-04-000684.hdr.sgml : 20040525
<ACCEPTANCE-DATETIME>20040525081237
ACCESSION NUMBER:		0001178913-04-000684
CONFORMED SUBMISSION TYPE:	F-3
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20040525

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:		F-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-115826
		FILM NUMBER:		04828553

	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>F-3
<SEQUENCE>1
<FILENAME>zk40691.htm
<TEXT>
<HTML>

<HEAD>
<TITLE></TITLE>
</HEAD>

<BODY>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="75%" VALIGN=TOP>
  <P ALIGN=RIGHT><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>As filed with the
  Securities and Exchange Commission on May 24, 2004</B></FONT></P>
  </TD>
  <TD WIDTH="24%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
 </TR>
 <TR>
  <TD WIDTH="75%" VALIGN=TOP>
  <P ALIGN=RIGHT><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Registration
  No. 333-</B></FONT></P>  </TD>
  <TD WIDTH="24%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>_________________</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<HR STYLE="MARGIN-TOP: -2PX" NOSHADE SIZE=4>
<HR STYLE="MARGIN-TOP: -10PX" NOSHADE SIZE=1>
<P ALIGN=CENTER><FONT SIZE=4 FACE="TIMES NEW ROMAN"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></FONT>
<FONT SIZE=2 FACE="TIMES NEW ROMAN"><B><BR>Washington, D.C.&#160; 20549</B></FONT></P>

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

<P ALIGN=CENTER><FONT SIZE=4 FACE="TIMES NEW ROMAN"><B>FORM F-3</B></FONT><BR>

<FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</B></FONT></P>

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

<P ALIGN=CENTER><FONT SIZE=5 FACE="TIMES NEW ROMAN"><B>NUR
MACROPRINTERS LTD.</B></FONT><BR>
<FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>(Exact Name of Registrant as Specified in Its Charter)</B></FONT></P>

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

<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="49%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Israel</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="49%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Not Applicable</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD WIDTH="49%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>(State or Other Jurisdiction of<BR>
  Incorporation or Organization)</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD WIDTH="49%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>(I.R.S. Employer<BR>
  Identification No.)</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>12
Abba Hillel Silver Street<BR>
P.O. Box 1281, Lod 71111<BR>
Israel<BR>

(Address of
Principal Executive Offices)</B></FONT></P>

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

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>CT
Corporation System<BR>
1633 Broadway<BR>
New York, New York 10019<BR>(212) 246-5070<BR>(Name, Address and Telephone<BR>
Number of Agent For Service)</B></FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B><I>Copy to</I>:<BR>
Lawrence Fisher, Esq.<BR>
Orrick, Herrington &amp; Sutcliffe LLP<BR>666 Fifth Avenue<BR>New York, New York 10103<BR>
(212) 506-5000 (Phone)&#160;&#160; (212) 506-5151
(Fax)</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Approximate
date of commencement of proposed sale to the public:<BR></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as practicable after the effective date of this Registration Statement.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the only
securities being registered on this Form are to be offered pursuant to dividend
or interest reinvestment plans, please check the following box: <FONT FACE=WINGDINGS>o</FONT></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of
the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, check
the following box: </FONT><FONT SIZE="2" FACE=WINGDINGS>x</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this
Form is filed to register additional securities for an offering pursuant to
Rule 462(b) under the Securities Act, please check the following box and list
the Securities Act registration statement number of the earlier effective
registration statement for the same offering. <FONT FACE=WINGDINGS>o</FONT></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this
Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. </FONT><FONT SIZE="2" FACE=WINGDINGS>o</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If delivery
of the prospectus is expected to be made pursuant to Rule 434, please check the
following box. </FONT><FONT SIZE="2" FACE=WINGDINGS>o</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>CALCULATION
OF REGISTRATION FEE</B></FONT></P>

<TABLE BORDER=1 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
 <TR>
  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1   FACE="TIMES NEW ROMAN"><B>Title Of Securities To Be Registered</B></FONT></P>
  </TD>
  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Amount<BR>
  To Be<BR>
  Registered&nbsp;(1)</B></FONT></P>
  </TD>

  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Proposed<BR>
  Maximum&nbsp;Offering<BR>
  Price&nbsp;Per&nbsp;Share&nbsp;(2)</B></FONT></P>
  </TD>

  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Proposed<BR>
  Maximum&nbsp;Aggregate<BR>
  Offering&nbsp;Price&nbsp;(2)</B></FONT></P>
  </TD>

  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Amount of<BR>
  Registration<BR>
  Fee</B></FONT></P>
  </TD>

 </TR>
 <TR>
  <TD WIDTH="29%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;O<SMALL>RDINARY SHARES,</SMALL><BR>
  &nbsp;&nbsp;&nbsp;NIS 1.0 <SMALL>NOMINAL VALUE PER<BR>
  &nbsp;&nbsp;&nbsp;SHARE</SMALL></FONT></P>
          </TD>

  <TD  VALIGN="Middle">
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">9,834,395 shares<SUP>(3)</SUP></FONT></P>  </TD>

  <TD  VALIGN="Middle">
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">$1.07</FONT></P>  </TD>

  <TD  VALIGN="Middle">
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">$10,522,803</FONT></P>  </TD>

  <TD  VALIGN="Middle">
  <P ALIGN=CENTER><FONT SIZE=2   FACE="TIMES NEW ROMAN">$&nbsp;1,334</FONT></P>  </TD>

 </TR>
</TABLE>


<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">(1)</FONT></P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Pursuant to
  Rule 416, this registration statement shall be deemed to cover an
  indeterminate number of additional shares of common stock in the event the
  number of outstanding shares of the Company is increased by stock split,
  stock dividend and/or similar transactions.</FONT></P>  </TD>
 </TR>
 <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">Pursuant to
  Rule 457(c), the proposed maximum offering price per share and the proposed
  maximum aggregate offering price have been calculated on the basis of
  $1.07 per share, the average of the bid and asked prices of the ordinary
  shares on the Nasdaq SmallCap Market on May 24, 2004.</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">Includes 3,060,083
  shares underlying warrants.</FONT></P>  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933, as amended, or until this Registration Statement shall
become effective on such date as the Commission, acting pursuant to said Section
8(a), may determine.</B></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"><I>The information in this prospectus is not
complete and may be changed.&#160; We may not
sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective.&#160; This prospectus is not an offer to sell these securities and is
not an offer to buy these securities in any state where the offer or sale is
not permitted.</I></FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>SUBJECT TO COMPLETION DATED MAY 24, 2004</B></FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>PRELIMINARY PROSPECTUS</B></FONT></P>

<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 24, 2004 was $1.07 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 ____________,
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>

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

<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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<PAGE>

<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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<PAGE>

<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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<PAGE>

<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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<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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<PAGE>

<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>

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<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>

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<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>

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<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>

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<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>

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<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>

<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;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>

<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>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">, 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>PART II</B></FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>INFORMATION NOT
REQUIRED IN PROSPECTUS</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Item
14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Expenses of Issuance and Distribution</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following are the estimated expenses expected to be incurred by NUR
Macroprinters Ltd. (on behalf of itself and the selling security holders) in
connection with this offering.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="400">
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Nature of Fees and Expenses</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1 FACE="TIMES NEW ROMAN"><B>Amount to be<BR>
  Paid</B></FONT></P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" 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="22%" COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">SEC
  Registration Fee</FONT></P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">$</FONT></P></TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">1,334</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Legal Fees,
  Accounting Fees and Expenses</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">$</FONT></P></TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">5,000</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Printing
  Expenses</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">$</FONT></P></TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">2,300</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Miscellaneous</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">$</FONT></P></TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">5,000</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="73%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">$</FONT></P></TD>
  <TD WIDTH="13%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2   FACE="TIMES NEW ROMAN">13,634</FONT></P></TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Item
15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of Directors and Officers</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to
NUR&#146;s Amended and Restated Articles of Association, NUR may indemnify its
office holders for (a) a monetary liability imposed upon an office holder for
the benefit of another person by a judgment, including a judgment giving effect
to a compromise and an arbitration award approved by a court, with respect to
an act performed by same office holder in his capacity as an office holder of
NUR, and (b) reasonable litigation expenses, including attorney&#146;s fees,
incurred by an office holder or imposed upon him by a court, in a proceeding
brought against him by NUR or on its behalf or by another person, or in a
criminal proceeding in which he was acquitted, or in a criminal proceeding in
which he was convicted of a crime that does not require proof of criminal
intent, and all with respect to an act thereby performed in his capacity as an
office holder of NUR.&#160; NUR&#146;s Amended and
Restated Articles of Association further provide that NUR may undertake in
advance to indemnify an office holder, provided that the undertaking be limited
to categories of events which in the opinion of NUR&#146;s board of directors can be
foreseen when the undertaking to indemnify is given, and to an amount
established by the board of directors as reasonable under the circumstances; or
indemnify the office holder retroactively.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Israeli
Companies Law, 5759-1999 (the &#147;Israeli Companies Law&#148;) defines &#147;office holder&#148;
to include directors, general manager, chief executive officer, executive vice
president, vice president, other manager directly subordinate to the general
manager and any person assuming the responsibilities of the foregoing positions
without regard to such person&#146;s title.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, pursuant to the Israeli Companies Law, indemnification of, and
procurement of insurance coverage for, an office holder of NUR is permitted if
it is permitted by NUR&#146;s Amended and Restated Articles of Association and if it
is approved by NUR&#146;s Audit Committee and Board of Directors. NUR&#146;s Amended and
Restated Articles of Association permit such indemnification and procurement of
insurance coverage.&#160; In certain
circumstances, the Israeli Companies Law also requires approval of such
indemnification and insurance by NUR&#146;s shareholders. The approval of indemnification
agreements and procurement of insurance for all of NUR&#146;s directors requires
shareholder approval.&#160; In addition, the
approval of indemnification and procurement of insurance for certain directors
who may be deemed to hold 25% or more of the share capital of NUR requires the
consent of disinterested shareholders subject and pursuant to the Israeli
Companies Law.</FONT></P>
<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">1</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;At the
Annual Meeting of the Shareholders  held on February 12, 2002, NUR&#146;s shareholders
authorized it to enter into indemnification agreements with each of its current
and future directors. The shareholders of NUR further authorized certain
amendments to the indemnification agreements at the Annual Meeting of the Shareholders
held on November 18, 2003. According to the terms of the indemnification
agreements (as amended), NUR shall, subject to the provisions of the
indemnification agreement, indemnify each director for the following:</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; monetary
liabilities imposed on the director for the benefit of another person pursuant to
a final judgment by a competent court relating to acts performed by the
director in his/her capacity as a director or officer of NUR or its
subsidiaries; and</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reasonable
litigation expenses. </FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
indemnification undertaking shall be limited to certain categories of events
and to the maximum amount equal to fifty percent (50%) of the net equity of NUR
or to one time annual revenue of NUR in the year prior to the date of the claim
(the higher amount of the two) with regard to judgment liability, and $3.0
million with regard to litigation expenses. </FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NUR has
purchased directors&#146; and officers&#146; liability insurance policy insuring its
office holders with respect to those matters permitted by the Israeli Companies
Law.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Item
16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Exhibit <BR>
  Number</B></FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Name</B></FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Memorandum
  of Association of the Registrant, in Hebrew with a translation to English (1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.2</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Amended and
  Restated Articles of Association of the Registrant (2)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.3</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Certificate
  of Name Change (3)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.4</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Specimen
  Certificate for ordinary shares (1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.5</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Securities Purchase Agreement, dated March 31, 2004, between the Registrant
  and certain investors</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.6</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Registration Rights Agreement, dated March 31, 2004, between the Registrant
  and certain investors</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.7</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Warrant Agreement, dated March 31, 2004, between the Registrant and certain
  investors</FONT></P></TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">2</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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.8</FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Warrant Agreement, dated February 12, 2002 between the Registrant and Bank
  Hapoalim B.M. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.9</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Registration Rights Agreement, dated February 12, 2002 between the Registrant
  and Bank Hapoalim B.M. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.10</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement
  dated, March 11, 2003 between the Registrant and Bank Hapoalim B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.11</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement dated, March 11, 2003 between the Registrant and Bank
  Hapoalim B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.12</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Bank Hapoalim B.M. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.13</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated August 1, 2003 between the Registrant and Bank
  Hapoalim B.M. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.14</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated February 12, 2002 between the Registrant and Bank Leumi le-Israel B.M.
  (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.15</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated February 12, 2002 between the Registrant and Bank
  Leumi le-Israel B.M. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.16</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated March 11, 2003 between the Registrant and Bank Leumi le-Israel B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.17</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated March 11, 2003 between the Registrant and Bank Leumi
  le-Israel B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.18</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Bank Leumi le-Israel B.M. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.19</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated August 1, 2003 between the Registrant and Bank
  Leumi le-Israel B.M.
  (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.20</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Share and Warrant
  Purchase Agreement dated January 17, 2002 between the Registrant and The
  Investment Corp. of United Mizrahi Bank Ltd. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.21</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated January 17, 2002 between the Registrant and The Investment Corp. of
  United Mizrahi Bank Ltd. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.22</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated June 27, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.23</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Agreement, dated June 27, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.24</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.25</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Agreement, dated August 1, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.26</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Convertible Loan
  and Warrant Agreement, dated July 2003 between Registrant and Dan and Edna
  Purjes (6)</FONT></P></TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">3</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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.27</FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated October 15, 2003 between Registrant and Dan and Edna Purjes (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.28</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated July 2003 between Registrant and Dan and Edna Purjes
  (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">5.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Opinion of
  Doron Faibish.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">23.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Consent of
  Kost Forer Gabbay &amp; Kassierer</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">23.2</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Consent of
  Doron Faibish (included in Exhibit 5.1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="7%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" 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="7%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">24.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Power of
  Attorney (filed on the signature page hereto)</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">(1)</FONT></P></TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s F-1 (File No. 33-93160) and incorporated by reference
  herein.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(2)</FONT></P></TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2000 and
  incorporated by reference herein.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(3)</FONT></P></TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s Form 6-K dated January 7, 1998 and incorporated by reference
  herein.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(4)</FONT></P></TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2001 and
  incorporated by reference herein.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="5%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">(5)</FONT></P></TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2002 and
  incorporated by reference herein.</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">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2003 and
  incorporated by reference herein.</FONT></P></TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Item
17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned NUR hereby undertakes:</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:</FONT><BR>
<FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
include any prospectus required by Section 10(a)(3) of the Securities Act;</FONT><BR>
<FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
reflect in the prospectus any facts or events arising after the effective date
of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement.&#160; Notwithstanding the foregoing, any increase
or decrease in volume of securities offered (if the dollar value of securities
offered would not exceed that which was registered) and any deviation from the
low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20% change
in the maximum aggregate offering price set for the in the &#147;Calculation of
Registration Fee&#148; table in the effective registration statement;</FONT><BR>
<FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
include any material information with respect to the plan of distribution not
previously disclosed in this registration statement or any material change to
such information in the registration statement; </FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the information required to be included in a post-effective amendment
by those paragraphs is contained in periodic reports filed with or provided to
the Commission by NUR pursuant to Section 13 or Section 15(d) of the Exchange
Act that are incorporated by reference in this registration statement.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">4</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act, each
such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file a post-effective amendment to the registration statement to include any
financial statements required by Rule 3-19 of Regulation S-X at the start of
any delayed offering or throughout a continuous offering.&#160; Financial statements and information
otherwise required by Section 10(a)(3) of the Securities Act need not be
furnished, provided, that NUR includes in the prospectus, by means of a
post-effective amendment, financial statements required pursuant to this
paragraph (a)(4) and other information necessary to ensure that all other
information in the prospectus is at least as current as the date of those
financial statements.&#160; Notwithstanding
the foregoing, a post-effective amendment need not be filed to include financial
statements and information required by Section 10(a)(3) of the Securities Act
or Rule 3-19 of Regulation S-X if such financial statements and information are
contained in periodic reports filed with or furnished to the commission by NUR
pursuant to Section 13 or Section 15(d) of the Exchange Act that are
incorporated by reference in this registration statement.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned NUR hereby undertakes that, for purposes of determining any
liability under the Securities Act, each filing of NUR&#146;s annual report pursuant
to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable,
each filing of an employee benefit plan&#146;s annual report pursuant to Section
15(d) of the Exchange Act) that is incorporated by reference in this
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar
as indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of NUR pursuant to the
foregoing provisions, or otherwise, NUR has 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 NUR of expenses incurred or paid by a
director, officer or controlling person of NUR 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, NUR
will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it 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">5</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>SIGNATURES</B></FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, NUR Macroprinters Ltd.
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form F-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in The State of Israel, on May 20, 2004.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="36%" COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>NUR
  MACROPRINTERS LTD.</B></FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="36%" COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">By:</FONT></P></TD>
  <TD WIDTH="31%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">/s/ David Amir</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="31%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
 </TR>
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="31%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">David Amir</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="63%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="31%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">President and Chief
  Executive Officer</FONT></P></TD>
 </TR>
</TABLE>

<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW
ALL MEN BY THESE PRESENTS, that each person whose signature appears below
hereby constitutes and appoints David Amir and David Seligman, and either of
such persons acting alone, as his or her true and lawful agent, proxy and
attorney-in-fact, with full power of substitution and resubstitution, for him
and in his name, place and stead, in any and all capacities, to (i) act on,
sign and file with the Securities and Exchange Commission any and all
amendments (including post-effective amendments) to this Registration Statement
together with all schedules and exhibits thereto, (ii) act on, sign and file
with the Securities and Exchange Commission any registration statement relating
to this Offering that is to be effective upon filing pursuant to Rule 462(b)
under the Securities Act of 1933, as amended, (iii) act on, sign and file with
the Securities and Exchange Commission any exhibits to such registration
statement or pre-effective or post-effective amendments, (iv) act on, sign and
file such certificates, instruments, agreements and other documents as may be
necessary or appropriate in connection there with, (v) act on and file any
supplement to any prospectus included in this registration statement or any
such amendment and (vi) take any and all actions which may be necessary or appropriate
in connection therewith, granting unto such agents, proxies and
attorneys-in-fact, and each of them, full power and authority to do and perform
each and every act and thing necessary or appropriate to be done (including any
prospectus included in this registration statement), as fully for all intents
and purposes as he or she might or could do in person, hereby approving,
ratifying and confirming all that such agents, proxies and attorneys-in-fact,
any of them or any of his, her or their substitute or substitutes may lawfully
do or cause to be done by virtue hereof.</FONT></P>
<P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, this
registration statement has been signed below by the following persons in the
capacities and on the dates indicated.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN"><B>Signature</B></FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN"><B>Title of Capacities</B></FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN"><B>Date</B></FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Dan
  Purjes</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Chairman of the Board of Directors</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 19, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Dan Purjes</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;David
  Amir</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">President and Chief Executive Officer</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 20, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">David Amir</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;David
  Seligman</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Chief Financial Officer</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 20, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">David Seligman</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Robert
  F. Hussey</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Director</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 24, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Robert F. Hussey</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Oded
  Askelrod</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Director</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 20, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Oded Askelrod</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Lauri
  A. Hanover</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Director</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 20, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Lauri Hanover</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Koby
  Shtaierman</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Director</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 23, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Koby Shtaierman</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">&nbsp;&nbsp;/s/&nbsp;Ilan
  Ben Gigi</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">Director</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT   SIZE=2 FACE="TIMES NEW ROMAN">May 20, 2004</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="27%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Ilan Ben Gigi</FONT></P></TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="30%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="22%" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
</TABLE>
<BR>

<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>EXHIBIT INDEX</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Exhibit <BR>
  Number</B></FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=BOTTOM>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN"><B>Name</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>


  </TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.1</FONT></P>
  </TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Memorandum
  of Association of the Registrant, in Hebrew with a translation to English (1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.2</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Amended and
  Restated Articles of Association of the Registrant (2)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.3</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Certificate
  of Name Change (3)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.4</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Specimen
  Certificate for ordinary shares (1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.5</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Securities Purchase Agreement, dated March 31, 2004, between the Registrant
  and certain investors</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.6</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Registration Rights Agreement, dated March 31, 2004, between the Registrant
  and certain investors</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.7</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Warrant Agreement, dated March 31, 2004, between the Registrant and certain
  investors</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.8</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Warrant Agreement, dated February 12, 2002 between the Registrant and Bank
  Hapoalim B.M. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.9</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of
  Registration Rights Agreement, dated February 12, 2002 between the Registrant
  and Bank Hapoalim B.M. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.10</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement
  dated, March 11, 2003 between the Registrant and Bank Hapoalim B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.11</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement dated, March 11, 2003 between the Registrant and Bank
  Hapoalim B.M. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.12</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Bank Hapoalim B.M. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.13</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated August 1, 2003 between the Registrant and Bank
  Hapoalim B.M. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.14</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated February 12, 2002 between the Registrant and Bank Leumi le-Israel Ltd.
  (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.15</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated February 12, 2002 between the Registrant and Bank
  Leumi le-Israel Ltd. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.16</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated March 11, 2003 between the Registrant and Bank Leumi le-Israel Ltd. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.17</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated March 11, 2003 between the Registrant and Bank Leumi
  le-Israel Ltd. (5)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.18</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Bank Leumi le-Israel
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.19</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated August 1, 2003 between the Registrant and Bank
  Leumi le-Israel Ltd. (6)</FONT></P></TD>
 </TR>
</TABLE>
<BR>

<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">NUR Macroprinters Ltd.<BR>May 24, 2004</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 FACE="TIMES NEW ROMAN">Page 3</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.20</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Share and Warrant
  Purchase Agreement dated January 17, 2002 between the Registrant and The
  Investment Corp. of United Mizrahi Bank Ltd. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.21</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated January 17, 2002 between the Registrant and The Investment Corp. of
  United Mizrahi Bank Ltd. (4)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.22</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated June 27, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.23</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Agreement, dated June 27, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.24</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated August 1, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.25</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Agreement, dated August 1, 2003 between the Registrant and Israel Discount Bank
  Ltd. (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.26</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Convertible Loan
  and Warrant Agreement, dated July 2003 between Registrant and Dan and Edna
  Purjes (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.27</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Warrant Agreement,
  dated October 15, 2003 between Registrant and Dan and Edna Purjes (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">4.28</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Form of Registration
  Rights Agreement, dated July 2003 between Registrant and Dan and Edna Purjes
  (6)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">5.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Opinion of
  Doron Faibish.</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">23.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Consent of
  Kost Forer Gabbay &amp; Kassierer</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">23.2</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Consent of
  Doron Faibish (included in Exhibit 5.1)</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
 </TR>
 <TR>
  <TD WIDTH="8%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">24.1</FONT></P></TD>
  <TD WIDTH="1%" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Power of
  Attorney (filed on the signature page hereto)</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">(1)</FONT></P></TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P><FONT SIZE=2 FACE="TIMES NEW ROMAN">Previously
  filed with NUR&#146;s F-1 (File No. 33-93160) and incorporated by reference
  herein.</FONT></P></TD>
 </TR>
 <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">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2000 and incorporated
  by reference herein.</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">Previously
  filed with NUR&#146;s Form 6-K dated January 7, 1998 and incorporated by reference
  herein.</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">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2001 and
  incorporated by reference herein.</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">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2002 and
  incorporated by reference herein.</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">Previously
  filed with NUR&#146;s Form 20-F for the year ended December 31, 2003 and
  incorporated by reference herein.</FONT></P></TD>
 </TR>
</TABLE>
<BR>

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

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit_4-5.htm
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+ 1.4a) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40691\a40691.eep -->
     <!-- Control Number: 40691                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Workstation" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.5</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES PURCHASE
AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Securities Purchase Agreement (this &#147;<B><U>Agreement</U></B><U></U>&#148;) is dated
as of March&nbsp;31, 2004, by and among NUR Macroprinters Ltd., an Israeli corporation
(the &#147;<B><U>Company</U></B><U></U>&#148;), and the purchasers listed on
<B><U>Schedule&nbsp;1</U></B><U></U> hereto and who are signatories hereto (each a
&#147;<B><U>Purchaser</U></B><U></U>&#148; and collectively, the
&#147;<B><U>Purchasers</U></B><U></U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
subject to the terms and conditions set forth in this Agreement and pursuant to
Section&nbsp;4(2) of the Securities Act (as defined below), and Rule&nbsp;506 promulgated
thereunder, the Company desires to issue and sell to the Purchasers, and the Purchasers,
severally and not jointly, desire to purchase from the Company the (i) number of shares of
Common Stock, and (ii)&nbsp;Warrants set forth opposite each Purchaser&#146;s name on
<B><U>Schedule&nbsp;1</U></B><U></U> hereto (collectively, the
&#147;<B><U>Offering</U></B><U></U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW,
THEREFORE</B>, in consideration of the mutual covenants contained in this Agreement, and
for other good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and each Purchaser agrees as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DEFINITIONS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1
<U>Definitions</U>. In addition to the terms defined elsewhere in this Agreement, for all
purposes of this Agreement, the following terms have the meanings indicated in this <U>Section&nbsp;1.1</U>:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Action</U></B><U></U>&#148;
shall have the meaning ascribed to such term in <U>Section&nbsp;3.1(j)</U>.<B><U></U></B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Agent
Shares</U></B><U></U>&#148; shall have the meaning ascribed to such term in <U>Section
2.6</U> of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Agent
Warrant Agreement</U></B><U></U>&#148; shall mean the Placement Agent&#146;s Warrant
Agreement dated as of the Closing Date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Agent
Warrants</U></B><U></U>&#148; shall have the meaning ascribed to such term in <U>Section
2.6</U> of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Affiliate</U></B><U></U>&#148;
means any Person that, directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with a Person as such terms are used in and
construed under Rule&nbsp;144. With respect to a Purchaser, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager as such
Purchaser will be deemed to be an Affiliate of such Purchaser. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Business
Day</U></B><U></U>&#148; means any day except Saturday, Sunday and any day which shall be
a federal legal holiday or a day on which banking institutions in the State of New York
are authorized or required by law or other governmental action to close. </FONT></P>

<p align=center>
<font size=2>1</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Closing</U></B><U></U>&#148;
means the closing of the purchase and sale of the Common Stock and the Warrants pursuant
to <U>Section&nbsp;2.1</U>&nbsp;on March 31, 2004, or such other date as agreed to by the
parties. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Closing
Date</U></B><U></U>&#148; means the date of the Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Closing Price</U></B><U></U>&#148;
means on any particular date (a)&nbsp;the last reported closing price per share of Common
Stock on such date on the Trading Market (as reported by Bloomberg L.P. at 4:15&nbsp;p.m.
(New York time) as the last reported closing price for regular session trading on such
day), or (b)&nbsp;if there is no such price on such date, then the closing price on the
Trading Market on the date nearest preceding such date (as reported by Bloomberg L.P. at
4:15&nbsp;p.m. (New York time) as the closing price for regular session trading on such
day). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Commission</U></B><U></U>&#148;
means the Securities and Exchange Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Common
Stock</U></B><U></U>&#148; means the Company&#146;s ordinary shares, NIS 1.0 nominal value
per share, and any securities into which such Common Stock may hereafter be reclassified. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Common
Stock Equivalents</U></B><U></U>&#148; means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock,
including without limitation, any debt, preferred stock, rights, options, warrants or
other instrument that is at any time convertible into or exchangeable for, or otherwise
entitles the holder thereof to receive, Common Stock. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Disclosure
Schedules</U></B><U></U>&#148; means the Disclosure Schedules attached hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Effective
Date</U></B><U></U>&#148; means the date that the Registration Statement is first declared
effective by the Commission. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Exchange
Act</U></B><U></U>&#148; means the Securities Exchange Act of 1934, as amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Intellectual
Property Rights</U></B><U></U>&#148; shall have the meaning ascribed to such term in
<U>Section&nbsp;3.1(o)</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Investor
Securities</U></B><U></U>&#148; means the Shares, the Warrants and the Warrant Shares. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Liens</U></B><U></U>&#148;
means a lien, charge, security interest, encumbrance, right of first refusal or other
restriction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Material
Adverse Effect</U></B><U></U>&#148; shall have the meaning ascribed to such term in
<U>Section&nbsp;3.1(b)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Material
Permits</U></B><U></U>&#148; shall have the meaning ascribed to such term in
<U>Section&nbsp;3.1(m)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Per
Share Purchase Price</U></B><U></U>&#148; means $1.16, subject to adjustment for reverse
of forward stock splits, stock dividends, stock combinations and other similar
transactions of the Common Stock that occur after the date of this Agreement and before
the Closing. </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Person</U></B><U></U>&#148;
means an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government (or
an agency or subdivision thereof) or other entity of any kind. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Placement
Agent</B></U>&#148; means Rockwood, Inc.</FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Registration
Statement</U></B><U></U>&#148; means a registration statement meeting the requirements set
forth in the Registration Rights Agreement and covering the resale by the Purchasers of
the Shares and the Warrant Shares and by the Placement Agent of the Agent Shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Registration
Rights Agreement</U></B><U></U>&#148; means the Registration Rights Agreement, dated as of
the date of this Agreement, among the Company and each Purchaser, in the form of
<B><U>EXHIBIT&nbsp;A</U></B><U></U> hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Rule&nbsp;144</U></B><U></U>&#148;
means Rule&nbsp;144 promulgated by the Commission pursuant to the Securities Act, as such
Rule&nbsp;may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>SEC
Reports</U></B><U></U>&#148; shall have the meaning ascribed to such term in
<U>Section&nbsp;3.1(h)</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Securities
Act</U></B><U></U>&#148; means the Securities Act of 1933, as amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Shares</U></B><U></U>&#148;
means the shares of Common Stock purchased by the Purchasers pursuant to this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Subscription
Agreement</U></B><U></U>&#148; means as to each Purchaser, the amounts set forth below
such Purchaser&#146;s signature block on the Signature Page of this Agreement in United
States Dollars and in immediately available funds. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Subsidiary</U></B><U></U>&#148;
shall have the meaning ascribed to such term in <U>Section&nbsp;3.1(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Trading
Day</U></B><U></U>&#148; means (i)&nbsp;a day on which the Common Stock is traded on a
Trading Market, or (ii)&nbsp;if the Common Stock is not quoted on a Trading Market, a day
on which the Common Stock is quoted in the over-the-counter market as reported by the
National Quotation Bureau Incorporated (or any similar organization or agency succeeding
to its functions of reporting price); provided, that in the event that the Common Stock is
not listed or quoted as set forth in (i), and (ii)&nbsp;hereof, then Trading Day shall
mean a Business Day. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Trading
Market</U></B><U></U>&#148; means the following markets or exchanges on which the Common
Stock is listed or quoted for trading on the date in question: the OTC Bulletin Board, the
American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the
Nasdaq SmallCap Market. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Transaction
Documents</U></B><U></U>&#148; means this Agreement, the Registration Rights Agreement,
the Warrants, the Placement Agent Warrant Agreement, the Agent Warrant(s) and any and all
other documents or agreements executed in connection with the transactions contemplated
hereunder. </FONT></P>

<p align=center>
<font size=2>3</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Transaction
Securities</U></B><U></U>&#148; means the Shares, the Warrants, the Warrant Shares, the
Agent Warrants and the Agent Shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Warrants</U></B><U></U>&#148;
means the five (5) year common stock purchase warrants, in the form annexed hereto as
EXHIBIT&nbsp;B, issuable to each Purchaser at Closing, which Warrants are exercisable to
purchase twenty-five (25%) percent of the aggregate number of Shares that each Purchaser
purchased pursuant hereto. The Warrants shall have an initial exercise price equal to the
Closing Price. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Warrant
Shares</U></B><U></U>&#148; means the shares of Common Stock issuable upon exercise of the
Warrants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURCHASE AND SALE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
<U>Closing</U>. On the terms and subject to the conditions set forth in this Agreement,
at the Closing, the Company shall sell and issue to each Purchaser and each Purchaser
shall purchase from the Company hereto such number of Shares as shall equal such Purchaser&#146;s
Subscription Amount divided by the Per Share Purchase Price. The Warrants shall be issued
without additional consideration. The aggregate number of Shares and Warrants each
Purchaser shall receive is set forth opposite each Purchaser&#146;s name on <B><U>Schedule
1</U></B><U></U> hereto. Upon satisfaction of the conditions set forth in <U>Section&nbsp;2.2</U>,
the Closing shall occur at the offices of Gusrae Kaplan &amp; Bruno, PLLC, or such other
location as the parties shall mutually agree.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
anything herein to the contrary, in the event that any of the Purchasers fail to pay its
respective purchase price on or before the agreed upon date for the closing (the
&#147;<B><U>Breaching Purchaser</U></B><U></U>&#148;), then, without derogating from the
rights and remedies available to the Company regarding such Breaching Purchaser, the
Closing will be held and the sale of Shares subscribed for by the non-breaching Purchasers
shall take place, provided, however, that in the event that more than twenty-five percent
(25%) of the aggregate purchase price is not paid by Closing, the Company may, at its
discretion, elect to terminate the issuance and sale of the Shares, Warrants and Agent
Warrants and this Agreement without any further liability to the Company and the
non-breaching Purchasers. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2
<U>Closing Conditions.</U> </FONT> </P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, the Company shall deliver or cause to be delivered to:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;irrevocable
instructions to the Company&#146;s transfer agent to issue as soon                     as
is reasonably practicable to each Purchaser share certificates for such
                    number of Shares set forth next to such Purchaser&#146;s name on <B><U>Schedule
                    1</U></B><U></U> hereto purchased by each Purchaser;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
Purchaser, a Warrant, registered in the name of such Purchaser, as duly
                    executed by the Company, entitling such Purchaser to purchase such
amount of                     Warrant Shares as set forth next to such Purchaser&#146;s
name on <B><U>Schedule                     1</U></B><U></U> hereto;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
Purchaser, the Registration Rights Agreement duly executed by the Company;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;each
Purchaser, this Agreement duly executed by the Company;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(v) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Placement Agent, a certificate of the Chief Executive Officer and Chief
                    Financial Officer of the Company stating, among other things, that
(i) all the                     conditions set forth in <U>Section 2.2</U> of this
Agreement have been                     satisfied, (ii) except as set forth in any
Schedule to this Agreement or as                     otherwise disclosed in any SEC
Reports, since December 31, 2003, there has been                     no event, condition
or circumstance that has had or could reasonably be expected                     to have
a Material Adverse Effect, and (iii) the Company has complied with all
                    its covenants and agreements set forth in the Transaction Documents;
and  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(vi) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Placement Agent, the Board of Director resolutions authorizing the
                    Transaction Documents, the Offering and related matters.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Closing, each Purchaser shall deliver or cause to be delivered to the
                    Company the following:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this
Agreement duly executed by such Purchaser;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
Purchaser&#146;s payment for the Shares and Warrants being purchased from
                    the escrow account by wire transfer;  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Registration Rights Agreement duly executed by such Purchaser; and  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
completed and executed Selling Shareholder Questionnaire in the form annexed
                    hereto as <B><U>EXHIBIT C</U></B><U></U>.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
representations and warranties of each of the parties herein shall remain
                    true and correct as of the Closing Date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the Closing Date, there shall have been no Material Adverse Effect with
                    respect to the Company since the date hereof.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
the date hereof to the Closing Date, (i) trading in the Common Stock shall
                    not have been suspended; (ii) trading in securities generally shall
not have                     been suspended or limited, or minimum prices shall not have
been established on                     securities whose trades are reported by such
service, or on any Trading Market;                     and (iii) there shall have been no
banking moratorium declared either by the                     United States or New York
State authorities.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3
<U>Escrow Provisions</U>. Pending the sale of the Shares and the Warrants, all funds paid
hereunder shall be deposited by the Company in escrow with Continental Stock Transfer
&amp; Trust Company (the &#147;<B><U>Escrow Agent</U></B><U></U>&#148;) pursuant to an
escrow agreement by and among the Escrow Agent, the Company, and the Placement Agent (the
&#147;<B><U>Escrow Agreement</U></B><U></U>&#148;). If a Closing has not occurred on or
prior to April __, 2004, or such later date mutually agreed by Company and Placement
Agent (the &#147;<B><U>Termination Date</U></B><U></U>&#148;), then this Agreement shall
be void and all funds paid hereunder by each Purchaser shall be promptly returned to each
Purchaser without interest and/or deduction, subject to <U>Section 2.5 </U>hereof. If a
Closing occurs on or prior to the Termination Date, then all net purchase price proceeds
shall be paid over to the Company within three (3) business days thereafter.<U></U> </FONT></P>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4
<U>Certificates</U>.<B></B>Each Purchaser hereby authorizes and directs the Company: (i)
to irrevocably instruct the Company&#146;s transfer agent to deliver, as soon as
reasonably practicable following the Closing, certificates representing the Shares to be
issued to such Purchaser pursuant to this Agreement; and (ii) to deliver certificates
representing the Warrants to be issued to such Purchaser pursuant to this Agreement, to
each Purchaser&#146;s address indicated in this Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5
<U>Return of Funds</U>. Each Purchaser hereby authorizes and directs the Company to
return any funds for unaccepted purchases to the same account from which the funds were
drawn.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6
<U>Expenses; Fees</U>. Simultaneously with payment for and delivery of the Shares and
Warrants, at each Closing, the Company shall: (i) pay to the Placement Agent a cash fee
equal to five (5%) percent of the aggregate purchase price of the Shares indicated on <B><U>Schedule
1</U></B><U></U>hereto (the &#147;<B><U>Cash Fee</U></B><U></U>&#148;); (ii) reimburse
the Placement Agent for its actual out-of-pocket expenses incurred in connection with the
Offering, including, without limitation, the reasonable fees and expenses of its legal
counsel, not to exceed legal fees of $15,000; (iii) pay all expenses in connection with
the qualification of the Securities under the blue sky laws of the states which the
Placement Agent shall designate, including filing fees and disbursements in connection
with such blue sky matters; (iv) pay certain fees to the Escrow Agent for acting as
escrow agent; and (v) issue to the Placement Agent five (5) year warrants (the &#147;<B><U>Agent
Warrants</U></B><U></U>&#148;) to purchase such number of shares of Common Stock (the
&#147;<B><U>Agent Shares</U></B><U></U>&#148;) as shall equal five (5%) percent of the
aggregate number of Shares sold in the Offering at a per share exercise price equal to
the Per Share Purchase Price.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7
<U>Placement Agent.</U> The Investor Securities are being offered on a &#147;best-effort&#148; basis
by the Placement Agent. The Placement Agreement reserves the right, but is under no
obligation, to sell to its affiliates Shares and Warrants on the terms provided herein.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REPRESENTATIONS AND
WARRANTIES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
<U>Representations and Warranties of the Company</U>. Except as set forth under the
corresponding section of the Disclosure Schedules delivered concurrently herewith, the
Company hereby makes the following representations and warranties as of the date hereof
and as of the Closing Date to each Purchaser:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
<U>Subsidiaries</U>. Other than as disclosed in the SEC Reports, the Company has
          no direct or indirect operating subsidiaries (a           &#147;<B><U>Subsidiary</U></B><U></U>&#148; and
collectively, the           &#147;<B><U>Subsidiaries</U></B><U></U>&#148;). The Company
owns, directly or           indirectly, all of the capital stock of each Subsidiary free
and clear of any           lien, charge, security interest, encumbrance, right of first
refusal or other           restriction (collectively, &#147;<B><U>Liens</U></B><U></U>&#148;),
and all the           issued and outstanding shares of capital stock of each Subsidiary
are validly           issued and are fully paid, non-assessable and free of preemptive
and similar           rights.  </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<U>Organization and Qualification</U>. Each of the Company and the Subsidiaries
          is an entity duly incorporated or otherwise organized, validly existing and in
          good standing under the laws of the jurisdiction of its incorporation or
          organization (as applicable), with the requisite corporate power and authority
          to own and use its properties and assets and to carry on its business as
          currently conducted. Neither the Company nor any Subsidiary is in violation of
          any of the provisions of its respective certificate or articles of
          incorporation, bylaws or other organizational or charter documents. Each of the
          Company and the Subsidiaries is duly qualified to conduct business and is in
          good standing as a foreign corporation or other entity in each jurisdiction in
          which the nature of the business conducted or property owned by it makes such
          qualification necessary, except where the failure to be so qualified or in good
          standing, as the case may be, would not result in (i)&nbsp;a material adverse
          effect on the legality, validity or enforceability of any Transaction Document,
          (ii)&nbsp;a material adverse effect on the results of operations, assets,
          business or financial condition of the Company and the Subsidiaries, taken as a
          whole, or (iii)&nbsp;a material adverse effect on the Company&#146;s ability to
          perform in any material respect on a timely basis its obligations under any
          Transaction Document (any of (i), (ii)&nbsp;or (iii), a &#147;<B><U>Material
          Adverse Effect</U></B><U></U>&#148;).  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
<U>Authorization; Enforcement; Validity</U>. The Company has the requisite
          corporate power and authority to enter into and to consummate the transactions
          contemplated by each of the Transaction Documents and otherwise to carry out
its           obligations thereunder. The execution and delivery of each of the
Transaction           Documents by the Company and the consummation by it of the
transactions           contemplated thereby have been duly authorized by all necessary
action on the           part of the Company and no further corporate action is required
by the Company           in connection therewith. Each Transaction Document has been (or
upon delivery           will have been) duly executed by the Company and, when delivered
in accordance           with the terms hereof, will constitute the valid and binding
obligation of the           Company enforceable against the Company in accordance with
its terms except as           limited by applicable bankruptcy, insolvency,
reorganization, moratorium and           other laws of general application affecting
enforcement of creditors&#146;          rights generally.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
<U>No Conflicts</U>. The execution, delivery and performance of the Transaction
          Documents by the Company and the consummation by the Company of the
transactions           contemplated thereby, do not and will not (i)&nbsp;conflict with
or violate any           provision of the Company&#146;s Memorandum of Association, the
Amended and           Restated Articles of Association and any and all amendments thereto
          (collectively, the &#147;<B><U>Internal Documents</U></B><U></U>&#148;),
          (ii)&nbsp;conflict with, or constitute a default (or an event that with notice
          or lapse of time or both would become a default) under, or give to others any
          rights of termination, amendment, acceleration or cancellation (with or without
          notice, lapse of time or both) of, any agreement, credit facility, debt or
other           instrument (evidencing a Company or Subsidiary debt or otherwise), or
other           understanding to which the Company or any Subsidiary is a party or by
which any           property or asset of the Company or any Subsidiary is bound or
affected, or           (iii)&nbsp;result in a violation of any law, rule, regulation,
order, judgment,           injunction, decree or other restriction of any court or
governmental authority           to which the Company or a Subsidiary is subject
(including federal and state           securities laws and regulations), or by which any
property or asset of the           Company or a Subsidiary is bound or affected.  </FONT></P>

<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
<U>Filings, Consents and Approvals</U>. The Company is not required to obtain
          any consent, waiver, authorization or order of, give any notice to, or make any
          filing or registration with, any court or other federal, state, local or other
          governmental authority or other Person in connection with the execution,
          delivery and performance by the Company of the Transaction Documents, other
than           the filing with the Commission of the Registration Statement, the
application(s)           and approvals to each Trading Market for the listing of the
Shares, Warrant           Shares and the Agent Shares for trading thereon in the time and
manner required           thereby, and applicable Blue Sky filings.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
<U>Issuance of the Securities</U>. All of the Transaction Securities have been
          duly authorized and, when issued and paid for in accordance with the
Transaction           Documents, will be duly and validly issued, fully paid and
nonassessable           immediately after the payment of the Per Share Purchase Price for
the Shares or           exercise price for the Warrant Shares and Agent Shares, free and
clear of all           Liens. The Company has reserved from its duly authorized capital
stock such           number of shares of Common Stock so as to permit the issuance of the
Shares, the           Warrant Shares and the Agent Shares.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
<U>Capitalization</U>. The registered share capital of the Company is fifty
          million New Israeli Shekels (NIS 50,000,000), divided into fifty million
          (50,000,000) ordinary shares, of which no more than 17,414,281 ordinary shares
          are issued and outstanding as of December 31, 2003. In addition, as of December
          31, 2003, the Company had issued and outstanding options and warrants
          exercisable into no more than 5,829,543 ordinary shares, and has an outstanding
          loan of $1.50 million convertible into ordinary shares at a conversion price of
          $0.62. All of the Company&#146;s outstanding securities have been and are, or
          upon issuance will be duly authorized, validly issued, fully paid and
          non-assessable. (i)&nbsp;No shares of the Company&#146;s capital stock are
          subject to any preemptive rights, right of participation or any other similar
          rights; (ii)&nbsp; there are no outstanding securities of the Company or any of
          its Subsidiaries which contain any redemption or similar provisions, and there
          are no contracts, commitments, understandings or arrangements by which the
          Company or any of its Subsidiaries is or may become bound to redeem a security
          of the Company or any of its Subsidiaries; (iii)&nbsp;there are no securities
or           instruments containing anti-dilution or similar provisions that will be
          triggered by the issuance of the Transaction Securities as described in the
          Transaction Documents; and (iv) the Company does not have any stock
appreciation           rights or &#147;phantom stock&#148; plans or agreements or any
similar plan or           agreement. All prior sales of securities of the Company were
either registered           under the Securities Act and applicable state securities laws
or exempt from           such registration, and the Company is not aware of any security
holder who has           any rescission and/or similar rights with respect thereto.  </FONT></P>

<p align=center>
<font size=2>8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
<U>SEC Reports; Financial Statements</U>. The Company has filed all reports
          required to be filed by it under the Securities Act and the Exchange Act,
          including pursuant to Section&nbsp;13(a)&nbsp;or Section&nbsp;15(d)&nbsp;of the
          Exchange Act, for the two (2) years preceding the date hereof (or such shorter
          period as the Company was required by law to file such material) (the foregoing
          materials, including the exhibits thereto, being collectively referred to
herein           as the <B><U>&#147;SEC Reports</U></B><U></U>&#148; and, together with
the           Disclosure Schedules to this Agreement, the &#147;<B><U>Disclosure
          Materials</U></B><U></U>&#148;). As of their respective dates, except to the
          extent set forth in the SEC Reports with respect to restatements of the
          Company&#146;s financial statements, the SEC Reports complied in all material
          respects with the requirements of the Securities Act and the Exchange Act and
          the rules and regulations of the Commission promulgated thereunder, as
          applicable, and to the Company&#146;s best knowledge, none of the SEC Reports,
          when filed, contained any untrue statement of a material fact or omitted to
          state a material fact required to be stated therein or necessary in order to
          make the statements therein, in light of the circumstances under which they
were           made, not misleading. The financial statements of the Company included in
the           SEC Reports comply in all material respects with applicable accounting
          requirements and the rules and regulations of the Commission with respect
          thereto as in effect at the time of filing, except to the extent set forth in
          the SEC Reports with respect to restatements of the Company&#146;s financial
          statements. Such financial statements have been prepared in accordance with
          generally accepted accounting principles in the United States applied on a
          consistent basis during the periods involved           (&#147;<B><U>GAAP</U></B><U></U>&#148;),
except to the extent set forth in the           SEC Reports with respect to restatements
of the Company&#146;s financial           statements, and except as may be otherwise
specified in such financial           statements or the notes thereto and except that
unaudited financial statements           may not contain all footnotes required by GAAP,
and fairly present in all           material respects the financial position of the
Company and its consolidated           subsidiaries as of and for the dates thereof and
the results of operations and           cash flows for the periods then ended, subject,
in the case of unaudited           statements, to normal, immaterial, year-end audit
adjustments.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
<U>Material Changes</U>. Since December 31, 2003, other than as may be disclosed
          on any Current Report on Form 6-K filed by the Company with the Commission
          (i)&nbsp;there has been no event, occurrence or development that has had or
that           could reasonably be expected to result in a Material Adverse Effect, (ii)
the           Company has not incurred any material liabilities (contingent or otherwise)
          other than (A) trade payables and accrued expenses incurred in the ordinary
          course of business consistent with past practice, and (B) liabilities not
          required to be reflected in the Company&#146;s financial statements pursuant to
          GAAP or required to be disclosed in filings made with the Commission,
          (iii)&nbsp;the Company has not altered its method of accounting, (iv)&nbsp;the
          Company has not declared or made any dividend or distribution of cash or other
          property to its holders of Common Stock or purchased, redeemed or made any
          agreements to purchase or redeem any shares of its capital stock and
          (v)&nbsp;the Company has not issued any equity securities to any officer,
          director or Affiliate, except pursuant to existing Company stock option plans.
          The Company does not have pending before the Commission any request for
          confidential treatment of information.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
<U>Litigation</U>. The Company is not aware of any action, suit, inquiry, notice
          of violation, proceeding or investigation pending or, to the knowledge of the
          Company, threatened against or affecting the Company, any Subsidiary or any of
          their respective properties before or by any court, arbitrator, governmental or
          administrative agency and/or regulatory authority (federal, state, county,
local           or foreign), (collectively, an &#147;<B><U>Action</U></B><U></U>&#148;)
which           does and/or could (i)&nbsp;adversely affects or challenges the legality,
          validity or enforceability of any of the Transaction Documents and/or the
          Transaction Securities or (ii)&nbsp;could, if there were an unfavorable
          decision, have or reasonably be expected to result in a Material Adverse
Effect.           To the knowledge of the Company, there is not pending or contemplated,
any           investigation by the Commission and/or other entity involving the Company
or any           current directors or officers of the Company. The Commission has not
issued any           stop order or other order suspending the effectiveness of any
registration           statement filed by the Company or any Subsidiary under the
Exchange Act or the           Securities Act.  </FONT></P>

<p align=center>
<font size=2>9</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)
<U>Labor Relations</U>. No material labor dispute exists or, to the knowledge of
          the Company, is imminent with respect to any of the employees of the Company
          which could reasonably be expected to result in a Material Adverse Effect.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)
<U>Compliance</U>. Neither the Company nor any Subsidiary (i)&nbsp;is in default
          under or in violation of (and no event has occurred that has not been waived
          that, with notice or lapse of time or both, would result in a default by the
          Company or any Subsidiary under), nor has the Company or any Subsidiary
received           notice of a claim that it is in default under or that it is in
violation of, any           indenture, loan or credit agreement or any other agreement or
instrument to           which it is a party or by which it or any of its properties is
bound (whether or           not such default or violation has been waived), (ii)&nbsp;is
in violation of any           order of any court, arbitrator or governmental body known
or served to the           Company, or (iii)&nbsp;is or has been in violation of any
statute, rule or           regulation of any governmental authority, including without
limitation all           foreign, federal, state and local laws applicable to its
business, except in the           case of clauses (i), (ii)&nbsp;and (iii)&nbsp;as would
not result in a Material           Adverse Effect.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)
<U>Regulatory Permits</U>. The Company and the Subsidiaries possess all
          certificates, authorizations and permits issued by the appropriate federal,
          state, local or foreign regulatory authorities necessary to conduct their
          respective businesses, except where the failure to possess such permits would
          not have or reasonably be expected to result in a Material Adverse Effect
          (&#147;<B><U>Material Permits</U></B><U></U>&#148;), and neither the Company
nor           any Subsidiary has received any notice of proceedings relating to the
revocation           or modification of any Material Permit.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)
<U>Title to Assets</U>. The Company and the Subsidiaries have good and
          marketable title in fee simple to all real property owned by them that is
          material to the business of the Company and the Subsidiaries, taken as a whole.
          Any real property and facilities held under lease by the Company and the
          Subsidiaries are held by them under valid, subsisting and enforceable leases
          with which the Company and the Subsidiaries are in material compliance.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)
<U>Intellectual Property Rights.</U> The Company and its Subsidiaries own, or
          possess adequate rights or licenses to use all trademarks, trade names, service
          marks, service mark registrations, service names, patents, patent rights,
          copyrights, inventions, licenses, approvals, governmental authorizations, trade
          secrets and rights necessary to conduct their respective businesses as now
          conducted, the lack of which could reasonably be expected to have a Material
          Adverse Effect. The Company and its Subsidiaries do not have any knowledge of
          any infringement by the Company or its Subsidiaries of trademarks, trade name
          rights, patents, patent rights, copyrights, inventions, licenses, service
names,           service marks, service mark registrations, trade secrets or other
similar rights           of others, or of any such development of similar or identical
trade secrets or           technical information by others and no claim, action or
proceeding has been made           or brought against, or to the Company&#146;s
knowledge, has been threatened           against, the Company or its Subsidiaries
regarding trademarks, trade name           rights, patents, patent rights, inventions,
copyrights, licenses, service names,           service marks, service mark registrations,
trade secrets or other infringement,           except where such infringement, claim,
action or proceeding would not reasonably           be expected to have either
individually or in the aggregate a Material Adverse           Effect. The Company and its
Subsidiaries have taken reasonable security measures           to protect the secrecy,
confidentiality and value of all of their intellectual           properties.  </FONT></P>

<p align=center>
<font size=2>10</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)
<U>Transactions With Affiliates and Employees</U>. None of the officers,
          directors and/or employees of the Company and the Subsidiaries are a party to
          any transaction with the Company or any Subsidiary (other than for services as
          employees, officers and directors), including any contract, agreement or other
          arrangement providing for the furnishing of services to or by, providing for
          rental of real or personal property to or from, or otherwise requiring payments
          to or from any officer, director or such employee or, to the knowledge of the
          Company, any entity in which any officer, director, or any such employee has a
          substantial interest or is an officer, director, trustee or partner, in each
          case in excess of $60,000 other than (a)&nbsp;for payment of salary or
          consulting fees for services rendered, (b)&nbsp;reimbursement for expenses
          incurred on behalf of the Company and (c)&nbsp;for other employee benefits,
          including stock option agreements under any stock option plan of the Company.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)
<U>Internal Accounting Controls</U>. The Company and each of its subsidiaries
          maintains a system of internal accounting controls sufficient to provide
          reasonable assurance that (i) transactions are executed in accordance with
          management&#146;s general or specific authorizations, (ii) transactions are
          recorded as necessary to permit preparation of financial statements in
          conformity with GAAP and to maintain asset accountability, and (iii) the
          recorded accountability for assets is compared with the existing assets at
          reasonable intervals and appropriate action is taken with respect to any
          differences.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)
<U>Certain Fees</U>. Except for payments payable to the Placement Agent by the
          Company, the Company has not entered into agreement to pay any brokerage or
          finder&#146;s fees or commissions to any person including, but not limited to,
          any broker, financial advisor or consultant, finder, placement agent,
investment           banker, bank or other Person with respect to the transactions
contemplated by           this Agreement. The Purchasers shall have no obligation with
respect to any fees           or with respect to any claims made by or on behalf of other
Persons for fees of           a type contemplated in this Section&nbsp;that may be due in
connection with the           transactions contemplated by this Agreement, except to the
extent a Purchaser           made an agreement to make any such payment.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)
<U>Private Placement</U>. Assuming the accuracy of the Purchasers
          representations and warranties set forth in <U>Section&nbsp;3.2</U>, no
          registration under the Securities Act is required for the offer and sale of the
          Investor Securities by the Company to the Purchasers as contemplated hereby.
The           issuance and sale of the Transaction Securities hereunder does not
contravene           the rules and regulations of the Trading Market.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)
<U>Investment Company</U>. The Company is not an &#147;investment company&#148;          within
the meaning of the Investment Company Act of 1940, as amended.  </FONT></P>

<p align=center>
<font size=2>11</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)
<U>Listing and Maintenance Requirements</U>. On March 24, 2004, the Company
          received a compliance notice from the Trading Market authorities, stating that
          the Company is not in compliance with Nasdaq Marketplace Rule 4310(c)(2). In
          previous years the Company has fulfilled this requirement because it had
          stockholders&#146; equity in excess of $2.5 million. As of December 31, 2003,
          the Company has negative stockholders&#146; equity of $1.5 million. The Company
          has been asked by the Trading Market authorities to provide a plan by April 7,
          2004, setting forth how the Company intends to achieve and sustain compliance
          with the listing requirements. The Company anticipates that such a plan will be
          provided to the Trading Market authorities by that date.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
<U>No General Solicitation.</U> Neither the Company, its Subsidiaries, any of
          their affiliates nor any person acting on their behalf, has engaged in any form
          of general solicitation or general advertising (within the meaning of
          Regulation&nbsp;D under the Securities Act) in connection with the offer or
sale           of the Shares and the Warrants.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)
<U>No Integrated Offering.</U> Neither the Company, its Subsidiaries, any of
          their affiliates nor any person acting on their behalf has, directly or
          indirectly, made any offers or sales of any security or solicited any offers to
          buy any security, under circumstances that would require registration of any of
          the Transaction Securities under the Securities Act or cause the Offering to be
          integrated with prior offerings by the Company for purposes of the Securities
          Act or any applicable stockholder approval provisions, including without
          limitation, under the rules and regulations of any exchange or automated
          quotation system on which any of the securities of the Company are listed or
          designated. None of the Company, its Subsidiaries, their affiliates and any
          person acting on their behalf will take any action or steps referred to in the
          preceding sentence that would require registration of any of the Transaction
          Securities under the Securities Act or cause the Offering to be integrated with
          other offerings.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)
<U>Tax Status.</U> The Company and each of its Subsidiaries has made or filed
          all federal and state income and all other tax returns, reports and
declarations           required by any jurisdiction to which it is subject, except when
the failure to           do so would not have a Material Adverse Effect, and has paid all
taxes and other           governmental assessments and charges that are material in
amount, shown or           determined to be due on such returns, reports and declarations
or to the           Company&#146;s knowledge otherwise due and payable, except those
being contested           in good faith and has set aside on its books reserves in
accordance with GAAP           reasonably adequate for the payment of all taxes for
periods subsequent to the           periods to which such returns, reports or
declarations apply. There are no           unpaid taxes in any material amount claimed to
be due by the taxing authority of           any jurisdiction, and the officers of the
Company know of no basis for any such           claim.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)
  <U>Registration Rights.</U> Except with respect to Purchasers and the Placement Agent and except as may be
provided on <U>Schedule 3.1(z)</U> hereto, no person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)
  <U>Right of First Refusal.</U> No person, firm or other business entity is a party to any
agreement, contract or understanding, written or oral entitling such party to a right of
first refusal with respect to offerings of securities by the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
The Company confirms that, neither the Company nor any other Person acting on
          its behalf has provided any of the Purchasers or their agents or counsel with
          any information that constitutes or might constitute material, non-public
          information. The Company understands and confirms that the Purchasers will rely
          on the foregoing representations and covenants in effecting transactions in
          securities of the Company. All disclosure provided to the Purchasers regarding
          the Company, its business and the transactions contemplated hereby, including
          the Disclosure Schedules to this Agreement, furnished by or on behalf of the
          Company are, as of the date hereof and as of the Closing Date and subject to
the           qualifications therein, true and correct and do not contain any untrue
statement           of a material fact or omit to state any material fact necessary in
order to make           the statements made therein, in light of the circumstances under
which they were           made, not misleading.  </FONT></P>

<p align=center>
<font size=2>12</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance.</U>          Each
of the Company and its Subsidiaries maintain insurance of the types and in           the
amounts deemed adequate for its business for all risks normally insured           against
an entity carrying on the same business or businesses as the Company or           its
Subsidiaries, including, but not limited to, product liability insurance,
          insurance covering real and personal property owned or leased by the Company
and           its Subsidiaries against theft, damage, destruction, acts of vandalism and
all           other risks customarily insured against, all of which insurance is in full
force           and effect.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental.</U>          The
Company and each of its Subsidiaries is, to the best of its knowledge, not           in
violation of applicable published rules and regulations relating to
          environmental matters which violation could be reasonably foreseeable to result
          in a Material Adverse Effect and no material expenditures are or will be
          required in order to comply with any such existing laws.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Business.</U> Except as may be disclosed on any Current Report on           Form 6-K
filed by the Company with the Commission, since December 31, 2003, the           Company
has not (a) incurred any debts, obligations or liabilities, absolute,           accrued,
contingent or otherwise, whether due or to become due, except current
          liabilities incurred in the usual and ordinary course of business, having a
          Material Adverse Effect, (b) made or suffered any changes in its contingent
          obligations by way of guaranty, endorsement (other than the endorsement of
          checks for deposit in the usual and ordinary course of business), indemnity,
          warranty or otherwise, (c) discharged or satisfied any liens other than those
          securing, or paid any obligation or liability other than, current liabilities
          shown on the balance sheet dated as at December 31, 2003 and forming part of
the           SEC Documents, and current liabilities incurred since December 31, 2003, in
each           case in the usual and ordinary course of business, (d) mortgaged, pledged
or           subjected to lien any of its assets, tangible or intangible, (e) sold,
          transferred or leased any of its assets except in the usual and ordinary course
          of business, (f) cancelled or compromised any debt or claim, or waived or
          released any right, of material value, (g) suffered any physical damage,
          destruction or loss (whether or not covered by insurance) adversely affecting
          the properties or business of the Company, (h) entered into any transaction
          other than in the usual and ordinary course of business except for this
          Agreement and the related agreements referred to herein, (i) encountered any
          labor difficulties or labor union organizing activities, (j) issued or sold any
          shares of capital stock or other securities or granted any options with respect
          thereto, or modified any equity security of the Company, (k) declared or paid
          any dividends on or made any other distributions with respect to, or purchased
          or redeemed, any of its outstanding equity securities, (l) made any change in
          the accounting principles, methods or practices followed by it or depreciation
          or amortization policies or rates theretofore adopted, or (m) entered into any
          agreement or otherwise obligated itself, to do any of the foregoing.  </FONT></P>

<p align=center>
<font size=2>13</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Foreign
Corrupt Practices.</U> Neither the Company, nor to the Company&#146;s           best
knowledge, any of its Subsidiaries, directors, officers, agents, employees           or
other persons acting on behalf of the Company or any of its Subsidiaries has,
          in the course of its actions for, or on behalf of, the Company, (a) used any
          corporate funds for any unlawful contribution, gift, entertainment or other
          unlawful expenses relating to political activity; made any direct or indirect
          unlawful payment to any foreign or domestic government official or employee
from           corporate funds, or (b) made any unlawful bribe, rebate, payoff, influence
          payment, kickback or other unlawful payment to any foreign or domestic
          government official or employee.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2
<U>Representations and Warranties of the Purchasers.</U> Each Purchaser hereby, for
itself and for no other Purchaser, represents and warrants as of the date hereof and as
of the Closing Date to the Company, acknowledging that the Company is relying upon the
accuracy and completeness of the representations and warranties set forth herein to,
among other things, ensure that registration under Section&nbsp;5 of the Securities Act
is not required in connection with the sale of the Securities hereby, as follows:  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
<U>Organization; Authority</U>. Such Purchaser, if not a natural person, is an
          entity duly organized, validly existing and in good standing under the laws of
          the jurisdiction of its organization with full right, corporate or partnership
          power and authority to enter into and to consummate the transactions
          contemplated by the Transaction Documents and otherwise to carry out its
          obligations thereunder. The execution, delivery and performance by such
          Purchaser of the transactions contemplated by this Agreement has been duly
          authorized by all necessary corporate or similar action on the part of such
          Purchaser. Each Transaction Document to which it is a party has been duly
          executed by such Purchaser, and when delivered by such Purchaser in accordance
          with the terms hereof, will constitute the valid and legally binding obligation
          of such Purchaser, enforceable against it in accordance with its terms.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<U>Investment Intent</U>. Such Purchaser understands that the Investor
          Securities are &#147;restricted securities&#148; and have not been registered
          under the Securities Act or any applicable state securities law and in
          connection therewith, the Company is relying in part on the representations of
          the Purchaser set forth herein, and it is acquiring the Investor Securities as
          principal for its own account for investment purposes only and not with a view
          to or for distributing or reselling such Investor Securities or any part
          thereof, has no present intention of distributing any of such Investor
          Securities and has no arrangement or understanding with any other persons
          regarding the distribution of such Investor Securities (this representation and
          warranty not limiting such Purchaser&#146;s right to sell the Investor
          Securities pursuant to the Registration Statement or otherwise in compliance
          with applicable federal and state securities laws). Such Purchaser is acquiring
          the Investor Securities hereunder in the ordinary course of its business. Such
          Purchaser does not have any agreement or understanding, directly or indirectly,
          with any Person to distribute any of the Investor Securities.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
<U>Purchaser Status</U>. At the time such Purchaser was offered the Shares and
          Warrants, it was, and at is at the date hereof and will be on the Closing Date
          an &#147;<U>accredited investor</U>&#148; as defined in           Rule&nbsp;501(a)&nbsp;under
the Securities Act. Such Purchaser is not, and is           not required to be,
registered as a broker-dealer under Section&nbsp;15 of the           Exchange Act.  </FONT></P>

<p align=center>
<font size=2>14</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
<U>Purchaser&#146;s Review of Information.</U> In making an investment decision
          as to whether to purchase the Shares and Warrants offered hereby, each
Purchaser           has relied upon the SEC Reports and the representation and warranties
of the           Company contained herein and conducted such independent examinations as
it           deemed necessary. Each Purchaser has had the opportunity to ask questions
of,           and receive answers from, representatives of the Company concerning the
Company           and the officers and all such questions have been asked and answered by
the           Company to the satisfaction of the Purchaser.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
<U>Experience of Such Purchaser</U>. Each Purchaser, either alone or together
          with its representatives, has such knowledge, sophistication and experience in
          business and financial matters so as to be capable of evaluating the merits and
          risks of the prospective investment in the Investor Securities, and has so
          evaluated the merits and risks of such investment. Such Purchaser is able to
          bear the economic risk of an investment in the Investor Securities and, at the
          present time, is able to afford a complete loss of such investment.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
<U>General Solicitation</U>. Such Purchaser is not purchasing the Shares and
          Warrants as a result of any advertisement, article, notice or other
          communication regarding the Securities published in any newspaper, magazine or
          similar media or broadcast over television or radio or presented at any seminar
          or any other general solicitation or general advertisement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
<U>Compliance with the Securities Laws</U>. Such Purchaser hereby confirms its
          understanding that it may not cover short sales made prior to the Effective
Date           with shares of Common Stock registered for resale on the Registration
Statement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
<U>No Conflicts</U>. Neither the execution and delivery of this Agreement and/or
          any Transaction Document, nor the consummation of the Transactions contemplated
          hereby, will violate any constitution, statute, regulation, rule, injunction,
          judgment, order, decree, ruling, charge, or other restriction of any
government,           governmental agency, or court to which Purchaser is subject or any
provision of           its organizational documents or other similar governing
instruments and it will           not result in any conflict with, breach of, or default
(or give rise to any           right of termination, cancellation or acceleration or the
loss of any benefit)           under any of the terms, conditions or provisions of any
agreement, permit or           other instrument or obligation to which such Purchaser is
a party, or by which           such Purchaser or any of its properties or assets may be
bound.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
<U>No Advice</U>. Purchaser understands that nothing in this Agreement or any
          other materials presented to Purchaser in connection with the purchase and sale
          of the Investor Securities constitutes legal, tax or investment advice.
          Purchaser has consulted such legal, tax and investment advisors as it, in its
          sole discretion, has deemed necessary or appropriate in connection with its
          purchase of the Investor Securities.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
<U>No Litigation, Etc</U>. There is no action, suit, proceeding, judgment, claim
          or investigation pending or, to the knowledge of the Purchaser, threatened
          against the Purchaser which could reasonably be expected in any manner to
          challenge or seek to prevent, enjoin, alter or materially delay any of the
          transactions contemplated by the Transaction Documents.  </FONT></P>

<p align=center>
<font size=2>15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)
<U>Approvals</U>. The execution, delivery and performance by the Purchaser of
          this Agreement and the Transaction Documents to which it is a party, and the
          consummation of the transactions set forth herein require no material action by
          or in respect of, or material filing with, any governmental body, agency,
          official or authority, by the Purchaser other than (i) any filings,
          authorizations, consents and approvals as may be required under the
          Hart-Scott-Rodino Improvements Act of 1976, as amended; (ii) the filing by the
          Purchaser with the SEC of such reports under the Exchange Act as may be
required           in connection with this Agreement, the Transaction Documents and the
          transactions contemplated hereby, and (iii) any filings required by the
          securities or blue sky laws of the various states.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)
<U>Placement Agent.</U> Each Purchaser agrees that neither the Placement Agent
          nor any of its respective directors, officers, affiliates, employees or agents
          shall be liable to the Purchaser for any action taken or omitted to be taken by
          it in connection therewith, except for willful misconduct or gross negligence.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company acknowledges and agrees that each Purchaser does not make or has not made any
representations or warranties with respect to the transactions contemplated hereby other
than those specifically set forth in this <U>Section&nbsp;3.2</U> and <U>Section 4.1</U>. </FONT></P>

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<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER AGREEMENTS OF
THE PARTIES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1
<U>Transfer Restrictions.</U> </FONT> </P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The           Investor Securities may only be disposed of in compliance with state and
federal           securities laws. In connection with any transfer of Investor Securities
other           than pursuant to an effective registration statement, or in connection
with a           pledge as contemplated in <U>Section&nbsp;4.1(b)</U> hereof, the Company
may           require the transferor thereof to provide to the Company an opinion of
counsel           selected by the transferor, the form and substance of which opinion
shall be           reasonably satisfactory to the Company, or an opinion of counsel to
the Company           to the effect that such transfer does not require registration of
such           transferred Investor Securities under the Securities Act. As a condition
of           transfer, any such transferee shall agree in writing to be bound by the
terms of           this Agreement and shall have the rights of a Purchaser under this
Agreement and           the Registration Rights Agreement.  </FONT></P>

<p align=center>
<font size=2>16</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Purchasers agree to the imprinting, so long as is required by this <U>Section&nbsp;4.1(b)</U>,
of a legend on any of the Investor Securities in the           following form:  </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;<B><U>SECURITIES
ACT</U></B><U></U>&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY, OR A LEGAL OPINION OF COUNSEL TO THE COMPANY TO SUCH
EFFECT . THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN
&#147;ACCREDITED INVESTOR&#148; AS DEFINED IN RULE 501(a)&nbsp;UNDER THE SECURITIES ACT. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to
a <I>bona fide </I>margin agreement with a registered broker-dealer or grant a security
interest in some or all of the Investor Securities to a financial institution that is an
&#147;accredited investor&#148; as defined in Rule&nbsp;501(a)&nbsp;under the Securities
Act and, if required under the terms of such arrangement, such Purchaser may transfer
pledged or secured Investor Securities to the pledgees or secured parties. Such a pledge
or transfer would not be subject to approval of the Company and no legal opinion of legal
counsel of the pledgee, secured party or pledgor shall be required in connection with the
grant of the pledge. At the appropriate Purchaser&#146;s expense, the Company will execute
and deliver such reasonable documentation as a pledgee or secured party of Transaction
Securities may reasonably request in connection with a pledge or transfer of the Investor
Securities, including the preparation and filing of any required prospectus supplement
under Rule&nbsp;424(b)(3) under the Securities Act or other applicable provision of the
Securities Act to appropriately amend the list of selling stockholders thereunder.
Notwithstanding anything to the contrary, any such pledgee shall not be entitled to any
rights under any of the Transaction Documents unless and until such pledgee executes a
written agreement to be bound by Purchasers&#146; obligations under the Transaction
Documents. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Subject to compliance with all laws, rules and regulations including, but not
          limited to, the Securities Act and the Exchange Act, certificates evidencing
the           Shares and Warrant Shares shall not contain any legend (including the
legend set           forth in <U>Section&nbsp;4.1(b)</U>), (i) following any sale of the
Shares or           Warrant Shares pursuant to a registration statement (including the
Registration           Statement) covering the resale of such security, or (ii)&nbsp;following
any sale           of the Shares or Warrant Shares pursuant to Rule&nbsp;144, or (iii)&nbsp;if
such           Shares or Warrant Shares are eligible for sale under Rule&nbsp;144(k) and
          appropriate documentation is provided satisfactory to legal counsel to the
          Company, or (iv)&nbsp;if such legend is not required under applicable
regulation           of the Securities Act (including judicial interpretations and
pronouncements           issued by the Staff of the Commission). The Company agrees that
at such time as           such legend is no longer required under and pursuant to this <U>Section&nbsp;4.1(c)</U>,
it will, no later than three (3) Trading Days           following the delivery by a
Purchaser to the Company or the Company&#146;s           transfer agent of a certificate
representing Shares and/or Warrant Shares, as           the case may be, issued with a
restrictive legend, deliver or cause to be           delivered to such Purchaser a
certificate representing such securities that is           free from all restrictive and
other legends. The Company may not make any           notation on its records or give
instructions to any transfer agent of the           Company that enlarge the restrictions
on transfer set forth in this Section.  </FONT></P>

<p align=center>
<font size=2>17</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
Each Purchaser severally and not jointly agrees that the removal of the
          restrictive legend from certificates representing the Shares and the Warrant
          Shares as set forth in this <U>Section&nbsp;4.1</U> is predicated upon the
          Company&#146;s reliance that the Purchaser will sell any Investor Securities
          pursuant to either the registration requirements of the Securities Act,
          including any applicable prospectus delivery requirements, or an exemption
          therefrom.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2
<U>Furnishing of Information</U>. Until the earlier of the date no Purchaser owns any
Investor Securities or five (5) years from the date of this Agreement, the Company
covenants and agrees to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act. Until the earlier of the date no Purchaser
owns any Investor Securities or five (5) years from the date of this Agreement, if the
Company is not required to file reports pursuant to the Exchange Act, it will prepare and
furnish to the Purchasers and make publicly available in accordance with Rule&nbsp;144(c)&nbsp;such
information as is required for the Purchasers to sell any Shares and Warrant Shares under
Rule&nbsp;144. Until the earlier of the date no Purchaser owns any Investor Securities or
five (5) years from the date of this Agreement, the Company further covenants and agrees
that it will take such further action as any holder of Investor Securities may reasonably
request, all to the extent required from time to time to enable such person to sell any
Shares and Warrant Shares without registration under the Securities Act within the
limitation of the exemptions provided by Rule&nbsp;144.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3
<U>Integration</U>. The Company shall not sell, offer for sale or solicit offers to buy
or otherwise negotiate in respect of any security (as defined in Section&nbsp;2 of the
Securities Act) that would be integrated with the offer or sale of any of the Transaction
Securities in a manner that would require the registration under the Securities Act of
the sale of the Investor Securities to the Purchasers or that would be integrated with
the offer or sale of the Investor Securities for purposes of the rules and regulations of
any Trading Market.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4
<U>Securities Laws Disclosure; Publicity</U>. The Company shall by the end of the
business on the Business Day following the Closing issue a press release or file a
Current Report on Form 8-K, disclosing the transactions contemplated hereby and make such
other filings and notices in the manner and time required by the Commission. The Company
and the Placement Agent shall consult with each other in issuing any press releases with
respect to the transactions contemplated hereby, and neither the Company nor the
Placement Agent<B> </B>shall issue any such press release or otherwise make any such
public statement without the prior consent of the Company, with respect to any press
release of the Placement Agent, or without the prior consent of the Placement Agent, with
respect to any press release of the Company, which consent shall not unreasonably be
withheld or delayed, except if such disclosure is required by law, in which case the
disclosing party shall promptly provide the other party with prior notice of such public
statement or communication. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of any Purchaser, or include the name of any Purchaser in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written
consent of such Purchaser, except (i)&nbsp;as required by federal securities law in
connection with the registration statement contemplated by the Registration Rights
Agreement and (ii)&nbsp;to the extent such disclosure is required by law or Trading
Market regulations, in which case the Company shall provide the Purchasers with prior
notice of such disclosure permitted under subclause&nbsp;(i) or (ii).  </FONT></P>

<p align=center>
<font size=2>18</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5
<U>Use of Proceeds</U>. The Company covenants and agrees that all of the net proceeds
that it receives from the sale of the Shares and Warrants pursuant to this Agreement,
although distributed, allocated and expended by the Company in its sole discretion, shall
be used for general working capital and corporate purposes.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6
<U>Form&nbsp;D and Blue Sky</U>. If required, the Company shall file a Form&nbsp;D with
respect to the Transaction Securities as required under Regulation&nbsp;D under the
Securities Act and, upon written request, provide a copy thereof to each Purchaser and
the Placement Agent promptly after such filing. The Company shall, on or before the
Closing, take such action as the Company shall reasonably determine is necessary in order
to obtain an exemption for or to qualify any Transaction Securities for sale to the
Purchasers and/or the Placement Agent pursuant to this Agreement under applicable
securities or &#147;Blue Sky&#148; laws of the states of the United States, and shall
provide evidence of any such action so taken to the Purchasers on or prior to the
Closing. The Company shall make all filings and reports relating to the offer and sale of
the Transaction Securities required under applicable securities or &#147;Blue Sky&#148; laws
of the states of the United States following the Closing.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7
<U>Reservation of Common Stock</U>. As of the date hereof, the Company has reserved and
the Company shall continue to reserve and keep available at all times, free of preemptive
rights, a sufficient number of shares of Common Stock for the purpose of enabling the
Company to issue the Shares, the Warrant Shares and the Agent Shares.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8
<U>Listing of Common Stock</U>. The Company hereby agrees to use its best efforts to
maintain the listing of the Common Stock on its current Trading Market, and immediately
file with the Trading Market to list the applicable Shares, Warrant Shares and Agent
Shares on the Trading Market. The Company further agrees, if the Company applies to have
the Common Stock traded on any other Trading Market, it will include in such application
the Shares, Warrant Shares and Agent Shares and will take such other action as is
necessary or desirable in the opinion of the Purchasers to cause the Shares, Warrant
Shares and Agent Shares to be listed on such other Trading Market as promptly as
possible. The Company will, to the extent commercially practicable, take all action
necessary to continue the listing and trading of its Common Stock on its current Trading
Market and will comply in all material respects with the Company&#146;s reporting, filing
and other obligations under the bylaws or rules of the Trading Market.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9
<U>Indemnification by the Purchasers</U>. Each of the Purchasers (severally but not
jointly) agrees to indemnify and hold harmless the Company and its officers, directors,
agents, representatives, shareholders and employees and each of their respective
affiliates, from and against any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts paid in
settlements, court costs and reasonable attorneys&#146; fees and costs of investigation
that any such party may suffer or incur which are caused by or arise out of (i) any
material misrepresentation or material breach or default in the performance by it of any
covenant or agreement made by it in this Agreement or in any of the Transaction
Documents; or (ii) any material misrepresentation or material breach of warranty or
representation made by it in this Agreement or in any of the Transaction Documents.
Notwithstanding anything to the contrary provided herein or elsewhere, the liability of
each Purchaser under this <U>Section 4.10</U> shall be limited to the amount paid by the
Purchaser pursuant hereto to purchase the Investor Securities, and the procedures and
timing for indemnification by the Purchasers under this <U>Section 4.10 </U>shall follow
the procedures and provisions of <U>Sections 5.16(b) and (c)</U>, <U>mutatis</U>  <U>mutandis</U>,
with respect to indemnification by the Company of the Purchasers.  </FONT></P>

<p align=center>
<font size=2>19</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10
<U>Reporting Obligations.</U> So long as any Purchaser beneficially owns any Investor
Securities (but in any event no later than five (5) years from the date of this
Agreement), the Company shall be required to continue to file or furnish pursuant to the
Exchange Act or the Securities Act, and the Company shall use commercially reasonable
best efforts to maintain it status as an issuer required to file such reports under the
Exchange Act. In addition, the Company shall take all actions necessary to continue to
meet the &#147;registrant eligibility&#148;requirements set forth in the general
instructions to Form F-3 or any successor form thereto, to continue to be eligible to
register the resale of the Shares, the Warrant Shares and the Agent Shares under the
Securities Act on such Form.  </FONT></P>


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<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MISCELLANEOUS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1
<U>Fees and Expenses</U>. Except as otherwise set forth in this Agreement, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other experts,
if any, and all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2
<U>Entire Agreement</U>. The Transaction Documents, together with the exhibits and
schedules thereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or
written, including the Duncan Capital Proposed Term Sheet, executed by the parties on
March 23, 2004, with respect to such matters, which the parties acknowledge have been
merged into such documents, exhibits and schedules.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3
<U>Notices</U>. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and
effective on (a)&nbsp;after two (2) Business Days, if sent by U.S. nationally recognized
overnight courier service, or (b)&nbsp;upon actual receipt by the party to whom such
notice is required to be given. The address for such notices and communications to the
Company shall be as set forth below and for each Purchaser shall be as set forth on the
signature pages attached hereto.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to the Company: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                   </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR Macroprinters
Ltd.            <BR>       12 Abba Hillel Silver Street             <BR>     P.O. Box 1281
                <BR>  Lod 71111               <BR>    ISRAEL             <BR>      Attention:  Chief
Executive Officer      <BR>             Telephone:  +972-8-9145555
        <BR>          Facsimile:    +972-8-9218918</FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>20</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4
<U>Amendments; Waivers</U>. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and
each Purchaser or, in the case of a waiver, by the party against whom enforcement of any
such waiver is sought. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise any right
hereunder in any manner impair the exercise of any such right.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5
<U>Construction</U>. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions
hereof. The language used in this Agreement will be deemed to be the language chosen by
the parties to express their mutual intent, and no rules of strict construction will be
applied against any party.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6
<U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted assigns. The Company may not
assign this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser. Any Purchaser, however, may assign any or all of its Investor
Securities and/or rights under this Agreement to any Person, provided such transferee
agrees in writing to be bound, with respect to the transferred Investor Securities and
otherwise, by the provisions hereof that apply to the &#147;Purchasers.&#148; </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7
<U>No Third-Party Beneficiaries</U>. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8
<U>Governing Law</U>. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of New York without regard to the conflicts of laws
principles thereof. The parties hereto hereby irrevocably agree that any suit or
proceeding arising directly and/or indirectly pursuant to or under this Agreement, shall
be brought solely in a federal or state court located in the City, County and State of
New York. By its execution hereof, the parties hereby covenant and irrevocably submit to
the <I>in&nbsp;personam</I>  jurisdiction of the federal and state courts located in the
City, County and State of New York and agree that any process in any such action may be
served upon any of them personally, or by certified mail or registered mail upon them or
their agent, return receipt requested, with the same full force and effect as if
personally served upon them in New York City. The parties hereto waive any claim that any
such jurisdiction is not a convenient forum for any such suit or proceeding and any
defense or lack of <I>in personam</I> jurisdiction with respect thereto. In the event of
any such action or proceeding, the party prevailing therein shall be entitled to payment
from the other party hereto of its reasonable counsel fees and disbursements.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9
<U>Survival</U>. The representations and warranties contained herein shall survive the
Closing and delivery of the Shares and Warrants and until earlier of two years from the
Closing Date or such time that no Purchaser owns any Shares, Warrants and/or Warrant
Shares and any other agreements and covenants contained herein shall survive the Closing
and delivery of the Shares and Warrants and until no Purchaser owns any Shares, Warrants
and/or Warrant Shares.  </FONT></P>

<p align=center>
<font size=2>21</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10
<U>Execution</U>. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile signature page
were an original thereof.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11
<U>Severability</U>. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and
provisions of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in
this Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12
<U>Replacement of Investor Securities</U>. If any certificate or instrument evidencing
any Investor Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefor, a new certificate or instrument, but only upon
receipt of evidence reasonably satisfactory to the Company of such loss, theft or
destruction and customary and reasonable indemnity, if requested. The applicants for a
new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs associated with the issuance of such replacement Investor Securities.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13
<U>Remedies</U>. In addition to being entitled to exercise all rights provided herein or
granted by law, including recovery of damages, each of the Purchasers and the Company
will be entitled to specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by
reason of any breach of obligations described in the foregoing sentence and hereby agrees
to waive in any action for specific performance of any such obligation the defense that a
remedy at law would be adequate.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14
<U>Payment Set Aside</U>. To the extent that the Company makes a payment or payments to
any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises
its rights thereunder, and such payment or payments or the proceeds of such enforcement
or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded,
repaid or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the
obligation or part thereof originally intended to be satisfied shall, to the extent
permissible under applicable law, be revived and continued in full force and effect as if
such payment had not been made or such enforcement or setoff had not occurred.  </FONT></P>

<p align=center>
<font size=2>22</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15
<U>Independent Nature of Purchasers&#146; Obligations and Rights</U>. The obligations of
each Purchaser under any Transaction Document are several and not joint with the
obligations of any other Purchaser, and no Purchaser shall be responsible in any way for
the performance of the obligations of any other Purchaser under any Transaction Document.
Nothing contained herein or in any Transaction Document, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Purchasers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Document.
Each Purchaser shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement or out of the
other Transaction Documents, and it shall not be necessary for any other Purchaser to be
joined as an additional party in any proceeding for such purpose. Each Purchaser
represents that it has been represented by its own separate legal counsel in their review
and negotiation of the Transaction Documents. The Company has elected to provide all
Purchasers with the same terms and Transaction Documents for the convenience of the
Company and not because it was required or requested to do so by the Purchasers.  </FONT></P>

<p align=center>
<font size=2>23</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16
<U>Indemnification by the Company.</U> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The Company shall, notwithstanding any termination of this Agreement, indemnify
          and hold harmless each Purchaser, the officers, directors, agents and employees
          of each of them, each Person who controls any such Purchaser (within the
meaning           of Section&nbsp;15 of the Securities Act or Section&nbsp;20 of the
Exchange Act)           and the officers, directors, agents and employees of each such
controlling           Person, to the fullest extent permitted by applicable law, from and
against any           and all losses, claims, damages, liabilities, costs (including,
without           limitation, reasonable attorneys&#146; fees) and expenses (including
the cost           (including without limitation, reasonable attorneys&#146; fees) and
expenses           relating to an Indemnified Party&#146;s (as defined below) actions to
enforce           the provisions of this <U>Section 5.16</U>) (collectively,
          &#147;<B><U>Losses</U></B><U></U>&#148;), as incurred, to the extent arising
out           of or relating to (i) any material misrepresentation or material breach of
any           representation or warranty made by the Company in the Transaction
Documents, or,           (ii) any material breach of any covenant, agreement or
obligation of the Company           contained in the Transaction Documents, or (iii) any
cause of action, suit or           claim brought or made against such Indemnified Party
and arising out of or           resulting from the execution, delivery, performance or
enforcement of the           Transaction Documents executed pursuant hereto by any of the
Indemnified           Parties; provided, however, that the Company shall have no
liability under this           Section 5.16 for any amount paid in settlement of claims
without its consent,           which shall not be unreasonably withheld; or to the extent
that is finally           judicially determined that such Losses result solely from a
breach by the           Purchaser of any representation, warranty, covenant or agreement
of such           Purchaser contained in this Agreement or the gross negligence or
willful           misconduct of such Purchaser. If the indemnification provided for in
this <U>Section 5.16</U> is held by a court of competent jurisdiction to be
          unavailable to an Indemnified Party with respect to any Losses, then the
          Indemnifying Party (as defined below), in lieu of indemnifying such Indemnified
          Party hereunder, shall contribute to the amount paid or payable by such
          Indemnified Party as a result of Losses in such proportion as is appropriate to
          reflect the relative fault of the Indemnifying Party on the one hand and of the
          Indemnified Party on the other in connection with the actions or omissions that
          resulted in such Losses as well as any other relevant equitable considerations.
          The Company shall notify the Purchasers promptly of the institution, threat or
          assertion of any proceeding of which the Company is aware in connection with
the           transactions contemplated by this Agreement.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<U>Conduct of Indemnification Proceedings</U>. If any proceeding shall be
          brought or asserted against any Person entitled to indemnity hereunder (an
          &#147;<B><U>Indemnified Party</U></B><U></U>&#148;), such Indemnified Party
          shall promptly notify the Company (the &#147;<B><U>Indemnifying           Party</U></B><U></U>&#148;)
in writing, and the Indemnifying Party shall have           the right to assume the
defense thereof, including the employment of counsel           reasonably satisfactory to
the Indemnified Party and the payment of all fees and           expenses incurred in
connection with defense thereof; <U>provided</U>, <U>however</U>, that the failure of any
Indemnified Party to give such notice           shall not relieve the Indemnifying Party
of its obligations or liabilities           pursuant to this Agreement, except (and only)
to the extent that such failure           shall have materially and adversely prejudiced
the Indemnifying Party.  </FONT></P>

<p align=center>
<font size=2>24</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Indemnified Party shall have the right to employ separate counsel in any such proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have
failed promptly to assume the defense of such proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such proceeding; or (3) the named parties to
any such proceeding (including any impleaded parties) include both such Indemnified Party
and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel
that a conflict of interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party
notifies the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and the reasonable fees and expenses of one separate counsel
for all Indemnified Parties in any matters related on a factual basis shall be at the
expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such proceeding affected without its written consent, which consent
shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending proceeding in
respect of which any Indemnified Party is a party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability on claims that are the
subject matter of such proceeding. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
<U>Timing of Payments</U>. All reasonable fees and expenses of the Indemnified
          Party (including reasonable fees and expenses to the extent incurred in
          connection with investigating or preparing to defend such proceeding in a
manner           not inconsistent with this <U>Section 5.16</U> shall be paid to the
Indemnified           Party, as incurred, within five (5) Trading Days of written notice
thereof to           the Indemnifying Party; <U>provided</U>, <U>however</U>, that the
Indemnified           Party shall promptly reimburse the Indemnifying Party for that
portion of such           fees and expenses applicable to such actions for which such
Indemnified Party is           not entitled to indemnification hereunder, determined
based upon the relative           faults of the parties.  </FONT></P>


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<p align=center>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN
WITNESS WHEREOF</B>, the parties hereto have caused this Securities Purchase Agreement to
be duly executed by their respective authorized signatories as of the date first indicated
above. </FONT></P>



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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.</B><BR><BR>
<BR>BY:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
David Amir<BR>Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURCHASERS SIGNATURE
PAGE </FONT></H1>


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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR><BR>
BY: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Address<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Facsimile Number<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Tax I.D. #<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>

<BR><BR>

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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Subscription Amount:$_______________</B><BR><BR><BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>BY: <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Address<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Facsimile Number<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>




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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Tax I.D. #<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
</TABLE>
<BR>
<BR><BR>


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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Subscription Amount:$_______________</B><BR><BR>
<BR></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
</TR>
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<BR>

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<font size=2>27</font></p>
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     <!-- Control Number: 40691                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.6</B></U> </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>REGISTRATION RIGHTS
AGREEMENT</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Registration Rights Agreement (this &#147;<B><U>Agreement</U></B><U></U>&#148;) is made
and entered into as of March 31, 2004, by and among NUR Macroprinters Ltd. (the
&#147;<B><U>Company</U></B><U></U>&#148;), and the investors signatory hereto (each a
&#147;<B><U>Purchaser</U></B><U></U>&#148; and collectively, the
&#147;<B><U>Purchasers</U></B><U></U>&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date
hereof by and among the Company and the Purchasers (the &#147;<B><U>Purchase
Agreement</U></B><U></U>&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company and the Purchasers hereby agree as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
Capitalized terms used and not otherwise defined herein that           are defined in the
Purchase Agreement shall have the meanings given such terms           in the Purchase
Agreement. As used in this Agreement, the following terms shall           have the
following meanings:  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Effectiveness
Date</U></B><U></U>&#148; means, with respect to the Registration Statement required to be
filed pursuant to <U>Section 2(a)</U> of this Agreement, the earlier of (a) the
150<SUP>th</SUP> calendar day from the Closing Date, and (b) the date on which the
Commission declares the effectiveness of the Registration Statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Effectiveness
Period</U></B><U></U>&#148; shall have the meaning set forth in <U>Section&nbsp;2(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Filing
Date</U></B><U></U>&#148; means, with respect to the Registration Statement required to be
filed hereunder, the date sixty (60) calendar days following the Closing Date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Holder</U></B><U></U>&#148;
or &#147;<B><U>Holders</U></B><U></U>&#148; means the holder or holders, as the case may
be, from time to time of Registrable Securities (including any permitted assignee). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Indemnified
Party</U></B><U></U>&#148; shall have the meaning set forth in <U>Section&nbsp;5(c)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Indemnifying
Party</U></B><U></U>&#148; shall have the meaning set forth in <U>Section&nbsp;5(c)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Losses</U></B><U></U>&#148;
shall have the meaning set forth in <U>Section&nbsp;5(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Proceeding</U></B><U></U>&#148;
means an action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial proceeding, such as a deposition), whether commenced or
threatened. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Prospectus</U></B><U></U>&#148;
means the prospectus included in the Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule&nbsp;430A promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference in such Prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Registrable
Securities</U></B><U></U>&#148; means the Shares, the Warrant Shares and any shares of
Common Stock issued or issuable upon any stock split, dividend or other distribution,
recapitalization or similar event with respect to the foregoing or in connection with any
provisions in the Warrants. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Registration
Statement</U></B><U></U>&#148; means the registration statements required to be filed
hereunder, including (in each case) the Prospectus, amendments and supplements to the
registration statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be incorporated
by reference in the registration statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Rule&nbsp;415</U></B><U></U>&#148;
means Rule&nbsp;415 promulgated by the Commission pursuant to the Securities Act, as such
Rule&nbsp;may be amended from time to time, or any similar Rule&nbsp;or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Rule&nbsp;424</U></B><U></U>&#148;
means Rule&nbsp;424 promulgated by the Commission pursuant to the Securities Act, as such
Rule&nbsp;may be amended from time to time, or any similar Rule&nbsp;or regulation
hereafter adopted by the Commission having substantially the same effect as such Rule. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><U>Securities
Act</U></B><U></U>&#148; means the Securities Act of 1933, as amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration.</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Mandatory
Registration.</U> No later than the Filing Date, the Company shall           prepare and
file with the Commission the Registration Statement covering the           resale of all
of the Registrable Securities for an offering to be made on a           continuous basis
pursuant to Rule&nbsp;415. The Registration Statement required           hereunder shall
be on Form F-3 (except if the Company is not then eligible to           register for
resale the Registrable Securities on Form F-3, in which case the           Registration
shall be on another appropriate form in accordance herewith). The           Registration
Statement required hereunder shall contain (except if otherwise           directed by the
Holders) the &#147;<B><U>Plan of           Distribution</U></B><U></U>&#148; attached
hereto as <B><U>Annex           A</U></B><U></U> (which may be modified to respond to
comments, if any, received           by the Commission). The Company shall cause the
Registration Statement to become           effective and remain effective as provided
herein. The Company shall use its           commercially reasonable efforts to cause the
Registration Statement to be           declared effective under the Securities Act as
promptly as possible after the           filing thereof and shall use its commercially
reasonable efforts to keep the           Registration Statement continuously effective
under the Securities Act until the           earlier date when all Registrable Securities
covered by the Registration           Statement (a) have been sold pursuant to the
Registration Statement or an           exemption from the registration requirements of
the Securities Act or (b) may be           sold without any volume or other restrictions
pursuant to Rule&nbsp;144(k) (the           &#147;<B><U>Effectiveness Period</U></B><U></U>&#148;);
provided, however, that           in no event shall the Effectiveness Period be greater
than five (5) years from           the date of this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Filing
Default Liquidation Damages.</U> If a Registration Statement is not           filed on or
prior to the Filing Date, then in addition to any other rights the           Holders may
have hereunder or under applicable law, the Company shall pay to           each Holder an
amount in cash, as liquidated damages and not as a penalty, equal           to one (1%)
percent of the aggregate purchase price paid by such Holder pursuant           to the
Purchase Agreement, such payment(s) to be made in immediately available           funds
no later than five (5) days after the initial date of such failure to           file.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effectiveness
Default Liquidation of Damages.</U> In addition to any           liquidation damages
paid, accrued and/or to be paid pursuant to <U>Section           2(b)</U> above if (1) a
Registration Statement is not declared effective on or           prior to the date one
hundred fifty (150) days from the Closing Date, or (2) if           a Registration
Statement has been declared effective and subsequent hereto is           not effective
for any period of time until the date no Holder owns any           Registrable Securities
or Warrants (up to a period that is five (5) years           following the date of this
Agreement) (an &#147;<B><U>Effectiveness           Default</U></B><U></U>&#148;), the
Company shall pay to each Holder an amount in           cash, as liquidated damages and
not as a penalty, equal to one (1%) percent of           the aggregate purchase price
paid by such Holder pursuant to the Purchase           Agreement. Any such payment(s)
shall be made in immediately available funds no           later than five (5) days after
the date of such Effectiveness Default.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Piggyback
Registrations Rights</U>. If, at any time during the Effectiveness           Period,
there is not an effective Registration Statement covering all of the
          Registrable Securities (other than the Registrable Securities of a Holder that
          failed to comply with its obligations under <U>Section 3(j)</U> hereof), and
the           Company shall determine to prepare and file with the Commission a
registration           statement relating to an offering for its own account or the
account of others           under the Securities Act of any of its equity securities,
other than on Form S-4           or Form S-8 (each as promulgated under the Securities
Act) or their then           equivalents relating to equity securities to be issued
solely in connection with           any acquisition of any entity or business or equity
securities issuable in           connection with stock option or other employee benefit
plans, then the Company           shall send to each Holder a written notice of such
determination at least twenty           (20) days prior to the filing of any such
registration statement and, if within           ten (10) days after receipt by a Holder,
the Company shall receive a request in           writing from any such Holder, the
Company shall include in such registration           statement all or any part of such
Registrable Securities such Holder requests to           be registered; <U>provided</U>,
<U>however</U>, that (i) if, at any time after           giving written notice of is
intention to register any securities and prior to           the effective date of the
registration statement filed in connection with such           registration, the Company
determines for any reason not to proceed with such           registration, the Company
will be relieved of its obligation to register any           Registrable Securities in
connection with such registration, and (ii) in case of           a determination by the
Company to delay registration of its securities, the           Company will be permitted
to delay the registration of Registrable Securities           for the same period as the
delay in registering such other securities.           Notwithstanding the foregoing,
nothing in this paragraph (d) shall permit the           Company to file a registration
statement in contravention of the restrictions in <U>Section 6(b)</U>. Notwithstanding
the foregoing, the piggyback registration           rights granted pursuant to this
Section 2(d) shall not apply to that certain           registration statement that is
being filed by the Company on or about the date           hereof (or shortly thereafter)
to register approximately 4.5 million shares of           Common Stock that have been or
will be issued pursuant to the conversion of           certain notes issued by the
Company on July 31, 2003 and/or October 31, 2003.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sufficient
Number of Shares Registered.<B></B></U><B></B>   In the event the           number of shares
of Common Stock available under a Registration Statement filed           pursuant to <U>Section&nbsp;2(a)</U> is
insufficient to cover all of the           Registrable Securities which such Registration
Statement is required to cover,           the Company shall amend the Registration
Statement, or file a new Registration           Statement (on the short form available
therefor, if applicable), or both, so as           to cover at least 100% of the
Registrable Securities, in each case, as soon as           practicable, but in any event
not later than fifteen (15) business days after           the necessity therefor arises.
The Company shall cause such amendment and/or new           Registration Statement to
become effective as soon as practicable following the           filing thereof. For
purposes of the foregoing provision, the number of shares of           Common Stock
available under a Registration Statement shall be deemed           &#147;<B><U>insufficient
to cover all of the Registrable           Securities</U></B><U></U>&#148; if the number
of Registrable Securities issued           or issuable upon exercise of the Warrants
covered by such Registration Statement           is greater than the number of shares of
Common Stock available for resale under           the Registration Statement to cover
shares issued or issuable upon exercise of           the Warrants.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Procedures</U>. In connection with the Company&#146;s           registration obligations
hereunder, the Company shall<U>:</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Not
less than five (5) Trading Days prior to the filing of the Registration
          Statement or any related Prospectus or any amendment or supplement thereto, the
          Company shall, furnish to the placement agent for the offering of the
          Registrable Securities, copies of all such documents proposed to be filed
          (including documents incorporated or deemed incorporated by reference to the
          extent requested by such Person) which documents will be subject to the review
          of such Holders, and (ii) subject, if appropriate, to the execution of a
          confidentiality agreement in form acceptable to the Company, cause its officers
          and directors, counsel and independent certified public accountants to respond
          to such inquiries as shall be necessary, in the reasonable opinion of placement
          agent&#146;s counsel to conduct a reasonable investigation within the meaning
of           the Securities Act.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          (i)
Prepare and file with the Commission such amendments, including           post-effective
amendments, to the Registration Statement and the Prospectus used           in connection
therewith as may be necessary to keep the Registration Statement           continuously
effective as to the applicable Registrable Securities for the           Effectiveness
Period; (ii) cause the related Prospectus to be amended or           supplemented by any
required Prospectus supplement, and as so supplemented or           amended to be filed
pursuant to Rule&nbsp;424; and (iii) respond as promptly as           reasonably possible
to any comments received from the Commission with respect to           the Registration
Statement or any amendment thereto and, as promptly as           reasonably possible,
upon request, provide the Holders true and complete copies           of all
correspondence from and to the Commission relating to the Registration
          Statement (subject, if appropriate, to the execution of confidentiality
          agreements in form acceptable to the Company).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Notify
the Holders of Registrable Securities to be sold as promptly as           reasonably
possible (and, in the case of (i)(A) below, not less than five (5)           Trading Days
prior to such filing) and (if requested by any such Person) confirm           such notice
in writing promptly following the day (i)(A) when a Prospectus or           any
Prospectus supplement or post-effective amendment to the Registration           Statement
is proposed to be filed; (B) when the Commission notifies the Company           whether
there will be a &#147;review&#148; of the Registration Statement and           whenever
the Commission comments in writing on the Registration Statement (the           Company
shall upon request provide true and complete copies thereof and all           written
responses thereto to each of the Holders, subject, if appropriate, to           the
execution of confidentiality agreements in form acceptable to the Company);           and
(C) with respect to the Registration Statement or any post-effective           amendment,
when the same has become effective; (ii) of any request by the           Commission or
any other Federal or state governmental authority during the           period of
effectiveness of the Registration Statement for amendments or           supplements to
the Registration Statement or Prospectus or for additional           information, unless
the disclosure thereof is restricted under applicable law;           (iii) of the
issuance by the Commission or any other federal or state           governmental authority
of any stop order suspending the effectiveness of the           Registration Statement
covering any or all of the Registrable Securities or the           initiation of any
Proceedings for that purpose; (iv) of the receipt by the           Company of any
notification with respect to the suspension of the qualification           or exemption
from qualification of any of the Registrable Securities for sale in           any
jurisdiction, or the initiation or threatening of any Proceeding for such
          purpose; and (v) of the occurrence of any event or passage of time that makes
          the financial statements included in the Registration Statement ineligible for
          inclusion therein or any statement made in the Registration Statement or
          Prospectus or any document incorporated or deemed to be incorporated therein by
          reference untrue in any material respect or that requires any revisions to the
          Registration Statement, Prospectus or other documents so that, in the case of
          the Registration Statement or the Prospectus, as the case may be, it will not
          contain any untrue statement of a material fact or omit to state any material
          fact required to be stated therein or necessary to make the statements therein,
          in light of the circumstances under which they were made, not misleading.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Use
its commercially reasonable efforts to avoid the issuance of, or, if issued,
          obtain the withdrawal of (i) any order suspending the effectiveness of the
          Registration Statement, or (ii) any suspension of the qualification (or
          exemption from qualification) of any of the Registrable Securities for sale in
          any jurisdiction, at the earliest practicable moment.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Promptly
deliver to each Holder no later than five (5) business days after the
          Effectiveness Date, without charge, two (2) copies of the Prospectus or
          Prospectuses (including each form of prospectus) and each amendment or
          supplement thereto (and, upon the request of the Holder such additional copies
          as such Persons may reasonably request in connection with resales by the Holder
          of Registrable Securities). The Company hereby consents to the use of such
          Prospectus and each amendment or supplement thereto by each of the selling
          Holders in connection with the offering and sale of the Registrable Securities
          covered by such Prospectus and any amendment or supplement thereto, except
after           the giving of any notice pursuant to <U>Section 6 (o) or Section&nbsp;3(c)</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Prior
to any resale of Registrable Securities by a Holder, use its commercially
          reasonable efforts to register or qualify or cooperate with the selling Holders
          in connection with the registration or qualification (or exemption from the
          registration or qualification) of such Registrable Securities for the resale by
          the Holder under the securities or Blue Sky laws of such jurisdictions within
          the United States as any Holder reasonably requests in writing, to keep such
          registration or qualification (or exemption therefrom) effective during the
          Effectiveness Period and to do any and all other acts or things reasonably
          necessary to enable the disposition in such jurisdictions of the Registrable
          Securities covered by the Registration Statement; <U>provided</U>, <U>however</U>,
that the Company shall not be required to qualify generally to           do business in
any jurisdiction where it is not then so qualified, subject the           Company to any
material tax in any such jurisdiction where it is not then so           subject or file a
general consent to service of process in any such           jurisdiction.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          If
requested by the Holders, cooperate with the Holders to facilitate the timely
          preparation and delivery of certificates representing Registrable Securities to
          be delivered to a transferee pursuant to the Registration Statement, which
          certificates shall be free, to the extent permitted by the Purchase Agreement,
          of all restrictive legends, and to enable such Registrable Securities to be in
          such denominations and registered in such names as any such Holders may
request.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Upon
the occurrence of any event contemplated by <U>Section&nbsp;3(c)(v)</U>, as
          promptly as reasonably possible, prepare a supplement or amendment, including a
          post-effective amendment, to the Registration Statement or a supplement to the
          related Prospectus or any document incorporated or deemed to be incorporated
          therein by reference, and file any other required document so that, as
          thereafter delivered, neither the Registration Statement nor such Prospectus
          will contain an untrue statement of a material fact or omit to state a material
          fact required to be stated therein or necessary to make the statements therein,
          in light of the circumstances under which they were made, not misleading.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Use
its best efforts to comply with all applicable rules&nbsp;and regulations of
          the Commission relating to the registration of the Registrable Securities
          pursuant to the Registration Statement or otherwise.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall not be required to include any Holder that does not complete a
          Selling Shareholder Questionnaire attached as <B>Exhibit C</B> to the Purchase
          Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall use its commercially reasonable best efforts to either           (a)&nbsp;cause
all the Registrable Securities covered by a Registration           Statement to be listed
on each securities exchange on which securities of the           same class or series
issued by the Company are then listed, if any, if the           listing of such
Registrable Securities is then permitted under the rules of such           exchange, or
(b)&nbsp;secure designation and quotation of all the Registrable           Securities
covered by the Registration Statement on the Nasdaq National Market           or the
Nasdaq SmallCap Market, or, (c) if the Company is unsuccessful in           satisfying
the preceding clauses&nbsp;(a) or (b), the Company shall use its           commercially
reasonable best efforts to secure the inclusion for quotation on           The American
Stock Exchange, Inc. or the NASD Bulletin Board for such           Registrable Securities
and, without limiting the generality of the foregoing, to           arrange for at least
two (2) market makers to register with the National           Association of Securities
Dealers, Inc. (&#147;<B><U>NASD</U></B><U></U>&#148;)           as such with respect to
such Registrable Securities. The Company shall pay all           fees and expenses in
connection with satisfying its obligation under this <U>Section&nbsp;3(k)</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall make all documents, files, books, records, officers, directors
          and employees of the Company reasonably available to any Holder, legal counsel
          to the Holders and one firm of accountants or other agents retained by the
          Holders (collectively, the &#147;<B><U>Inspectors</U></B><U></U>&#148;), and
          make such other accommodations as are reasonably necessary for the Inspectors,
          if any, to perform a due diligence review of the Company (such due diligence
          investigation to be at the cost of the Holders); provided, however, that all
          such information <B><U>(&#147;Confidential Information</U></B><U></U>&#148;)
          will be kept confidential and not utilized by the Inspectors except as
          contemplated herein and except as required by law or court order. The term
          Confidential Information also includes any information included in a draft
          Registration Statement or any related Prospectus or any amendment or supplement
          hereto provided to a Holder pursuant to <U>Section 3(a)</U>. The term
          Confidential Information does not include information that (a)&nbsp;is already
          in possession of such other party (other than that which is subject to another
          confidentiality agreement unless obtained from a third party where the
receiving           party knows that the third party was subject to a confidentiality
agreement),           (b)&nbsp;becomes generally available to the public, or (c)&nbsp;becomes
          available on a non-confidential basis from a source other than the Company
          unless obtained from a third party where the receiving party knows that the
          third party was subject to a confidentiality agreement. Each Holder agrees that
          it shall, upon learning that disclosure of such Confidential Information is
          sought in or by a court or governmental body of competent jurisdiction or
          through other means, give prompt notice to the Company and allow the Company,
at           its expense, to undertake appropriate action to prevent disclosure of, or to
          obtain a protective order for, the information deemed confidential.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall hold in confidence and not make any disclosure of information
          concerning any Holder provided to the Company unless (a)&nbsp;disclosure of
such           information is necessary to comply with federal or state securities laws,
          (b)&nbsp;the disclosure of such information is necessary to avoid or correct a
          misstatement or omission in any Registration Statement, (c)&nbsp;the release of
          such information is ordered pursuant to a subpoena or other order from a court
          or governmental body of competent jurisdiction, (d)&nbsp;such information has
          been made generally available to the public other than by disclosure in
          violation of this Agreement or any other agreement, or (e)&nbsp;such Holder
          consents to the form and content of any such disclosure (the Holders shall be
          deemed to consent to the inclusion of any information provided in the Selling
          Shareholder Questionnaire in the Registration Statement, any prospectus related
          thereto, and any amendments or supplements thereto). The Company agrees that it
          shall, upon learning that disclosure of such information concerning any Holder
          is sought in or by a court or governmental body of competent jurisdiction or
          through other means, give prompt written notice to such Holder and allow such
          Holder, at the Holder&#146;s expense, to undertake appropriate action to
prevent           disclosure of, or to obtain a protective order for, such information.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company covenants that it shall file the reports required to be filed by it
          under the Securities Act and the Exchange Act and the rules and regulations
          adopted by the SEC thereunder so long as the Holder owns any Registrable
          Securities, but in no event longer than two (2) years; <U>provided</U>, <U>however</U>,
the Company may delay any such filing but only pursuant to           Rule&nbsp;12b-25
under the Exchange Act, and the Company shall take such further           action as any
Holder of Registrable Securities may reasonably request (including           without
limitation, promptly obtaining any required legal opinions from Company           counsel
necessary to effect the sale of Registrable Securities under           Rule&nbsp;144 and
paying the related fees and expenses of such counsel), all to           the extent
required from time to time to enable such Holder to sell Registrable           Securities
without registration under the Securities Act within the limitation           of the
exemptions provided by (a)&nbsp;Rule&nbsp;144 under the Securities Act,           as such
Rule&nbsp;may be amended from time to time, or (b)&nbsp;any similar rule           or
regulation hereafter adopted by the Commission. Upon the request of any           Holder
of Registrable Securities, the Company will deliver to such Holder a           written
statement as to whether it has complied with such requirements.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Expenses</U>. All fees and expenses incident to the performance           of or
compliance with this Agreement by the Company shall be borne by the           Company
whether or not any Registrable Securities are sold pursuant to the           Registration
Statement, other than fees and expenses of counsel of any other           advisor
retained by the Holders and discounts and commissions with respect to           the sale
of any Registrable Securities by the Holders. The fees and expenses           referred to
in the foregoing sentence shall include, without limitation, (i) all
          registration and filing fees (including, without limitation, fees and expenses
          (A) with respect to filings required to be made with the Trading Market on
which           the Common Stock is then listed for trading, and (B) in compliance with
          applicable state securities or Blue Sky laws), (ii) printing expenses
          (including, without limitation, expenses of printing certificates for
          Registrable Securities and of printing prospectuses if the printing of
          prospectuses is reasonably requested by the holders of a majority of the
          Registrable Securities included in the Registration Statement), (iii)
messenger,           telephone and delivery expenses, (iv) fees and disbursements of
counsel for the           Company, (v) Securities Act liability insurance, if the Company
so desires such           insurance, and (vi) fees and expenses of all other Persons
retained by the           Company in connection with the consummation of the transactions
contemplated by           this Agreement. In addition, the Company shall be responsible
for all of its           internal expenses incurred in connection with the consummation
of the           transactions contemplated by this Agreement (including, without
limitation, all           salaries and expenses of its officers and employees performing
legal or           accounting duties), the expense of any annual audit and the fees and
expenses           incurred in connection with the listing of the Registrable Securities
on any           securities exchange as required hereunder.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by the Company</U>. The Company shall, notwithstanding any           termination of this
Agreement, indemnify and hold harmless each Holder, the           officers, directors,
agents and employees of each of them, each Person who           controls any such Holder
(within the meaning of Section&nbsp;15 of the           Securities Act or Section&nbsp;20
of the Exchange Act) and the officers,           directors, agents and employees of each
such controlling Person, to the fullest           extent permitted by applicable law,
from and against any and all losses, claims,           damages, liabilities, costs
(including, without limitation, reasonable           attorneys&#146; fees) and expenses
(including the cost (including without           limitation, reasonable attorneys&#146; fees)
and expenses relating to an           Indemnified Party&#146;s actions to enforce the
provisions of this <U>Section           5</U>) (collectively, &#147;<B><U>Losses</U></B><U></U>&#148;),
as incurred, to           the extent arising out of or relating to any untrue or alleged
untrue statement           of a material fact contained in the Registration Statement,
any Prospectus or           any form of prospectus or in any amendment or supplement
thereto or in any           preliminary prospectus, or arising out of or relating to any
omission or alleged           omission of a material fact required to be stated therein
or necessary to make           the statements therein (in the case of any Prospectus or
form of prospectus or           supplement thereto, in light of the circumstances under
which they were made)           not misleading, except to the extent, but only to the
extent, that (1) such           untrue statements or omissions are based solely upon
information regarding such           Holder furnished (or in the case of an omission, not
furnished) in writing to           the Company by or on behalf of such Holder expressly
for use therein, or to the           extent that such information relates to such Holder
or such Holder&#146;s           proposed method of distribution of Registrable Securities
and was reviewed and           expressly approved in writing by such Holder expressly for
use in the           Registration Statement, such Prospectus or such form of Prospectus
or in any           amendment or supplement thereto (it being understood that the Holder
has           approved Annex A hereto for this purpose), (2) in the case of an occurrence
of           an event of the type specified in <U>Section&nbsp;3(c)(ii)-(v)</U>, the use
by           such Holder of an outdated or defective Prospectus after the Company has
          notified such Holder in writing that the Prospectus is outdated or defective
and           prior to the receipt by such Holder of the Advice contemplated in <U>Section&nbsp;6(d)</U>,
or (3) the failure of the Holder to deliver a           prospectus prior to the
confirmation of a sale. The Company shall notify the           Holders promptly of the
institution, threat or assertion of any Proceeding of           which the Company is
aware in connection with the transactions contemplated by           this Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification
by Holders</U>. Each Holder shall, severally and not jointly,           indemnify and
hold harmless the Company, its directors, officers, agents and           employees, each
Person who controls the Company (within the meaning of           Section&nbsp;15 of the
Securities Act and Section&nbsp;20 of the Exchange Act),           and the directors,
officers, agents or employees of such controlling Persons, to           the fullest
extent permitted by applicable law, from and against all Losses, as           incurred,
to the extent arising out of or based upon: (x) such Holder&#146;s           failure to
comply with the prospectus delivery requirements of the Securities           Act or (y)
any untrue or alleged untrue statement of a material fact contained           in any
Registration Statement, any Prospectus, or any form of prospectus, or in           any
amendment or supplement thereto or in any preliminary prospectus, or arising
          out of or relating to any omission or alleged omission of a material fact
          required to be stated therein or necessary to make the statements therein not
          misleading (i) to the extent, but only to the extent, that such untrue
statement           or omission is contained in any information so furnished (or in the
case of an           omission, not furnished) in writing by or on behalf of such Holder
to the           Company specifically for inclusion in the Registration Statement or such
          Prospectus or (ii) to the extent that (1) such untrue statements or omissions
          are based solely upon information regarding such Holder furnished (or in the
          case of an omission, not furnished) in writing to the Company by or on behalf
of           such Holder expressly for use therein, or to the extent that such
information           relates to such Holder or such Holder&#146;s proposed method of
distribution of           Registrable Securities and was reviewed and expressly approved
in writing by           such Holder expressly for use in the Registration Statement (it
being understood           that the Holder has approved Annex A hereto for this purpose),
such Prospectus           or such form of Prospectus or in any amendment or supplement
thereto, or (2) in           the case of an occurrence of an event of the type specified
in           Section&nbsp;<U>3(c)(ii)-(v)</U>, the use by such Holder of an outdated or
          defective Prospectus after the Company has notified such Holder in writing that
          the Prospectus is outdated or defective and prior to the receipt by such Holder
          of the Advice contemplated in <U>Section&nbsp;6(d)</U>, or (3) the failure of
          the Holder to deliver a Prospectus prior to the confirmation of a sale. In no
          event shall the liability of any selling Holder hereunder be greater in amount
          than the dollar amount of the Subscription Amount paid by the Holder in the
          Purchase Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conduct
of Indemnification Proceedings</U>. If any Proceeding shall be           brought or
asserted against any Person entitled to indemnity hereunder (an           &#147;<B><U>Indemnified
Party</U></B><U></U>&#148;), such Indemnified Party           shall promptly notify the
Person from whom indemnity is sought (the           &#147;<B><U>Indemnifying Party</U></B><U></U>&#148;)
in writing, and the           Indemnifying Party shall have the right to assume the
defense thereof, including           the employment of counsel reasonably satisfactory to
the Indemnified Party and           the payment of all fees and expenses incurred in
connection with defense           thereof; <U>provided</U>, that the failure of any
Indemnified Party to give such           notice shall not relieve the Indemnifying Party
of its obligations or           liabilities pursuant to this Agreement, except (and only)
to the extent that           such failure shall have materially prejudiced the
Indemnifying Party.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
shall have failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (2) the named
parties to any such Proceeding (including any impleaded parties) include both such
Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been
advised by counsel that a conflict of interest is likely to exist if the same counsel were
to represent such Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to employ
separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall
not have the right to assume the defense thereof and the reasonable fees and expenses of
one separate counsel for all Indemnified Parties in any matters related on a factual basis
shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be
liable for any settlement of any such Proceeding affected without its written consent,
which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement
includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
reasonable fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing to defend
such Proceeding in a manner not inconsistent with this Section) shall be paid to the
Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to
the Indemnifying Party; <U>provided</U>, that the Indemnified Party shall promptly
reimburse the Indemnifying Party for that portion of such fees and expenses applicable to
such actions for which such Indemnified Party is not entitled to indemnification
hereunder, determined based upon the relative faults of the parties. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contribution</U>.
If a claim for indemnification under <U>Section&nbsp;5(a)</U> or <U>Section 5(b)</U> is
unavailable to an Indemnified           Party (by reason of public policy or otherwise),
then each Indemnifying Party,           in lieu of indemnifying such Indemnified Party,
shall contribute to the amount           paid or payable by such Indemnified Party as a
result of such Losses, in such           proportion as is appropriate to reflect the
relative fault of the Indemnifying           Party and Indemnified Party in connection
with the actions, statements or           omissions that resulted in such Losses as well
as any other relevant equitable           considerations. The relative fault of such
Indemnifying Party and Indemnified           Party shall be determined by reference to,
among other things, whether any           action in question, including any untrue or
alleged untrue statement of a           material fact or omission or alleged omission of
a material fact, has been taken           or made by, or relates to information supplied
by, such Indemnifying Party or           Indemnified Party, and the parties&#146; relative
intent, knowledge, access to           information and opportunity to correct or prevent
such action, statement or           omission. The amount paid or payable by a party as a
result of any Losses shall           be deemed to include, subject to the limitations set
forth in <U>Section&nbsp;5(c)</U>, any reasonable attorneys&#146; or other reasonable
          fees or expenses incurred by such party in connection with any Proceeding to
the           extent such party would have been indemnified for such fees or expenses if
the           indemnification provided for in this Section&nbsp;was available to such
party in           accordance with its terms.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
parties hereto agree that it would not be just and equitable if contribution
          pursuant to <U>Section&nbsp;5(d)</U> were determined by pro rata allocation or
          by any other method of allocation that does not take into account the equitable
          considerations referred to in the immediately preceding paragraph.
          Notwithstanding the provisions of <U>Section&nbsp;5(d)</U>, no Holder shall be
          required to contribute, in the aggregate, any amount in excess of the amount by
          which the proceeds actually received by such Holder from the sale of the
          Registrable Securities subject to the Proceeding exceeds the amount of any
          damages that such Holder has otherwise been required to pay by reason of such
          untrue or alleged untrue statement or omission or alleged omission, except in
          the case of fraud by such Holder. The indemnity and contribution agreements
          contained in this Section&nbsp;are in addition to any liability that the
          Indemnifying Parties may have to the Indemnified Parties.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Miscellaneous.</U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
In the event of a breach by the Company or by a Holder, of any           of their
obligations under this Agreement, each Holder or the Company, as the           case may
be, in addition to being entitled to exercise all rights granted by law           and
under this Agreement, including recovery of damages, will be entitled to
          specific performance of its rights under this Agreement. The Company and each
          Holder agree that monetary damages would not provide adequate compensation for
          any losses incurred by reason of a breach by it of any of the provisions of
this           Agreement and hereby further agrees that, in the event of any action for
          specific performance in respect of such breach, it shall waive the defense that
          a remedy at law would be adequate.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Piggyback on a Section 2(a) Registration Statement.</U> Other than those
          securities (including securities issuable upon exercise of warrants) that (i)
          may be issued to Holders and/or the Placement Agent and/or its designee(s), and
          (ii) those securities set forth on <U>Schedule 3.1(z)</U> to the Purchase
          Agreement, neither the Company nor any of its security holders may include
          securities of the Company in a Registration Statement filed pursuant to <U>Section
2(a)</U> hereof. Other than as disclosed on <U>Schedule 3.1(z)</U> to           the
Purchase Agreement, and except as noted in Section 2(d) above, no Person has
          any right to cause the Company to effect a registration under the Securities
Act           of any securities of the Company. Except with respect to the registration
          statement contemplated in Section 2(d) above, the Company shall not and will
not           file any other registration statement until sixty (60) days after the
Effective           Date without the written consent of the Placement Agent.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Compliance</U>.
Each Holder covenants and agrees that it will comply with the           prospectus
delivery requirements of the Securities Act as applicable to it in           connection
with sales of Registrable Securities pursuant to the Registration           Statement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Discontinued
Disposition</U>. Each Holder agrees by its acquisition of such           Registrable
Securities that, upon receipt of a notice from the Company of the           occurrence of
any event of the kind described in Section&nbsp;3(c), such Holder           will
forthwith discontinue disposition of such Registrable Securities under the
          Registration Statement until such Holder&#146;s receipt of the copies of the
          supplemented Prospectus and/or amended Registration Statement or until it is
          advised in writing (the &#147;<B><U>Advice</U></B><U></U>&#148;) by the Company
          that the use of the applicable Prospectus may be resumed, and, in either case,
          has received copies of any additional or supplemental filings that are
          incorporated or deemed to be incorporated by reference in such Prospectus or
          Registration Statement. The Company may provide appropriate stop orders to
          enforce the provisions of this paragraph.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
and Waivers</U>. The provisions of this Agreement, including the           provisions of
this sentence, may not be amended, modified or supplemented, and           waivers or
consents to departures from the provisions hereof may not be given,           unless the
same shall be in writing and signed by the Company and the Holders of           at least
75% of the then outstanding Registrable Securities.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any and all notices or other communications or deliveries           required or permitted
to be provided hereunder shall be in writing and shall be           deemed given and
effective on the earliest of (i) the Trading Day following the           date of mailing,
if sent by nationally recognized overnight courier service, or           (ii) upon actual
receipt by the party to whom such notice is required to be           given. The address
for such notices and communications shall be delivered and           addressed as set
forth in the Purchase Agreement  </FONT></P>

<p align=center>
<font size=2>- 12 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. This Agreement shall inure to the benefit of and           be binding
upon the successors and permitted assigns of each of the parties and           shall
inure to the benefit of each Holder. Each Holder may assign their           respective
rights hereunder in the manner and to the Persons as permitted under           the
Purchase Agreement.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Execution
and Counterparts</U>. This Agreement may be executed in any number           of
counterparts, each of which when so executed shall be deemed to be an           original
and, all of which taken together shall constitute one and the same           Agreement.
In the event that any signature is delivered by facsimile           transmission, such
signature shall create a valid binding obligation of the           party executing (or on
whose behalf such signature is executed) the same with           the same force and
effect as if such facsimile signature were the original           thereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. This Agreement shall be governed by and construed in           accordance with
the internal laws of the State of New York without regard to the           conflicts of
laws principles thereof. The parties hereto hereby irrevocably           agree that any
suit or proceeding arising directly and/or indirectly pursuant to           or under this
Agreement, shall be brought solely in a federal or state court           located in the
City, County and State of New York. By its execution hereof, the           parties hereby
covenant and irrevocably submit to the <I>in&nbsp;personam </I>jurisdiction of the
federal and state courts located in the City, County and           State of New York and
agree that any process in any such action may be served           upon any of them
personally, or by certified mail or registered mail upon them           or their agent,
return receipt requested, with the same full force and effect as           if personally
served upon them in New York City. The parties hereto waive any           claim that any
such jurisdiction is not a convenient forum for any such suit or           proceeding and
any defense or lack of <I>in personam</I> jurisdiction with           respect thereto. In
the event of any such action or proceeding, the party           prevailing therein shall
be entitled to payment from the other party hereto of           its reasonable counsel
fees and disbursements.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cumulative
Remedies</U>. The remedies provided herein are cumulative and not           exclusive of
any remedies provided by law.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
If any term, provision, covenant or restriction of this           Agreement is held by a
court of competent jurisdiction to be invalid, illegal,           void or unenforceable,
the remainder of the terms, provisions, covenants and           restrictions set forth
herein shall remain in full force and effect and shall in           no way be affected,
impaired or invalidated, and the parties hereto shall use           their commercially
reasonable efforts to find and employ an alternative means to           achieve the same
or substantially the same result as that contemplated by such           term, provision,
covenant or restriction. It is hereby stipulated and declared           to be the
intention of the parties that they would have executed the remaining           terms,
provisions, covenants and restrictions without including any of such that           may
be hereafter declared invalid, illegal, void or unenforceable.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings in this Agreement are for convenience of reference           only and shall
not limit or otherwise affect the meaning hereof.  </FONT></P>

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<font size=2>- 13 -</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Nature of Purchasers&#146; Obligations and Rights</U>. The           obligations of each
Purchaser hereunder is several and not joint with the           obligations of any other
Purchaser hereunder, and no Purchaser shall be           responsible in any way for the
performance of the obligations of any other           Purchaser hereunder. Nothing
contained herein or in any other agreement or           document delivered at any
closing, and no action taken by any Purchaser pursuant           hereto or thereto, shall
be deemed to constitute the Purchasers as a           partnership, an association, a
joint venture or any other kind of entity, or           create a presumption that the
Purchasers are in any way acting in concert with           respect to such obligations or
the transactions contemplated by this Agreement.           Each Purchaser shall be
entitled to protect and enforce its rights, including           without limitation the
rights arising out of this Agreement, and it shall not be           necessary for any
other Purchaser to be joined as an additional party in any           proceeding for such
purpose.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment
of Registration Rights.</U> The rights under this Agreement shall           be
automatically assignable by any Holder to any transferee of all or any           portion
of Registrable Securities if: (a)&nbsp;such Holder agrees in writing           with the
transferee or assignee to assign such rights, and a copy of such           agreement is
furnished to the Company promptly after such assignment;           (b)&nbsp;the Company
is, promptly after such transfer or assignment, furnished           with written notice
of (i)&nbsp;the name and address of such transferee or           assignee, and (ii)&nbsp;the
securities with respect to which such registration           rights are being transferred
or assigned; and (c)&nbsp; at or before the time           the Company receives the
written notice contemplated by clause&nbsp;(b) of this           sentence the transferee
or assignee agrees in writing with the Company to be           bound by all of the
provisions contained herein.  </FONT></P>

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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Deferral
Period</U>. Upon (i) the occurrence of any event or the existence of           any fact
(a &#147;<B><U>Material Event</U></B><U></U>&#148;) as a result of           which the
Registration Statement shall contain any untrue statement of a           material fact or
omit to state any material fact required to be stated therein           or necessary to
make the statements therein not misleading, or any Prospectus           shall contain any
untrue statement of a material fact or omit to state any           material fact required
to be stated therein or necessary to make the statements           therein, in the light
of the circumstances under which they were made, not           misleading; or (ii)&nbsp;the
occurrence or existence of any pending corporate           development, public filing
with the Commission or other similar event with           respect to the Company that, in
the reasonable discretion of the Company, makes           it appropriate to suspend the
availability of the Registration Statement and the           related Prospectus, the
Company shall (A)&nbsp;in the case of clause&nbsp;(i)           above, as soon as
possible prepare and file, if necessary pursuant to applicable           law, a
post-effective amendment to such Registration Statement or a supplement           to the
related Prospectus or any document incorporated therein by reference or           file
any other required document that would be incorporated by reference into           such
Registration Statement and Prospectus so that such Registration Statement           does
not contain any untrue statement of a material fact or omit to state any
          material fact required to be stated therein or necessary to make the statements
          therein not misleading, and such Prospectus does not contain any untrue
          statement of a material fact or omit to state any material fact required to be
          stated therein or necessary to make the statements therein, in light of the
          circumstances under which they were made, not misleading, and, in the case of a
          post-effective amendment to a Registration Statement, use its best efforts to
          cause it to be declared effective as soon as possible; and (B)&nbsp;give
          immediate written notice to the Holders that the availability of the
          Registration Statement is suspended (a &#147;<B><U>Deferral           Notice</U></B><U></U>&#148;)
and, upon receipt of any Deferral Notice, each           Holder agrees not to sell any
Registrable Securities pursuant to the           Registration Statement until such Holder&#146;s
receipt of copies of the           supplemented or amended Prospectus provided for in
clause&nbsp;(i) above, or           until it is advised in writing by the Company that
the Prospectus may be used,           and has received copies of any additional or
supplemental filings that are           incorporated or deemed incorporated by reference
in such Prospectus. The Company           will use its best efforts to ensure that the
use of the Prospectus may be           resumed (x) in the case of clause&nbsp;(i) above,
as soon as possible, and (y)           in the case of clause&nbsp;(ii) above, soon as, in
the good faith judgment of           the Company, such suspension is no longer
appropriate (such period, during which           the availability of the Registration
Statement and any Prospectus is suspended           being a &#147;<B><U>Deferral Period</U></B><U></U>&#148;).
Notwithstanding the           foregoing, no Deferral Period instituted pursuant to clause&nbsp;(i)
or           clause&nbsp;(ii) above shall last for a period of time in excess of thirty
(30)           days from the date of the Material Event or other occurrence or state of
facts           on account of which such Deferral Period is instituted unless the
Commission           imposes a greater period, and the Company shall institute no more
than two (2)           Deferral Periods in the aggregate pursuant to clause&nbsp;(ii)
above in any           consecutive twelve (12) month period, provided, however, that a
Deferral Period           deriving from a Material Event not initiated by the Company
shall not be counted           in the above two (2) Deferral Periods. The Company
represents that it has no           knowledge as of the date of this Agreement of any
circumstance that would           reasonably be expected at the time of the effectiveness
of the Registration           Statement pursuant to Section 2(a) to cause the Company to
exercise its rights           under this Section 6(o).  </FONT></P>

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intentionally left blank] </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN
WITNESS WHEREOF</B>, the parties have executed this Registration Rights Agreement as of
the date first written above. </FONT></P>



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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.</B><BR><BR>
<BR>BY:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
David Amir<BR>Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<BR>

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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(PURCHASERS SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT)</FONT></P>





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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
</TR>
</TABLE>

<BR>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
</TR>
</TABLE>

<BR>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
</TR>
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<BR>

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<page>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>ANNEX A</U> </FONT> </H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Plan of Distribution</U> </FONT> </H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders and any of their pledgees, assignees and successors-in-interest may,
from time to time, sell any or all of their shares of Common Stock on any stock exchange,
market or trading facility on which the shares are traded or in private transactions.
These sales may be at fixed or negotiated prices. The Selling Stockholders may use any one
or more of the following methods when selling shares: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ordinary
brokerage transactions and transactions in which the broker/dealer solicits purchasers; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>purchases
by a broker/dealer as principal and resale by the broker/dealer for its account; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>an
exchange distribution in accordance with the Rules of the applicable exchange; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>privately
negotiated transactions; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>settlement
of short sales; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>broker/dealers
 may agree with the Selling  Stockholders to sell a specified  number of such shares at
                  a stipulated price per share; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a
combination of any such methods of sale; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149; </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>any
other method permitted pursuant to applicable law. </FONT></TD>
</TR>
</TABLE>
<BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders may also sell shares under Rule&nbsp;144 under the Securities Act, if
available, rather than under this prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker/dealers
engaged by the Selling Stockholders may arrange for other brokers/dealers to participate
in sales. Broker/dealers may receive commissions from the Selling Stockholders (or, if any
broker/dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to
be negotiated. The Selling Stockholders do not expect these commissions to exceed what is
customary in the types of transactions involved. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders may from time to time pledge or grant a security interest in some or
all of the shares of common stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares
of common stock 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
of 1933 amending the list of Selling Stockholders to include the pledgee, transferee or
other successors in interest as Selling Stockholders under this prospectus. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Selling Stockholders 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
Stockholders have informed the Company that it does not have any agreement or
understanding, directly or indirectly, with any person to distribute the Common Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is required to pay all fees and expenses incident to the registration of the
shares. The Company has agreed to indemnify the Selling Stockholders against certain
losses, claims, damages and liabilities, including liabilities under the Securities Act. </FONT></P>

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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>exhibit_4-7.htm
<TEXT>
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     <!-- Project:        \\Backup\office\EDGAR Filing\Nur Macroprinters Ltd\40691\a40691.eep -->
     <!-- Control Number: 40691                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
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<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 4.7</B></U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NEITHER THIS SECURITY NOR THE
SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
&#147;<B><U>SECURITIES ACT</U></B><U></U>&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS
SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A <I>BONA FIDE</I> MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>NUR MACROPRINTERS, LTD. </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WARRANT TO PURCHASE
ORDINARY SHARES </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(SUBJECT TO ADJUSTMENT) </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>(Void after March 31,
2009)</I></B> </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>PPW &#151; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
ORDINARY SHARE PURCHASE WARRANT CERTIFIES that, for value received, _____________ (the
&#147;Holder&#148;), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after March&nbsp;31,
2004 (the &#147;<B><U>Exercise Date</U></B><U></U>&#148;) and on or prior to the close of
business on March&nbsp;31, 2009 (the &#147;<B><U>Termination Date</U></B><U></U>&#148;),
but not thereafter, to subscribe for and purchase from NUR Macroprinters Ltd., an Israeli
corporation (the &#147;<B><U>Company</U></B><U></U>&#148;), up to ____________ ordinary
shares (the &#147;<B><U>Warrant Shares</U></B><U></U>&#148;), NIS 1.0 nominal value per
share, of the Company (the &#147;<B><U>Common Stock</U></B><U></U>&#148;). The initial
purchase price of one (1) share of Common Stock under this Warrant shall be $1.54<B>
</B>(the &#147;<B><U>Exercise </U></B><U></U>Price&#148;). The Exercise Price and the
number of Warrant Shares for which the Warrant is exercisable shall be subject to
adjustment as provided elsewhere herein. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in that
certain Securities Purchase Agreement dated the date hereof and between the Company and
the Purchasers set forth on <U>Schedule&nbsp;1</U> thereto (the &#147;<U>Purchase
Agreement</U>&#148;).</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title
to Warrant</U>. Prior to the Termination Date and subject to compliance           with
applicable laws and <U>Section&nbsp;7</U> of this Warrant, this Warrant and           all
rights hereunder are transferable, in whole or in part, at the office or           agency
of the Company by the Holder in person or by duly authorized attorney,           upon
surrender of this Warrant together with the Assignment Form annexed hereto
          properly endorsed. The transferee shall sign an investment letter in form and
          substance reasonably satisfactory to the Company.  </FONT></P>

<p align=center>
<font size=2></font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorization
of Shares</U>. The Company covenants that all Warrant Shares           which may be
issued upon the exercise of the purchase rights represented by this           Warrant
(assuming the payment of the Exercise Price by the Holder) will, upon           exercise
of the purchase rights represented by this Warrant, be duly authorized,           validly
issued, fully paid and nonassessable and free from all taxes, liens and           charges
in respect of the issue thereof (other than taxes in respect of any           transfer
occurring contemporaneously with such issue and liens and charges           incurred by
the Holder).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exercise
of Warrant</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Exercise
of the purchase rights represented by this Warrant may be made at any           time or
times on or after the Exercise Date and on or before the Termination           Date by
the surrender of this Warrant and the Notice of Exercise Form annexed           hereto
duly executed, at the office of the Company (or such other office or           agency of
the Company as it may designate by notice in writing to the registered           Holder
at the address of such Holder appearing on the books of the Company), and           upon
payment of the Exercise Price of the Warrant Shares (subject to <U>Section           3(d)</U> below),
thereby purchased by wire transfer or cashier&#146;s check           drawn on a United
States bank or by means of a cashless exercise pursuant and           subject to <U>Section&nbsp;3(d)</U>,
if applicable, the Holder shall be entitled           to receive a certificate for the
number of Warrant Shares so purchased.           Certificates for Warrant Shares
purchased hereunder shall be delivered to the           Holder within three (3) Trading
Days after the date on which this Warrant shall           have been exercised as
aforesaid. This Warrant shall be deemed to have been           exercised and such
certificate or certificates shall be deemed to have been           issued, and the Holder
or any other person so designated to be named therein           shall be deemed to have
become a holder of record of such shares for all           purposes, as of the date the
Warrant has been properly exercised by receipt by           the Company of the Notice to
Exercise and payment to the Company of the Exercise           Price and all taxes
required to be paid by the Holder, if any, pursuant to <U>Section&nbsp;5</U> have been
paid.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          If
this Warrant shall have been exercised in part, the Company shall, at the           time
of delivery of the certificate or certificates representing Warrant Shares,
          deliver to Holder a new Warrant evidencing the rights of Holder to purchase the
          unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
          in all other respects be identical with this Warrant.  </FONT></P>

<p align=center>
<font size=2>2</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company shall not effect any exercise of this Warrant, and the Holder shall not
have the right to exercise any portion of this Warrant, pursuant to <U>Section&nbsp;3(a) </U>or
otherwise, to the extent that after giving effect to such issuance after
exercise, the Holder (together with the Holder&#146;s Affiliates), as set forth
on the applicable Notice of Exercise, would beneficially own five 5% percent or
greater of the number of shares of the Common Stock issued and outstanding
immediately after giving effect to such issuance. For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder
and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (A) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by the Holder or any of its
Affiliates and (B) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation,
any other Warrants) subject to a limitation on conversion or exercise analogous
to the limitation contained herein beneficially owned by the Holder or any of
its Affiliates. Except as set forth in the preceding sentence, for purposes of
this <U>Section&nbsp;3(c)</U>, beneficial ownership shall be calculated in
accordance with Section&nbsp;13(d) of the Exchange Act. For purposes of this <U>Section&nbsp;3(c)</U>,
in determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x)
the Company&#146;s most recent Form&nbsp;20-F or Form&nbsp;6-F, as the case may
be, (y) a more recent public announcement by the Company or (z) any other
notice by the Company or the Company&#146;s transfer agent setting forth the
number of shares of Common Stock outstanding. Upon the written or oral request
of the Holder, the Company shall within three (3) Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Company Common
Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder or its
Affiliates since the date as of which such number of outstanding shares of
Common Stock was reported. The provisions of this <U>Section&nbsp;3(c) </U>may
be waived by the Holder upon, at the election of the Holder, not less than 61
days&#146; prior notice to the Company, and the provisions of this <U>Section&nbsp;3(c) </U>shall
continue to apply until such 61<SUP>st </SUP>day (or such later date, as
determined by the Holder, as may be specified in such notice of waiver). The
Holder is solely responsible for all calculations required in this <U>Section&nbsp;3(c).</U> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          If,
but only if, at the time of exercise of this Warrant (in whole or in part)           at
any time after the Effectiveness Date (as defined in the Registration Rights
          Agreement) there is no effective Registration Statement registering the resale
          of the Warrant Shares by the Holder, this Warrant may also be exercised at such
          time by means of a &#147;cashless exercise&#148; in which the Holder shall be
          entitled to receive a certificate for the number of Warrant Shares equal to the
          quotient obtained by dividing [(A-B) (X)] by (A), where:  </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(A) = the Closing Price on the Trading Day preceding the date of such election;  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(B) = the Exercise Price of the Warrants, as adjusted; and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(X)  = the number of Warrant Shares issuable upon exercise of the Warrants in
          accordance with the terms of this Warrant.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Fractional Shares or Scrip</U>. No fractional shares or scrip representing
          fractional shares shall be issued upon the exercise of this Warrant. As to any
          fraction of a share which Holder would otherwise be entitled to purchase upon
          such exercise, the Company shall pay a cash adjustment in respect of such final
          fraction in an amount equal to such fraction multiplied by the Exercise Price.  </FONT></P>

<p align=center>
<font size=2>3</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Charges,
Taxes and Expenses</U>. Issuance of certificates for Warrant Shares           shall be
made without charge to the Holder for any issue or transfer tax or           other
incidental expense in respect of the issuance of such certificate, all of           which
taxes and expenses shall be paid by the Company, and such certificates           shall be
issued in the name of the Holder or in such name or names as may be           directed by
the Holder; provided, however, that in the event certificates for           Warrant
Shares are to be issued in a name other than the name of the Holder,           this
Warrant when surrendered for exercise shall be accompanied by the           Assignment
Form attached hereto duly executed by the Holder; and the Company may           require,
as a condition thereto, the payment of a sum sufficient to reimburse it           for any
transfer tax incidental thereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing
of Books</U>. The Company will not close its stockholder books or           records in
any manner which prevents the timely exercise of this Warrant,           pursuant to the
terms hereof.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer,
Division and Combination.</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Subject
to compliance with any applicable securities laws and the conditions set           forth
in <U>Section&nbsp;1 </U>and <U>Section&nbsp;7(e)</U> hereof and to the
          provisions of <U>Section&nbsp;4.1</U> of the Purchase Agreement, this Warrant
          and all rights hereunder are transferable, in whole or in part, upon surrender
          of this Warrant at the principal office of the Company, together with a written
          assignment of this Warrant substantially in the form attached hereto duly
          executed by the Holder or its agent or attorney and funds sufficient to pay any
          transfer taxes payable upon the making of such transfer. Upon such surrender
          and, if required, such payment, the Company shall execute and deliver a new
          Warrant or Warrants in the name of the assignee or assignees and in the
          denomination or denominations specified in such instrument of assignment, and
          shall issue to the assignor a new Warrant evidencing the portion of this
Warrant           not so assigned, and this Warrant shall promptly be cancelled. A
Warrant, if           properly assigned, may be exercised by a new holder for the
purchase of Warrant           Shares without having a new Warrant issued.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          This
Warrant may be divided or combined with other Warrants upon presentation           hereof
at the aforesaid office of the Company, together with a written notice
          specifying the names and denominations in which new Warrants are to be issued,
          signed by the Holder or its agent or attorney. Subject to compliance with <U>Section&nbsp;7(a)</U>,
as to any transfer which may be involved in such           division or combination, the
Company shall execute and deliver a new Warrant or           Warrants in exchange for the
Warrant or Warrants to be divided or combined in           accordance with such notice.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company shall prepare, issue and deliver at its own expense (other than
          transfer taxes) the new Warrant or Warrants under this <U>Section&nbsp;7</U>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Company agrees to maintain, at its aforesaid office, books for the           registration
and the registration of transfer of the Warrants.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          If,
at the time of the surrender of this Warrant in connection with any transfer           of
this Warrant, the transfer of this Warrant shall not be registered pursuant           to
an effective registration statement under the Securities Act and under
          applicable state securities or blue sky laws, the Company may require, as a
          condition of allowing such transfer (i) that the Holder or transferee of this
          Warrant, as the case may be, furnish to the Company a written opinion of
counsel           reasonably acceptable to the Company (which opinion shall be in form,
substance           and scope customary for opinions of counsel in comparable
transactions) to the           effect that such transfer may be made without registration
under the Securities           Act and under applicable state securities or blue sky
laws, (ii) that the Holder           or transferee execute and deliver to the Company an
investment letter in form           and substance acceptable to the Company and (iii)
that the transferee be an           &#147;accredited investor&#148; as defined in Rule&nbsp;501(a)
promulgated under           the Securities Act.  </FONT></P>

<p align=center>
<font size=2>4</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Rights as Shareholder Until Exercise</U>. This Warrant does not entitle           the
Holder to any voting rights or other rights as a shareholder of the Company
          prior to the exercise hereof. Upon the surrender of this Warrant and the
payment           of the aggregate Exercise Price (or by means of a cashless exercise),
the           Warrant Shares so purchased shall be and be deemed to be issued to such
Holder           as the record owner of such shares as of the close of business on the
later of           the date of such surrender or payment.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Loss,
Theft, Destruction or Mutilation of Warrant</U>. The Company covenants           that
upon receipt by the Company of evidence reasonably satisfactory to it of           the
loss, theft, destruction or mutilation of this Warrant or any stock           certificate
relating to the Warrant Shares, and in case of loss, theft or           destruction, of
indemnity or security reasonably satisfactory to it (which, in           the case of the
Warrant, shall not include the posting of any bond), and upon           surrender and
cancellation of such Warrant or stock certificate, if mutilated,           the Company
will make and deliver a new Warrant or stock certificate of like           tenor and
dated as of such cancellation, in lieu of such Warrant or stock           certificate.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Saturdays,
Sundays, Holidays, etc</U>. If the last or appointed day for the           taking of any
action or the expiration of any right required or granted herein           shall be a
Saturday, Sunday or a legal holiday in the State of New York, then           such action
may be taken or such right may be exercised on the next succeeding           day not a
Saturday, Sunday or legal holiday in the State of New York.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain
Adjustments to Exercise Price and Number of Warrant Shares</U>. The           number and
kind of securities purchasable upon the exercise of this Warrant and           the
Exercise Price shall be subject to adjustment from time to time upon the
          happening of any of the following. In case the Company shall (i) pay a dividend
          in shares of Common Stock or make a distribution in shares of Common Stock to
          holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
          of Common Stock into a greater number of shares, (iii) combine its outstanding
          shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
          issue any shares of its capital stock in a reclassification of the Common
Stock,           then the number of Warrant Shares purchasable upon exercise of this
Warrant           immediately prior thereto shall be adjusted so that the Holder shall be
entitled           to receive the kind and number of Warrant Shares or other securities
of the           Company which it would have owned or have been entitled to receive had
such           Warrant been exercised in advance thereof. Upon each such adjustment of
the kind           and number of Warrant Shares or other securities of the Company which
are           purchasable hereunder pursuant to this <U>Section 11</U>, the Holder shall
          thereafter be entitled to purchase the number of Warrant Shares or other
          securities resulting from such adjustment at an Exercise Price per Warrant
Share           or other security obtained by multiplying the Exercise Price in effect
          immediately prior to such adjustment by the number of Warrant Shares
purchasable           pursuant hereto immediately prior to such adjustment and dividing
by the number           of Warrant Shares or other securities of the Company resulting
from such           adjustment. An adjustment made pursuant to this paragraph shall
become effective           immediately after the effective date of such event retroactive
to the record           date, if any, for such event. No adjustment of the Exercise Price
shall be made           if the amount of said adjustment shall be less than 2 cents
($.02) per share of           Common Stock, provided, however, that in such case any
adjustment that would           otherwise be required then to be made shall be carried
forward and shall be made           at the time of and together with the next subsequent
adjustment which, together           with any adjustment so carried forward, shall amount
to at least 2 cents ($.02)           per share of Common Stock.  </FONT></P>

<p align=center>
<font size=2>5</font></p>
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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Reorganization,
Reclassification, Merger, Consolidation or Disposition of           Assets. </U>In case
the Company shall reorganize its capital, reclassify its           capital stock (other
than as set forth in <U>Section 11</U>), consolidate or           merge with or into
another corporation (where the Company is not the surviving           corporation or
where there is a change in or distribution with respect to any           class of common
stock of the Company), or sell, transfer or otherwise dispose of           all or
substantially all its property, assets or business to another corporation           and,
pursuant to the terms of such reorganization, reclassification, merger,
          consolidation or disposition of assets, shares of common stock of the successor
          or acquiring corporation, or any cash, shares of stock or other securities or
          property of any nature whatsoever (including warrants or other subscription or
          purchase rights) in addition to or in lieu of common stock of the successor or
          acquiring corporation <U>(&#147;<B>Other Property</B></U><U></U>&#148;), are to
          be received by or distributed to the holders of Common Stock of the Company,
          then the Holder shall have the right thereafter to receive, upon exercise of
          this Warrant, the number of shares of Common Stock of the successor or
acquiring           corporation or of the Company, if it is the surviving corporation,
and Other           Property receivable upon or as a result of such reorganization,
          reclassification, merger, consolidation or disposition of assets by a Holder of
          the number of shares of Common Stock for which this Warrant is exercisable
          immediately prior to such event. In case of any such reorganization,
          reclassification, merger, consolidation or disposition of assets, the successor
          or acquiring corporation (if other than the Company) and, if an entity
different           from the successor or acquiring corporation, the entity whose capital
stock or           assets the holders of the Common Stock are entitled to receive as a
result of           such transaction, shall expressly assume the due and punctual
observance and           performance of each and every covenant and condition of this
Warrant to be           performed and observed by the Company and all the obligations and
liabilities           hereunder, subject to such modifications as may be deemed
appropriate (as           determined in good faith by resolution of the Board of
Directors of the Company)           in order to provide for adjustments of Warrant Shares
for which this Warrant is           exercisable which shall be as nearly equivalent as
practicable to the           adjustments provided for in this <U>Section&nbsp;12</U>. For
purposes of this <U>Section&nbsp;12</U>, &#147;<B><U>common stock of the successor or
acquiring           corporation</U></B><U></U>&#148; shall include stock of such
corporation of any           class which is not preferred as to dividends or assets over
any other class of           stock of such corporation and which is not subject to
redemption and shall also           include any evidences of indebtedness, shares of
stock or other securities which           are convertible into or exchangeable for any
such stock, either immediately or           upon the arrival of a specified date or the
happening of a specified event and           any warrants or other rights to subscribe
for or purchase any such stock. The           foregoing provisions of this <U>Section&nbsp;12</U> shall
similarly apply to           successive reorganizations, reclassifications, mergers,
consolidations or           disposition of assets.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Adjustment</U>. Whenever the number of Warrant Shares or number or           kind of
securities or other property purchasable upon the exercise of this           Warrant or
the Exercise Price is adjusted, as herein provided, the Company shall           give
notice thereof to the Holder, which notice shall state the number of           Warrant
Shares (and other securities or property) purchasable upon the exercise           of this
Warrant and the Exercise Price of such Warrant Shares (and other           securities or
property) after such adjustment, setting forth a brief statement           of the facts
requiring such adjustment and setting forth the computation by           which such
adjustment was made.  </FONT></P>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Corporate Action. If at any time:</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          the
Company shall take a record of the holders of its Common Stock for the           purpose
of entitling them to receive a dividend or other distribution, or any           right to
subscribe for or purchase any evidences of its indebtedness, any shares           of
stock of any class or any other securities or property, or to receive any           other
right, or  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          there
shall be any capital reorganization of the Company, any reclassification           or
recapitalization of the capital stock of the Company or any consolidation or
          merger of the Company with, or any sale, transfer or other disposition of all
or           substantially all the property, assets or business of the Company to,
another           corporation or,  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          there
shall be a voluntary or involuntary dissolution, liquidation or winding up           of
the Company;  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>then, in any one or more of such
cases, the Company shall give to Holder (i) at least 10 days&#146; prior written notice of
the date on which a record date shall be selected for such dividend, distribution or right
or for determining rights to vote in respect of any such reorganization, reclassification,
merger, consolidation, sale, transfer, disposition, liquidation or winding up, and (ii) in
the case of any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 10 days&#146;
prior written notice of the date when the same shall take place. Such notice in accordance
with the foregoing clause also shall specify (i) the date on which any such record is to
be taken for the purpose of such dividend, distribution or right, the date on which the
holders of Common Stock shall be entitled to any such dividend, distribution or right, and
the amount and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, dissolution,
liquidation or winding up is to take place and the time, if any such time is to be fixed,
as of which the holders of Common Stock shall be entitled to exchange their Warrant Shares
for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up. Each such written notice shall be sufficiently given if
addressed to Holder at the last address of Holder appearing on the books of the Company
and delivered in accordance with <U>Section&nbsp;16(d)</U>. Failure to give such notice,
or any defect therein, shall not affect the validity of such action, so long as such
failure does not materially prejudice the rights of the Holders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Authorized
Shares</U>. The Company covenants that during the period the           Warrant is
outstanding, it will reserve from its authorized and unissued Common           Stock a
sufficient number of shares to provide for the issuance of the Warrant           Shares
upon the exercise of any purchase rights under this Warrant. The Company
          further covenants that its issuance of this Warrant shall constitute full
          authority to its officers who are charged with the duty of executing stock
          certificates to execute and issue the necessary certificates for the Warrant
          Shares upon the exercise of the purchase rights under this Warrant. The Company
          will take all such reasonable action as may be necessary to assure that such
          Warrant Shares may be issued as provided herein without violation of any
          applicable law or regulation, or of any requirements of the principal Trading
          Market upon which the Common Stock may be listed.  </FONT></P>

<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Except
and to the extent as waived or consented to by the Holder, the Company           shall
not by any action, including, without limitation, amending its certificate           of
incorporation or through any reorganization, transfer of assets,           consolidation,
merger, dissolution, issue or sale of securities or any other           voluntary action,
avoid or seek to avoid the observance or performance of any of           the terms of
this Warrant. Without limiting the generality of the foregoing, the           Company
will (a) not increase the par value of any Warrant Shares above the           amount
payable therefor upon such exercise immediately prior to such increase in           par
value, (b) take all such action as may be necessary or appropriate in order
          that the Company may validly and legally issue fully paid and nonassessable
          Warrant Shares upon the exercise of this Warrant, and   (c)&nbsp;&nbsp;&nbsp;&nbsp;
          use commercially reasonable efforts to obtain all such authorizations,
          exemptions or consents from any public regulatory body having jurisdiction
          thereof as may be necessary to enable the Company to perform its obligations
          under this Warrant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Before
taking any action which would result in an adjustment in the number of           Warrant
Shares for which this Warrant is exercisable or in the Exercise Price,           the
Company shall obtain all such authorizations or exemptions thereof, or           consents
thereto, as may be necessary from any public regulatory body or bodies           having
jurisdiction thereof.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous.</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Jurisdiction</U>.
This Agreement shall be governed by and construed in           accordance with the
internal laws of the State of New York without regard to the           conflicts of laws
principles thereof. The parties hereto hereby irrevocably           agree that any suit
or proceeding arising directly and/or indirectly pursuant to           or under this
Warrant, shall be brought solely in a federal or state court           located in the
City, County and State of New York. By its execution hereof, the           Company, and
by its acceptance of this Warrant, the Holder, hereby covenant and           irrevocably
submit to the <I>in&nbsp;personam</I> jurisdiction of the federal           and state
courts located in the City, County and State of New York and agree           that any
process in any such action may be served upon any of them personally,           or by
certified mail or registered mail upon them or their agent, return receipt
          requested, with the same full force and effect as if personally served upon
them           in New York City. The parties hereto waive any claim that any such
jurisdiction           is not a convenient forum for any such suit or proceeding and any
defense or           lack of <I>in personam</I> jurisdiction with respect thereto. In the
event of           any such action or proceeding, the party prevailing therein shall be
entitled to           payment from the other party hereto of its reasonable counsel fees
and           disbursements.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions</U>.
The Holder acknowledges that the Warrant Shares acquired           upon the exercise of
this Warrant, if not registered for resale under the           Securities Act, will have
legends imprinted upon any stock certificates           evidencing such Warrant Shares
and the Company will notify its transfer agent of           restrictions upon resale
imposed by the applicable state and federal securities           laws. The certificate or
certificates evidencing such Warrant Shares shall bear           a legend substantially
similar to the following:  </FONT></P>

<p align=center>
<font size=2>8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE &#147;ACT&#148;), PURSUANT TO A REGISTRATION STATEMENT.
ACCORDINGLY, SUCH SHARES MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO A REGISTRATION
STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Nonwaiver
and Expenses</U>. No course of dealing or any delay or failure to           exercise any
right hereunder on the part of Holder shall operate as a waiver of           such right
or otherwise prejudice Holder&#146;s rights, powers or remedies,
          notwithstanding all rights hereunder terminate on the Termination Date. If the
          Company willfully and knowingly fails to comply with any provision of this
          Warrant, which results in any material damages to the Holder, the Company shall
          pay to Holder such amounts as shall be sufficient to cover any costs and
          expenses including, but not limited to, reasonable attorneys&#146; fees,
          including those of appellate proceedings, incurred by Holder in collecting any
          amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
          or remedies hereunder.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice, request or other document required or permitted to           be given or
delivered to the Holder by the Company shall be delivered in           accordance with
the notice provisions of the Purchase Agreement; <U>provided</U>, <U>however</U>, upon
any permitted assignment of this Warrant,           the assignee shall promptly provide
the Company with its contact information.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limitation
of Liability</U>. No provision hereof, in the absence of any           affirmative action
by Holder to exercise this Warrant or purchase Warrant           Shares, and no
enumeration herein of the rights or privileges of Holder, shall           give rise to
any liability of Holder for the purchase price of any Common Stock           or as a
stockholder of the Company, whether such liability is asserted by the           Company
or by creditors of the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Remedies</U>.
Holder, in addition to being entitled to exercise all rights           granted by law,
including recovery of damages, will be entitled to specific           performance of its
rights under this Warrant. The Company agrees that monetary           damages would not
be adequate compensation for any loss incurred by reason of a           breach by it of
the provisions of this Warrant and hereby agrees to waive the           defense in any
action for specific performance that a remedy at law would be           adequate.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>. Subject to applicable securities laws, this           Warrant and the
rights and obligations evidenced hereby shall inure to the           benefit of and be
binding upon the successors of the Company and the successors           and permitted
assigns of Holder. The provisions of this Warrant are intended to           be for the
benefit of all Holders from time to time of this Warrant and shall be
          enforceable by any such Holder or holder of Warrant Shares.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment</U>.
This Warrant may be modified or amended or the provisions           hereof waived with
the written consent of the Company and the Holder.  </FONT></P>

<p align=center>
<font size=2>9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
Wherever possible, each provision of this Warrant shall be           interpreted in such
manner as to be effective and valid under applicable law,           but if any provision
of this Warrant shall be prohibited by or invalid under           applicable law, such
provision shall be ineffective to the extent of such           prohibition or invalidity,
without invalidating the remainder of such provisions           or the remaining
provisions of this Warrant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.
The headings used in this Warrant are for the convenience of           reference only and
shall not, for any purpose, be deemed a part of this Warrant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Italic-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>[Remainder of page
intentionally left blank] </I></FONT></P>

<p align=center>
<font size=2>10</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN
WITNESS WHEREOF</B>, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: March 31, 2004 </FONT></P>




<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NUR MACROPRINTERS LTD.</B><BR><BR>
<BR>BY: /S/ David Amir<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
David Amir<BR>Chief Executive Officer and President</FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>11</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF EXERCISE </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To: NUR Macroprinters Ltd. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby elects to purchase ________ Warrant Shares of NUR Macroprinters Ltd.
pursuant to the terms of the attached Warrant (only if exercised in full), and tenders
herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Payment
shall take the form of (check applicable box):  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;                  <FONT size="3" face="Wingdings">o
</font> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
lawful money of the United States; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;                           <FONT size="3" face="Wingdings">o
</font> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
 cancellation  of such  number of Warrant  Shares as is  necessary,  in  accordance with and pursuant to
<U>Section 3(d)</U>, to exercise this Warrant with respect to the maximum number of
Warrant Shares purchasable pursuant to the cashless exercise procedures set forth in
<U>Section 3(d)</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          Please
issue a certificate or certificates representing said Warrant Shares in           the
name of the undersigned or in such other name as is specified below:  </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Warrant Shares shall be delivered to the following: </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
undersigned is an &#147;accredited investor&#148; as defined in Regulation D
          promulgated under the Securities Act of 1933, as amended, and reaffirms the
          representations and warranties set forth in <U>Section 3.2 </U>of the Purchase
          Agreement as if made on the date hereof.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>[PURCHASER]</B><BR><BR>
<BR>By:<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:<BR>Title:</FONT></TD>
</TR>
</TABLE>
<BR>

<p align=center>
<font size=2>12</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px"><HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<page>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>FORM OF ASSIGNMENT*</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>FOR
VALUE RECEIVED</B> the undersigned registered owner of this Warrant hereby sells, assigns
and transfers unto the Assignee named below all of the rights of the undersigned under the
within Warrant, with respect to the number of shares of Common Stock set forth below: </FONT></P>






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<TR VALIGN="TOP">
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Name of Assignee</U> </FONT>
</TD>
     <TD WIDTH="34%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Address</U> </FONT>
</TD>
     <TD WIDTH="33%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>No. of Shares</U> </FONT>
</TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
does hereby irrevocably constitute and appoint __________________________ Attorney to make
such transfer on the books of NUR Macroprinters Ltd., maintained for the purpose, with
full power of substitution in the premises. </FONT></P>

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Dated:___________________________________  </FONT></TD>
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<BR>







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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Signature)</FONT></TD>
</TR>
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<BR>






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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Witness)</FONT></TD>
</TR>
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<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned Assignee of the Warrant hereby makes to NUR Macroprinters Ltd., as of the date
hereof, with respect to the Assignee, all of the representations and warranties made by
the Holder in the Registration Rights Agreement and the Purchase Agreement, and the
undersigned Assignee agrees to be bound by all the terms and conditions of the Purchase
Agreement, the Warrant and the Registration Rights Agreement. </FONT></P>

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Dated:__________________________  </FONT></TD>
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<BR>






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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
(Signature)</FONT></TD>
</TR>
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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>*</SUP>
All capitalized terms not otherwise defined herein shall have the meanings set forth in
the Warrant. </FONT></P>

<p align=center>
<font size=2>13</font></p>
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<TYPE>EX-99
<SEQUENCE>5
<FILENAME>exhibit_5-1.htm
<TEXT>
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     <!-- Control Number: 40691                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
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<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit 5.1</B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>May 24, 2004 </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NUR Macroprinters Ltd.<BR>
12 Abba Hillel Silver Street<BR>
P.O. Box 1281<BR>
Lod 71111<BR>
Israel
</FONT></P>


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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>NUR Macroprinters Ltd. &#150; Registration Statement on Form F-3</U> </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Ladies and Gentlemen: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have acted as counsel to NUR Macroprinters Ltd., an Israeli corporation (the
&#147;Company&#148;), in connection with the preparation and filing under the Securities
Act of 1933, as amended (the &#147;Act&#148;), of a registration statement on Form F-3
(the &#147;Registration Statement&#148;) with the Securities and Exchange Commission
regarding the sale by certain selling securityholders (the &#147;Selling
Securityholders&#148;) of up to (i) 4,919,473 issued and outstanding ordinary shares of
the Company (the &#147;Private Placement Shares&#148;) issued by the Company to certain of
the Selling Securityholders in connection with private placements, (ii) 1,259,042 ordinary
shares of the Company (the &#147;Private Placement Warrant Shares&#148;) issuable upon
exercise of warrants (the &#147;Private Placement Warrants&#148;) granted by the Company
to certain of the Selling Securityholders in connection with private placements, (iii)
1,854,839 issued and outstanding ordinary shares of the Company (the &#147;Convertible
Loan Shares&#148;) issued pursuant to the conversion of certain convertible loans (the
&#147;Convertible Loans&#148;) issued by the Company to certain of the Selling
Securityholders, (iv) 331,731 ordinary shares of the Company (the &#147;Convertible Loan
Warrant Shares&#148;) issuable upon exercise of warrants (the &#147;Convertible Loan
Warrants&#148;) granted by the Company to certain of the Selling Securityholders, (v)
129,310 ordinary shares of the Company (the &#147;Placement Agent Warrant Shares&#148;)
issuable upon exercise of placement agent warrants (the &#147;Placement Agent
Warrants&#148;) granted by the Company to certain of the Selling Securityholders, and (vi)
1,340,000 ordinary shares of the Company (the &#147;Banking Institution Warrant
Shares&#148;) issuable upon exercise of banking institutions warrants (the &#147;Banking
Institution Warrants&#148;) granted by the Company to certain of the Selling
Securityholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed the Company&#146;s charter documents, and have examined originals and/or
copies of the corporate proceedings taken by the Company in connection with the issuance
and sale of the Private Placement Shares, Private Placement Warrants, Convertible Loan
Shares, Convertible Loan Warrants, Placement Agent Warrants and Banking Institution
Warrants, and such other corporate documents, records and certificates, and have made such
investigations of law, as I have deemed necessary in order to render the opinion
hereinafter set forth. Based on such review, I am of the opinion that: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the Private Placement Shares and the Convertible Loan Shares have been duly
          authorized and are validly issued, fully paid and non-assessable; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the Private Placement Warrant Shares, the Convertible Loan Warrant Shares, the
          Placement Agent Warrant Shares and the Banking Institution Warrant Shares have
          been duly authorized and, upon issuance and delivery against payment therefor in
          accordance with the terms of the warrant agreements related thereto, will be
          validly issued, fully paid and non-assessable. </FONT></P>

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<page>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
consent to the filing of this opinion letter as Exhibit 5.1 to the Registration Statement
and to the reference to me under the caption &#147;Legal Matters&#148; in the prospectus
which is part of the Registration Statement. In giving this consent, I do not thereby
admit that I am within the category of persons whose consent is required under Section 7
of the Act, the rules and regulations of the Securities and Exchange Commission
promulgated thereunder, or Item 509 of Regulation S-K. This opinion letter is rendered as
of the date first written above and I disclaim any obligation to advise you of facts,
circumstances, events or developments which hereafter may be brought to my attention and
which may alter, affect or modify the opinion expressed herein. My opinion is expressly
limited to the matters set forth above and I render no opinion, whether by implication or
otherwise, as to any other matters relating to the Company or the Private Placement
Shares, the Convertible Loan Shares, Private Placement Warrant Shares, the Convertible
Loan Warrant Shares, the Placement Agent Warrant Shares and the Banking Institution
Warrant Shares. In giving the opinion expressed herein, no opinion is expressed as to the
laws of any jurisdiction other than the State of Israel. </FONT></P>






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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Very truly yours,<BR><BR>
<BR>BY: /S/ Doron Faibish<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Doron Faibish, Adv.</FONT></TD>
</TR>
</TABLE>
<BR>

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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>exhibit_23-1.htm
<TEXT>
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     <!-- Control Number: 40691                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Nur Macroprinters Ltd                                            -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
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<P ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit 23.1</B> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent of Independent
Auditors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We consent to the reference to our
firm under the caption &#147;Experts&#148; in the Registration Statement on Form F-3 and
related Prospectus of NUR Macroprinters Ltd. for the registration of 9,834,395 of its
Ordinary Shares and to the incorporation by reference therein of our report dated February
26, 2004, with respect to the consolidated financial statements and schedules of NUR
Macroprinters Ltd. included in its Annual Report (Form 20-F) for the year ended December
31, 2003, filed with the Securities and Exchange Commission. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tel-Aviv, Israel<BR>
May 24, 2004
</FONT></P>





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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>
<BR>BY: /S/ KOST FORER GABBAY &amp; KASIERER<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
KOST FORER GABBAY &amp; KASIERER<BR>A Member of Ernst &amp; Young Global</FONT></TD>
</TR>
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<BR>



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