T087 Public DISCOUNT BANK LTD. Registration no. 520007030 The securities of the corporation are listed for trading on the Tel Aviv Stock Exchange Abbreviated name: Discount Address: 23 Yehuda Halevi St., Tel Aviv 65136, Israel Tel: 972-3-5145582; 972-3-5145544; Fax: 972-3-5171674 e-mail: [email protected] Transmission date: January 2, 2011 Reference: 2011-01-000504

Israel Securities Authority Tel Aviv Stock Exchange Ltd. www.isa.gov.il www.tase.co.il

Status of Capital and Registers of Securities of the Corporation and Changes Therein Regulation 31E of the Securities Regulations (Periodic and Immediate Reports), 5730-1970 Regulation 31 (a) of the Securities Regulations (Periodic and Immediate Reports), 5730-1970

1. Status of the securities of the corporation following the change:

Stock Issued and Paid-up Capital Number Number of Exchange Registered in Name and Class Securities in Number in Security Current Name of of Security Authorized Previous Registration Number Nominee Capital Report Number Company Ordinary A shares of NIS 0.1 par 691212 1,961,000,000 1,053,794,600 1,053,869,295 788,657,560 value each – Discount A 6% cumulative preferred shares of 6910012 40,000 40,000 40,000 0 NIS 0.00504 par value each – Discount Cumulative Preferred Subordinated debentures – Disc A 6910079 30,000,000 30,000,000 30,000,000 30,000,000 Debentures Unlisted option warrants 6910087 4,053,309 4,053,309 3,399,550 0 convertible into shares – Discount Op 2006 Hybrid capital notes (Series A) – 6910095 1,147,242,389 1,147,242,389 1,147,242,389 1,147,073,389 Discount CN A Unlisted option warrants 6910103 8,090,275 8,090,275 8,090,275 0 convertible into shares – Discount Op 8/07 Hybrid capital notes (Series B) 6910111 350,000,000 350,000,000 350,000,000 0 Subordinated debentures 6910129 425,933,000 425,933,000 425,933,000 425,933,000 (Series J) Subordinated debentures 6910137 211,066,000 211,066,000 211,066,000 211,066,000 (Series K)

2 The corporation announces that:  On December 30, 2010  From ______through ______ A change took place in the number and in the register of the securities holders of the corporation as a result of: Description of the nature of the change: Exercise of unlisted option warrants of a senior officer and increase of the issued capital.

1 Name of the Registered Holder Regarding Whom the Change Took Place: Option warrants – held in trust Type of Identity Number: Other Identity Number Identity Number: 0000000 Nature of Change: Exercise of options Date of Change: December 30, 2010 Executed Through the Stock Exchange Clearing House: No Class and Name of the Security in Relation to Which the Change Took Place: Unlisted option warrants convertible into shares Stock Exchange Security Registration Number: 6910087 Number of Securities in Change: -653,759 Balance of These Securities Held by the Holder Following the Change: 3,399,550 The security is fully paid-up and the consideration has been received in full. The security is fully paid-up but the consideration has not been received in full.

 Other Exercise of unlisted option warrants of a senior officer

2 Name of the Registered Holder Regarding Whom the Change Took Place: Israel Discount Bank Nominees Ltd. Type of Identity Number: Israeli Registrar of Companies Number Identity Number: 510022551 Nature of Change: Following allotment of shares resulting from exercise of options Date of Change: December 30, 2010 Executed Through the Stock Exchange Clearing House: No Class and Name of the Security in Relation to Which the Change Took Place: Ordinary A shares of NIS 0.1 par value each – Discount A Stock Exchange Security Registration Number: 691212 Number of Securities in Change: 74,695 Balance of These Securities Held by the Holder Following the Change: 788,657,560 The security is fully paid-up and the consideration has been received in full. The security id fully paid-up but the consideration has not been received in full.  Other In exchange for his option warrants, the holder of the option warrants received shares in a value equivalent to the benefit component inherent in their exercise price.

 A change took place only in the register of the securities holders of the corporation (without a change in the number of the securities of the corporation) as a result of: Description of the nature of the change: N/A

1 Name of the Registered Holder Regarding Whom the Change Took Place: ______Type of Identity Number: ______Identity Number: ______Date of Change: ______Executed Through the Stock Exchange Clearing House: ______Class and Name of the Security in Relation to Which the Change Took Place: ______Stock Exchange Security Registration Number: ______Number of Securities in Change: ______Balance of These Securities Held by the Holder Following the Change: ______

3. The main particulars from the register of shareholders as of the reporting date are as follows: Stock Exchange Name of the Type of Class of Are Shares Identity Security Number Registered Identity Shares and Held as a Number Registration of Shares Shareholder Number Par Value Trustee Number ______

4. Attached is a file containing the shareholders’ register in accordance with the provisions of Section 130 of the Companies Law, 5759-1999 (See Attachment 1 below)

5. Attached is an updated file containing the securities’ register of the corporation, including the register of option holders and the register of debenture holders (See Attachment 2 below)

Reference numbers of previous documents relating to this topic (their mention does not constitute their inclusion by way of reference):

Prior names of the reporting entity:

Date of updating structure of form: December 30, 2010 ______

Name of person making electronic report: Moshkovitz, Ruth; Position: Corporate Secretary Name of Employing Company: 23 Yehuda Halevi St., Tel Aviv 65136, Israel, Tel: 972-3-5145582; Fax: 972-3-5171674 e-mail: [email protected]

Israel Discount Bank's Immediate Reports are published in Hebrew on the website of the Israel Securities Authority and the Tel Aviv Stock Exchange. The English translation is prepared for convenience purposes only. In the case of any discrepancy between the English and Hebrew versions, the Hebrew will prevail.

ATTACHMENT 1

Identity Number: 15290 Type of Identity Number: Other identity number Name of Share: Ordinary A Balance of Holdings: 159098904 Name: Treetops Acquisition Group LP Address: Clifton House, 75 Fort Street, P.O. Box 1350 GT, George Town, Grand Cayman, Cayman Islands ------Identity Number: 15350 Type of Identity Number: Other identity number Name of Share: Ordinary A Balance of Holdings: 106065937 Name: Treetops Acquisition Group II LP Address: Clifton House, 75 Fort Street, P.O. Box 1350 GT, George Town, Grand Cayman, Cayman Islands ------Identity Number: 729065 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 33 Name: Amitai Sarah, Dec’d Address: c/o Israel Gil, Adv., 14 Ahad Ha’am Street, Haifa, Israel ------Identity Number: 001701023 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 10972 Name: Gitter Mozes Bernhard Address: ISAL (AMLET) N.V., P.O. Box 11600, Tel Aviv 65117, Israel ------Identity Number: 007419112 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 15560 Name: Carasso Haym Address: 26 Rival Street, Tel Aviv 67778, Israel ------Identity Number: 008249245 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 1 Name: Finkelstein Ehud Address: 4 Hamishna Street, Tel Aviv 62917, Israel ------Identity Number: 008037392 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 500 Name: Pinscher Natan Address: P.O. Box 4241, Haifa 31042, Israel ------Identity Number: 50299338 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 1 Name: Feldman Avi Address: 5 Ha’ayit Street, Raanana, Israel ------Identity Number: 067274035 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 100 Name: Parmon Ovadia Address: 5/4 Yehuda Halevi Street, Ashdod, Israel ------Identity Number: 510022551 Type of Identity Number: Registrar of Companies Number Name of Share: Ordinary A Balance of Holdings: 788657560 Name: Israel Discount Bank Nominees Ltd. Address: 23 Yehuda Halevi Street, Tel Aviv 65136, Israel ------Identity Number: ______Type of Identity Number: ______Name of Share: Ordinary A Balance of Holdings: 10 Name: Recanati Elias Address: 315 West 70th Street, Apt 5K, New York, NY 10023, U.S.A. ------Identity Number: ______Type of Identity Number: ______Name of Share: Ordinary A Balance of Holdings: 474 Name: Redfield Walter C. Address: 156 West 56th Street, New York, NY 10019-3866, U.S.A. ------Identity Number: ______Type of Identity Number: ______Name of Share: Ordinary A Balance of Holdings: 2766 Name: Samuels Walter R. Address: 510 Park Avenue, New York, NY, U.S.A. ------Identity Number: ______Type of Identity Number: ______Name of Share: Ordinary A Balance of Holdings: 4148 Name: Starzeg John J. & Starzeg Mary Address: 2 Stoneleigh Road, Scarsdale, NY 10583, U.S.A. ------Identity Number: 043510023 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 10 Name: Davidson David & Davidson Miriam Address: 15 Smolansky Street, Haifa, Israel ------Identity Number: 64837123 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 30 Name: Barlev Yehuda Address: 3A Tolkovsky Street, Tel Aviv 69358, Israel ------Identity Number: 1772268 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 40 Name: Miller Raphael Address: 7 Peduyim Street, Hod Hasharon, Israel ------Identity Number: 8332884 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 62 Name: Newman David Address: 14 David Shimoni Street, Jerusalem 92623, Israel ------Identity Number: 510531569 Type of Identity Number: Registrar of Companies Number Name of Share: Ordinary A Balance of Holdings: 1000 Name: M.I. Holdings Ltd. Address: Ha’arba’ah Street, P.O. Box 282, Ben Gurion Airport City 70100, Israel ------Identity Number: ______Type of Identity Number: ______Name of Share: Ordinary A Balance of Holdings: 2 Name: Meyer Mary Eleanor Address: 762 Charing Terrace, Towson, MD 21204, U.S.A. ------Identity Number: 058766718 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 185 Name: Ravnian Herzl Address: 2/11 Hameyassdim Street, P.O. Box 953, , 44109, Israel ------Identity Number: 038506499 Type of Identity Number: I.D. Number Name of Share: Ordinary A Balance of Holdings: 11000 Name: Savyon Tal Address: 44 Geulim Street, Zichron Ya’akov 30900, Israel ------Identity Number: 520023185 Type of Identity Number: Registrar of Companies Number Name of Share: Preferred 6% Balance of Holdings: 40000 Name: Hadar Insurance Company Ltd. Address: 1 Ben Yehuda Street, Tel Aviv, Israel ------

ATTACHMENT 2

Register of Holders of Subordinated Debentures Name of Company/ Total Certificate Holder of I.D. Address Amount Redemption Balance Series Number Debentures Number Amount Israel Discount Bank 510022551 38 Yehuda Halevi NIS 150,000,000 NIS 120,000,000 NIS 30,000,000 A 0001 Nominees Ltd. Street, Tel Aviv 65136, Israel

Register of Holders of Unlisted Option Warrants Number of Name Options Options for senior officers of the Bank held in trust by Adv. Ronen Barak, 14 Abba Hillel Street (Oz Building), Ramat Gan, Israel 3,399,550 Options for the President & CEO of the Bank held in trust by Adv. Ronen Barak, 14 Abba Hillel Street (Oz Building), Ramat Gan, 8,090,275 Israel

Register of Holders of Hybrid Capital Notes (Series A) Name of Holder of Company/ Certificate Hybrid Capital I.D. Address Amount Number Notes (Series A) Number Israel Discount Bank Nominees 510022551 38 Yehuda Halevi Street, NIS 250,000,000 0002 Ltd. Tel Aviv 65136, Israel Israel Discount Bank Nominees 510022551 38 Yehuda Halevi Street, NIS 147,242,389 0003 Ltd. Tel Aviv 65136, Israel Sasa Avraham 070319934 8 93rd Street, 49312, Israel NIS 36,000 0005 Israel Discount Bank Nominees 510022551 38 Yehuda Halevi Street, NIS 749,831,000 0006 Ltd. Tel Aviv 65136, Israel Tzipora Yifrah 6092285 53 Eitan, NIS 133,000 0007 Mobile Post Sde Gat 79589, Israel

Register of Holders of Hybrid Capital Notes (Series B) Name of Holder of Company/ Certificate Hybrid Capital I.D. Address Amount Number Notes (Series B) Number Migdal Insurance Company 520004896 4 Efal Street, Kiryat Arie NIS 235,000,000 001 Ltd. – Participates in profits Petah Tikva, Israel Migdal Insurance Company 520004896 4 Efal Street, Kiryat Arie NIS 35,000,000 002 Ltd. – Nostro Petah Tikva, Israel Migdal Makefet Pension and 512237744 4 Efal Street, Kiryat Arie NIS 80,000,000 003 Provident Funds Management Ltd. Petah Tikva, Israel

Register of Holders of Subordinated Debentures (Series J) Name of Company/ Certificate Holder of I.D. Address Amount Balance Series Number Debentures Number Israel Discount Bank 510022551 38 Yehuda Halevi Street, Tel Aviv NIS 425,933,000 NIS 425,933,000 J 1001 Nominees Ltd. 65136, Israel

Register of Holders of Subordinated Debentures (Series K) Name of Company/ Certificate Holder of I.D. Address Amount Balance Series Number Debentures Number Israel Discount Bank 510022551 38 Yehuda Halevi Street, Tel Aviv NIS 211,066,000 NIS 211,066,000 K 1101 Nominees Ltd. 65136, Israel