Jerusalem Economy Reports its Financial Results for the Third Quarter of 2012 and the Nine Months Ending on September 30, 2012

In the Third Quarter, the Company Reports a Net Profit of Some 52 Million NIS. Gross Profit from Income Producing Properties (NOI) in the Third Quarter Totaled 331 Million NIS

Oded Shamir, President & CEO of Jerusalem Economy, said today: "In the last period the company continued to work toward reducing the level of leverage in the balance sheet through the sale of real estate. Thus, since the beginning of the year the company has completed transactions for the sale of properties, in Israel and abroad, totaling 1.5 billion NIS, and noticeably lowered its financial debt. In the coming period we will continue to work toward selling properties whose potential, from our perspective, has been exhausted, while at the same time identifying new properties with potential for improvement and appreciation of value."

Jerusalem Economy, a member of the Fishman Group, reports its Financial Results for the third quarter of 2012 and the nine months ending on September 30, 2012:

Net shareholder profit in the third quarter totaled 52 million NIS, compared to 127 million NIS in the same period last year.

Total shareholder profitin the third quarter amounted to 99 million NIS during the reporting period compared to 60 million NIS in the same period last year.

Gross profit from income producing properties (NOI), in the third quarter, including revenues from rentals, and management and maintenance, less the costs of building management and maintenance, totaled 331 million NIS, compared to 328 million NIS in the same period last year.

Company rental revenues in the nine months ending September 30, 2012 totaled 1.2 billion NIS, compared to 1.16 billion NIS in the same period last year. Rental revenues in Israel totaled 471 million NIS, compared to 435 million NIS in the same period last year. Rental revenues abroad totaled 727 million NIS, compared to 725 million NIS in the same period last year.

As of September 30, 2012, the company holds (including the share of holders of rights that do not grant control in consolidated companies) rental properties of 4.2 million sq. m., of which, 2.3 million sq. m. abroad. As of 30.9.2012, Company properties are let to 9,349 tenants. Average occupancy rate in Company properties is 86%.

Company shareholder equity as of September 30, 2012 totaled 3,122 million NIS, compared to 3,068 million NIS as of December 31, 2011.

Oded Shamir, President & CEO of Jerusalem Economy, said today: "In the last period, the company continued to work toward reducing the level of leverage in the balance sheet through the sale of real estate. Thus, since the beginning of the year the company has completed transactions for the sale of properties, in Israel and abroad, totaling 1.5 billion NIS, and noticeably lowered its financial debt. In the coming period we will continue to work toward selling properties whose potential, from our perspective, has been exhausted, while at the same time identifying new properties with potential for improvement and appreciation of value."

About - Jerusalem Economy operates, on its own and through consolidated companies, in the various fields of real estate, including rental of income producing properties for commercial, industrial, manufacturing, hi-tech, office, and logistical uses, as well as for residential and hotels; acquisition and development of land, construction of buildings mainly for rental throughout Israel and many other countries: US, Canada, Germany, France, Holland, Poland, Switzerland, Portugal, Ukraine, Russia, Belarus, Lithuania, Serbia, India, and Thailand. This geographical distribution, and number and variety of tenants, represent a valuable advantage that aids the development and resilience of the company.

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