The Company notified that Standard & Poor's Maalot ("Maalot") reported today that it placed the Company's debenture Series B, C and D (the "debentures") on a Negative Credit Watch.  Maalot reported that the credit watch review of the debentures' rating "reflects the decrease in the Company's liquidity, which stems mainly from the share buyback and the more aggressive dividend payout compared to the past."

The Company's debentures are assigned by Maalot a high AA rating, and neither the credit watch process nor the rating itself has an implication of the debentures' terms.

Indeed, as mentioned by Maalot, commensurate with the high profitability of the Company this year, the Company declared a payout of dividend and a share buyback totaling approximately $270 million, which reduced its cash balance.

Maalot stated in its report that the Company is expected to generate free cash flow, which after providing for CAPEX and acquisitions, will be significant and strengthen the Company's liquidity level.  The Company indeed expects to generate strong cash flow in the first half of 2009, which will support the maintenance of the current high rating of its debentures intact.