HBL Financing 7.08

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Hadasit Bio-Holdings Ltd. HBL ((Tel Aviv
Stock Exchange HDST July 2008
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Forward Looking Statements

• This document/presentation contains forward
  looking statements. Words such as estimates,
  expects, intends, plans, believes and
  terms of similar substance used in connection
  with any discussion of future operational
  performance or financial results, identify
  forward looking statements.
• Such statements are subject to risks and
  uncertainties that could cause the actual results
  to differ materially from these statements. The
  forward-looking statements contained herein speak
  only as of the date of this document.
• The Company expressly disclaims any obligation or
  undertaking to release publicly any updates or
  revisions to any forward-looking statements
  contained herein to reflect any change in the
  Company's expectations with regard thereto or to
  reflect any change in events, conditions or
  circumstances on which any such forward-looking
  statement is based, in whole or in part.
• This document does not constitute or form any
  part of any offer or invitation to sell, or any
  solicitation of any offer to purchase or
  subscribe for any shares in Hadasit Bio-Holdings
  Ltd. or any of its affiliated entities nor shall
  it form the basis of, or be relied on in
  connection with, any contract therefore.

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The Value Chain in Israeli Biotech
July 2008
Specialized Angels VCs
Public Investment Co.
Academy TTOs
Govt. Support
Incubation
Clustering
Yeda Yissum Ramot BG Negev Hadasit
Meytav Rad-BIO Naiot Capital- Point
OCS Magnet BIRD Bio-Disc BriTech
Bioline Biomedix HMO Bio-Park
Ofer HT Glenrock Coronis Pontifax
BioLight Clal Bio Maayan HBL
Support GMP, Regul., CRC, Underwriting, IPOs,
PR/IR, Analysis, Market-making,
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HBL - Company Profile

• Holdings in early-stage biotech companies (until
  completion of Phase I)
• 10 companies All IP developed at Hadassah
• 3 areas (Oncology, Auto-immune diseases, Tissue
  engineering / Stem cells)
• Criteria Demonstration of Proof of Concept,
  Blockbuster Market
• Exit strategy - at end of Phase I
• Leveraging Hadassah Hospital
• Source of Intellectual Property and future
  investment opportunities
• Skilled personnel, infrastructure, GMP facilities
  and clinical trials

• Established September 2005
• Traded Tel Aviv Stock Exchange (HDST) since
  January 2006
• Investment rounds
• IPO (January 2006) 8 m
• Convertible Bonds (August 2006) 10 m , 5 m
  converted (Feb. 2007)
• Strategic Investment (May 2007) - 2 m
  (Consensus Business Group)
• Stockholders Hadasit (owned by Hadassah) (52),
  public (43), CBG - (5)

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HBL Structure (7/08)
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4 Key Building Blocks F.I.M.S
Finance
I.P.
Mgt.
Space
IPO Bond PIPE - CBG OCS Venture
Philanthropy FP7 NIH
Hadassah 50 new Patents per year Partnering Heb.U.
U.PENN
Experienced Managers All HMO Experts Seasoned
Pharma VC Execs. Ph.Ds / M.Ds
Bio-Park 6 floors of 1,500 m2 o Fully
customized for Biotech companies GMP, GLP, Animal
facilities, Phase I center
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2008 Value Adding Milestones

• KAHR HBL Investment, 5 New Compounds from
  UPENN, OCS approval for 400 K, new VP,
  external investment
• Tolarex HBL Investment, IND approval from FDA,
  Phase I start, external investment
• ProtAb Completion of humanization external
  investment
• TK Signal Preparation for Phase I, Phase I
  start
• Verto Completion of Phase I trial, strategic
  partnership
• Incure Expansion of trial data, Exit via
  strategic partnership
• ConjuGate External Investment, Manuf., Phase I
  start
• BiolineRx 2 X Phase II completions (BL1020,
  BL1040)
• HBL Investment ( 5-7 M)

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Hadassah Bio-Park - 2008

• First medical center on-site bio park custom
  built for life science companies (including
  labs,Phase I center)
• Building upon infrastructure of Hebrew U. Med.
  School and Hadassah University Hospital
  (conducting more than 50 of all translational
  medicine research in Israel)
• HU conducts over 40 of all Biotechnology
  research in Israel.
• Hadassah Ein-Kerem campus includes Med. and
  Dentistry schools, Nursing, Pharmacy
  Public Health
  schools
• First building to include 6 floors
  total available
  space 10,000 m2
• Jerusalem municipality and JDA
  provide significant
  financial incentives
  tax breaks and grants
• 5 HBL companies ( HQ) to relocate

HBL
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Investment Strategy

• High return on investment through investments
  before the first clinical phase (Phase I)
• After proof of concept in animals and before
  completion of Phase I
• Value multipliers X 10 to X 50
• Midway Exit planned after Phase I, clear dividend
  policy

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Focus - Return on Investment
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At Phase I Increase in value of 10x to 30x
HBLs Sweet Spot Highest rate of success
vis-à-vis required investment
required investment
Approval
Odds that company will advance from this phase
to the next
Percent of total investment
Required investment m
Years
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The Biggest Growth in Value Has Been atClinical
Proof of Concept
Upfront only (No milestones or royalties) Ave.
of 35 M
SOURCE Windhovers Strategic Transactions
Database, June 2007
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Market Size
Unmet clinical needs
Market size in billions
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Market Size Field/Treating Company
Stroke US 500 mm Cardiac Arrest US 1 billion Thrombosis, Myocardial Infarction Thrombotech
Systemic infections US 6 billion Drug Reformulation Systemic infections ConjuGate
Cancer Autoimmune diseases US 5 billion Cancer, Inflammatory Diseases KAHR Medical
RA US 5 billion Diabetes US 3 billion Inflammatory and Autoimmune Disease Protab
Diagnostics US 1 billion Treatment related drugs US 6 billion Cancer Monitoring and Cure TK-Signal
Parkinson US 1 billion MS - US 1 billion Cell Therapy Parkinson Disease and MS Cell Cure NeuroSciences
Diagnostics US 500 mm Treatment related drugs US 2 billion Cancer Diagnostics and cure processes Incure
US 300 mm Autoimmune disease US 20 billion Graft Vs. Host Disease Tolarex
US 2 billion Lupus Therapy Verto

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Management

• Dr. Rafi Hofstein - Chairman of the Board.
  President and CEO of Hadasit Ltd., the Technology
  Holdings Company of Hadassah Medical
  Organization. Ex-President of Mindsense
  Biosystems Ltd. Business Unit Director of Ecogen
  Inc., Langhorne PA after serving as the
  Scientific Director of its Israel office. Ph.D.
  and M.Sc. in life-sciences and chemistry from the
  Weizmann Institute of Science, B.Sc. in chemistry
  and physics from the Hebrew University in
  Jerusalem. Dr. Hofstein completed postdoctoral
  training at the Harvard Medical School in Boston,
  MA, in the departments of biological chemistry
  and neurobiology. Founder of ILSI, advisor to
  Israeli Govt., BoDs Breath ID, Evogene, Bioline,
  ConjuGate, KAHR, ProtAb, Tolarex.

Adv. Ophir Shahaf - CEO. Appointed March 2007
after serving as VP of the Company since Jan.
2006. Ex-VP business development at Protalix
Biotherapeutics Ltd. Part of the founding and
management team of Clal Biotechnology Industries
Ltd. as VP and general counsel. LL.B. from Tel
Aviv University, MBA from the Stern School of
Business at New York University. Teaches
biotechnology entrepreneurship and management,
fellow of the Merage Foundation at Irvine, CA.
BoDs Tolarex, ProtAb, Biokine, Thrombotech,
ConjuGate.
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Board of Directors / Advisory Board

• Prof. Shlomo Mor-Yosef, HMO Director General
• Yuval Cohen, Fortissimo Private Equity
• Doron Debbie (Consensus Business Group)
• Tsipi Gal-Yam (External)
• Yaron Kulas (External)
• Prof. Ruth Arnon (Weizmann)
• Steven G. Burrill Burrill Co.
• Tamar Howson (Bristol Myers Squibb, LexPharma)
• Mary Tanner (Biogen, NY Hedge Funds)
• Jonathan Silverstein (Orbimed VC)
• Jonathan Fleming (Oxford Biopartners VC)
• Cheryl Reicin (Torys LLP)
• All department heads and leading physicians of HMO

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External Investments in Companies

• 2 Major Strategic Investors / Partners have
  Invested in HBL Portfolio Companies,
• TEVA Pharmaceutical Industries - 1 M in Cell
  Cure NeuroSciences (Aug. 2007)
• Recognition of leadership in HESC field
• Attractive terms for company (value, rights)
• Significant role in RD, production and
  regulation
• Clal Biotechnology (CBI) Option Exercise
  additional in Thrombotech (Sept. 2007)
• 750 K exercise fee 500 K in follow on round
• Major shareholder participation (Total 1.75 M)
• Sufficient to complete Phase I trials (Stroke /
  MI)
• Experienced CEO and Chairman recruited

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HBL Product Pipeline (7/08)
Company Product Indication Discovery Lead Selection Efficacy in Animal Models IND Prep. Phase I Phase I / II Pha. II Phase III PMA
Verto Luposorb Lupus Done
Tolarex ApoCell Graft Vs. Host Disease
TK Signal Fenol Dopam Multiple Myeloma
ProtAb AP6 Reum. Arth. Inf. B. Disease
Forticell OrCell / FMB's Hard-to-heal Wounds
Incure PR Marker Early Stage Cancer detect
CellCure Neural Progen. Multiple Scel. Parkinson
KAHR TSCP's Auto Immune Disease
Thromb. TBT218 Myocardial. Infar. Stroke
BiolineRx BL1040 BL2030 Acute MI Prostate C
ConjuGate Ampho. B Systemic Infections
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Progress in Portfolio Companies (I)

• Cell Cure NeuroSciences
• Investment agreement with TEVA ( 1 M at 13
  pre-)
• HBL holdings increased to 34.5
• All IP related to Neurological Disorders
  (Parkinson, MS, Alzheimers) permanently
  released and owned by the company
• Receipt of 2 M in "soft funding" Michael J.
  Fox, ALS, Beresheet, OCS
• New VP of RD, 4 additional researchers (gt20
  employees overall)
• Verto
• Completion of Phase I/II trial 10 patients w.
  no side effects, measurable therapeutic benefits.
  Trial complete analysis and preparation of
  final report - ongoing.
• Discussions with potential strategic partners
  awaiting additional clinical data

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Progress in Portfolio Companies (II)

• ProtAb (PTK)
• Humanization and production of the lead
  antibody underway (Antitope Cambridge, UK).
  First samples arrived and tested.
• OCS approved 60 of RD budget ( 500 K).
• Discussions with private and VC investors.
• Significant interest from strategic partners.
• Thrombotech
• Closed investment following option agreement
  with CBI ( 1.75 M), including 300 K from HBL.
• Recruited experienced CEO and Chairman.
• Full set of pre-clinical and toxicology trials
  repeated in "external" lab with excellent
  results

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Progress in Portfolio Companies (III)

• Tolarex (PTK)
• Advanced preparations for clinical trial
  Q1/08, Passed IRB, awaiting MOH approval and
  pre-IND at the FDA
• Additions of personnel (7) and equipment. OCS
  approved RD budget of 1.1 M (60 support)
• CEO experience in drug development (Alon Moran
  BioMass)
• KAHR Medical (PTK)
• Negotiations with U. Penn for significant
  expansion of IP basis (5 new Compounds, based on
  TSCPs - immune-related proteins)
• Additional investment by HBL, Application for
  OCS support
• Manufacturing contracts signed with Cobra and
  Invitrogen
• CEO Ex-VP of Compugen (Dr. Noam Shani)

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Progress in Portfolio Companies (IV)

• Incure
• Expansion of ELISA study 40 patients. Groups
  added elders, smokers, pregnant.
• Data showing detection of cancer metastases via
  blood sample.
• Negotiation with US strategic partner licensing
  financing deal.
• Next step commercialization via design of
  diagnostic kit
• ConjuGate Ltd.
• Platform targeted at unmet need highly toxic
  drugs with adverse side effects
• Products to improve efficacy while eliminating
  toxicity, close to phase I with lead product
• Leading scientists, strong IP, 3 batches
  already produced.
• Significant equity (33), BOD representation (2
  of 5) and leading position in BD effort.

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Financial Data

• 3.0 in cash, as of 1/6/08
• 3 Leading companies (PTK) raising between 3-5 M
  each
• All companies show major progress since HBL
  Investment
• Timeline 3 companies in Phase I within 12-18
  months
• Pipeline Potential exclusive mandate (first
  look) for IP from 1,200 MDs/PhDs at Hadassah,
  250 patents yearly
• Top-notch science, IP protection, management
• HMO infrastructure allows for efficient
  financing, low BR
• Current PIPE
• 5-7 M at par warrants. Commitment from
  Hadassah, CBG and other key shareholders to
  participate.

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Summary

• All companies are funded by HBL, partners
• Leverage of soft funds OCS, research
  foundations
• Science, IP and Infrastructure HMO
• Key milestone events expected (Phase I, analyst
  coverage and external investment)
• Validation of strategic model via external
  strategic investors (CBG, Teva, CBI)
• Clear Exit strategy at end of Phase I
• NAV 65 discount. Target of 7.5 NIS.
• Share price allows major appreciation linked to
  milestones

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Thank You

• Ophir Shahaf, CEO
• Hadasit Bio-Holdings Ltd.
• Tel. [phone]