Alliance Major Shareholder Agrees to Sell Up

Alliance Tire Co. ltd. has announced that Eliezer Fishman has signed a memorandum of understanding (MOU) to sell his direct and indirect holdings in the company to a group of investors at a price reflecting a company value of $48 million, 20 per cent above its market capitalisation. In the MOU Fishman promises not to negotiate with third parties for 10 weeks. During this period the buyers will conduct due diligence and complete negotiations for buying the shares.

Alliance Tire posted a 14 million New Israeli Shekels (NIS) loss for the second quarter of 2006, mostly caused by foreign currency deals in Turkish lira. Fishman agreed to repay the company the money lost in those deals by the end of June 2007. If the sale of the controlling interest in Alliance Tires is closed before that date, Fishman has promised to repay the money on the date of the sale. There is no guarantee that the sale will be complete.