Security fence

The security fence was first constructed in 2002 for defensive purposes. The fence protects the Israeli
population from terrorist attacks by Palestinians emanating from the Judea and Samaria region. In areas
where the fence has been completed, such terrorist attacks have dramatically declined.

Approximately 95% of the fence is made of barbed wire and warns against infiltrations while less than 5%
is made of concrete.

The course of the fence was designed in accordance with decisions of the Supreme Court and it takes into
consideration both the security of Israeli civilians and the convenience of the Palestinian population.
Later on, the route was revised several times for a variety reasons such as accomodating Palestinian
agriculture. Despite these changes, Palestinians and other activisits hold violent riots, throwing
rocks at Israeli security forces every weekend. The security forces respond with non-lethal riot dispersal
means.

Since its constrcution, dozens of crossings were constructed along the fence enabling transfer of both goods
and people accomodating the Palestinians in a variety of ways, including medical care.

Statistics show a clear correlation between the construction of the fence and the decline in the number of
terrorist attacks. Between 2002 and 2003, there was a 30% decrease in the number of attacks.

Similarly, the number murder victims by terrorists decreased by 50% in 2003 in comparison to the
previous year. In areas where the fence is completed, the number of victims murdered by terrorists decreased from 46 in 2003 to none in 2004.