Quantitative and Qualitative Disclosures about Market Risk We do not own and have not issued any market risk sensitive instruments about which disclosure is required to be provided pursuant to this Item. Effects of Currency Exchange Fluctuations Our financial statements are stated in dollars, while a portion of our expenses, primarily labor expenses, is incurred in NIS and a part of our revenues are quoted in NIS. Additionally, certain assets, as well as a portion of our liabilities, are denominated in NIS. As a result, our operations may be affected by fluctuations of the U.S. dollar/NIS exchange rate. We are hedging a portion of our exchange rate risk through forward transactions and the use of other derivative instruments.