NOTE 6 SUBSEQUENT EVENTS

During 2004, the Israeli Government decided to evacuate persons and companies from the Erez Industrial Zone in the .Gaza Strip where part of the Company's operations was located. The Company evacuated its remaining operations from the Erez Industrial Zone in August 2005. The Israeli Government's decision to evacuate the Gaza Strip was supported by certain resolutions as well as the Israeli Evacuation Compensation Law (2005) that was adopted by the Israeli Parliament to compensate the Israeli Gaza Strip settlers as well as business and property owners in the Gaza Strip and in the Erez Industrial Zone. In February 2006, three of the Company's subsidiaries, Export Erez Ltd., Mayotex Ltd. and Achidatex Nazareth Elite (1997) Ltd. filed claims for compensation pursuant to the Evacuation Compensation Law. During the first quarter of 2008 the Company received compensation of $4,910,541, net of tax from the Israeli Government pursuant to the Evacuation Compensation Law.

In November 2011, three of the Company's subsidiaries, Export Erez, Mayotex and Achidatex, filed compensation claims with the Israeli Government as a result of an amendment of the Evacuation Compensation Law As of September 30, 2011, the Company could not estimate when or if it would receive further compensation based on such claims.

On October 30 the Israeli Government approved the recommendations of the tax chapter of the Trachtenberg committee report (the "recommendations").

The recommendations include an increase to 25% instead of 23% at 2012.The recommendations require legislative process to be completed. Legislative process has not yet completed at the date of approval of the condensed interim September 30, 2011, and there is no certainty that the future is complete in the format approved by the government or in general, therefore the government's decision not significant effect on the condensed interim financial statements of the Company as of September 30 , 2011.