Filed pursuant to Rule 433

Registration Statement 333-139481

Valid February 22, 2007 Through February 28, 2007

JUBILEE ISSUE BONDS (Fifth Series)

Bond	Rate	Maturity Date
(1-YEAR)	5.12%	March 1, 2008
(3-YEAR)	4.88%	March 1, 2010
(5-YEAR)	4.87%	March 1, 2012
(10-YEAR)	4.99%	March 1, 2017

MINIMUM SUBSCRIPTION: $25,000 AND ADDITIONAL MULTIPLES OF $5,000

  ·       Issued on the 1^st, 8^th, 15^th and 22^nd of each month.

·       Interest paid every May 1^st and November 1^st.

STATE OF ISRAEL SAVINGS BONDS (Second Series)

Bond	Rate	Maturity Payment	Maturity Date
(1-YEAR)	5.03%	(holder receives $2,626 per $2,500 unit at maturity)	March 1, 2008
(3-YEAR)	4.77%	(holder receives $2,875 per $2,500 unit at maturity)	March 1, 2010
(10-YEAR)	5.06%	(holder receives $4,096 per $2,500 unit at maturity)	March 1, 2017

MINIMUM SUBSCRIPTION: $2,500 AND MULTIPLES OF $2,500

 ·       Issued on the 1^st, 8^th, 15^th and 22^nd of each month.

MAZEL TOV BONDS

Bond	Rate	Maturity Payment	Maturity Date
(5-YEAR)	4.86%	(holder receives $127 per $100 unit at maturity)	March 1, 2012
(10-YEAR)	5.06%	(holder receives $164 per $100 unit at maturity)	March 1, 2017

MINIMUM SUBSCRIPTION: $100 AND ADDITIONAL MULTIPLES OF $50

·       Issued on the 1^st day of the next month.

FLOATING RATE LIBOR BONDS (Seventh Series)

Bond	Rate	Maturity Date	Bond	Rate	Maturity Date
(3-YEAR)*	5.4375%	March 1, 2010	(10-YEAR)	5.2875%	March 1, 2017
(5-YEAR)	5.3375%	March 1, 2012	MINIMUM SUBSCRIPTION: $5,000 AND ADDITIONAL
MINIMUM SUBSCRIPTION: $100,000 AND			MULTIPLES OF $2,500
ADDITIONAL MULTIPLES OF $25,000			IRAs: $4,000

·       Issued on the 1^st, 8^th, 15^th and 22^nd of each month.

·       The initial interest rate is equal to the 6-month LIBOR rate in effect on the initial interest determination date plus or minus a spread. The spread shall remain fixed until maturity.

·       Interest paid every June 1^st and December 1^st.

^* 3-Year Floating Rate LIBOR Bonds (Seventh Series) may only be purchased if financed by an Authorized Institutional Lender, as such term is defined in the prospectus supplement. For a list of Authorized Institutional Lenders, go to www.israelbonds.com.

Issues subject to availability. Bonds will not earn or accrue interest after maturity. Interest rates are determined and announced prior to the applicable issue date of the bond. Bonds are being issued in book-entry form. Certificates will be issued only to government agencies, pension funds, financial institutions and Employee Benefit Plans by request at the time of purchase. The above rates are valid only for the period specified above. For current rates, please visit us at www.israelbonds.com   The bonds may not be transferred, sold or pledged (except under certain limited circumstances).   This is not an offering, which can be made only by prospectus. Read it carefully before investing to fully evaluate the risks associated with investing in State of Israel bonds. DEVELOPMENT CORPORATION FOR ISRAEL STATE OF ISRAEL BONDS       www.israelbonds.com Member NASD, SIPC   The State of Israel has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and other documents the State of Israel has filed with the SEC for more complete information about the issuer and the offering. You may get these documents for free by visiting EDGAR on the SEC Website at www.sec.gov.  Alternatively, the State of Israel or the Development Corporation for Israel will arrange to send you the prospectus and prospectus supplement if you request them by calling toll-free 1-800-229-9650.