We are pleased to inform you that MAGNOY farms have been vaccinating all their

new born fish against KHV since the beginning of 2006. Starting 2007 all

MAGNOY koi will be vaccinated with KV3 (attenuated virus) - vaccine against

KHV. The vaccine KV3 - against KHV disease was approved and authorized by the

Israeli Veterinarian Services (Procedure -No.06-02-10) in January 2005.

As you know, the immunization of our entire fish stock has been our highest priority

since 1998. As for that we have decided to invest a lot of energy, sources and money

in vaccinating our Koi.

In light of successfully concluding all of the necessary safety tests over the past three

years together with being 100% confident that the vaccinated fish are completely

immune against KHV as well as being non carriers, MAGNOY farms decided in

March 2006 to move forward and to vaccinate our entire Koi stock. (Each farm

invests more then 500,000 N.I.S in order to vaccinate the whole stock).

According to Ko-Vax (the vaccine KV3 producing company), this vaccine has a

MARKER. Meaning, by the end of 2006 all of MAGNOY’S fish will be vaccinated

with a marked vaccine which, needless to say, is the safest means for both us and our

customers.

We are confident that this breakthrough will help us to provide safer and healthier fish

to the market thus bringing an end to the KHV menace which has been threatening the

Koi trade over the past few years.

With kind regards,

MAGNOY Ltd.