NEWS FROM THE TRIAL IN ISRAEL

David Boyce returned on July 22, 2012 from a weeklong trip to Israel. Mr. Boyce made the trip to testify and be cross examined in connection with an affidavit he had previously submitted to the court. The affidavit set out Ness Energy International's position in this trial and supported the facts and circumstances surrounding the dilution of Ness Energy of Israel's ownership in Noya. This dilution is the primary issue of the Israeli trial. As many of you know, Noya is the Israeli company which manages Modi'in Limited Partnership, a publicly held LP traded on the Tel-Aviv Stock Exchange.

As it turned out Mr. Boyce was not called to testify in the trial but the trip was extremely valuable for Ness International. His presence in Israel assured that the affidavit mentioned above would be accepted by the court verbatim without challenge by either party. This would not have been the case had he not made an appearance.

The trip also provided the opportunity for Mr. Boyce to meet and talk with several of the significant parties in this lawsuit, on both the plaintiff and defendant side. Being in the court room and hearing several "expert" witnesses on the last day of testimony proved to be very interesting and may be helpful going forward with our case in the US.

In further developments, there was a lawyers only hearing on Monday, July 23rd at which time the judge made an informal proposal to settle the case. We will find out soon if anything comes of this as he has scheduled another hearing for July 31st for the parties to state their position on this proposal.

We will provide additional information as it becomes available.