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English translation see below the German text

[Mr. Grube's response, he is the CEO of the Deutsche Bahn AG,]:

Dear Minister Ramsauer:

Thank you very much for your Feb. 16, 2011 letter concerning our projects in Israel. We are in agreement with you on the point that, in terms of international law, the planned route of the new Tel Aviv – Jerusalem stretch of track is very problematic. It is for this reason that my colleague, Niko Warbanoff, in his position as CEO of DB International GmbH was in Israel from February 7 to 9, 2011 and met with Israel Railways Ltd. In the talks with our Israeli partners, we, from our side, made it clear that in such a politically sensitive project, there can be no further participation of the DB International especially

since, in this case, it concerns a subsidiary of the Deutsche Bahn, a state enterprise. Israel Railways Ltd.'s acceptance of our position can be viewed as an indication of the confidence that has developed in the partnership between the Israeli railways and the Deutsche Bahn. During these talks, the DB International underscored that this decision will have absolutely no impact on the basic cooperation in all other railway technological issues and projects. The German Embassy has been informed of these talks and was involved. Within DB International, this case was chosen as an example, for reinforcing the discretion of our technical employees working abroad to become involved only in politically unquestionable and unobjectionable projects. I believe that we have achieved a good result for all sides and DB International's future engagement in Israel remains on a firm footing. Yours truly, Rüdiger Grube

( / English translation: George Pumphrey)