Elron is a multi-national high technology holding company, conducting its business through a group of affiliates that generated aggregate annual sales of $1 billion in 1994. Since its inception in 1962, Elron has been fully dedicated to building up various electronic industries based primarily on Israeli know-how by using its successful enterprises. Looking ahead, Elron intends to share in the fast growing markets of the networking value-added services and the related software industry. Thus, its latest activity is the establishment of elroNet, a value-added networking service to provide businesses conducting global commerce in Israel and abroad with virtual private data networks and to secure open gateway access to other networks and services.

Elbit Ltd. engages in a wide range of technologically advanced electronic and imaging systems and products for defense, medical, industrial and commercial applications. Elbit's stock trades on the Tel Aviv Stock Exchange and on the NASDAQ Stock Market (symbol:ELBTF).

Elscint Ltd. engages in advanced medical diagnostic imaging systems: Computerized Tomography, Nuclear Medicine, Magnetic Resonance Imaging, Ultrasonography and Mammography. Elscint's stock trades on the New York Stock Exchange (symbol: ELT).

Fibronics International Inc. provides local area networking and internetworking solutions for enterprise-level information distribution and comprehensive integrated network management. Fibronics' stock trades on the NASDAQ Stock Market (symbol:FBRX).

Orbotech Ltd. supplies the PCB industry with automated optical inspection equipment, CAD verification, engineering and tooling generation, and laser plotting/scanning systems. It also supplies laser imaging equipment for graphic arts and AOI equipment for flat panel LCDs. Orbotech's stock trades on the NASDAQ Stock Market (symbol: ORBKF).

NetManage, Inc. provides an integrated set of connectivity applications and development tools for the Microsoft WindowsTM operating environment. NetManage's stock trades on the NASDAQ Stock Market (symbol:NETM).

ServiceSoft Corporation provides a line of software applications and development tools for the customer service and support industry.

Adar International Inc. engages in Computer-Based Training, Multi-Media and User Documentation.

Chip Express Corp. engages in Application Specific Integrated Circuits. It provides a "one day gate array prototyping", and customization of gate arrays outside of a "Mega Fab".

Zoran Corp. provides high-performance digital signal processors and application-specific standard products for image processing, image enhancement and digital audio processing.

Opal Inc. engages in high-speed automatic wafer metrology systems used by semi- conductor manufacturers, to verify critical sub micron dimensions in the production of IC's.

RDC Rafael Development Corporation Ltd. is dedicated to creating independent business of commercial applications, based on proven technologies of Rafael, Israel's largest R& D organization, owned by the M.O.D. it has started four companies in the fields of wireless telecommunication network, briefcase satellite communication terminal and equipment for the semiconductor industry.

Eltam - Technology Incubator Ltd. supports entrepreneurial teams, mainly new immigrants, to complete R& D and commercialize innovative products processes in fields of high technology.

Strategic Investments

Athena Venture Partners L.P.

Gemini Israel Fund L.P.

Softkey International Inc.

Eltam-Technology Incubator Ltd. Elro

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