'The Starter Fund' to Aid Immigrant Scientists in Israel to be Launched At New York Event; Philanthropic Fund Will Help Turn Technological Innovations into Successful Hi-Tech Ventures.

Business Editors

TEL AVIV--(BUSINESS WIRE)--May 30, 2000

A group of Americans and Israelis, including leading figures in the business and financial communities, have joined forces to create the first philanthropic fund, The Starter Fund, Inc. to aid immigrant scientists in Israel launch successful hi-tech ventures.

The Fund will be launched at a gala fundraising event on June 25, 2000 at the New York Hilton, chaired by Dr. Felix Zandman, Chairman of the Board and CEO of Vishay Intertechnology Inc.

Motivated by the desire to aid in successful immigrant absorption, while benefiting the economies of both Israel and the United States, the founders are hoping to raise $5 million to promote ventures based on the original ideas and inventions of immigrant scientists.

According to Raya Strauss-Bendror, President of the Fund and co-owner of the Israeli food giant, the Strauss-Elite Group, "The Starter Fund enables us to realize the new priority for Zionism: to convert the tremendous potential of the human resource Israel has gained into real assets."

Money will be raised in cooperation with Jews throughout the world, although the initial fundraising efforts will be made in the United States and Israel.

The Starter Fund is the only philanthropic fund to have been established for the purpose of leveraging technological innovations of immigrant scientists. Yaacov Ne'eman, Israel's former Minister of Finance and one of the founders of the Fund, said, "The Fund will not only provide seed money for exciting projects, but also active mentorship by experienced business people who are volunteering their time and skills to make these projects become a reality."

"The Starter Fund is for projects in the "pregnancy" stage, which is even before the "incubator" stage," said Ne'eman. Through funding and mentoring "we hope to bring the start-ups to a stage in which venture capitalists can invest," he added.

A significant feature of the Starter Fund is that it will be revolving; successful projects will repay the Fund according to a predetermined schedule. "Fund recipients will have a moral responsibility to put money back to work toward the support and funding of additional projects," said Raya Strauss-Bendror.

The Fund's founders see it as beneficial for both the Israeli and the U.S. economies. They say that by creating successful technological ventures there will be more opportunities for bi-national cooperation and investments, hence more jobs in both countries.