2006 Summary of Israeli High-Tech Company Capital Raising.

TEL AVIV, Israel -- IVC Research Center:

* Israeli High-Tech Capital Raising in 2006 Reaches $1.62 Billion - Highest in Five Years

* Q4/06: 80% higher than Q4/05 - with $477 million raised

The following are the findings of the Quarterly Survey conducted by the IVC Research Center, which for more than eight years has been at the forefront of venture capital and private equity research in Israel. The complete survey will be published in the IVC 2007 Yearbook.

In 2006, 402 Israeli high-tech companies raised $1.62 billion from local and foreign venture investors, 21 percent above the $1.34 billion raised in 2005 and 11 percent above 2004 levels. In the fourth quarter, 105 Israeli high-tech companies raised $477 million, a 25 percent increase from the $381 million raised by 87 companies in the third quarter and an 80 percent jump from the $264 million raised in Q4 2005.

Israeli VC Investment Activity

In 2006, Israeli VCs invested $651 million in Israeli high-tech companies, about equal to investments made in 2005 ($655 million) and 2004 ($665 million). The Israeli VC share of the total amount invested in Israeli high-tech companies was 40 percent, compared to an average of 43 percent in the previous seven years and 49 percent in 2005. The remainder came from other investment entities, mostly foreign.

"Capital raised by Israeli high-tech companies in 2006 was the highest in five years," said Zeev Holtzman, Chairman of IVC Research Center and Giza Venture Capital. "Foreign participation in investments in Israeli companies increased in 2006, since Israeli high-tech is regarded as a material part of the global technology sector, prominent even against the growing activity in China and India. We therefore expect foreign investment in 2007 to remain similarly high."

IVC Research Center is Israel's leading research center providing business leaders with an unmatched wealth of data on Israeli venture capital, private equity and high-tech industries. Among IVC products and publications are the Israel Venture Capital Journal (IVCJ), IVC Yearbook and online database containing over 5,000 Israeli high-tech companies, venture capital funds, investment companies, as well as news updates.