BPT Closes $12 Million in Series B Financing Led by U.S. Venture Partners and Pitango Venture Capital.

RISHON-LE-ZION, Israel -- BPT, the emerging leader in chemically-stable membrane-based separation solutions for critical industrial processes announced today that it has completed its Series B financing, raising U.S. $12 million. U.S. Venture Partners (USVP) and Pitango Venture Capital led the round with participation from existing investors Aurum Ventures and Elron Electronic Industries. Funds will be used for expanding the manufacturing facilities, for continuing R&D and to further develop the sales and marketing infrastructure to meet increased worldwide demand. In conjunction with this round Christopher J. Rust, USVP Partner and Jacques Benkoski, USVP Venture Partner will represent USVP on the BPT Board and Ittai Harel, Pitango Partner, will represent Pitango Venture Capital.

BPT is focused on developing and commercializing advanced membranes-based separation solutions to address the needs of the water and wastewater treatment industries. BPT's unique chemically-stable membrane technology and associated systems enable customers in the landfill, mining, chemical, biopharma and food industries to filter their aggressive waste water to be economically viable, re-use water and comply with environmental regulations. BPT provides solutions where other membrane-based technologies cannot withstand the aggressive waste characteristics and alternative technologies such as evaporators and incinerators are often not economically viable. BPT patent protected membranes and associated systems are field proven to enable lowest cost reclamation of some of the most aggressive and vexing industrial waste water streams.

"USVP and Pitango have deep experience in building great companies; we are proud to have them as lead investors, and to have their partners join our board," said BPT's CEO, Nir Kinory. "Together with our existing great investors, Aurum and Elron and our dedicated team, we are on a fast track to capture the market of next generation industrial waste water streams treatment brought about by water scarcity and increased environmental pressures."

"USVP has been investing in cleantech for over six years and this is our first cleantech investment in Israel. Water treatment and recycling are critical elements of adapting to climate change," said Jacques Benkoski, Venture Partner, who led USVP's efforts in the BPT investment, "BPT clearly stood out as a unique player with differentiated and leading technology to solve critical waste water recycling issues for key industrial processes

Ittai Harel, partner at Pitango Venture Capital, added: "Cleantech is an area of growing concern to the world market. BPT's technology and tremendously experienced R&D group are well positioned to play a significant role in the application of nanotechnology to water technology."

About BPT: www.bpt.co.il

BPT is developing and commercializing advanced membranes-based separation solutions addressing the unique needs of the water and wastewater treatment for key industrial processes. BPT patented chemically-stable membrane technology enable customers in the landfill, mining, chemical, biopharma and food industries to comply with the environmental regulations, reuse water and reduce production costs. BPT membranes are field proven to enable lowest cost reclamation of some of the most aggressive and vexing industrial waste water streams.

About Pitango Venture Capital www.pitango.com

Pitango Venture Capital, the leading venture capital firm in Israel, has been investing in technology entrepreneurs since 1993. With offices in Israel and Silicon Valley, California, Pitango currently manages several venture funds totalling over $1.3 billion in committed capital invested in more than 100 companies. Pitango invests in high-growth companies in various stages, from seed and early stages to growth and late-stage, and supports them as they grow. Pitango's investment focus includes: Communications; Networking & Storage; Wireless, Cellular and Mobile technologies; Enterprise Software, Internet and Media; Healthcare & Life Sciences, and Clean Technologies.

About USVP: www.usvp.com

U.S. Venture Partners (USVP) is a leading Silicon Valley-based venture capital firm, dedicated to helping entrepreneurs build world-class companies that are leaders in their industry. USVP focuses on early stage opportunities in sectors where the Partners have the domain expertise, operating experience and network of relationships to provide meaningful contribution to the success of the enterprise. These sectors include business and consumer software and services, digital communications and networking systems, semiconductors and components, clean technologies, and medical devices and biopharmaceuticals.

About Aurum Ventures:

Aurum Ventures MKI provides value added growth capital to exceptional entrepreneurs within the fields of life-sciences and clean-tech. Aurum invests in Clean tech companies and Technologies related to alternative and renewable energy and fuels, waste water treatment, and other Clean tech segments.

About Elron: www.elron.com

Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), a member of the IDB Holding group, is a high-technology holding company traded in the Nasdaq and in the Tel-Aviv Stock Exchange. Elron's group companies currently comprise a diverse range of publicly-traded and privately held companies primarily in the fields of medical devices, information & communications technology, clean technology and semiconductors. Included in our group companies are well established companies who are leaders in their fields, such as Given Imaging and 013 NetVision, together with innovative start-up companies who possess growth potential in Israel and the rest of the world.