Correcting and replacing Elron Electronic Industries Ltd. financial opportunities profile.

TEL AVIV, Israel--(BUSINESS WIRE)--April 19, 1995--Elron Electronic Industries Ltd. (NASDAQ: ELRNF), a high technology holding company located in Haifa, Israel, Wednesday announced the following corporate highlights:

1994               P/E        Market     Market/      Market/
hi/low             Ratio      Value      Book Value   NAV
-------            -----      ------     -------      ------
21.25/6.90          23         185        0.97         0.74

Profile

Elron Electronic Industries is a multinational high-tech holding company. Through affiliated high technology operating companies, Elron is engaged in the fields of medical diagnostic imaging, advanced defense electronics, high-speed data communications, manufacturing automation, networking services, semiconductors and software products.

Elron's primary and publicly traded holdings are Elbit (defense electronics), Elscint (medical imaging) and Orbotech (PCB-inspection equipment). All these companies' stocks trade either on the Nasdaq, New York Stock Exchange and/or the Tel Aviv Stock Exchange. Elron is traded on the Tel Aviv Stock Exchange as well as on Nasdaq.

Important developments

Elron was founded in 1962 and began forming subsidiaries in 1966, starting with Elbit. It formally became a holding company in 1970 and went public in Israel in 1975.

In July 1993, Elron participated in forming a holding company, DEP Technology Holdings, to develop products for the civilian market with the Israeli government arms authority.

In 1994, Elron was awarded a license to operate a wide band international data communications network to be called elroNet. In third-quarter 1994, Elron transferred its computer-training operations to the U.S. company PC Etcetera Inc. (publicly traded on the OTC) in exchange for 31 percent of PC Etcetera.

Capitalization

Elron Electronic Industries is 62 percent-owned by several investment companies and Israeli banks, including Discount Investment Corp. and PEC Israel Economic Corp.

The company owns 37.5 percent of Elbit, 19 percent of Orbotech and 100 percent of Elron Technologies, the latter of which provides marketing support, handles investor relations in North America and provides elroNet services in the United States.

Elbit, in turn, controls 55 percent of Elscint, 100 percent of Diasonics Ultrasound, Fibronics Inc. and Inframetrics. Elron also holds stakes in a host of additional high-tech companies, including Chip Express Corp. (IC prototyping, 48 percent), DEP Technology Holdings (33 percent), PC Etcetera (31 percent), Zoran Corp. (digital signal processing, 28 percent), ServiceSoft Corp. (management software, 21 percent), NetManage (networking support software, 3.5 percent), Softkey (consumer software, 0.7 percent).

The group also has interests in the Athena and Gemini venture capital funds and in Eltam Technology Incubator.

Recent Results

In the first nine months of 1994 net income fell 35 percent to $5.3 million (or $0.29 per share), mainly due to a one-time gain in 1993.

Research coverage

Theodore J. Kundtz, Lehman Brothers, 212/526-5322

Elliot Prince, Smith Barney, 212/767-7328

Cooperation needed

Equity investment

Venture capital

Strategic partner

Investment banker

Analyst reports

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                       Balance Sheet (US$millions)

                          1991     1992     1993

Current assets             6.0     23.0     22.0
Other assets             111.0    131.0    141.0
Total assets             117.0    154.0    163.0
Current liabilities        1.0      1.0      1.0
Other liabilities           --       --       --
Shareholders' funds      116.0    153.0    162.0

                       Profit and loss account (US$millions)

                      1992      1993             1994
                                           q1      q2      q3

Income                18.9      16.3       3.9     5.9     9.3
Net profit            14.3      10.5       2.2     3.0     5.3
EPS                    0.8       0.6       0.1     0.2     0.3
Number of shares     17.13     17.39     17.39   17.39   18.27

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Note to editors: This profile was included in the 1995 special Spring issue of Link Magazine entitled Israel's Financial Opportunities for the International Capital Market. For more information, please contact: Link Magazine, P.O. Box 57500, Tel Aviv, 61574, Israel, Phone: [phone], Fax: [phone], Internet: http://www.elron.net/demo/linkmag/; or Impact Communications, Eli More, Phone: [phone], Fax: [phone], Internet: [e-mail].

CONTACT: Elron Electronic Industries Ltd., Haifa

Uzia Galil, 011-972-4-545-000

Fax: [phone]

Advanced Technology Centre

P.O. Box 1573

Haifa, 31015, Israel

or

Elron Technologies Inc., New York

Phone: [phone] or Fax: [phone]

850 Third Avenue, New York, NY, 10022

or

Impact Communications Ltd., Tel Aviv

Eli More, 011-972-3-699-6297

Fax: [phone]

Internet: [e-mail]