Elron Electronic Industries Announces Sale of Elron Software's Assets and Business to Zix Corporation.Business Editors/High-Tech Writers TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--Sept. 2, 2003 Elron Electronic Industries Ltd. (Elron) (Nasdaq:ELRN), announced today the sale of substantially all of the assets and business of its majority owned subsidiary, Elron Software Inc., provider of spam, email and web filtering Blocking access to unwanted Internet content. Businesses can block content based on traffic type. For example, Web access might be allowed, but file transfers may not. Content can also be blocked by site, using lists of URLs cataloged by content that are updated frequently. solutions, to Zix Corporation Zix Corporation (NASDAQ: ZIXI) is an American company based in Dallas, Texas that provides email encryption to health care organizations, financial institutions and government agencies. (ZixCorp(TM)), (Nasdaq: ZIXI). In consideration for the assets and business sold, ZixCorp issued to Elron Software 1,709,402 shares of its common stock, with a market value of approximately $6.0 million and a $1.0 million convertible note bearing an interest rate of 5.75%. In addition, ZixCorp assumed certain liabilities of Elron Software. ZixCorp is a global provider of e-messaging protection and transaction services. As a result of the sale, Elron will record a gain of approximately $4.0 million in the third and fourth quarters of 2003. Founded in 1997, Elron Software has approximately 37 employees based primarily in Burlington, Massachusetts Burlington is a town in Middlesex County, Massachusetts, United States. The population was 22,876 at the 2000 census. History Burlington was first settled in 1641 and was officially incorporated on February 28, 1799. . Elron Software's Internet Manager product family is the recipient of numerous awards, including: SC Magazine's Top Pick Award, PC Magazine's prestigious Editor's Choice Award, Network Computing's Editors' Choice Award, and IDC's #1 Selling Stand-Alone Web Access Solution. "With all the great technology, the sales team and the distribution channels at Elron Software, combined with a direct sales force and suite of secure e-messaging solutions at ZixCorp, this couldn't be a better fit," says Doron Birger, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Elron. "ZixCorp together with Elron Software will offer a comprehensive solution to fully address issues associated with electronic communication in any organization. This sale will have a positive effect on Elron's results of operations on the one hand, and on the other hand, we feel strongly that ZixCorp can take Elron Software's product offering to a higher level than ever before in the U.S." About Elron Software Elron Software's Internet Manager product family, including IM Message Inspector, IM Web Inspector and IM Anti-Virus, is a comprehensive set of solutions for web access control, email content filtering See Web filtering and parental control software. and virus protection. These award-winning security solutions maximize the productive use of the Internet while minimizing the associated risks: confidential data loss, reduced productivity, legal liability, network congestion In data networking and queueing theory, network congestion occurs when a link or node is carrying so much data that its quality of service deteriorates. Typical effects include queueing delay, packet loss or the blocking of new connections. , spam and virus attacks. For more information, visit www.elronsoftware.com. About Zix Corporation Zix Corporation (ZixCorp(TM)) is a global provider of e-messaging protection and transaction services. ZixCorp offers a range of solutions to protect organizations from viruses, spam, and electronic attack, as well as enabling secure electronic communications, such as email encryption and e-prescribing. ZixCorp helps organizations of any size to streamline operations, mitigate risks, and leverage the efficiencies of e-messaging. For more information, visit www.zixcorp.com. Elron Electronic Industries Ltd. is a multinational high technology holding company based in Israel. Through affiliates, Elron is engaged with a group of high technology operating companies operating company A business that engages in transactions with outsiders. in the fields of advanced defense electronics, communication, software, information technology, Medical devices, semiconductors and Amorphous Metals An amorphous metal is a metallic material with a disordered atomic-scale structure. In contrast to most metals, which are crystalline and therefore have a highly ordered arrangement of atoms, amorphous alloys are non-crystalline. . For further information, visit http://www.elron.com (Any statements in this press release that may be considered forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements due to the risk factors discussed in periodic reports filed by the Company with the Securities and Exchange Commission, which the Company urges investors to consider.) |
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