ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the July 1999 issue


American Banker Interviews IHTIR

The American Banker, America's premier daily trade newspape covering the US banking industry turned interviewed us. An interesting question put to us was: "How many high-tech Israeli companies.are traded on Nasdaq or NYSE? And, in particular, how many have begun trading over the past 5 years?" Altogether there are 106 Israeli or Israeli related companies traded on the American securities markets. Of these Elscint (ELT), Amdocs (DOX), Israel Economic (IEC) and Koor Industries (KOR) trade on the NYSE. Of the total 89 companies can be loosely termed as high-tech or better as science based industries to avoid the pitfall of just including electronics. Among the 89 there are software firms, telecommunications, biotechnology, computer graphics, holding companies investing in high-tech, electronics and others. Almost all of these trade on NASDAQ, which has been the market of choice for Israeli issuers. The market capitalization of the 89 companies, is a highly respectable $38.8 billion for Israel, a country the size of one of the small American New England States.

From 1995 we have identified 20 companies whose June 17 market capitalization is $11.1 billion or nearly 30% of the total and who have turned public since 1995. Not yet announced is an Israeli related company, currently about tto sign to be floated this year on NASDAQ with a $400 million valuation.

The seeming infatuation between Israeli companies and NASDAQ is rooted historically when US venture captalist Frederick Adler facilitated the floating of Elscint in 1972, and in the early 1980s Elron, Fibronics, Orbotech were floated and well received by the American investing public. Bear Stearns was particularly active in the mid-1980. The first chief of the Israeli Air Force Don Tolkowsky had joined the Discount Investment company and showed a a great affinity for the future of high-tech. Tolkowsky had great credibility as did Uzia Galil, the founder of Elron. At the same time ECI Telecom was floated and over the years became a major player globally in the telecom field.

Today the high-tech scene in Israel is not only large but it represents more than 40% of this country's total exports. There are many Internet or Internet related companies active and Americans are more than ever investing in their early stage of development. John Sculley, former Apple president has invested in several technology driven companies a year ago. Last week we learned that Yahoo! founder Jerry Yang and Netscape founder Mark Anderson invested into the Israeli high-tech universe.



Reprinted from the Israel High-Tech & Investment Report July 1999

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