Elron Ventures Ltd. — M&A Activity 2007

Jan 22, 2007

ELRON ELECTRONIC INDUSTRIES LTD.

-FOR IMMEDIATE RELEASE-

ELRON ANNOUNCES EXTENSION TO COMPLETE NETVISION-BARAK-GLOBECALL MERGER UNTIL JANUARY 25, 2007

Tel Aviv, Israel, January 22, 2007 – Elron Electronic Industries Ltd. (NASDAQ & TASE: ELRN) today announced that further to its announcement on January 4, 2007, in connection with the proposed merger between its group company, NetVision Ltd. ("NetVision") and Barak I.T.C (1998) International Telecommunications Services Corp Ltd. and for the proposed merger between NetVision and GlobeCall Communications Ltd., the parties have agreed to extend the period within which to complete the said transactions from January 21, 2007 until January 25, 2007.

Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), a member of the IDB Holding group, is a leading Israel-based technology holding company directly involved in the long-term performance of its group companies. Elron identifies potential technologies, creates strategic partnerships, secures financing, and recruits highly qualified management teams. 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. For further information, please visit www.elron.com

Company Contact: Rinat Remler, Vice President & CFO Elron Electronic Industries Ltd. Tel. 972-3-6075555 elron@elron.net

(Any statements in this press release that may be considered forward-looking statements 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).