Elron Ventures Ltd. — Capital/Financing Update 2007

Jun 12, 2007

ELRON ELECTRONIC INDUSTRIES LTD.

-FOR IMMEDIATE RELEASE-

ELRON ANNOUNCES NEW INVESTMENT IN POCARED

Tel Aviv, June 12, 2007 - Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), announced today that it has completed a new investment of approximately $5.35 million, in two tranches, in Pocared Diagnostics Ltd., an Israeli-based medical device company. The aggregate financing round of $10.7 million was led by Elron and SCP Vitalife Partners II, L.P., a leading medical technology venture capital firm.

As a result of Elron's aggregate investment, Elron will hold approximately 22.5% of Pocared's outstanding shares.

Pocared provides an innovative solution for real-time, reagentless In-Vitro Diagnostics (IVD) and offers a universal and robust system which is automatic, rapid, compact, user-friendly, environmental-friendly and safe.

Pocared's wide technological platform may be used to address a wide range of medical and industrial diagnostic applications. The company's first application, expected to be launched during the next 24 months, will target medical IVD.

Doron Birger, Elron's President & CEO, commented: "Pocared offers a real breakthrough that can revolutionize the IVD market. Utilizing Pocared's seasoned management team, as well as the financial resources now available to the company, we aim at growing and building a significant company in this field". Elad Frenkel, Elron's Director of Business Development, said: "We view Pocared as a highly innovative company presenting an out-of-the-box solution and introducing a disruptive platform technology in the field of real-time IVD".

The Triangle Building, 42nd Floor, 3 Azrieli Center, Tel-Aviv 67023, Israel Tel. 972-3-6075555, Fax. 972-3-6075556 www.elron.com

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ELRON ELECTRONIC INDUSTRIES LTD.

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.)

The Triangle Building, 42nd Floor, 3 Azrieli Center, Tel-Aviv 67023, Israel

Tel. 972-3-6075555, Fax. 972-3-6075556 www.elron.com