Elron Ventures Ltd. — Transaction in Own Shares 2007

May 27, 2007

ELRON ELECTRONIC INDUSTRIES LTD.

-FOR IMMEDIATE RELEASE-

ELRON COMPLETES PURCHASE OF 2.5% OF ORDINARY SHARES OF GIVEN IMAGING

Tel Aviv, May 27, 2007 - Elron Electronic Industries Ltd. (NASDAQ & TASE: ELRN) announced today that further to its announcement on May 15, 2007, it has completed the purchase of 2.5% of the ordinary shares of Given Imaging Ltd. (Nasdaq & TASE: GIVN) in a series of open market transactions for an aggregate purchase consideration of approximately $18.7 million. This includes purchases previously announced on May 15, 2007. As a result of these transactions, Elron's direct and indirect ownership interest in Given Imaging (through its direct holdings and its holdings in its subsidiary, RDC-Rafael Development Corporation Ltd.) increased to approximately 23.3%. In parallel transactions, Discount Investment Corporation Ltd. ("DIC"), a 49% shareholder of Elron, also purchased 2.5% of the ordinary shares of Given Imaging for the same aggregate consideration, increasing its holding in Given Imaging to approximately 16.5%. Following these transactions, Elron, DIC and RDC together hold approximately 44.3% of the ordinary shares of Given Imaging.

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

Elron Electronic Industries Ltd.

Tel. 972-3-6075555

rinat@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