BIRD Foundation to Invest $13 Million in 14 Advanced Development Projects

BIRD Foundation to Invest $13 Million iin 14 Advanced Development Projects in Telecommunications, Life Sciences, Software and Homeland Security

US partners include IBM, GE, Avaya and others

Dr. Eitan Yudilevich, BIRD Executive Director: "BIRD concludes another year with a range of quality projects, penetrating new markets such as Homeland Security (HLS), and Renewable Energy."

Tel Aviv, December 5, 2006- At its Board of Governors meeting held today in Jerusalem, the BIRD (Israel-U.S. Binational Industrial Research and Development) Foundation approved investments totaling approximately $13 million in 14 new joint U.S.-Israeli projects with a combined budget of nearly $ 35 million. The BIRD Foundation promotes strategic partnerships between Israeli and American companies in various technological fields. BIRD assists, free of charge, in the identification of strategic partners for the development of a joint product. The investments approved by the Board of Governors today represent a portion of over $240 million the Foundation has invested in more than 700 projects over 29 years of activity. To date, these projects have generated direct and indirect sales of over $8 billion. This marks BIRD's conclusion of another year of varied, quality projects representing fruitful collaboration between North American and Israel companies. The Foundation continues to maintain its interest in a wide array of technological subjects and its investment in innovation in a broad spectrum of industries. Some 40% of projects are in life sciences, a similar number are in electronics and software, 20% of projects are in telecommunications, with the remainder in the fields of Homeland Security (HLS) and renewable energy.

One-third of the US companies in which the fund invested are major corporations, with over $20 billion in annual sales, and one-third are companies with under $100 million in annual sales. Major US partners in the current list of BIRD projects include global leaders such as
IBM, GE and Avaya.

This year's list of Israeli partners includes promising young companies such as Sandlinks, which is developing active RFID tags for tracking assets, and Veterix which is developing a cattle health diagnostic system. There was a very high number of applications for funding in the life sciences in 2006, relative to previous years, in a wide range of subjects: ascertaining the health of cattle herds, advanced vaccine delivery, a non-invasive treatment for obesity and more.

The BIRD Foundation intends to invest in additional new areas of activity, such as renewable energy sources. The Foundation, together with other organizations, initiated a very successful international conference on this topic, held on November 8, 2006. The goal was to create joint
ventures between US and Israeli companies, particularly in the fields of solar energy and bioenergy. This year, BIRD approved a bio-energy partnership between GreenFuel Technologies of the US and Algatechnologies of Kibbutz Ketura in Israel's Arava region.

The Foundation continues to invest in Homeland Security (HLS). In 2006, a joint project between Enforsys of the US and Israel's Svivot was launched to develop an information sharing and intelligence analysis system for the prevention of terror activities. The system is geared towards law enforcement and is not only a more advanced technology, but also manages to overcome the cultural barriers that occur when agencies share information. Another project approved this year is an ID Kiosk enhanced with advanced document checking capabilities to be developed by GE Security of the US and Israel's MITAM.

About the BIRD Foundation
The BIRD (Binational Industrial Research and Development) Foundation works to encourage cooperation between Israeli and American companies in the various areas of technology, and provides free assistance in locating strategic partners from both countries for developing joint
products.

During its 29 years, the BIRD Foundation has invested in more than 730 projects, which have yielded direct and indirect revenues of about $8 billion.

The BIRD Foundation supports projects without receiving any rights in the participating companies or in the project itself. The financial assistance is repaid as royalties from sales. The Foundation provides support of up to 50% of a project's budget, beginning with R&D and
ending with the initial stages of sales and marketing. The Foundation shares the risk and does not demand that the investment be repaid if the project fails to reach the sales stage. The BIRD Foundation works in full cooperation with the Chief Scientist's Office at the Ministry of Trade, Industry and Employment in Israel, and with the U.S. Commerce Department's National Institute of Standards and Technology (NIST).
For further information please contact Tehila Gafni at Koteret 054-6650765, 03-5755778 #110