Israel’s High Tech Ecosystem Ingredients for Innovation:

June 2006 Human Capital Academic & Research Institutional Centers The world's highest per capita number of engineers Leading Technological Institutions Military – Unique Role of the Army Defense establishment is major contributor to R&D and significant customer Culture Risk taking is endemic, Pioneering Ethos Informality is a way of life – everybody on first name basis

June 2006 Government Support Policies supporting Investment and entrepreneurship Initiation of the “YOZMA Program” Encouraging legislation: R&D and Investment grants, tax benefits and exemptions to foreign investors R&D budgets, Chief Scientists Office incentives Incubators Program

June 2006 Experienced Venture Capital Industry More than 50 active VCs in the market More than $10B raised since inception (1992) 4th round of capital raising underway Mature legal, accounting & tax systems Strong ties to international markets Proven track record in: Technology creation Successful IPO’s and trade sales (M&A)

June 2006 Mature Israeli VC Industry What Others Say About Us “ There are, today, still only three “cities” where the early stage, high technology, entrepreneurial process is really proven – Silicon Valley, Route 128 and Israel ” “ The Israeli high tech community is already well skilled and well integrated into the global high tech arena. Legal, tax, accounting, government policy… ” Clinton P. Harris, Grove Street Advisors, June 15, 2005

June 2006 Multi National Leaders Industrial Leaders: IBM, Intel, Motorola, Microsoft, Cisco, Siemens Building design centers, buying companies, training managers Institutional Investors & Foreign VC’s Direct Investment in Israeli VC’s Direct investment in Israeli companies Eco

June 2006 Multi Nationals with R&D Centers in Israel (Partial List) Alcatel Analog Devices AMCC Avaya BMC Software Boston Scientific Broadcom Computer Associates CEVA Cisco Conexant Freescale Semiconductor GE Medical Systems HP (including HP Labs) IBM Infineon Intel Interpharm KLA-Tencor Kollmorgen Servotronix Marvell Semiconductor Microsoft Motorola National Semiconductor Oracle Pfizer Phillips QUALCOMM Samsung SAP Siemens Silicon Graphics Sun Microsystems SunGard Texas Instruments Veritas Software