Dutton Associates Announces Investment Opinion: Elron Electronic Industries Strong...

Dutton Associates Announces Investment Opinion: Elron Electronic Industries Strong Buy Rating Maintained By Dutton Associates

ROSEVILLE, Calif.--(Business Wire)--
Dutton Associates continues its coverage of Elron Electronic
Industries (Nasdaq: ELRN) (TASE: ELRN), maintaining its rating of
Strong Buy and a $19 price target. The 13-page report by Dutton senior
analyst Barry Raeburn is available at www.jmdutton.com as well as from
First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading
financial portals.

Based in Tel Aviv, Israel, Elron is a leading multinational
technology holding company. Since 1962, the Company has been a major
force in the development and commercialization of Israel's
technological discoveries in the defense electronics,
telecommunication, semiconductor, and medical device sectors. In
recent years, the Company has continued and accelerated its focus in
the high-growth segments of the medical devices, telecommunications,
and semiconductor industries. ELRN reported a net loss of $37 million,
or $1.25 per share, for FY 2007 compared with a gain of $3.0 million,
or 10 cents per share a year ago. The Company's net loss for 2007
resulted from Elron's share in the net losses of its group companies
or $20.4 million, which included an unexpected $8.3 million write-off
in the spinal implant maker Impliant, of which the Company owns 22%.
During 2007, Elron invested approximately $69 million in 8 new and
existing group companies. Intel Capital completed a US$11 million
investment in Jordan Valley Semiconductors, an Elron group company.
Elron ended the year with $36.9 million in cash and sort term
instruments. Shareholders' equity at December 31, 2007, was
approximately $265 million, or 89% of total assets. Under FAS 159 Fair
Value Option, we would not be surprised to witness and upward
valuation adjustment this year of between $45 and 75 million, which is
equivalent to $1.50 to $2.50 of book value accretion. At the current
market value, we believe investors are getting a free call option on
Elron's group of private companies.

About Dutton Associates

Dutton Associates is one of the largest independent investment
research firms in the U.S. Its 30 senior analysts, primarily CFAs,
have expertise in many industries. Dutton Associates provides
continuing analyst coverage of over 140 enrolled companies, and its
research, estimates, and ratings are carried in all the major
databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program
is US $35,000 prepaid for 4 Research Reports, typically published
quarterly, and requisite Research Notes. We received $95,000 from the
Company for 12 quarterly Research Reports with coverage commencing on
9/08/2005. The Firm does not accept any equity compensation. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the
subject securities or issuer. Neither the analyst's compensation nor
the compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please
read full disclosures and analyst background at www.jmdutton.com
before investing.

Dutton Associates
John Dutton, 916-960-0623

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