Elron Announces That Netvision is in Negotiations to Acquire Shares in HOT

TEL AVIV, Israel--(Business Wire)--
Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), today
announced that Netvision (TASE:NTSN), 16% held by Elron, announced
yesterday that it is in negotiations with Bank Leumi LeIsrael to
acquire its shares in HOT Communications Systems Ltd.(TASE:HOT)
("HOT"), an Israeli telecommunications and cable television company,
which amount represents 15% of the issued and outstanding shares of
HOT. There can be no assurance that such transaction will be
consummated or if consummated, on what terms.

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

(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)

Elron Electronic Industries Ltd.
Rinat Remler, 972-3-6075555
Vice President & CFO
elron@elron.net

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