Elron Announces Forthcoming Negotiations between IDB`s Group Companies and Elron to Acquire Elron`s Holdings in NetVision Ltd.

TEL AVIV, Israel--(Business Wire)--
Elron Electronic Industries Ltd. (NASDAQ:ELRN) (TASE:ELRN), today announced that
further to its announcement on May 20, 2009, Elron intends to negotiate with
Clal Industries and Investments Ltd. ("Clal") and Discount Investment
Corporation Ltd. ("DIC") regarding a transaction whereby Clal and DIC will
acquire from Elron, its approximately 15% interest in NetVision Ltd. (TASE:
NTSN), a provider of communication services in Israel. The price of Elron`s
interest in Netvision will be determined by negotiation between the parties
based on an appraisal of such interest to be prepared, and for that purpose, an
independent appraiser was today jointly appointed by the parties. In addition,
Elron intends to engage an independent expert to express an opinion as to the
fairness for Elron of the price to be determined.

DIC currently holds approximately 49% of Elron`s outstanding ordinary shares.
DIC and Clal are both majority owned subsidiaries of IDB Development Ltd. DIC
and Clal currently hold approximately 31% and 24%, respectively, of Netvision's
outstanding ordinary shares. Elron, DIC and Clal are parties to a shareholders
agreement in connection with their respective holdings of Netvision shares.

The transaction is subject to the parties reaching and entering into a
definitive agreement as well as obtaining applicable corporate and regulatory
approvals and there is no assurance of the occurrence, timing or terms of such
transaction.

Elron Electronic Industries Ltd. (TASE & NASDAQ: ELRN), a member of the IDB
Holding group, is a high-technology holding company traded in the Nasdaq and in
the Tel-Aviv Stock Exchange. 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. Included in our group companies are well
established companies who are leaders in their fields, such as Given Imaging and
013 NetVision, together with innovative start-up companies who possess growth
potential in Israel and the rest of the world. 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. These risks include, but are not limited to the
impact of: the global financial crisis and economic downturn on Elron and its
group companies, any decrease in the market value of Given Imaging, the
continuing losses incurred by certain group companies, the need of Elron`s group
companies for additional capital in order to reach profitability, the
possibility of further impairment charges and other risk factors detailed from
time to time in the Company`s Annual Report on Form 20-F and other periodic
reports filed by the Company with the Securities and Exchange Commission, which
the Company urges investors to consider. The restricted availability of
financing for young technology companies, the limited availability of profitable
"exits" and the increased volatility in the securities markets may affect our
business results and compliance with bank covenants. Elron assumes no obligation
to update the information in this press release and disclaims any obligation to
publicly update or revise any such forward-looking statements to reflect any
change in its expectations or in events, conditions, or circumstances on which
any such statements may be based, or that may affect the likelihood that actual
results will differ from those set forth in the forward-looking statements.
Reference to Elron`s website above does not constitute incorporation of any of
the information thereon into this press release.

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

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