Telrad Buys Mediagate from Elron

Tel Aviv  21st December 2003

The purchase price depends on sales and royalties to the investors over the next six years.

Telrad Networks has bought the assets of Elron Electronic Industries (Nasdaq: ELRN; TASE:ELRN). Telrad will pay NIS 25 million, depending on sales and royalties to the investors over the next six years. MediaGate develops and sells a next generation voice mail and unified messaging platform.

Telrad VP public network reseller division Moty Weissman, who has been appointed MediaGate CEO, noted that MediaGate's business is synergetic to that of Telrad's telecommunications business, adding another layer to the wide variety of activity that Telrad provides for telecommunications operators and service providers around the world.

Weissman expects rapid development of unified messaging, on which MediaGate's product is based.

Published by Globes [online] - www.globes.co.il - on December 21, 2003