Perspective of the Israeli IT Industry Presented by Hanan Achsaf: Former President of Motorola Israel Former President of “Israel Electronics Association” Former Chairman of the board of “Computer for Every Child” National Project Israel Former High Level Advisor for Telecommunication to the Israeli Prime Minister President of “Achsaf Consulting”

2 Country ID

Neighboring Counties

4 Israeli Hi-Tech at a lance 3,000 technology companies of which more than 500 companies with yearly revenues of more than $20 million 200 new start-ups created every year Israel is the 2nd largest non-USA country on NASDAQ More than 120 Israeli companies listed Over 400 Israeli companies operate subsidiaries or headquarters in the US Over 80 fortune 500 global corporations conduct leading edge R&D in Israel The highest per capita US Patent applications in the world The most important innovation center outside of the USA One of the most important innovation center outside of the USA

5 Israel’s "Formula": An Innovation Heaven Highest number in the world of scientists and engineers per population Scientists & Engineers per 10,000 pp

6 EXPORTS: The Engine of The Hi Tech industry In 2008, Export of the Electronic & Software industries was about 50% of Israel’s Industrial Export. Make’s The main contributor of The Economy growth. The most important innovation center outside of the USA

7 Main Economic Indicators GDP = private consumption + gross investment + government spending + (exports − imports)

8 Israel Electronics& Information Industries Highest number in the world of scientists and engineers per population

9 High Tech Characteristics in Israel Strengths: Entrepreneurial Spirit Highly Qualified Scientists & Engineers Proven Track Record Engines: Government Support (R&D, Investment) Venture Capital Results: Strong R&D New Technologies and Applications Numerous New Start-ups International Involvement (Acquisitions, Subsidiaries & VC) Education: Intensive educational system Military R&D: High defiance R&D investments

10 What do we need to continue our success? Excel in our education – aspire to be one of the best in the world Keep raising the bar in education Teach innovation and creativity Strengthen partnerships between academia and industry. Support sophisticated small ( $M) industries Government support should match the technological developments in the world

11 Main Economic Indicators (Graphs) (%)

12 Foreign Direct Investment (millions of US $)

13 Foreign Multinational Companies Invested in Israel

14 R&D Centers of Leading Foreign Companies (some examples)

15 Significant Selected Mergers & Acquisitions

16 Support Offered to Start Up Companies (MATI) The Israeli Government established an Expert Provider Institute of consulting and business development services to high-tech and technological startup companies. Services Offered: Business consulting Mentoring Business Plan Preparation Feasibility Studies Brainstorming: Valuation services Technological incubators Financial Offered: Start up Financial Planning Investors forums Angels / VC / Investment Banks investors Group Connecting Start Ups & Investors Investment opportunities Partners Search

17 NASDAQ Non US listed companies- Selected countries 3 Argentinean companies treated in NASDAQ

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21 Computing Skills for Every Child National Project Project Rationale: Understanding the language of computers is essential to the social, educational and professional development of today’s youth and a means of decreasing the “Digital Divide” between the socio-ethnic sectors and between the “haves” and “have not” Narrowing the Digital Divide / Digital Gap in Israel

22 Computing Skills for Every Child Project Comprehensive basic training Comprehensive value training New multimedia enabled PC Business & educational software Technical assistance/support Broadband Internet connection Project Goal: To Computerize 100,000 marginalized families (approximately 500,000 children) with the following computer kit: Internet Office

To the State: Provides the means to raise the level of computer knowledge in youth and households on a national scale. Avoid economic dependence in marginalized communities. To the children: Improves the child’s self esteem and the general educational outputs and results by providing the ability and motivation to interact in the computer world and have their voices heard. To Donors and other Stakeholders: The means to benefit the advancement of youth and directly influence future generations. Project Benefits

24 Computing Skills for Every Child Project

Contact Information Achsaf Consulting