Israel Hi–Tech Industry

1. Israel Hi–Tech Industry Michael Admon Director Hi-Tech Department

2. Hi – Tech Department Israeli Hi – Tech Industry by Sectors: Information & Communication Technologies Electronics Medical Device & HealthCare IT Biotechnology & Pharmaceuticals Telecommunication Software New Media Life Science Industry

3. R&D Investments as % of GDP Source: Central Bureau of Statistics

4. Hi – Tech Export ($M) The 2009 Global Economic Crisis had a relatively small effect on the Israeli economy!

5. Focus on Innovation

6. Telecommunication Facts & Figures: No. of Exporters – 590 Export Total – $4.1 billion Main Markets • Main Advantages: • High skilled workforce • Innovative start-up companies • Vast accumulated experience in Telecom technologies • Early adapting market with high penetration rate • Highly competitive domestic market – perfect test-bed. • Flexibility to apply changes

7. Telecom‘s Main Segments: • Infrastructure Network Equipment & Systems: • Wireless: 4G/ LTE; Wi-Max • Network Optimization • Converged Communications • Broadband, DSL • Wi-Fi / Mi-Fi • Femtocell / Picocell • InBuilding coverage • Network components • IP Infrastructure & Service Platforms • Satellite Communications • VAS Customer Care & Billing • Customer care & Self Customer Care • Billing • CRM & Customer Base Analysis • Churn Prevention Messaging • VM: Voice Mail; Video Mail • Text & Multimedia Messaging • IM/ E-Mail/ Chat Content • Content Delivery Platforms • Content Adaptation • Mobile Internet • Mobile TV/ IPTV • Applications • Gaming • Location Based Services (LBS) • Music • Social Networks • Mobile Advertisement • HS & DEVICES • Operating Systems • Pre-Installed Applications • Clients • Devices & Components

8. Telecommunication Success Stories: Alvarion is the leading Wi-Max & Broadband wireless systems provider to service providers. Alvarion installed base includes around 300 deployments over 150 countries. Comverse (Founded in 1982) , originally founded in Israel, is a global leading VAS vendor. Comverse was the pioneer in Voicemail, SMS and service delivery platforms, installed in more than 500 Service providers world-wide. Jajah – The leading provider of VoIP service connecting two mobile or fixed “traditional” lines, without downloading any software

9. Software Sector Facts & Figures: No. of Exporters – 870 30% - startups 14% - growth revenue > $10 million Export Total – $4.2 billion Main Markets: • Main Advantages: • Innovative Solutions • Deep Synergy with the Israeli advanced Hi-Tech industry • High presence of multinationals with R&D Centers • Highly skilled human resource

10. Software Sector Main Tech. Segments: • Enterprise Software • IT Management • CRM • Management Tools • IT Security • Enterprise Perimeter • Enterprise Assets • Enterprise Networks • Storage & Data Center • Storage Software • Data Center • System Area Networks • Cloud computing • IT Services • Vertical Markets: • Financial • Governmental • Retail • Utilities

11. Software Sector Success Stories: Check Point – first pioneered the industry with Firewall products , developed VPN technology. Today its a wide range of software products cover all the aspects of IT security. Amdocs – founded in the 1970’s in the field of Yellow Pages communication, it was a telecommunication billing pioneer and is now a global leader in integrated telecommunication customer management software. Retalix– since 1982, it has provided integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores and restaurants.

12. New Media Facts & Figures: No. of Exporters – 1000 Export Total – $2 billion Main Markets: Europe; Asia; USA; Africa. • Main Advantages: • Innovation and Creativity • High number of Start-ups • Numerous R&D Centers of foreign multinational companies • Vast knowhow experience in ICT technologies

13. New Media Main Segments: • Internet: • Applications & Services • E-Commerce & Marketing • Online Advertising • Entertainment & Video • Search • Social Networks • Broadcasting • Digital & Cable TV, IPTV, Satellite, OTT • Content Creation, Delivery & Management • Gaming

14. New Media Success Stories: ICQ (Mirabilis) – the first internet instant messaging, launched in 1996 and acquired by AOL for $407M. ICQ has opened the way for today’s social networking arena. NDS – pioneered DRM & Conditional Access Systems which is used on most of News Corporation's digital satellite TV. NDS also supplies interactive TV applications, platforms, and development tools. Orca Interactive – is a leading innovative provider of IPTV middleware and applications that power next-generation interactive TV. Revolutionizing the way people experience television content is based in Ra’anana, Israel, and wholly-owned byFrance Telecom SA.

15. Electronics Facts & Figures: No. of Exporters – 250 Export Total – $5.9 billion Main Markets: • Main Advantages: • Innovative technology • Flexibility & Capacity to manufacture small quantities of complex nature • Important presence of multinationals • High skilled workforce for a relative low cost

16. Electronics Main Segments: • Components: • Semiconductors design for: • the consumer electronic industry • the telecom industries • Manufacturing for: • the consumer electronic industry • the telecom industries • Equipment for Electronics Industry: • Equipment for semiconductors, PV, FPD - flat panel display, PCB • Equipment for digital printing industries. • EMS – Electronic Manufacturing Services • Electronic and electro-mechanical subcontracting

17. Electronics Success Stories: M-Systems – developed the Disk on Key. Since 1989, the pioneer and patented of the personal storage solutions revolution, using USB devices with a proprietary flash memory developments. HP Indigo Digital Press – The most advanced commercial and industrial digital printing presses, providing on demand customized printing solutions. Its main uses include general commercial printing, label, flexible packaging, folding carton and specialty printing. Orbotech – is principally engaged in the design, development, manufacture, marketing and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. It is a world leader in PCB and Flat Panels inspection with a dominate position in the world market.

18. Life Science Medical Device & HealthCare IT: Facts & Figures No. of Exporters – 750 Export Total – $1.37 billion Main Markets: • Main Advantages: • Advanced Scientific & Technology Transfer Organizations • Spin-off of the Hi-Tech, Electronics & Defense sectors • Strong entrepreneurial spirit & High skilled workforce • Strong governmental R&D support • Advanced HealthCare system

19. Life Science Main Segments: • Medical Devices: • Diagnostics • Drug delivery • Disposable & Implantable • Treatment: • non invasive / minimally invasive / invasive • Dental • HealthCare IT: • Management • Decision support system • Telemedicine Treatment. “Israel is among the world leaders in the usage of Information Technology (IT) in Healthcare” (Gartner)

20. Life Science Medical Device & HealthCare IT: Success Stories: InSightec – developed the breakthrough MR-guided, focused ultrasound technology for non-invasive treatment of tumors using a combination of MRI and high- intensity focused ultrasound. dbMotion – provides clinicians an access to the real-time, integrated clinical information. The health integrative and intelligent solution enables Healthcare Organizations and HIEs meaningfully integrate and leverage their information assets. Deep Breeze – Vibration Response Imaging developed by Deep Breeze provides physicians with a dynamic functional image of the lung. Thousands of patients have been recorded by the VRIxp™ worldwide during clinical investigations without any single adverse event.

21. Life Science Biotechnology & Pharmaceuticals: Facts & Figures No. of Exporters – 350 Export Total – $4.63 billion Main Markets: Asia: India, Japan, Korea, Taiwan, China. • Main Advantages: • Scientific capabilities & Technological readiness • Extensive international R&D centers • Strong entrepreneurial spirit • High skilled workforce • Strong governmental R&D support

22. Life Science Main Segments: • Biotechnology: • Bioinformatics & Genomics • Drug Research & Discovery • Molecular Biology & Gene therapy • Tissue Engineering & Cell therapy • Diagnostics & Preventive kits • Antibody, Immunotherapy & Vaccines • Pharmaceuticals: • New Chemical Entity • Drug Discovery & Delivery • Natural Materials & Chemicals • Generic Drugs • Vaccines “Israel is 2nd in Europe in no. per capita of privet biotech companies’ products in pipeline” (MOITAL)

23. Life Science Biotechnology & Pharmaceuticals: Success Stories: Gamida Cell – developed unique, breakthrough stem cell therapies used for treating patients with blood cancers, autoimmune illnesses and metabolic, and ischemic vascular diseases. Vaxil BioTherapeutics Ltd. develops novel, therapeutic vaccines for the treatment of cancer and key intracellular pathogens via specific manipulation and augmentation of the patient cellular immune responses. Kamada – engaged in development, production and marketing of specialty life-saving therapeutics, using a unique protein purification technology. Its product line consists of more than 10 injectable pharmaceutical products indicated for use in critical care illnesses and chronic home treatments. Teva Pharmaceuticals, together with the Wiezmann Institute, developed Copaxone for Multiple Sclerosis treatment. This drug significantly improves the quality of life for MS sufferers. Teva Pharmaceutical Industries, established in 1901 is today the world’s largest generic drug manufacturer and one of the 20 largest international pharmaceutical companies in the world!

24. Multinationals Operate by Local Subsidiaries or Manage R&D Centers in Israel

25. Why Israel? Israel is the 1st in Venture $/GDP Israel is the 1st in No. of Engineers per Capita Israelis the 1st in Listed Companies in NASDAQ (non-American) Israel is the 1st in No of High-Tech Startups after the US Israel is ranked 2nd in the quality of its higher education. Israel is ranked 3rd in quality of scientific research and institutes. Israel is ranked 4th in utility patents per million population. Source: Economist Intelligence Unit 2009

26. IEICI Who we are: • A Joint Venture Between the Israeli Government and the Private Sector, founded in 1958 as non-profit organization. Out Mission: • Promote Trade, Joint Ventures and Strategic Alliances between overseas and Israeli Companies. • Advance the integration of Israeli companies into the global market. What we Can DO for You:

27. Contact Details Israel Export & International Cooperation Institute 29 Hamered St. Tel Aviv 68125, Israel. Tel: +972 (3) 514 28 09 Fax: +972 (3) 514 28 81 Email: miky@export.gov.il Web: www.export.gov.il Michael Admon Director Hi-Tech Department