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for week ended October 11

13 Oct, 2002 18:04
Israeli wins Nobel prize

Israel’s centers of learning received worldwide coverage last week, when Hebrew University fellow Daniel Kahneman was declared the first Nobel winner in the sciences from Israel. See Features, below, for a "Globes" interview with Kahneman.

On the macro front, Goldman Sachs turned more positive on the outlook for Israel’s credit rating, as market watchers speculated on whether the Knesset would approve the 2003 state budget at its first reading at the end of the month.

The week also saw a number of Israeli start-ups raising funds, despite the harsh economic environment. SANcastle raised $9 million, while AqWise , BigBand Networks and Power Paper received $3 million each. Israeli data storage company M-Systems reached an important deal with Motorola, while Beer Sheva’s Itran Communications signed an agreement to integrate its technology into a Mitsubishi - Microsoft home networking chip.

Meanwhile, “Globes” reported a novel Israeli idea to bolster hotel stays. The Jerusalem Gold hotel will allow guests to decide how much they will pay at the end of their stay, on the basis of how satisfied they are.

Economy


Ayalon initiating US-Israeli economic council
Ambassador to the US Daniel Ayalon to US investors and entrepreneurs: Now is the time to invest in Israel.

Goldman Sachs upgrades view on Israel credit rating
Analyst Daniel Tenengauzer: Israel’s credit rating may stay put if the Knesset approves the 2003 budget quickly.

Erez Palestinian-Israel industrial zone to be expanded
The expansion will increase the number of jobs for Palestinians from the current 4,500 to 10,000.

UMCE rejects Palestinian motion to oust Israel
The Union of Mediterranean Confederations of Enterprises is part of the Barcelona process aimed at creating a Mediterranean free-trade zone.

Foreign investment down $30b in eighteen months
Foreign investment totaled in June 2002 $34.2 billion, compared with $64.3 billion in December 2000. The fall was mostly in financial investments.


General business


Hashmira partner reiterates: We requested a plan for stopping work in the Territories
50% owner Group 4 Falck of Denmark wishes to make sure it is not in violation of international law but did not demand that work be stopped.

Via Maris wins NIS 485m Mekorot desalination plant tender
The plant will produce 45 million cubic meters of water. Via Maris also won the tender for the desalination plant at Kibbutz Palmachim.

No alternative to liquidation, Rogosin tells court
Rogosin failed to reach an arrangement with its bondholders and consented to the appointment of a temporary receiver.

Clal Industries offers to sell retailer Golf for NIS 200m
Clal Industries and Investments is selling off non-core businesses. Clal Industries: No comment.

Fashion chain Castro eyes London
Castro is considering opening a store on Oxford Street, paying $1 million in vacating fees for 450 sq.m.

IEC workers forego some free electricity
They will now get 18,000 kwh a year instead of 25,000 kwh. MK Poraz: I'll continue with legislation.

Israel mulls canceling special duty on Korean cars
The duty does not apply to cars made in the EU and US.

Osem to invest $50m in new logistics center
The new logistics center will serve all Osem-Nestle group companies, including Tivall, Sabra Salads Food Industries, Off Tov Products, Hod Lavan Turkey Products, and Beit Hashita-Assis Food Industries.

Electric Fuel awarded GSA contract for zinc-air batteries
The GSA is a centralized US federal government procurement and property management agency.

Paz-Africa Israel back in gas project picture
However, the Ministry of National Infrastructure is determined that the first stage of the pipeline project will be carried out by the Israel Electric Corporation.

Alon to spend new finance on expanding US convenience store chain
Alon Israel Fuel will receive $48 million from GE Capital, of which $13 million will go to expand its 7/11 chain.

Jerusalem hotel offers: Pay as much as you like
The Jerusalem Gold hotel was built two years ago at a cost of NIS 60 million.

Venture capital investments


Network integration co SANcastle completes $9m internal round
SANcastle Technologies has closed its San Jose office and opened one in Texas.

ABB to invest millions in Main.net venture
Main.net develops broadband power line communications (PLC) solutions.

DSP buys Meicom’s technology for $1m
Meicom Technologies, a developer of video-compression algorithms, raised $6 million.

Israeli start-up AqWise to raise $3 million
AqWise this week announced an agreement with major water systems provider USFilter.

AOL-Time Warner invests $3m in BigBand Networks
Sources inform ''Globes'' that BigBand recently signed a deal with AT&T Broadband estimated at $2 million.

Power Paper raises $3m in fourth round
Kibbutz Einat-based Power Paper develops micro-power source batteries, which can be adapted to fit the size of any product.

PwC Israel teams with US firm to accelerate Israel biotech
PricewaterhouseCoopers and Burrill & Company will provide global partnering services for Israeli biotech companies.

Information technology


Gil Shwed: 2002 Check Point's worst year
About 2003 forecasts, the Check Point CEO said: "I certainly hope there will be a recovery".

Check Point mulls move from Ramat Gan to Netanya
The government will put together a package of benefits for the company.

Mitsubishi home networking chip to contain Itran transceiver
The M306S chip will allow consumers to manage their home appliances via the Internet.

Motorola integrates M-Systems' storage device into DragonBall chip reference designs
M-Systems: DiskOnChip complements the features that make DragonBall ideal for mobile and wireless products.

Bouyges Telecom launches MMS service based on Comverse system
Bouyges Telecom received its 3G license in September.

Comverse partners with Telefonica Moviles
The agreement allows Telefonica Moviles’s operating companies around the world to use Comverse messaging solutions.

Finland’s Proha to cooperate with Tesnet European unit on software testing
Tesnet will acquire a majority share of the Proha fully owned subsidiary Inellitest International.

Tecnomatix receives order from Asian electronics firm
Hon Hai Precision Industry will use Tecnomatix’s eMPower solution to improve the management of new products.

Alvarion reports on Moscow network deployment
During the first stage of the deal, Alvarion equipment worth $500,000 was installed around Moscow.

Atrica expands agreement with France Telecom
Atrica will supply metro communications solutions for five regions in France, after beating Alcatel, Cisco Systems and Riverstone Networks.

Amdocs expected to lower guidance for coming quarters
Revenue and profits are nevertheless expected to be only slightly below forecasts.

Telrad Connegy fires 16 workers
The lay-offs are part of efficiency measures at the newly merged company.

Healthcare


US insurer starts reimbursement coverage of Given Imaging diagnostic system
Given Imaging’s “camera-in-pill” device will be covered by Riverbend, which has about 2 million Medicare enrollees.

Siemens patient monitoring solutions to integrate Oridion technology
Oridion CEO George Yariv: The agreement will help Oridion leverage Siemens’ extensive worldwide sales base.

Oridion Q3 revenue rose 38%
In a third quarter pre-announcement, Oridion said it expected to report a significant reduction in operating loss.

Alicom Biological Control develops environmentally friendly anti-mosquito system
The system delivers biochemicals used in combating mosquitoes carrying West Nile Virus and other diseases.

Evogene and Metabogal to develop genetic engineering for plant cells
Evogene is a subsidiary of genome research firm Compugen. Life science start-up Metabogal has developed cell culture platforms.

Syneron receives FDA OK for skin rejuvenation system
The Aurora SR system is already cleared for sale in Canada, Europe and other parts of the world.

BTG stock dives 30% after KPMG resigns as auditor
KPMG has indicated that it is not withdrawing its reaudit of Bio-Technology General's financial results for 1999, 2000, and 2001.

Abbott Labs sues Teva for patent infringement
Abbott is seeking an injunction to block Teva from selling TriCor tablets, which reduce cholesterol levels.

Lumenis faces another lawsuit
Former executive Asif Adil claims he was fired after making a report to the company about accounting and disclosure irregularities.

Defense


Defense sources: Turkish tank upgrade will be profitable
Sources: Profitability isn't dependant on the Turkish government deciding to expand the project by 730 more tanks.

Officials hope Israel will eventually join JSF project
The Joint Strike Fighter is considered "a pillar of Israel's national security".

El-Op beats Thales and Sagem in Indian radar tender
El-Op Electro-Optics Industries will supply 1,022 radars worth $70 million. India is considering more orders.

''Yediot Ahronot'': IMI to deliver $35m of UAVs to US
The unmanned aviations vehicles (UAVs) may be used in an attack on Iraq. Israel Military Industries expects to sell $80 million worth of UAVs in the next two years.


Features


Economic man
In a special interview with "Globes", Nobel Prize winner Prof. Daniel Kahneman talks of the path he has followed in his research work and debunks the myth that economic decisions are rational ones.

East meets Middle East
Ambassador to Israel Yu Myung Hwan: Israel may be first to sign a free trade agreement with Korea.

Cool company
MTRE Advanced Technologies has developed a system enabling the body temperature of surgical patients to be lowered and maintained at a particular level.

Secret services
Movious found out cellular operators aren't big on buying infrastructure solutions from little guys, so they've disguised theirs as something else.


Israeli market at a glance

Tel Aviv Stock Exchange

Index Index value
10 October 2002		 Weekly change
points		 Weekly change
%		 1 month change
%		 YTD change
%
Tel Aviv 25 335.97 -3.9 -1.1 -9.7 -26.8
Tel Aviv 100 326.54 -5.1 -1.5 -9.6 -26.9
Tel Tech 15 162.31 -4.1 -2.5 -16.5 -40.2

Average daily turnover - NIS 114 million

Note: The trading week in Tel Aviv is from Sunday to Thursday

Tel Aviv - leading stocks
Top five by market cap in alphabetical order


Closing price
11 October 2002
NIS		 Closing price
3 October 2002
NIS		 Weekly change
%		 1 month change
%		 YTD change
%
Bezeq 4.60 4.68 -1.75 -11.27 -22.89
IDB Development 83.00 82.70 0.36 -13.81 -36.30
Bank Leumi 5.47 5.54 -1.26 -7.13 -36.02
Bank Hapoalim 7.09 7.25 -2.21 -8.75 -25.37
Teva 320.50 329.60 -2.76 0.85 18.31

Israeli companies traded overseas
Top five by market cap in alphabetical order


Closing price
11 October 2002
US$		 Closing price
4 October 2002
US$		 Weekly change
%		 1 month change
%		 YTD change
%
Amdocs (DOX) 6.4 6.29 1.75 -16.88 -81.16
Check Point (CHKP) 14.92 13.58 9.87 -18.74 -62.60
Comverse (CMVT) 7.11 6.91 2.89 -10.34 -68.22
Mercury (MERQ) 20.82 16.81 23.85 -16.52 -38.73
Taro (TARO) 33.4 32.53 2.67 4.31 -16.40

Isratech 50
The Globes-Nessuah Zannex Isratech 50 index comprises the 50 leading Israeli stocks traded in New York.


Weekly change
%		 1 month change
%		 YTD change
%
Isratech 50 index 2.7 -18.6 -55.6
Nasdaq 6.2 -8.0 -37.9

Shekel rates


Representative rate
11 October 2002		 Weekly change
%		 1 month change
%		 YTD change
%
NIS/$ 4.8210 -0.43 2.16 9.17
NIS/basket 5.0370 -0.51 1.70 12.80
NIS/100 yen 3.8840 -1.50 -2.99 15.50
NIS/euro 4.7560 -0.40 1.52 21.71

Bank of Israel interest rate: 9.1%

Inflation expectations: 2.76%