MANAGEMENT REPORT FOR 2007
The following discussion should be read in conjunction with our consolidated financial statements for the year
ended December 31, 2007 and the notes thereto, which are included in this Annual Report. This report contains
forward-looking statements that involve risks and uncertainties. Such forward-looking statements may be
identified by the words "anticipate", "believe", "estimate", "expect", "plan" and similar expressions. Our actual
results could differ materially from those anticipated in these forward-looking statements as a result of certain
factors, including, but not limited to, those discussed in our filings with the Securities and Exchange Commission
from time to time.
We are a high technology operational holding company that operates through subsidiaries and affiliated
companies, referred to as our group companies. Founded in 1962, we have been a major force in the
development of the Israeli high technology industry by building Israeli and Israel-related companies with
technologies in the fields of medical imaging, advanced defense electronics, telecommunications, semiconductors
and software products and services. Elron's group companies currently comprise of a group of publicly-traded
and privately held companies primarily in the fields of medical devices, information & communications technology,
clean technology and semiconductors.
Our activities range from operational control over the business to involvement in the management of our group
companies in which we maintain controlling or significant holdings, and, in a limited number of cases, non-
significant holdings. We participate in the management of most of our group companies by means of active
membership on their boards of directors and board committees. As a result, we are involved in matters of policy,
strategic planning, marketing, selecting and manning senior management positions, approving investments and
budgets, financing and the overall ongoing monitoring of our group companies'