May 2004 e-Newsletter

Chamber News
1.1  Chamber selected to become BIRD Foundation Representative
1.2  Medtech Investing Conference May 4-5 2004
1.3  Minnesota Venture Capital Conference June 7-8 2004
1.4  MedEdge International Conference June 23-25, 2004
1.5  Chamber Explores MN trade Mission to Israel

Trade Opportunities
2.1  Distributors for Business planning and financial mgt software
2.2  Distrubutors for proprietary-based bioassay kits for water quality testing
2.3  Distributors for measuring water potencial in plants
2.4  Joint venture in software for business CRM solutions

Business News
3.1  Intel Israel exports for 2003 totaled $1.36 billion
3.2  Xor wins IBM PartnerWorld Beacon Award
3.3  NUR Macroprinters partners with Sefar America to market wide-format printers
3.4  US co Parametric to invest $20m in Israeli facility
3.5  More clinical trials being carried out in Israel
3.6  Power Paper introduces semi-permanent tattoo technology
3.7  Given Imaging: Record $12.7m revenue in Q1
3.8  Israir Airlines to Start Direct Tel Aviv-NY Charter Flights
3.9  Johnson & Johnson invests in Mazor Surgical Technologies of Caesarea
3.10  ABD Group to help Israeli security companies penetrate the U.S. homeland security market
3.11  Two large US institutions considering investment in Israel venture capital
3.12  Intel Israel Makes Breakthrough In Chip Development 
3.13  Atari Launches Online Gaming Subscription Service Using Exent's Turnkey Solution
3.14  GM teaming up with Israel's Surtech
3.15  Cisco buys Israeli start-up Riverhead Networks for $40m 
3.16  Motorola has M-Systems chip in new Linux-based phone for Chinese market
3.17  SightLine gets FDA approval for colon cancer device
3.18  Intel buys Envara for $40m
3.19  CalPERS to invest $20m in Pitango Venture Capital
3.20  Israeli-owned RhinoFX did special effects for "Sex and the City"

Economic News
4.1  High-tech exports expected to grow 8-13% in 2004
4.2  MIT reports a 46 percent rise in demand for high-tech personnel in the first quarter of 2004
4.3  A total of 106,000 tourists arrived in Israel in March 2004
4.4  GDP Growth Forecast Up to 3.4 Percent
4.5  Foreign investors pour $3.6 billion into Israeli economy in first quarter of 2004

World News
5.1  Israel and Jordan to Build Environmental Studies Center
5.2  Industrialist Stef Wertheimer's plan for a 625-acre Israeli-Palestinian industrial park approved
5.3  Basketball: Hapoel Jerusalem Wins Historic ULEB Cup
5.4  Pfizer and the University of Haifa School of Public Health to launch new forum

Chamber News

1.1  Chamber selected to become BIRD Foundation Representative

The Chamber is proud to announce its selection by the BIRD Foundation as the US Representative for Minnesota. BIRD is an acronym for Israel-U.S. Binational Industrial Research and Development. The BIRD Foundation's mission is to stimulate, promote and support industrial R&D of mutual benefit to the U.S. and Israel. The BIRD Foundation, founded over 25 years ago by the Governments of Israel has supported close to 650 projects totaling over $4 billion in direct sales and hundreds of relationships between American and Israeli companies. These relationships have led to mergers, aquasitions, creation of R&D centers and subsiderairies in the US and Israel. We are proud to be part of this organization. If you have or know of projects that may fit these goals we would be happy to assist you in exploring a grant.

1.2  Medtech Investing Conference May 4-5 2004

The Chamber is once again proud to be part of the 3rd Annual Medtech Investing Conference put on by IBF conferences and Medical Alley. Each day, advances in medical technologies save lives.  Latest numbers show that venture capital investment in  medical technology, and healthcare services now runs at $5 billion a year, providing crucial financing that helps drive innovation in this trillion dollar sector. This national conference platforms industry experts to share their perspectives on how Medtech is transforming healthcare, and providing returns to investors. The Chamber will be working to attract Israeli life science companies to this event with assistance in one-on-one meetings and getting in to the Medtech Connect: Presenting Company Showcase where 15 companies will be selected to make a presentation about their company and technology to over 300 attendees.

1.3  Minnesota Venture Capital Conference June 7-8 2004

This annual conference brings together investors to learn and network from leading experts in the areas of venture capital, law, marketing and start up management. Many local and international companies have the opportunity to present there company and technologies at the company showcase. We are encouraging as many Israeli companies as possable to take advantage of these presentation openings to get the exposure and knowlege they need to compete in the start up world.

1.4 MedEdge International Conference June 23-25, 2004

Medical Alley will be launching the first major international conference developed to promote collaboration and innovation on a world-class scale. The event will be a three-day educational conference and trade show for international leaders in the medical technology and health care industries. They will exchange the latest developments in health care, medical, and biosciences technologies. They will share best practices. They will tour world-renowned facilities. Finally, they will return home to drive the future of health care to new heights. Click here for more information.

The Chamber will be hosting an Israeli pavilion where 10 to 15 Israeli companies will exhibit and meet with these leading health care professionals. The Chamber will be recruiting the Israeli companies in conjunction with the conference planners while working to assist them with all their needs including pre-arranged one-on-one meetings with targeted contacts. If you would like to be involved in the planning for this exciting opportunity please contact the Chamber.

1.5  Chamber Explores MN trade Mission to Israel

The Chamber has been speaking with the Pawlenty Administration about a potential Trade Mission to Israel and Jordan for December 2004. We are currently seeking Members who would be interested in participating in this mission. The mission seeks individuals and businesses seeking partnerships in Israel with high tech, biotech, security, disaster preparedness, agriculture and more. Please contact the Chamber if you are interested in exploring this opportunity in more detail.

Trade Opportunities

2.1 

ISRAELI FILM -Tel Aviv based,American film producer is developing a
> slate of films designed to be commercially viable while portraying
> modern Israel and her people in a positive light. Seeking financial
> partners whowish to be a catalyst for a creative, dramatic, and
> profit-driven solution to Israel's international public relations
> problem.
 (Atid42204)

2.3  Distributors for measuring water potencial in plants

Manufacturer of an instrument for measuring the water potential in plants is seeking distributors, that include an agricultural specialist, and are engaged in irrigation projects. (Amcham12504)

2.4  Joint venture in software for business CRM solutions

A software firm with unique software solutions, including CRM, Call Center, Help Desk, Service/Support Solutions, Legal Department, Personnel, Project Management, Risk Management, etc., is seeking joint ventures with U.S. firms. (Amcham12504)

Business News

3.1  Intel Israel exports for 2003 totaled $1.36 billion
 
Intel Israel announced that its exports for 2003 totaled $1.36 billion, THE JERUSALEM POST reported. The Israeli unit of the international computer chip giant, which celebrates its 30th year of operations here this year, noted that it is the largest electronics exporter in Israel. It contributed 13 percent of the nation's total $10 billion in electronics exports last year. The company currently employs 5,404 workers, its eighth straight year of increase. It operates four development centers and two production facilities in Israel, along with a local marketing team and its Intel Capital investment unit. (Israel Line 2/28/04)

3.5   More clinical trials being carried out in Israel
 
In advance of Israel Biotech 2004 next week, American Medical Laboratories (AML) of Herzliya, Israel largest private laboratory, reports that it has initiated 20 new studies in the past six months, mostly for foreign drug companies wanting to carry out clinical trials in Israel. "The number of clinical trials is a definite indication of the state of the industry," says AML general manager Dave Shafir. He said another measure of improvement was the number of requests from companies seeking information for future agreements. "We've had 30% more enquiries than last year." Shafir added that although the security situation reduced the number of foreign companies considering coming to Israel during the past two years, there had been an improvement last year. "Foreign companies prefer conducting clinical trials in Israel, because Israeli medicine is good. I imagine that we'll meet some of these companies during Israel Biotech 2004 next week. It's faster and cheaper to carry out studies in Israel than in Western Europe." Clinical trials in Israel are estimated to amount to $100 million in R&D investment. The global market amounts to $2 billion. (Globes  4/14/04)

  
3.6   Power Paper introduces semi-permanent tattoo technology
 
In a presentation at Health & Beauty America's (HBA) Advanced Technical Conference on High Performance Ingredients held today in New York City, Power Paper's Dr. Aaron Fink MD presented the latest study results for the development of an innovative micro-powered patch technique for semi-permanent tattooing. The new method eliminates the risks of permanent body art, but lasts longer than a traditional temporary tattoo. The technology utilizes the process of iontophoresis, whereby ionized pigments are delivered into the epidermal layer of the skin. The company said that laboratory and initial human tests show the patches to be safe, gentle and hypoallergenic. Following a 20-minute application process, the tattoo appears on the skin. The fully disposable, environmentally-friendly patch can be discarded after use along with household waste.

The tattoo decoration is expected to last approximately four weeks. The technique may also be used for the application of long-lasting decorative cosmetics and other temporary skin markings. "PowerTattoo is a breakthrough product that puts an end to the risks and disadvantages surrounding permanent body art," said Fink, the business line director of Power Paper's PowerCosmetics division. "PowerTattoo is just one of many applications made possible by Power Paper's revolutionary micro-electronic patch technology," said Shalom Daskal, CEO of Power Paper. "Our PowerCosmetics patches have demonstrated outstanding results for wrinkle reduction, skin whitening, and treatment of facial redness, among others." Founded in 1997, Tel Aviv-based Power Paper partners with cosmetics and pharmaceutical manufacturers to develop and market its patches worldwide. Power Paper's patented, thin and flexible energy cells (batteries) are integrated within the patch. The environmentally-friendly, safe batteries require no metal casing, and can be printed cost-effectively directly onto paper, plastics or other surfaces by standard printing equipment. (Globes 4/14/04)


3.7   Given Imaging: Record $12.7m revenue in Q1
 
Given Imaging (Nasdaq: GIVN; TASE:GIVN), the Yokne’am based company that produces the M2A “camera-in-a-pill” capsule endoscope, has announced, in a preliminary estimate, that its sales in the first quarter of 2004 reached $12.7 million, representing a 47% increase over sales generated in the first quarter of 2003. “We achieved record sales this quarter,” said Given Imaging president and CEO Gavriel Meron. “We believe 2004 will be a significant year for us, as we continue to establish capsule endoscopy as the gold standard in diagnosing gastrointestinal disorders of the small intestine.” In 2003, Given Imaging recorded revenue of $40.5 million, 40.3% more than in 2002, and a net loss of $9.6 million ($0.38 per share). On the release of its results for the fourth quarter of 2003, the company said it expected revenue growth of 40% in 2004, and a move to profitability in the second half of the year. Given Imaging plans to release its first quarter 2004 financial results on May 4. (Globes 4/15/04)

3.8   Israir Airlines to Start Direct Tel Aviv-NY Charter Flights

Israir Airlines is to launch direct charter flights between Israel and the United States starting in June, marking the first time a local charter company offers service on the popular Tel Aviv-New York line, HA'ARETZ reported. Israir CEO Sabina Biran announced on Sunday that the company would offer three flights a week to New York's JFK Airport - on Sundays, Tuesdays and Thursdays - at prices ranging from $700-1,100 excluding taxes. This would undercut prices offered by El Al and foreign airlines flights by up to $150 per person in tourist class. Biran said she hoped her company would take five percent of the market - some 20,000-30,000 passengers a year. El Al congratulated Israir following the announcement. An El Al source added that its true competition came from service offered by Continental Airlines and European airlines. "We will operate 30 weekly flights to New York," the source said, adding that 17 of them would be geared to children, granting discounts of up to 30 percent.El Al Israel Airlines and Continental Airlines are the only two airlines currently offering direct flights between Israel and New York, and the Israeli carrier recently increased the number of flights on that route to 14 per week. (Israel Line 4/19/04)

3.9   Johnson & Johnson invests in Mazor Surgical Technologies of Caesarea
 
Hebrew daily “Yediot Ahronot” reports that Johnson and Johnson (NYSE:JNJ), one of the world's largest manufacturers of medical equipment, has invested in Caesarea-based Mazor Surgical Technologies. Mazor will manufacture support and guidance systems for spinal surgical procedures. Johnson and Johnson own 13.5% of Mazor. Mazor has signed cooperation and know-how transfer agreements with the Hebrew University of Jerusalem and Technion - Israel Institute of Technology. Mazor will have 30 employees. Mazor was recently granted approved enterprise status on the tax break track, and will invest NIS 2 million in setting up production lines. Products will be exported, with Johnson and Johnson handling distribution overseas. Mazor has raised $9.5 million to date from venture capital funds to develop its product - a miniature robot attached directly to the patient's body that helps the surgeon to determine the exact positioning of tools and implants. Zeev Zehavi, responsible for Johnson and Johnson's investments in Israel, declined to comment on the report, saying that the company does not announce its investments in Israel. (Yediot Ahronot, Navit Zomer 4/19/04)

3.10   ABD Group to help Israeli security companies penetrate the U.S. homeland security market
 
American Business Development Group has won an Israel Export and International Cooperation Institute tender to help Israeli defense and security companies penetrate the U.S. homeland security market, GLOBES reported. American Business Development Group president and CEO Bill Skipper feels that Israeli could benefit from America's war against terrorism. To do so, Israeli companies must adapt their products to meet customer needs. "Israeli companies are more open to this need than in the past. They understand that to close a deal, you must cooperate with the customer, as well as with subcontractors," he said.
(Israel Line 4/20/04)
 

3.11  Two large US institutions considering investment in Israel venture capital
  
Representatives of two large US institutions that have not previously invested in Israel have visited Israel in recent weeks, and are considering investments in Israeli venture capital funds. The MacArthur Foundation and the Stanford University Endowment fund are examining investments in Pitango Venture Capital, Genesis Partners, and Gemini Israel Funds, which are raising new funds. The representatives are conducting their examination in a series of meetings with managers from the funds. As part of their examinations, the representatives have also met with CEOs from the funds’ portfolio companies, and have consulted US venture capital funds that work in cooperation with the Israel funds. A senior venture capital industry sources said that the US institutions were searching for new investment horizons outside the US, in order to expand their global activity. The source added that US funds of funds regard Israel as an interesting investment target, because of its proximity and ability to manage connections with developing markets in East Asia and India. Pitango, Genesis, and Gemini Israel, which are raising follow-on funds, declined to respond to the report. (Globes, Batya Feldman 4/20/04)

 
3.12  Intel Israel Makes Breakthrough In Chip Development

Haaretz reported on an announcement by Intel that a team of Israeli researchers at Intel has achieved a breakthrough in chip development that promises to change the world of computing and telecommunications within 5 to 10 years. For the first time, the team succeeded in developing electro-optical chipsets based on silicon wafers capable of converting electronic signals to optic signals within the chip. They have the potential to be mass produced at the same cost as standard electronic chips. Currently, the manufacturing cost of an optical chip (which is not silicon based) runs into hundreds or even thousands of dollars. According to Intel's assessment, the electro-optic chips developed during the past year and a half at the company's Jerusalem facility will replace the standard electronic chips used for communications between computer components, allowing this communication to be conducted at the speed of light - 10 times the current speed. The new development will also change the multi-leg appearance of today's chipsets. Researchers split a beam of light into two separate beams as it passed through silicon, and then used a novel transistor-like device to hit one beam with an electric charge, inducing a `phase shift.' When the two beams of light are recombined, the phase shift induced between the two arms makes the light exiting the chip go on and off at over one gigahertz (one billion bits of data per second), 50 times faster than previously produced on silicon. This on and off pattern of light can be translated into the 1's and 0's needed to transmit data. Though Intel has not yet completed planning the production of the new optical devices, their Kiryat Gat, Israel plant may be involved. (Haaretz18.4)

 
3.13  Atari Launches Online Gaming Subscription Service Using Exent's Turnkey Solution

3.14  GM teaming up with Israel's Surtech
 
General Motors has teamed up with Israel's SurTech, one of many successful companies launched by the Technion Entrepreneurial Incubator Company (TEIC) to implement its new technology for longer-lasting engines.

Based on the research of Prof. Itzhak Etzion of the Faculty of Mechanical Engineering, SurTech's Laser Surfacing Technology (LST) uses lasers to create miniscule pores on the touching surfaces of metal or ceramic components. The pores filled with lubricant serve as reservoirs that lubricate moving parts and reduce contact and friction, thereby reducing wear and tear and prolonging the life of the parts. Israeli companies that have adopted LST have enjoyed a three-fold increase in the life span of the seals they use in their mechanical pumps.

In addition to prolonging the life of metal components, this process makes it possible to replace costly ceramics with less expensive material such as aluminum in certain high performance engines for the automobile and aircraft industries, notes Prof. Etzion. SurTech is also leading a European consortium to improve the performance of engines for the European auto industry. Participants include Volvo, Volkswagen, Peugeot and Fiat. In addition, it is collaborating with Best Equipment of Texas to apply LST technology to mechanical seals. SurTech is one of 56 companies spun off the TEIC, which facilitates the development of innovative research into marketable products. TEIC has generated a stream of high-tech products and processes marketed around the world. (TS 3/04)

3.15  Cisco buys Israeli start-up Riverhead Networks for $40m
 
Sources inform "Globes" that telecom equipment manufacturer Cisco Systems (Nasdaq:CSCO) has acquired Israeli start-up Riverhead Networks for about $40 million. Riverhead Networks develops solutions that provide integrated analysis and enforcement to block Distributed Denial of Service (DDoS) attacks over enterprise networks. The company's investors include Cisco, Gemini Israel Funds, Sequoia Capital, Koor Corporate Venture Capital and Intel Capital.
Distributed denial of service (DDoS) attacks pose perhaps the most serious threat to the Internet and online businesses today. Designed to paralyze systems by swamping servers, links and network devices with malicious, unsolicited traffic, DDoS attacks can quickly bring an organization to its knees, blocking legitimate transactions and preventing users from performing missioncritical operations.

DDoS attacks are costing businesses millions of dollars a month in lost revenue, compromised productivity, and tarnished reputations. A Yankee Group study has noted that 9% of US enterprises are likely to be subjected to DDoS attacks, at a per hour cost of $50,000. Riverhead was founded in 2000 as WanWall, and changed its name during its second funding round. Potential clients include large enterprises, international e-commerce websites, banks and Internet service providers (ISPs). The company's current business model is built on sales of hardware costing hundreds of thousands of dollars.

Initial investors were Gemini Israel Funds and Koor Corporate Venture Capital, who were later joined by Intel Capital. The second round of funding was held last May, at which time the company raised $11 million from the existing investors, together with Sequoia Capital, Cisco and private investors. Prior to this, Cisco had invested in a competing company, Arbor Networks. It is believed that Cisco considered acquiring Arbor but in the end decided on Riverhead.

Riverhead began initial sales in October, 2001. Management felt that the company would require another funding round, but that problem was solved today by Cisco's acquisition. Riverhead Networks CEO Yuval Rachmilevitz was an entrepreneur in residence at the Magnum Communications Fund, before which he was at Gilat Communications (renamed Mentergy). Former chief scientist Dr. Orna Berry is the company chairperson. Upon close of the acquisition, Riverhead will become part of Cisco’s Internet switching business unit, reporting to Luca Cafiero, Senior Vice President, and its products will be sold through Cisco sales channels. (Globes, Guy Hadass 3/22/04)

3.16  Motorola has M-Systems chip in new Linux-based phone for Chinese market
 
M-Systems (Nasdaq:FLSH) today announced that Motorola's (NYSE:MOT) Personal Communications Sector (PCS) is utilizing the Mobile DiskOnChip G3 flash disk as the on-board multimedia memory solution within the A768 mobile handset. The A768, Motorola's latest dual mode mobile smartphone, was introduced into the China market before Spring Festival. M-Systems' Mobile DiskOnChip G3 provides 64 megabytes of data storage within the phone, which is also being introduced in other Asian markets. The Java technology Linux-based A768 handset can store and playback a variety of multimedia content including MP3s, digital still photos and up to one hour of accumulated video. The A768 also has a built-in Chinese and English dictionary, handwriting and speech recognition capability and can create, store and be used to display presentation, spreadsheet and word processing files. The A-768 will compete in China with Linux-based phones from Chinese manufacturer E28, as well as Samsung phones powered by Mizi Linux.

"Inside the small and capability-rich package of our Motorola A768 smartphone, the Mobile DiskOnChip G3 flash disk from M-Systems provides a large amount of storage to enable a long list of features for users to enjoy," said Samuel Li, director, Product Line Management, GSM High Tier Smartphone Product Group, Motorola Personal Communications Sector. "Mobile DiskOnChip G3 was selected ahead of competing solutions because of its small form factor, low cost, ease of integration and reliability." Currently, four out of five top tier handset manufacturers integrate high-capacity, high-density Mobile DiskOnChip within their products. Additionally, two out of three top tier personal data assistants (PDAs) incorporate Mobile DiskOnChip. Motorola says it is the number one manufacturer of handsets in China, where IDC estimates there are 252.3 million current mobile telephone subscribers. By 2007, the Chinese mobile phone market is forecast to reach 371.4 million subscribers. (Globes 3/22/04)

  
3.17  SightLine gets FDA approval for colon cancer device
 
Israeli start-up SightLine Technologies, which develops medical endoscopic systems for diagnosis of diseases of the large intestine, has received approval from the US Food and Drug Administration (FDA), to market its product ColonoSight in the US. The company said that ColonoSight is a system for diagnosis and treatment of colorectal cancer, which is operated using a miniature video camera and light source that is inserted into the colon in order to locate polyps and growths. The system utilizes a proprietary technology that pulls the device into the colon as compared with a standard colonoscopy examination, in which the operator is required to push the device to obtain results. Consequently both the discomfort to the patient and the likelihood of puncturing the colon is reduced. The amount of anesthesia required for the procedure is also lessened.

The device also utilizes a disposable sheath which eliminates the need for disinfection between procedures, and reduces the chance of infection. The company said that the system also enables swift treatment of growths in the colon, and can be used to remove polyps. SightLine has two other products that have previously received FDA approval. To date, SightLine has completed three rounds of funding for a total of $16 million. Boston Scientific participated in the rounds, along with venture capital funds Vitalife, Fishman Group, InvenTech, Pamot and Isratech participated. SightLine has 25 employees. The company’s offices are located in Haifa, Israel. (Globes 3/23/04)

Economic News

4.1  High-tech exports expected to grow 8-13% in 2004
 
High-tech exports will grow by 8-13% this year, predicted Israel Export and International Cooperation Institute chairman Shraga Brosh today. An Export Institute Planning, Control and Economic Research Department analysis stated that high-tech exports rose by 0.8% in 2003 to $8.9 billion. Exports to North America fell by 3%, exports to Asia rose by 11%, and to the EU by 7%. Brosh said that after years of decline, the international telecommunications and semiconductor industries were recovering, technology markets were growing substantially, and Asian countries, especially China and India, were becoming significant export markets for Israeli telecommunications equipment makers.

Telecommunications equipment to North America have fallen by 30% over the past two years to $983 million; pharmaceutical exports have fallen by 6% to $770 million; and electronics exports have fallen by 30% to $756 million. On the other hand exports of medical equipment to North America rose by 62% to $445 million in 2003. High-tech exports to Asia rose by 11% to $1.85 billion. Exports of electronic components to Asia rose by 12% to $815 million and medical equipment exports rose by 119% to $225 million, but exports of telecommunications equipment fell by 12% to $327 million. High-tech exports to the EU rose by 7% to $1.77 billion. Exports of medical equipment rose by 67% to $178 million, exports of pharmaceuticals rose by 51% to $278 million, and exports of electronics rose by 4% to $416 million, but exports of telecommunications equipment fell by 10% to $828 million. High-tech exports to Eastern Europe rose by 10% last year to $235 million. (Globes, Hadas Manor 4/13/04)

 
4.2  MIT reports a 46 percent rise in demand for high-tech personnel in the first quarter of 2004
 
Manpower Israel subsidiary Manpower Information Technology (MIT) has reported a 46 percent rise in demand for high-tech personnel in the first quarter of 2004, compared with the fourth quarter of 2003, GLOBES reported. MIT said that 2004 begun with an increase in demand for personnel for the first year since 2000. The company's survey is based on the help wanted sections of the major daily newspapers. (Israel Line 4/14/03)

4.3  A total of 106,000 tourists arrived in Israel in March 2004

Some 106,000 tourists arrived in Israel in March 2004 - a rise of almost 200 percent in comparison to March 2003, THE JERUSALEM POST reported. "Tourism in Israel is getting better not worse," Tourist Ministry spokesman Golan Yosefion said last month. "There were more tourists in 2003 than in 2002 and we're expecting even more - 1.5 million - this year." (Israel Line 4/21/04)

World News

5.1  Israel and Jordan to Build Environmental Studies Center

Israel and Jordan have agreed to build an environmental studies center on their shared desert border, GLOBES reported. The countries will donate a total of 150 acres of parched land along the frontier, about 30 miles south of the Dead Sea. A private group, Bridging the Rift, will develop the center with two American universities, Cornell and Stanford. Supporters describe it as a serious scientific effort to focus on biological sciences in the desert environment, as well as the kind of bridge-building that was envisioned when Israel and Jordan signed a peace treaty a decade ago. "This is going to be a full-blown operating research center," Cornell's president, Jeffrey S. Lehman said. "We would not be doing this if we did not believe it was a good science project." (Israel Line 2/26/04)

5.2  Industrialist Stef Wertheimer's plan for a 625-acre Israeli-Palestinian industrial park approved

The Southern Regional Planning and Building Board has approved industrialist Stef Wertheimer's plan for a 625-acre Israeli-Palestinian industrial park in the Eshkol Regional Council in the western Negev, GLOBES reported. The industrial park will straddle the Israel-Gaza border near Kerem Shalom. The Israeli industrial zone will include knowledge-intensive high-tech and automated metals and plastics factories, while the Palestinian industrial park will have food, textiles, electronics, software, and pharmaceutical factories. All the factories will be environmentally friendly, and most of the products, from both sides of the industrial park, will be exported. (Israel Line 4/1/04)

 
5.3  Basketball: Hapoel Jerusalem Wins Historic ULEB Cup

The Hapoel Jerusalem basketball team entered Israeli sporting history Tuesday night when it scored an 83-72 victory over Real Madrid to take the ULEB Cup, HA'ARETZ reported. Delighted fans of the team granted a hero's welcome to the squad on their return home this morning. Hapoel Jerusalem, who became the second Israeli team after Maccabi Tel Aviv to win a European trophy, earned the right to participate in the lucrative Euroleague next season. Throngs embraced and kissed the players on their arrival at Ben-Gurion airport, and larger celebrations were expected later during the day in the capital. After the win, Prime Minister Ariel Sharon called Channel One television from the United States to congratulate the team, which he said represented the capital of the Jewish people. "This is the happiest day of my career," Kelly McCarty, the game's MVP, said after the game. "We have achieved the unbelievable."
"The victory is for Jerusalem and for the whole of Israel," Hapoel chairman Danny Klein said. "We have worked for this moment for 10 years. The triumph makes up for all the difficult times we have suffered." (Israel Line 4/14/04)