Israeli companies have staked a major claim in worldwide communications markets – and the world has taken notice. Israeli telecommunications (telecom) and data communications (datacom) companies are positioned as technological pioneers and market leaders in their respective fields. Israeli communications firms excel in diverse technologies and applications including switching, transmission, access networks, CTI (computer telephony integration), Internet telephony, fiber optics, satellites, xDSL (digital subscriber line), wireless communications, network management, networking and more. Customers of Israeli solutions include leading telecom service providers, telecom equipment vendors, datacom equipment suppliers and prominent corporations worldwide.

The Israeli electronics industry is growing at a rate of roughly 10% per annum in recent years. Total sales increased from $5.9 billion in 1995, to $6.5 billion in 1996, and reached an estimated $7.2 billion in 1997. Electronics exports are growing at an even faster rate, increasing by an estimated 16% in 1997 (accounting for almost 80% of total sales).

The Israeli telecommunications industry is a significant contributor to the growth in electronics exports. Civilian communications accounted for some 30% of total electronics exports in 1995, rising to 37% in 1996, and an estimated 41% in 1997. Israel’s telecommunications industry is a major driving force behind Israel’s strong economic growth of the 1990s.

This industry briefing describes: the market drivers behind worldwide growth of the telecommunications industry, the unique advantages enjoyed by Israeli high-tech firms, and representative success stories from the Israeli telecom and datacom industries.

Significant changes in the worldwide telecommunications industry are creating new opportunities for Israeli companies in the immense and rapidly growing telecom and datacom markets.

Deregulation and privatization: In the telecommunications industry, a major market driver is the broad move toward deregulation and privatization. In recent years, for example, the United States passed the Telecommunication Act of 1996, and 69 member countries of the World Trade Organization reached an agreement in February 1997 on basic telecommunications, with the intention of opening 32 markets by 1998. As of January 1998, the European Union requires member countries to legislate full telecom liberalization. These moves are intended to bring about lower rates, better service and new competition. As a result, new opportunities are arising for telecom equipment vendors who serve both existing and emerging network operators.

New and competing technologies: New transmission and switching technologies are driving worldwide market growth as well. New technologies enable network carriers to both improve existing services and offer advanced services. Once dominated by analog switches and copper wire, telecommunications networks are now based on a multitude of technologies and approaches including fiber optics, hybrid fiber coax (HFC), satellite and wireless access. As PTOs (public telephone operators) increasingly become "service providers" as opposed to mere "network operators," they are transforming into customer-focused organizations determined to improve their level of service on a continuous basis.

Explosive Internet growth: Existing communications infrastructures are bending under the weight of ever-increasing Internet traffic. As a result, equipment vendors and service providers are looking to introduce new solutions to improve service and generate revenues. For example, suppliers of digital subscriber line (xDSL) modems and cable modems are scrambling to deploy their respective systems in order to meet the growing demand for high-speed Internet access. Due to ever-increasing utilization of the Internet, Intranets and Extranets, operators of both public and private networks require high-bandwidth solutions.

These developments are driving worldwide growth in the telecom and datacom industries, and generating new business opportunities for foreign and Israeli suppliers alike.

Yet Israel also possesses unique advantages that help explain the disproportionate success of Israeli telecommunications companies in world markets.

Israel, a relatively young and small country of less than 6 million people, has emerged as a high-technology powerhouse. Israel’s high-tech business community includes some 2,000 companies, with an estimated 200-300 new start-ups opening their doors each year. After the US, Israel has more high-tech start-ups than any other country in the world. With some 100 companies traded in the US, Israel is second only to Canada in terms of foreign presence on US stock markets. Israel has attracted the attention of leading multinational companies who have established foreign subsidiaries and R&D centers in Israel, including Motorola, Intel, Digital Equipment, IBM, National Semiconductor and Microsoft. Major foreign firms have also stepped up their merger and acquisition activities in Israel in recent years; examples in the field of communications include 3COM’s acquisition of Nicecom, Siemens’ acquisition of Ornet, Bay Network’s acquisition of Armon Networking, and the merger between Madge and Lannet. Direct foreign investment in Israel increased dramatically from under $400 million in 1991 to over $2 billion in 1995. What are the reasons behind these impressive achievements?

Educated and trained work force: The high caliber of the Israeli work force is a national asset. Israel leads the world in the number of scientists and technicians in the work force, with 140 per 10,000 (as opposed to 80 in the US, over 70 in Japan, and less than 60 in Germany). With over 25% of its work force employed in technical professions, Israel places first in this category as well. Israel also ranks first in the number of scientific publications per capita, well ahead of the US and Canada. A number of factors account for the high quality of Israel’s human resources. First, Israeli universities and research institutions, such as the Technion and the Weizmann Institute of Science, have a world-class reputation. Second, compulsory military service in the Israel Defense Forces (IDF) confers practical technical experience and stresses the importance of effective teamwork; many Israeli entrepreneurial teams previously served together in elite IDF development units. Third, the massive influx of over 700,000 immigrants from the former Soviet Union in the 1990s has included a large percentage of scientists, engineers and technicians, with over 50% of immigrants holding university degrees. Fourth, a large number of Israeli engineers and managers with international work experience in the US and Europe have returned home to contribute their skills to Israeli high-tech companies.

Transition from military to civilian markets: Technologies originally developed by the Israeli defense industry have served as an important growth catalyst for Israel’s civilian electronics sector in general, and for the telecom and datacom sectors in particular. Leading civilian companies such as Tadiran Telecommunications, ECI Telecom, and Efrat Future Technology have all successfully commercialized advanced technologies originally developed for defense applications. Given the structural changes in the defense industry in Israel and around the world, highly-trained engineers and technicians have migrated from the Israeli defense sector to the great benefit of civilian telecom and datacom companies.

Active government support of R&D: The Israeli government, mainly through the Office of the Chief Scientist (OCS) in the Ministry of Industry and Trade, provides substantial assistance to high-tech companies. Qualified companies can receive funding for 50% of gross R&D expenses, later repaid on a royalty basis. In recent years, the OCS has been funding over 1,000 projects per year with a budget of some $250-$300 million. The OCS also supports over 200 start-up companies in 27 technological incubators throughout the country. Moreover, the OCS funds consortiums developing generic technologies, including projects on digital wireless, satellite systems, broadband telecommunications and network management. Thanks in no small part to government policy, Israel leads the world in R&D investment as a percentage of GDP, averaging between 2.5–3.0% in recent years.

International ties and economic cooperation: Israel benefits from strong and growing economic ties with the world’s major economic powers and trading blocks. Israel enjoys a unique combination of free trade agreements with the US and Europe, its two major trading partners. The governments of Israel and the United States support the Binational Industrial R&D Foundation (BIRD-F), where pairs of Israeli and American companies receive matching funds for joint R&D projects. Teams of Israeli and European companies can receive financial assistance from the European Commission’s ESPRIT Information Technologies Programme. With the advance of the peace process and the end of economic embargoes, Israel is penetrating key new markets such as China and India.

Dynamic venture capital industry: During the 1990s, a large and vibrant venture capital industry has emerged in Israel. While this VC industry first developed largely as a result of the above factors, VC funds in turn have promoted the formation and success of Israeli high-tech start-ups. By the end of 1996, the Israeli VC industry had raised some $1.5 billion, with capital intended for technology-led companies accounting for some $800 million. Already the largest VC industry outside of the US, Israeli VC fund managers are expected to raise an additional $500 million to $1.5 billion in the coming years.

Advanced local telecom infrastructure: Israel’s national telecommunications infrastructure allows high-tech companies to compete on an equal basis with their competitors abroad. Israel has a telephony penetration rate of 45% (main lines per 100 inhabitants). Bezeq, Israel’s national public telephone operator, has made impressive advances in recent years, providing customers with a diverse basket of advanced services. Bezeq completed the digitalization process in 1996, and Israel is now one of a few countries in the world to have a 100% digital network (with much of the switching equipment supplied by Israeli vendors). Israel’s digital network includes country-wide deployment of ISDN lines and fiber. The Israeli government plans to reduce its holdings in Bezeq (initially from about 63% to 52%, and even more subsequently). The government also intends to end Bezeq’s monopoly in local telephony service after 1998. The long-distance market has already been liberalized, with two new operators – Barak (partially owned by the GlobalOne Partnership of Sprint, Deutsche Telekom and France Telecom) and Golden Lines (partially owned by Southwestern Bell and Italy’s STET) – now competing with Bezeq International (an independently-operated Bezeq subsidiary). On the cellular front, Pelephone (a joint venture of Bezeq and Motorola Israel) and Cellcom (a joint venture partially owned by BellSouth) served some 1.6 million subscribers in late 1997. As a ratio of cellular subscribers to the number of main lines, Israel has a penetration rate over 60% (1.6 million subscribers to 2.6 million main lines), the highest such rate in the world. The Ministry of Communications plans to issue a third cellular license to an operator using GSM digital technology. Israel also has some 1 million cable subscribers, accounting for 70% of passed households (with 90% of the country having CATV coverage). With the launching of the AMOS commercial telecommunications satellite in May 1996 by Israel Aircraft Industries, Israel enjoys domestic satellite services for television, radio and data transmission. Finally, Israel has an estimated 200,000 Internet users (in late 1997), with the number of users increasing at a rate of 5-7% per month. Israel’s advanced communications infrastructure facilitates the growth of Israeli high-tech firms.

Sophisticated local telecom market: In addition to the above factors that strengthen the entire Israeli high-tech industry, telecom companies in particular benefit from Israel’s sophisticated local telecom market. The Israeli market has served as fertile testing grounds for telecom companies offering advanced solutions to Bezeq, as well as Israel’s cellular and CATV operators. Indeed, numerous companies that initially provided solutions for the local market subsequently built upon that experience to better penetrate overseas markets.

The following brief profiles illustrate the breadth and quality of technologies, products and applications offered by Israeli telecom and datacom companies. Ranging from established, publicly-traded companies with market leadership positions to innovative start-ups pioneering new technologies, these firms represent some of Israel’s "best and brightest" players in the communications industry. Highlighted companies excel in the areas of switching and transmission, CTI (computer telephony integration) and Internet telephony, satellite and wireless communications, broadband transmission and Internet access, network management and billing, and data communications and networking. This briefing, by necessity, covers only a limited number of representative companies.

ECI Telecom Ltd. (NASDAQ:ECILF) is one of Israel’s leading telecommunications success stories. ECI’s telecom and networking systems have been deployed by telephone operating companies – including AT&T, MCI, British Telecom and Deutsche Telekom –and corporate clients in over 140 countries worldwide. ECI is the DCME (digital circuit multiplication equipment) market leader, with an estimated 70-80% market share. ECI’s DCME solutions expand the capacity of analog and digital telecom systems, including fiber-optic and satellite networks. While DCME sales remain strong, ECI’s future growth will be driven largely by its other three strategic business units: Access Network Products, SDH (synchronous digital hierarchy) Transmission Solutions, and Telematics Wide Area Network & Switching Solutions. ECI’s sales growth has averaged 30% over the last decade. In 1996, sales reached $588 million, with net income of $101 million. Exports account for some 95% of sales. ECI employed some 2,800 people in 1996, with R&D personnel accounting for some 30% of staff.

Tadiran Telecommunications Ltd. (NASDAQ: TTELF) is a worldwide provider of telecom systems and equipment. TTL specializes in a variety of fields such as digital public switching, transport and access systems, data communications, multiplexing equipment, wireless local loop, business telecom systems and computer telephony integration. TTL has engaged in strategic alliances and marketing agreements with world leaders in communications including Newbridge, Hughes Network Systems, Raychem, DSC and IBM. The majority of TTL’s shares are held by Tadiran Ltd., Israel’s largest electronics company (which, in turn, is a subsidiary of Koor Industries, Israel’s largest industrial conglomerate). TTL’s revenues have been increasing by over 20% in recent years, growing from $308 million in 1994, to $387 million in 1995, and reaching $468 million in 1996 (with net income of $41 million). TTL staff numbered 2,700 in 1996, with engineers and technicians accounting for over 60% of staff.

Telrad Telecommunication & Electronic Industries Ltd., one of Israel’s leading telecommunications companies, manufactures public and private switching systems, SONET and SDH transmission products, ATM and frame relay switches and customer premises equipment. In light of a successful strategic OEM partnership with Nortel, one of the world’s giant suppliers of telecom equipment and services (with 1996 sales of almost $13 billion), Nortel acquired 20% of Telrad for $45 million in early 1997. Telrad is majority-owned by Koor Industries, Israel’s largest industrial conglomerate. Telrad has supplied the majority of digital exchanges installed in Israel, and the company’s public switches have been installed in networks worldwide. Telrad achieved revenues of $470 million in 1996, up 18% from $397 million in 1995. Telrad employs some 3,000 people, with engineers accounting for about 50% of total staff.

Teledata Communications Ltd. (NASDAQ: TLDCF) specializes in sophisticated access network (local loop) solutions. Teledata’s products enable telephone companies to multiply the number of served subscribers, without costly and time-consuming investments in additional infrastructure. Teledata’s flagship product is a versatile digital multiplexing concentrator that can interface with all transmission media: copper (analog or digital transmission), fiber-optic cable (in a fiber-to-the-curb digital loop), or radio (analog or digital). Other local loop solutions include a digital pair gain system serving up to 10 subscribers through a single twisted pair, a multiplexer providing ISDN and ordinary telephone services for up to 120 subscribers, and a wireless access system for rural or isolated telephone subscribers. Teledata has sold its products to telephone operators and service providers in some 45 countries worldwide. Teledata completed an IPO in 1992 and a successful secondary offering in 1997. The company’s revenues reached $57 million in 1996 (with net income of $7 million), an increase in sales of over 75% from 1995. Teledata employs some 230 people.

Efrat Future Technology, a subsidiary of Comverse Technology Inc. (NASDAQ: CMVT), is a leading provider of specialized telecommunications processing systems. Efrat was a market pioneer in voice mail systems that integrate voice and facsimile transmission, and is the world’s third-largest firm in the voice mail market. Efrat’s systems provide a platform for revenue-generating value-added services such as voice mail, fax mail, integrated voice/fax mail, voice/fax information services and voice-activated dialing. These systems have been installed by more than 125 phone companies worldwide, and are distributed by leading corporations such as Siemens, Lucent, Nokia, Ericsson, and Motorola.

Efrat also provides law enforcement and intelligence agencies with an office automation environment for monitoring, recording and archiving audio in digital format on magnetic and optical disks. In 1996, Comverse reached total revenues of $207 million and net income of $28 million, up 42% and 64%, respectively, from 1995. Efrat employs 1,150 people (out of some 1,450 employed by Comverse), including an R&D team of over 300 scientists and engineers.

NICE Systems Ltd. (NASDAQ: NICEY) is a leading global supplier of CTI (computer telephony integrated) logging, monitoring, and management solutions for voice, fax and data. NICE holds a leadership position with its voice logging solutions in the financial trading floor and air traffic control sectors. Leading customers include Citibank, Chase Manhattan Bank, and the US Federal Aviation Administration (FAA). The company is expanding into other key markets such as call centers, public safety and security centers and law firms. NICE also specializes in communications intelligence (COMINT) systems for governmental and military agencies. Headquartered in Tel Aviv, NICE has subsidiaries in Germany and the US (as well as two additional US sales offices). The company has a growing global network of sales, marketing and support channels in Europe, Latin America, the Far East and Southeast Asia. The company’s revenues have been expanding rapidly, growing over 130 percent to $21 million in 1995, and almost doubling to $39.8 million in 1996 (with net income of $5.2 million).

VocalTec Communications Ltd. (NASDAQ: VOCLF) pioneered the market for Internet telephony with the introduction of its Internet Phone in 1995. VocalTec software enables audio, video, data, text and collaborative communications between personal computers and other devices over the Internet. In addition to Internet Phone, other core products include a telephony gateway server and conferencing suite. A 1997 Frost & Sullivan report named VocalTec the IP telephony leader with 79% market share in the carrier and consumer segments. A report by International Data Corp. (IDC) projects the Internet telephony market to grow rapidly and reach revenues of $550 million by the end of 1999, and foresees VocalTec maintaining its position as market leader. Deutsche Telekom, Europe’s largest telecommunications company and the world’s third largest carrier, finalized an agreement with VocalTec in December 1997 to acquire a 21.7% stake in the company, and will purchase more than $30 million in VocalTec’s products and services. VocalTec is experiencing rapid growth, with revenues increasing from $2.5 million in 1995, to $8.5 million in 1996, and reaching $15.7 million in 1997.

Gilat Satellite Networks Ltd. (NASDAQ: GILTF) is the world’s number two VSAT (very small aperture terminal) firm, and the fastest growing company in its field. Gilat supplies VSAT satellite earth stations, related hub equipment and software. Gilat’s products – providing data delivery, paging services, satellite telephony and Internet access – are incorporated into telecom networks that provide satellite-based communications between a central location and a large number of geographically dispersed sites. Gilat has a strategic partnership with GE Spacenet, a leader in satellite-based VSAT communications networks and services. In December 1996, Gilat acquired Skydata Inc., a US-based VSAT firm specializing in the paging and data broadcast markets. Gilat’s market share is growing rapidly, increasing from 15% in 1994 to 25% in 1995 and 37% in 1996. Gilat has installed over 30,000 VSATs in only four years, and has an ongoing production rate of over 1,300 VSATs per month. With headquarters in Israel, Gilat has five international offices. Gilat achieved revenues of $74 million in 1996, an increase of over 35% from sales of $54.5 million in 1995.

Foxcom is a privately held corporation that provides broadband RF fiber-optic transmission systems serving the satellite and wireless industries. Foxcom’s fiber-optic links connect antennas to control rooms and base stations in satcom, cellular, PCS and wireless applications worldwide. Foxcom’s customer base includes leading corporations and network service providers such as Hughes Aircraft, Bell South, British Telecom and Siemens-Plessey. Recent venture capital funding of $4 million has enabled the expansion of production capacity and entry into new growth markets. Founded in 1993, Foxcom is growing rapidly, and has more than doubled in size in recent years. At the end of 1997, the company employed some 50 people.

WaveAccess Ltd., a privately held company, specializes in wireless data networking systems for indoor and outdoor applications based on digital frequency-hopping spread-spectrum technology. WaveAccess currently markets three families of products: wireless LAN systems for indoor networking, point-to-point interconnect systems used for linking sites up to 20 miles apart, and point-to-multipoint Internet access systems able to support links of up to 10 miles. Founded in 1993, the company (previously named AirAccess) maintains offices in the US and Israel. Present shareholders include international and Israeli venture capital funds, as well as Telxon Corporation (NASDAQ: TLXN).

Orckit Communications Ltd. (NASDAQ: ORCTF) supplies high-speed digital modems for broadband transmission systems in the local loop on existing copper wires. Orckit has enjoyed widespread industry recognition, and received BYTE magazine’s award for Best Communications Hardware at CeBIT ‘97. Based on xDSL (digital subscriber line) technologies, Orckit’s systems enable telecom service operators to offer new services such as extremely fast Internet connection, interactive multimedia applications and ATM to the home. Orckit offers a complete family of xDSL products: ADSL (asymmetric DSL), SDSL (single line DSL), HDSL (high bit rate DSL) and VDSL (very high bit rate DSL). Orckit has entered into strategic partnerships with Fujitsu, Rockwell and Siemens. Founded in 1990, Orckit is experiencing rapid growth in recent years. Sales have been increasing more than 100% per annum – growing from less than $7 million in 1995, to $13.7 million in 1996, and reaching $27.5 million in 1997.

New Media Communication Ltd., a subsidiary of Harmonic Lightwaves, Inc. (NASDAQ: HLIT), specializes in high-speed data delivery software and hardware technology. New Media’s broadband data communication system provides fast Internet access and other data services to PCs via existing cable TV, wireless cable and satellite infrastructures. New Media has software development and hardware manufacturing partnerships with IBM and Rockwell, respectively. Customers include cable, satellite and wireless operators in the US, Europe, Asia and the Middle East. New Media is based in Israel with a sales office in the US. The company numbers some 16 employees. Harmonic Lightwaves completed its acquisition of New Media in early 1998. Harmonic is a supplier of communications systems for delivering video, audio and data via hybrid fiber/coax (HFC), satellite and wireless networks. Harmonic reported sales of $74.4 million in 1997, an increase of 22% from $60.9 million in 1996. Based out of the US, Harmonic also runs an R&D facility in Israel. Harmonic Lightwaves employs over 250 people.

Libit Signal Processing Ltd. is a privately held company specializing in modem technologies and products for advanced digital communication applications. Libit’s CATV modems product line consists of IC (integrated circuit) modem devices that enable digital video broadcasting and fast Internet access at data rates of tens of Mbps over the cable TV infrastructure. Based on a proprietary core modem technology and powerful algorithms, this line is targeted at cable modem and set-top box manufacturers. Libit is considered the number two provider in the emerging market for cable modem chips based on the DOCSIS (Data Over Cable Service Interface Specification) / MCNS (Multimedia Cable Network System) standard. Libit has also developed, in cooperation with Analog Devices, a complete v.34+ modem technology. The company employs more than 35 engineers experienced in modem design and implementation.

Team Telecom International Ltd. (NASDAQ: TTILF) delivers advanced network management solutions to operators of wireline, wireless, cellular and SS7 networks. TTI’s solutions present telecom operators with a complete and accurate picture of the network, allowing them to monitor, analyze and control network management systems and layers. TTI’s international base of customers include national public telephone operators (PTOs), long distance carriers, local exchange carriers (LECs), competitive access providers (CAPs) and cellular network operators, as well as leading telecom equipment vendors. TTI has collaborated with leading vendors of complementary telecom equipment including Nortel, Motorola, ECI Telecom and Siemens. TTI has grown rapidly since its establishment in 1992, with staff increasing ten-fold from 15 employees in 1993 to over 150 employees at the end of 1997. Revenues grew from $1.9 million in 1993 to $4.0 million in 1995, and reached $7.8 million in 1996.

Wiztec Solutions Ltd. (NASDAQ: WIZTF) offers subscriber management and billing systems for multi-channel subscription television operators. Wiztec systems incorporate subscriber management functions such as billing, collection, customer service, work order processing, equipment inventory control and customer analysis for target marketing. Wiztec’s systems are installed in seven languages at some 100 cable, wireless and satellite TV operations worldwide. Headquartered in Israel, Wiztec has subsidiary offices in the US and Australia. Founded in 1991, Wiztec is partially owned by the Formula Group, an Israeli software house employing more than 1,500 software professionals with aggregate revenues of over $200 million. In 1997, CBIS, a subsidiary of Cincinnati Bell Inc. and a major US player in the wireless, wireline, cable and satellite billing markets, purchased nearly 20% of Wiztec for some $11 million. The two companies also signed a worldwide marketing agreement and agreed to jointly develop next-generation customer care and billing solutions for the cable, broadband and satellite markets. Revenues have increased rapidly, growing from $1.3 million in 1994 to $5.7 million in 1995, and reaching $8.3 million in 1996 (with net income of $1.6 million).

MIND C.T.I. Ltd. is a private company that supplies the telecom industry with call management and billing software. MIND’s solutions for telephony and billing management includes a range of telemanagement products from basic call accounting to traffic analysis and Internet telephony billing solutions.

The company has adopted a strategy of forming partnerships and OEM agreements with other corporations such as Ericsson. MIND’s customers include corporations, telephony service providers and PBX manufacturers, and the company has more than 3,000 installations worldwide. The company’s products are available in six major European languages, with additional languages to be added. Headquartered in Israel, MIND has incorporated a US branch. MIND is owned by the company’s founders and personnel, as well as by Teledata Communications Ltd. (NASDAQ: TLDCF), a leading provider of access network (local loop) systems. Sales have doubled annually for the past three years.

Data Communications and Networking

Nbase Communications, a division of MRV Communications Inc. (NASDAQ: MRVC), supplies high-speed network switching and fiber-optic transmission systems which enhance the performance of existing data and telecommunications networks. MRV’s networking products are marketed under the Nbase trademark. MRV is engaged in strategic partnerships with Intel, Fujitsu, DEC and Newbridge. MRV has grown rapidly due to continued innovation and strategic acquisitions. Among its recent acquisitions, MRV acquired the Israeli networking firms Galcom, Ace and Fibronics. MRV was named one of the fasting growing technology firms in Deloitte & Touche’s "1997 Technology Fast 500" list announced in Red Herring magazine. Sales have increased by over 120% per year in 1994, 1995, and 1996, with revenues reaching $88.8 million in 1996.

The RAD Group is a $250 million family of 15 independent companies serving diverse markets and technology niches within the networking and data communications industry. Representative companies include:

Lannet is a leading supplier of switching solutions to Ethernet customers migrating their networks to switching technology and implementing high-speed Gigabit Ethernet, ATM and multilayer networks. Headquartered in Tel Aviv, Lannet is a wholly-owned subsidiary of Madge Networks N.V. (NASDAQ: MADGF), a worldwide supplier of advanced networking solutions. Established in 1985, Lannet was acquired by Madge in November 1995, then becoming Madge’s Ethernet products division.

In November 1997, Madge announced its decision to relaunch Lannet as an autonomous subsidiary, in order to leverage the strong reputation of the Lannet brand. Lannet has a number of partnerships with leading companies such as NEC, Mitel and Lucent Technologies. With a strong international base of customers, Lannet maintains sales and support offices worldwide. Madge achieved revenues of $482 million in 1996, an increase of 20% from 1995.

The mission of the Israel Export Institute (IEI) is to promote Israel’s exports. Founded in 1958, the IEI is a non-profit body supported by the State of Israel and 2,400 member firms. By providing a range of export-oriented services to Israeli companies and active assistance to the international business community, the IEI helps build successful strategic alliances, joint ventures and trade ties. For further information please contact: Mr. Shalom Pollack, Executive – Telecommunications; telephone: +972-3-514-2839; fax: +972-3-514-2881; e-mail: pollack@export.gov.il.; website: www.export.gov.il; mail: Israel Export Institute, 29 Hamered St., POB 50084, Tel Aviv 68125, Israel.

Israel Trade Commission, Sydney (your local representative)

If you require any further assistance or information please do not hesitate to contact Mr Gil Erez, Trade Commissioner ( (02) 9264 7933 or Fax (02) 9262 5242 or 7 israel@zip.com.au * Level 6, 37 York Street Sydney NSW 2000.

For more information or a catalogue on Israeli IT, contact the Israel Trade Commission .