Intel Capital Invests $11 Million in Jordan Valley

October 16, 2007

Investment Demonstrates Intel Capital’s Commitment to Israel and Innovation

Austin, TX, October 16, 2007

Intel Capital, Intel's global investment organization, today announced that it is the sole investor in a US$11 million round of funding into Jordan Valley Semiconductors Ltd. In return, Intel Capital will receive a significant stake in the Israeli company. Jordan Valley has been developing tools for semiconductor metrology based on X-ray technology for over 12 years and is a leader in this rapidly evolving segment with offices in the Middle East, U.S., Europe and Asia.

“Intel Capital has a strong history of investing in Israel,” said Arvind Sodhani, president of Intel Capital. “A great deal of innovation is being fostered in this region and Jordan Valley represents a financially attractive investment opportunity that falls in line with our strategy to invest in pioneering technology worldwide.”

“We are delighted to have secured funding from Intel Capital,” said Isaac Mazor, CEO of Jordan Valley. “Working with Intel Capital significantly increases our profile in the industry and enables us to take full advantage of existing and new growth opportunities. From our perspective, this can only help to further expand our leadership position in the market while enabling us to accelerate technology and product development.”

The advanced X-ray metrology solutions from Jordan Valley enable accurate and precise measurements for various thin-film applications in semiconductor manufacturing, and drive new advancements for the technology industry.

“Jordan Valley provides a very exciting addition to our portfolio,” said Heiko von Dewitz, investment director of Intel Capital in charge of Intel Capital’s semiconductor investments in Europe and Israel. “Semiconductor manufacturing is an industry with an ever growing demand for innovation, which creates huge growth potential for breakthrough technologies. Intel Capital’s investment in Jordan Valley aims to take advantage of such an opportunity with X-ray metrology having reached an inflection point for broad industry adoption.”

About Intel Capital

Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing and cleantech. Since 1991, Intel Capital has invested more than US$6 billion in approximately 1,000 companies in more than 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com .

About Jordan Valley

Jordan Valley Semiconductors Ltd provides semiconductor metrology solutions for thin films based on novel, rapid, non-contacting, and non-destructive X-ray technology. They offer a comprehensive family of solutions based on advanced X-Ray Reflectivity (XRR), X-Ray Fluorescence (XRF), and Small Angle X-Ray Scattering (SAXS) technologies. These tools are fully automated, production ready, and ideal for both blanket and patterned wafers. Jordan Valley’s X-ray technology enables accurate and precise characterization of all film types—including single layers and multilayer stacks, high k and low k materials, metals and dielectrics, amorphous, poly-crystal and single-crystal films. Jordan Valley’s primary shareholders are Elron Electronic Industries Ltd. (NASDAQ: ELRN) and Clal Industries and Investments Ltd. (TASE: CII). Research, development, and manufacturing are based in Migdal Ha´Emek, Israel. Applications engineering, customer support services and marketing are located in Austin, Texas. www.jordanvalleysemi.com .