Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (2716)	9/21/2000 7:55:14 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

CSCO--Elron Announces That Elbit Ltd. Completed the Sale of HyNEX To Cisco HAIFA, Israel--(BUSINESS WIRE)--Sept. 21, 2000--Elron Electronic Industries Ltd. (NASDAQ:ELRNF - news) a leading multinational high technology holding company, announced today that Elbit Ltd. (``Elbit'') (NASDAQ:ELBTF - news), in which Elron holds approximately 42%, announced that the closing of the sale of the assets, properties, rights and certain liabilities of Elbit's subsidiary, HyNEX Ltd. (``HyNEX'') to Cisco Systems Inc. (``Cisco'') (NASDAQ:CSCO - news) was completed on September 20. Cisco has paid a purchase price of approximately $129 million, of which approximately $11 million was in cash to HyNEX and used to repay a shareholder's loan made to HyNEX by Elbit and the remainder was in Cisco shares. The closing took place pursuant to the terms of a definitive agreement among the parities. Under the agreement, Cisco shares, representing approximately $12 million from the overall purchase price, have been deposited for a twelve-month period in an escrow account, to secure representations and performance of contractual obligations of HyNEX and its shareholders. Cisco has undertaken to register for sale those shares that form part of the transaction consideration between 30 to 60 days following the closing of the transaction. Until the registration and the sale of the shares, they will be subject to stock price fluctuations. HyNEX intends to sell its Cisco shares, including the escrowed shares following their release from escrow, and distribute the proceeds to its shareholders by way of dividend. Subject to the release of the escrowed shares, distribution of the dividend and dissolution of HyNEX, Elbit's net proceeds, after tax, from the transaction are estimated at approximately $63 million and Elbit will record a net capital gain of approximately $47 million. Elron's share in Elbit's capital gain amounts to approximately $19.5 million. Elron Electronic Industries Ltd. is a multinational high technology holding company based in Israel. Through affiliates, Elron is engaged with a group of high technology operating companies in the fields of advanced defense electronics, communication, software, information technology and semiconductors. For further information, visit elron.com Any statements in this press release that may be considered forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements due to the risk factors discussed in periodic reports filed by the Company with the Securities and Exchange Commission which the Company urges investors to consider.