Elron Electronic Industries Buy Rating Maintained by Dutton Associates

• Press Release
• Source: Elron Electronic Industries
• On 12:57 pm EST, Tuesday November 25, 2008

ROSEVILLE, CA--(MARKET WIRE)--Nov 25, 2008 -- Dutton Associates continues its coverage of Elron Electronic Industries (NasdaqGS:ELRN - News) (TASE: ELRN), maintaining its rating of Buy and a $10 price target. The 27-page report by Dutton senior analyst Barry Raeburn is available at www.jmdutton.com as well as from First Call, Bloomberg, FactSet, Capital IQ, Reuters, and other leading financial portals.

Related Quotes

Symbol	Price	Change
ELRN	6.86	-0.07

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Elron is generally misunderstood, in our view, as evidenced by the wide gap between NAV and stock price. At current price levels, Elron represents a compelling opportunity. It is mis-priced, as the current NAV discount should narrow and possibly turn into a premium over time as group companies evolve and continue their recent growth. There are many positive catalysts in the form of news flow, product developments, and customer activities within group companies that could positively impact Elron's valuation. In addition, if Elron were to monetize any of its private holdings, then NAV accretion due to cash levels would be more than a dollar for dollar basis to account for the private company discounts. We traveled this fall to Israel to visit some of the group companies, to tour facilities, see product demonstrations, and meet management teams. At first glance it is hard to overlook the fact that Elron's group of companies are simply world class. Medingo, BrainsGate and NuLens are on a path to help improve the medical treatments of millions in their respective fields, while their clean water technology companies are rapidly building customer bases in the international markets. Meanwhile Starling has been validated with a $60 million initial order for its broadband satellite technology for commercial aviation markets, 3DV is likely a few quarters away from large initial orders for the video gaming industry.

About Elron Electronic Industries

Elron Electronic Industries Ltd. (NasdaqGS:ELRN - News) (TASE: ELRN), a member of the IDB Holding group, is a leading Israel-based technology holding company directly involved in the long-term performance of its group companies. Elron identifies potential technologies, creates strategic partnerships, secures financing, and recruits highly qualified management teams. Elron's group companies currently comprise a diverse range of publicly-traded and privately held companies primarily in the fields of medical devices, information & communications technology, clean technology and semiconductors. For further information, please visit www.elron.com.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 20 senior analysts are primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 110 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrolment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $127,000 from the Company for 16 quarterly Research Reports with coverage commencing on 9/08/2005. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

     Contact:
      
     Dutton Associates
     John Dutton
     916/960-0623
      
     Elron
     Rinat Remler
     972-3-6075507