Partnering for Progress BIRD: 30 Years of Collaboration 1977 - 2007

BIRD Foundation

Israel-U.S. Binational Industrial Research and Development Foundation Kiryat Atidim, Building 4, P.O. Box 58054, Tel-Aviv 61580, Tel: 972-3-647-0710, Fax: 972-3-649-8341 www.birdf.com

© 2007 BIRD Foundation. All rights reserved.

Notice: The material contained in this publication is the exclusive property of the BIRD Foundation and may not be used, captured or reproduced in any way whatsoever, either manually or electronically, except for purposes of literary review, or as approved in writing by the copyright owners. The BIRD Foundation assumes no responsibly for the use of information contained in this publication or for any outcome resulting from such use. All denoted product and/or company names are trademarks or registered trademarks of their respective owners, whether marked as such or not. Acknowledgements I would like to use this opportunity to express my gratitude to the people who have contributed to this project. First, to the BIRD team and specially the BIRD Task Force, including Mr. Shlomo Cohen, Ms. Chava Doukhan, Ms. Einat Spivak (lead) and Dr. Yuval Weiss. Ms. Limor Nakar-Vincent and Ms. Michal Miasnik supported the effort from the U.S. Shlomo’s know-how, memory and thoroughness have been indispensable for the successful outcome of the project (Shlomo Cohen is BIRD’s CFO). Mr. Paul Baris, BIRD’s legal counsel for many years, provided important historical material. I thank the littlebig team (who designed the book, conducted the interviews, wrote the material and managed production) for the great spirit and creative talents they brought to this project. Special thanks to Ms. Magdalena Navarro from NIST for her help and support. Finally, I am grateful to all those who accepted our requests for meetings and interviews as well as those who sent messages for us to quote in the book and thereby made this project possible.

Eitan Yudilevich, Ph.D. Executive Director, BIRD Foundation Tel-Aviv, June 2007 CONTENTS Contents

Foreword 4 Winners & Success Stories 40 Dr. Eli Opper – Marc G. Stanley 4 Ambassador Tom Pickering 5 Heard about BIRD ... 46

History 6 The Future 50 An Historical Overview 6 The Inaugural Meeting 7 Dr. Eitan Yudilevich BIRD – Historical Time Line 8 Executive Director, BIRD Foundation

Founders, Movers & Shakers 10 Appendix 52 1977 – A Year of Wonders 10 BIRD’s Approach – Summary 52 Prof. Itzhak “Yatza” Yaakov 12 BIRD’s Performance 52 Dr. Betsy Ancker-Johnson 14 Board of Governors 53 Dr. David Chang 16 Advisors 53 Dr. Jordan J. Baruch 17 Employees 53 Dr. Yossi Vardi 18 Former Board of Governors Members 53 Eitan Raff 19 Former Advisors 53 Uzia Galil 20 Former Executive Directors 53 Dr. Ed Mlavsky 22 Former Employees 53 Dan Halperin 24 Israeli Grantees 53 Dr. D. Bruce Merrifield 26 U.S. Grantees 55 Dan Tolkowsky 28 Yigal Erlich 30 Yarom Ariav 32 Dan Vilenski 34 Dr. Stanley Abramowitz 36 Dr. Orna Berry 38 Dov Hershberg 39 CONTENTS FOREWORD Thank you again for inviting us joinoccasionto this in with you. Israel that anniversary make 50th the celebration will even more spectacular! successes and anticipate getting back to work establishing partnerships United the between States and agreements Israel between and other countries around we pause So briefly globe. the to enjoy BIRD’s The BIRD Foundation a been has role in establishingmodel a network of bilateral R&D foundations and translated great into ideas tangible that goods improve lives the of real ways. day our citizens invery every in an increasingly competitive setting. Most global importantly, successes the of our joint efforts have exciting technologies new from mere concepts inalab to products that strengthen our countries’ positions an environment of cooperation and collaboration, Israeli and U.S. companies have able been to move public-private partnerships to enable innovation and competitiveness our inboth countries. By fostering The BIRD Foundation has played a major rolewith in championingU.S. industry the importance of forward to challenges new that await your participation. occasions like it this, appropriate is both and important to reflect upon many the past successes and look We are delighted and honored to anniversary join 30th inthe celebration of BIRD the Foundation. On (NIST), U.S. Department of Commerce Director, Advanced Technology Program, National Institute of Standards and Technology Marc G.Stanley Chief Scientist, Israel Ministry of Industry, Trade and Labor Dr. EliOpper

Ambassador Tom Pickering Former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs and Member of the Board of Governors 1978 – 1980

I had the pleasure of being a Member of the Board of Governors of the BIRD Foundation in the early years of its development and then was able to watch the Foundation and its accomplishments as U.S. Ambassador to Israel from mid-1985 until the end of 1988. In the 1970’s and early 1980’s the Foundation made superb choices of projects, a number of which led to real success. It was an interesting time for someone with primarily diplomatic credentials to serve on the board. I was lucky to have had an interest in science and engineering which served me well in my efforts to understand the projects, their potential and the pay-off. Taking basic ideas with committed Israeli and American partners and turning them, through the industrialization phase, into successful commercial projects was not easy, but this was the hallmark of BIRD’s success. May it continue to go from strength to strength over the next 30 years.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 5 HISTORY Source BIRDF Annual Report 1978 during March 1976,as an autonomous, voluntary Economic Growth of Israel (CEG-I)was formed initiative place.Committee was taking The forthe governments, another significant private sector As discussions continued two the between for establishment the of Foundation. the support to Joint the Committee during negotiations industry, was instrumental inproviding advice and development executives from U.S. both and Israeli Thisgroup, composed of leading research and Israeli scientific and technological enterprises. formed to promote U.S. between closer links and In February 1975aprivate group sector had been March 3,1976. Israel Finance Minister Yehoshua Rabinowitz, on of Treasury the Secretary William Simon and by establish Foundation the by was signed U.S. 1975 and early 1976.The initial agreement to nations, with discussions beingheld throughout promote closer economic two the between ties twothe governments. Its task was to find ways to Investment and Trade, staffed by representatives of States and Israel established ajoint Committee for to July governments the 1974,when of United the The genesis the of BIRD Foundationdates back $110 million. benefit. In 1984,the endowment was increased to industrial research and development for mutual country to support and promote joint non-defense endowment of $60million; $30million from each – was formally established on May 18,1977with an Research and Development Foundation –BIRD The Israel-United States Binational Industrial PerspectiveIn –pre-1977 Overview An Historical

firms willing tofirms willing cooperate with Israeli companies communities, out CEG-Ibegan to seek American of business people invarious United States Working through anetwork task forces of local investment inIsrael. people joined who forces to promote and exports organization of American and Israeli business Ambassador Dinitz. of Treasury the Secretary Bergsten and with exchange the of letters Assistant between ceremony inWashington D.C. on May 18,1977, The Foundation was formally established ina endowment. funding of Israeli the portion of Foundation’s the , the time Israel’s parliament, authorized the by President on Carter May 4,1977.At same the Development Foundation. This into was signed law Israel-U.S. Binational Industrial Research and legislationthe providing funding the for the In late April U.S. 1977,the Congress passed Americanbetween and Israeli firms. of proposals and suggestions for joint cooperation visitedCouncil Israel and returned with aseries Mark Mosevics, Chairman Board of Elite Ltd. The George W. Romney and Israeli the by Section The was Section headed the by U.S. Honorable holding its inaugural meeting inJune 1976. executives of Israeli and U.S. industrial corporations Israel-U.S.the Business Council, composed of top cooperation Israeli between and U.S. firms with The privatesector again showed its support for for mutual benefit.

The Inaugural Meeting Held in July 1977, Department of Commerce, Washington D.C., attended by the Board of Governors of the Foundation and advisors. Members of the Board of Governors were: For the United States: • Dr. Jordan J. Baruch, Assistant Secretary of Commerce for Science and Technology • Dr. C. Fred Bergsten, Assistant Secretary of the Treasury for International Affairs • Patsy T. Mink, Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs For Israel: • Dr. Moshe Mandelbaum, Director General of the Ministry of Industry, Trade and Tourism • Amiram Sivan, Director General of the Ministry of Finance • Professor Itzhak Yaakov (“Yatza”), Chief Scientist of the Ministry of Industry, Trade and Tourism Professor Yaakov was elected as Chairman of the Board; A. Wade Blackman, Jr. was elected as the first Executive Director of BIRD. In 1979, Dr. Ed Mlavsky, who was a Member of the BIRD Council prior to the inception of the Foundation, became the Executive Director of BIRD. Under his leadership, BIRD became a pillar of the emerging hi-tech industry in Israel.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 7 HISTORY May 18,1977 April 1977 June 1976 March 1976 May 1975 Date July 1974 May 4,1977 February 1975 Historical DevelopmentHistorical oftheBIRDFoundation Private Sector Activities Committee for Economic the Israel-U.S. Business Council Council providedCouncil advice Growth of Israel formed BIRD Council formedBIRD Council Inaugural meeting

Government Activities BIRD Foundation Agreement Investment &Trade formed Joint Committee Meeting Continued discussions between Governmentsbetween Joint Committee for formally established Funding Legislation Appropriations by co-op inInd R&D BIRD Foundation U.S. Congress signed signed

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 9 FOUNDERS, MOVERS & SHAKERS declared and subsequently– peace together with total rejection of Israel, he when visited , Anwar Sadat broke another mold...the Arab world’s It wasless to than be ayear before ’s President State.the governments since founding the which had ruled of Minister, breaking mold the of Party Labor the into life, MenahemIsrael’s became Begin Prime dayOn the immediately before BIRD was signed wonders. that to was indeed become ayear1977 –aperiod of It makes interesting reading to gazeback 30years at meetings and documents? legal three years of concepts and planning, committee emerged from its gestation of nearly period What was envisioned as BIRD the Foundation Unitedthe States. Bergsten and Simcha Dinitz, Israel’s Ambassador to of Treasury the for International Affairs, C.Fred exchange of letters Assistant between U.S. Secretary – BIRD –was officially brought to life by an Industrial Research and Development Foundation May 18,1977?Thistheday was the Binational What auspicious signs appeared on and around greatness? theywill be victorious in battle, they will achieve achieve fame and fortune, they will find true love, – how he or she fare will in life; whether they will which it was believed foretold that person’s future birth were studied for auspicious signs and portents In ancient times, events coinciding with aperson’s The World asit Was 1977 –A Year of Wonders the massivethe and rapid development of advanced It early days was very the of Hi-tech the Revolution; President just afew months earlier. Jimmy having Carter inaugurated been as 39th the under administration, anew America was also with year. –won Nobel the Begin Peace prize following the Science Fiction. Science commonlyso today, use were realm inthe of still dark ages of hi-tech. Products and systems that we Technologically we were speaking, literally inthe Only three economic sectors –electronics, • Only about 250fair-sized companies were • Only 55percent of Israeli all firms employed • and time the at lifestyle the of 1977: generally, level the of business activity inIsrael at interesting to at alook take state the of technology mutual benefit to United the States and Israel” –it is industrial research and development activities of life –“to support and promote joint non-defense Given BIRD the Foundation’s in main purpose and protect ourselves. entertain ourselves, maintain our fight health, wars work, conduct business, communicate, learn, changed man’s modern daily life: way the we think, Revolution for of Century way 18th the the it whichtechnology would Industrial the surpass of more than 400staff members scientific, technical and academic employment transportation and chemicals –showed atotal development engaged inany of industrial aspect research and more than five people The “state-of-the-art” computer in 1977 was • The New York City Blackout of 1977 lasts for 25 probably the Commodore PET 2001, launched in hours, resulting in mass looting – and a baby January of that year, just ahead of the Apple II. It boom nine months later! boasted a keyboard with a separate numeric pad • The New York Yankees win the World Series. (almost completely unheard of at the time, even as an option); a 9” integrated Blue and White monitor; • Atari develops the Game Brain – the first Atari 4K of memory; a real storage device (cassette tape); system to use cartridges. Cinematronics releases upper and lower case text (you could have text OR Space Wars, the first vector-graphics arcade graphics on the screen, but not both at the same game. Mattel releases Missile Attack, the first time) and an operating system that was burned handheld LED display electronic game. onto ROM and loaded on boot-up. It sold for On the diplomatic front, President Jimmy Carter $795.00. demonstrated unwavering support for Israel. The Apple II had a color display – but only 6 At a Press Conference on his return from London colors mind you; and the 4K RAM version sold for just a few days before BIRD was officially launched, $1,298.00. he stated: “We have a special relationship with In telephony, the first fiber optic cable had been Israel. It’s absolutely crucial that no one in our manufactured in 1977, paving the way for a country or around the world ever doubts that our new industry. Telephones were still generally number one commitment in the Middle East is to rotary dialers, with touch-tone dialing becoming protect the right of Israel to exist; to exist in peace. available...oh, and you could order telephones It’s a special relationship.” in different colors...! In a revolutionary move, It is perhaps a combination of all these things that, Motorola, (which was to become involved with with the value of hindsight, foretold BIRD’s future BIRD some years later) announced that its – a future in which it would play a leading role in nascent cellular phone technology was being used the development of hi-tech industries both in Israel in a developmental program in the Baltimore- and the United States: a future in which it would Washington area. become one of the key motivators in the growth of industries which today produce the components It had announced some years earlier that its for the personal computers, cell phones, medical revolutionary portable phone “which weighs less devices and pharmaceuticals, security and than 3 lbs” would be available by the end of the ‘70s. surveillance equipment and entertainment systems, Here is a further glimpse at the lifestyle and major without which we would find life extremely strange events of 1977: and tiresome. • The cost of a movie ticket is $2.23, while gas is We can only guess at the sophistication of the 62 cents a gallon. A first class postage stamp is products and systems which will play a major role 13 cents. over the next 30 years...

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 11 FOUNDERS, MOVERS & SHAKERS *Small, long handled pot used for making Turkish coffee on an open flame. Red Sealaps at the shore... strong Arabic coffee brewing is in the “finjan”*, the thedesert; velvet night sky bejeweled is with stars, A group of people sits around acamp fire in the Diving, DogsandBIRD Barking together with two bodyguards. Assistant for and Science Technology Secretary Itzhak Yaakov, and Dr. Ancker-Johnson, Betsy U.S. Thatgroup consisted of Israel’sScientist,Chief BIRD Foundation? What better genesis could there have for been the First Chairman of the Board of Governors Israel’s First Chief Scientist, 1974–1977; Prof. Itzhak “Yatza” Yaakov

It’s late 1975 and Dr. Ancker-Johnson had been “We were finally able to come to an understanding invited to Israel by Prof. Yaakov – known to and the BIRD Foundation came to life. Many all as “Yatza” – to discuss the formation of an American companies were interested in Israel, but I organization to commercially connect both Israel couldn’t understand why the American companies and the United States. They were in Sharm el Sheik wanted funds from BIRD; it seemed that they (then in Israeli hands) for a day’s diving in the hardly needed the money. They were obviously fabled Red Sea as a break from the deliberations. more interested in the technology and know-how.” Dr. Ancker-Johnson was a keen diver; “Yatza” was While the very early days – in fact “pre-BIRD” days the head of Israel’s diving association. – seemed to be filled with drama, how does “Yatza” “At one point Betsy turned to me and asked where see the future? things were going with the discussions: I said ‘You’d “The model worked well in the past but I am not so better call Washington. So she went to the only sure I should speculate on the future.... However, if hotel in Sharm el Sheik at that time and placed a I were a lot younger, I would be studying Chinese. call to her office. It had to go via the Israeli naval The new frontiers are in the Far East and I would base in Sharm, then through Haifa and eventually like to see BIRD become a bridge for introductions to the States. within China and Hong Kong.” “I was waiting at the camp site and then I heard a commotion from the hotel; I rushed up and there was Betsy, surrounded by 15 barking, ferocious- looking Bedouin dogs. I called them off as I knew they wouldn’t actually attack her. But after her incident with the sharks earlier in the day, and now the ferocious dogs, how could she possibly ignore what was to become BIRD?” The concept of BIRD originated with “Yatza”, who tells that he cooperated with Abraham Agmon, then Director General of the Ministry of Finance. This novel idea included equal financial contributions from each side. “We needed to create a foundation that would connect Israel and the United States commercially. The idea was easy but the debate centered on just how this kind of international foundation would work,” he recalls. “It centered on who holds control of the technology and the intellectual property.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 13 FOUNDERS, MOVERS & SHAKERS said ahammerhead shark known has never been to Prof. Yaakov about sharks: the “He just laughed and She relates that dive the when was over she asked to me....” wanted and deal this wouldn’t let anything happen I just put my faith knowledge inthe that Israelis the sharks closeby... very Iwas extremely but nervous, magnificent, but Isaw then dozens of Hammerhead meters ‘Hole’. the to what called they It was “We suited up and swam then out 400or 500 far to south. the indications at arrived at all arenowned diving spot intojeep Sinai the and with desert no signs or any Yaakov and agroup of his colleagues drove by Dr. Ancker-Johnson relates that she, Professor afterthe Yom Kippur war. diving off Sharm inIsraeli el Sheik, still then hands Head of Israel the Divers Association –to go scuba Itzhak Yaakov, Israel’s then Scientist Chief –and akeen diver,Being she was invited by Professor potential of Foundation. the visited Israel and in1975toneeds the discuss U.S.in the Department of Commerce at time, the Assistant for and Science Technology Secretary ofexperience Dr. Ancker-Johnson, Betsy as who scenario was suggested the by This “what if” Foundation at all. hungry that day, there may not have been aBIRD school of Hammerhead sharks been particularly Foundation years before it was established. Had a seventies may well have sealed the fate of the BIRD A scuba diving expedition to the Sinai in the mid- determined BIRD’s Future? Could aHammerheadSharkhave I attended ameeting of ajoint Israel-U.S. trade “I first met Prof. Yaakov inSeptember of 1974when place. She recalls: Dr.between Ancker-Johnson and BIRD first inthe It waslove the actually of diving that created abond before we went into water...” the attack ahuman. Isaid he could have told me that “It appear will inalot of commercial products ina Nanotechnology,” she says. shouldconcentrate “They on promoting What next the 30years does hold for BIRD? “I’m delighted to hear it has done well,” so she said. curious aboutbeen its progress. Foundation early since those days, she has always Although she has not involved been with BIRD the motorthe industry. She retired in1992. woman appointed to be to such position a high in environmental control division –again, first the appointed as aVPincharge of safety their and She went on to work for Motors General and was Foundation. waswho akey figure early inthe planning for the William of Simon,U.S. the Secretary Treasury, Department of under Commerce. She served firstthe woman Presidential appointee U.S. in the civilian scientist U.S. inthe Government –and Dr. Ancker-Johnson was highest the ranking how Iwas akeen he knew diver.” Iwas hooked, but Sea. Red the Inever figured out ofa set most the magnificent color slides in taken over to me, produced aslide viewer, and showed me Prof. Yaakov Ihad –who never met before –came committee inNew York. lunch the During break, relatively short time and has so many applications –from paste to bio-medical - if I were a young person I would be looking into nanotechnology as a career path. “I think we’ll see a lot of applications in health which will tend to make us live longer and more healthily. There should be very fundamental changes in the way we use energy and the resources and hope that fusion will see most important progress.” Although retired, Dr. Ancker-Johnson still serves in an advisory capacity in the Engineering Faculty at the University of Austin, Texas.

Dr. Betsy Ancker-Johnson Former U.S. Assistant Secretary for Science and Technology

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 15 FOUNDERS, MOVERS & SHAKERS were starting afresh today he would more like to see to future the Looking Dr. Chang said that ifBIRD happened had he gone through with it.” anywhere...it’s intriguing what to think might have “It was atempting but idea one that never really got for BIRD inIsrael. and running he had even considered going to work Dr. Chang relates that once Foundation the was up within one to three years.” close to commercial the stage –to come to fruition wastime to on focus projects that were pretty “On project the side of things, intent the at that industry. Prof. Yaakov to change tried that. but none of universities the were really interested in “Israel had some industrial institutes at time, the developing non-defense related industries. to get universities the involved with industries and what he thought was of interest primary for Israel: “Prof. Yaakov to put on trying together was focused andScience Technology. Ancker-Johnson,Betsy Assistant then for Secretary Technology, Dr. Chang worked as assistant to Dr. As Deputy Assistant for and Science Secretary Foundation’sthe official establishment. formative role he played early inthe years prior to what might have been,” discussing he said the while “It never happened, but it’s intriguing of to think working for the Foundation. Dr. David Chang thinking about living in Israel and the BIRDFoundation established, what is started U.S. to work with Professor Itzhak Yaakov in getting Putting together an inter-agency task force in the How Israel INearlyEndedupLivingIn Dr. Chang works as aconsultant and inthe is based Israel couldarea...” inthis alead take there was collaboration with Arab countries and projects to other countries. It would great be if bringing collaborative information technology that believes also Israel could play amajor role in done area inthe of alternative sources. energy He for Science and Technology Former Deputy Assistant Secretary Dr. David Chang AngelesLos area.

“Non Illegitimati Carborundum!” quotes American essayist and poet Ralph Waldo Emerson as advising: The sense of general accomplishment and survival is what characterizes the BIRDF for, Jordan J. Baruch “There is no limit to what can be accomplished if it Member of the Board at the inaugural meeting. doesn’t matter who gets the credit.” Looking back on 30 years of achievement, Dr. Dr. Baruch quips: “He summed it up best – so let’s Baruch, who served as a U.S. advisor to the get on with it!” Foundation until 2005, believes it has lived up to its expectations exceptionally well. “BIRD has grown and adapted to changing times to maintain its relevance and excellence,” he said. But if BIRD were to be established today, he recommends a wider international focus. The way forward is to keep adapting and embracing the Latin motto: “Non illegitimati carborundum...” which translates into the pithy phrase: “Don’t let the b...s grind you down!” in other words – don’t be daunted by formidable (and often deceitful) criticism or stumbling blocks placed in your way. Dr. Baruch first became interested in the BIRD Foundation when the U.S. committee concerned with Science and Technology in Israel approached him in the mid-seventies. “I was enthusiastic, both governments were enthusiastic and working with the Treasury, we got the whole thing going,” he recalls. The Foundation’s major success, he believes, is due to the many Executive Directors who have guided the organization over the years. But he also believes that team effort is most important. In an article he wrote recently titled “Combating Global Warming while Enhancing Dr. Jordan J. Baruch the Future,” in his capacity as Senior Scholar of Former U.S. Assistant Secretary for Science and the National Academy of Engineering, Dr. Baruch Technology; Board Member at the Inaugural Meeting

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 17 FOUNDERS, MOVERS & SHAKERS Israel Investment Authority Former North-American Director of the Dr. Yossi Vardi model,visionary enabling government to give these existed. on And BIRD It wasthis. based was a The BSF (BinationalScience Foundation)already he said. “We some kindof needed then model. American Director of Investment the Authority,” Itzhak Yaakov (“Yatza”) and me, as North- the in Washington D.C., Israel’s first Scientist, Chief – Eitan Economic the Raff, Minister at Embassy the “We were three Israelis working on problem the know we who have to thank... – quickly moving. industry –to get Now local we had boycotted Israel, and we had to find away drastictake measures. The Arabs theand French Americans to invest inIsrael and we knew had to that time, he “We recalls. were desperate to get Nobody wanted to do business with Israel at Vardi, one of Israel’s leading entrepreneurs. creation of the BIRDFoundation noted Dr. Yossi Charles de Gaulle who were most responsible for the It was probably the Arab boycott and President ofInventionNecessity istheMother

companies to invest inIsrael. It was important modelwouldthis lure established American hi-tech that would come along much later. We hoped that aprecursoractually of venture the capital funds “There were no venturecapitalists then. BIRD is privatethe to sector over. take andnew risky ventures akick-start but allow then University. Rominisiaruthe prize for Economics from for Life Achievement, Entrepreneur of Year the and has Prime the Minister’s Israel High Tech Award private hi-tech investments for its own account. He of International Technologies, which is engaged in instant messaging program ICQ and chairman the Mirabilis Ltd., creator the of popular highly the founding investor and former the chairman of of Israel’s leading internet companies. He is the hi-tech companies. Dr. Vardi has backed some 37 years of founding and helping build some 40 Yossi Vardi is one of Israel’s hi-tech veterans with an incentive to bring companies together. need, like “angels” and IPOs. In addition, BIRD is component financial inthe scheme that start-ups relevantBIRD is still today, he concludes. It is one tosector over.” take He added. project akick-start but allows then private the of BIRD the modelis that government gives the companies than Israel. One of features best the more companies inpartnership with American is the“There no in country other worldthat has was Executivewho the Director of BIRD. Boston, Massachusetts with Wade Blackman The first wasmeeting held in Loganat Airport electronics and software.” list included support for technologies new like to on focus Israeli innovativeness and our wish Help from Friends Dinitz was also very supportive and instrumental in getting to the right decision makers. After the Yom Kippur War of 1973, weary soldiers like Eitan Raff, just wanted to go home. But duty “BIRD came into being because of a lot of people continued to call and he found himself taking up who believed in the project; like Dr. David Chang, arms once again – this time in Washington, in the Senator Henry ‘Scoop’ Jackson, political advisor battle for funds. Richard Pearle and others who were instrumental in making this a reality,” he concluded. “I didn’t really want to go to America. I had been gone a long time already because of the Yom Kippur War and all I wanted was to go home. But Minister Rabinowitz and Dan Halperin were insistent. They said to me – ‘...look we need you there; we need you to go...’ My wife supported it and we were on our way….” That is how Eitan Raff, today Chairman of the Board of , found himself in America in 1974. “Israel had lost a whole year’s ‘salary’ – GNP – in this war. Where and how were we going to make up this deficit? How could we get ahead? What could we do and what did we need from the Americans?” he added. “At the time, Yossi Vardi was stationed in New York. He introduced me to Itzhak Yaakov, ‘Yatza’, Israel’s first Chief Scientist. We became a team. ‘Yatza’ was the one who came up with the idea of BIRD. Here was an opportunity to do something that would be mutually beneficial...we wanted the Americans to have something riding on this as well. Eitan Raff “We had to capitalize on the best raw material Former Economic Minister, available in Israel – our brainpower and our ability Israel Embassy in Washington, D.C. 1974-1979 to innovate.” He continued: “Yossi, ‘Yatza’ and Eitan worked in Washington to prepare a draft of the proposal for presentation to the Americans. Ambassador Simcha

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 19 FOUNDERS, MOVERS & SHAKERS growth of Israeli R&D. Elron, he still is –at 80-years-old –at the forefront of Already apioneer in 1962when he established Galil has led Israeli technology into the 21st century. Like Moses leading the Hebrews out of slavery, Uzia Focus, Focus, Focus innovation must with start an understanding of technologies and how much pay. will they Israeli He states it is important to knowbuy will who new what is relevant.” it well. must So everything and focus prioritize “but Israel and country asmall cannot is still do “We should never stop dreamers,” the he says, Former Member of BIRDCouncil Uzia Galil real market needs. it is important to on that focus those are driven by everyone. There areso many innovative ideas, but availablebe at prices that make it accessible to market and consumer Technology needs. must “Personal creativity can be the source of innovation but it is good management that determines when a startup company can remain independent or when it is essential to merge to reach major global markets,” he said. Mr. Galil has always believed that Israel has the know-how. In the early years, that knowledge was locked into either the military or academia. To make money, this knowledge had to be released to the commercial world. “Israel had technology and potential but the major problem was marketing. Israel was just too small a country to support its developing R&D. The obvious choice to market technology was via the USA,” he added. “But the problem was that Israeli law prevented any project funded by the Office of the Chief Scientist from selling that knowledge abroad.” He continued: “What was needed was a concept of collaboration; then it didn’t mater if the R&D was developed in Israel, money would flow into the project from all sides.” BIRD provided a tool that enabled that collaboration. This is just one of the characteristics that make BIRD unique. Uzia Galil currently serves as Chairman and Chief Executive Officer of Uzia Initiatives and Management Ltd., which he founded in November 1999. Prior to that, he was Chairman and CEO of Elron Electronic Industries. He holds an M.Sc.EE (Electrical Engineering) from Purdue University and a B.Sc. degree from the Technion in Haifa.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 21 FOUNDERS, MOVERS & SHAKERS Executive Director, 1979-1993 Dr. Ed Mlavsky than any of guys.’ those to Jack ‘I and said, could jobbetter do the jokingly: “After a reviewing number candidates,of I turned projectenergy as ascientist at Mobil at time. the Jack Goldman,” he said. “I was working on asolar committee for Executive new the Director with “In 1978Isat as amember of selection the appointment. second Executive Director, relates of story the his This is how Dr.Ed Mlavsky, the Foundation’s Foundation enjoys today. andhistory laid foundation the for success the the toled one of most the remarkable inBIRD’s periods committeeselection for Executive anew Director Thencasual a remark by one the of members the of A management change was considered imminent. looked at with agreat deal of skepticism. distribute, no projects had been initiated and it was so, the Foundation had amere $3,000,000ayear to “somewhat ludicrous”. For the first 18months or fledgling, many people thought its agenda was Back in the early days, when BIRDwas still a Just aJoke weekend.” committee meeting inJerusalem following the and wouldn’t let go. Ifinallyagreed to come to a job or moving to Israel, but Jack had me cornered “I had never really contemplated on taking this offered job. the “But he took it seriously,” he added.Mlavsky Ed was gave him 20minutes to make up his mind. theThencommittee came out their of meeting and and “I thinking: really don’t want to do this.” He remembers sitting hotel inthe lobby, tired dead “I called my wife, Sally, back in the States, and she “And the Israelis had no idea of how to sell abroad. immediately agreed! She was in love with Israel and It was a perfect match – an American company really wanted to come. So, I took a two-year leave of with marketing and sales savvy, an Israeli company absence from Mobil, we rented the house, put the with a visionary CEO and brilliant engineers and furniture in storage and came.” developers. They were geniuses in coming up with the right product. I think that product is still being So began the era of Ed Mlavsky – a 13-year tenure sold to this day.” which was to become renowned for its energy, discipline, soaring success and remarkable progress. He remembers other companies for which projects were brokered. KLA Semiconductor was one Dr. Mlavsky recalls: “I inherited a staff of three example: people and began to make changes. We needed to reinvent BIRD. Better documentation was “The CEO, Ken Levy decided to bring his a priority. We revised the handbooks and the management board to Israel on their annual trip. guides and created a better agreement regarding The board had only one hour to meet with me in intellectual property to make it more palatable for Jerusalem, during which time I obviously made an companies to participate in projects. There were no impression and convinced them...they agreed to rules then. We got to set the paradigm. invest in Israel and are still here today; one of the country’s most successful enterprises.” “I had a big advantage. I was living in Israel, so the Israelis considered me one of theirs; but I was One of the big advantages, in Ed Mlavsky’s opinion, actually a naturalized American – although I was was that BIRD was able to build two sources of born in London – so the Americans saw me as an knowledge. One database housed information American. about potential participants and the other contained details of the talents and capabilities of “Both sides could relate to me. I could talk to either individuals and companies. in their own language and I was trusted by both sides,” he explained. “It was a great system for matchmaking. BIRD has become a much envied and emulated example of During his term BIRD approved more than 300 the mutual benefits to be derived from cooperation projects, and distributed more than $90,000,000 in between technology companies, however physically funding. distant they are from each other,” he added. He recalls that Telrad’s “smart phone” was the first Ed Mlavsky is still living in Israel and is currently approved project. Chairman and Founding Partner of Gemini Israel “They were matched with a small company from Venture Fund. the northeast called Pentacom that sold phone systems to small businesses. Pentacom didn’t have the ability for research and development in the USA, but they had what the market wanted.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 23 FOUNDERS, MOVERS & SHAKERS information and guidance, available not otherwise agency like one this could provide agreat of deal National Bureau of Standards. Agovernment involvement with organizations such as the Israel providing internally; opportunity the for was to raised provide to strengthen a method “During disengagement the idea the talks, established.already been Binationalthe Foundation Science (BSF) had strengthen Israel was beingsought. By that time, endthe of Yom the Kippur War, away when to pathThe towards laidBIRD was actually just at talent...”in knowledge, expertise, that was never returned, but able also to give back just into acountry which Americapours money –notpartner only recipient the but source, the not relationship strengthened it. Israel an became equal and equality.that Thefact it was a mutual “It was astrong, connection at alevel of intimacy business.” for Israelis to have core this relationship with U.S. on it surface; the to was flattering deserve seemed Foundation. Iprobably gave it more priority than it “I really loved my involvement with BIRD the BIRD was established. of Finance Ministry the inWashington shortly after Thusthe opinion Danof who Halperin, represented Israeli start-ups for their mutual benefit. idea that American companies could partner with special kind of relationship and this generated the amounts of money. America and Israel have avery unique partnership based on equality and small The BIRD model has a certainsex appeal. is a It andEquality Intimacy Executive Director in1979. industry. This happened Mlavskyafter Ed became what has developed into “Best Practices” for Israeli In Mr. Halperin’s opinion, apattern BIRD set for no “Google” to search for information!” “Remember, was this 1977.There was no Internet, to Israeli companies,” he added. George Schultz that believed government should BARD). Not BIRD the liked model. everyone of Binational the Foundations (BSF, BIRD and Mr. Halperin proposed increasing endowments the Israel. Advisors were appointed to help board”. the representation from United the both States and ofBoard Governors would composed be of equal moneyequals. Equal from and each country the was not afather/son relationship but one of total “BIRD is unique inthat it is totally equal. This American startups.” many major Israeli companies are helping small U.S. markets. Today tables the have turned and to become acquainted with major players within provided an opportunity for small Israeli companies to at look Israeli companies. In it beginning, the There was an inducement for Americancompanies its abilities as a“matchmaker”. It openedgate. the He continued: “One of of BIRD aspects best is the businesses.between government officials make decisions about funding but what was unique was that it is only the that time he added. It was afunding source that got repaid; wellspring the BIRD was also of VC the industry, to create an aura of business for Foundation.” the know anything about Israel at he time the was able “He understood industry. Even though he didn’t not get involved in business, but there were other people much more in favor of the project, such as Lionel Olmer, an Under Secretary from the Department of Commerce, Vince Schneider, Assistant Secretary of State and Tom Pickering (a future Ambassador to Israel) who served as Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs. Stanley Fischer who is today the head of the Bank of Israel was at the time a Professor at MIT and an advisor to then Secretary of State, George Schultz. We sought his advice.” Taking a look at the next 30 years, Mr. Halperin added; “In my opinion, trade agreements and mutual business cooperation will overshadow direct aid in the future. It is a different approach – a unique one with symmetry and intimacy. In 1977 Mr. Halperin was named Deputy Director General of the Ministry of Finance for International Affairs and its director of anti-boycott activities. In 1979, he was appointed the Minister for Economic Affairs at the Embassy of Israel in Washington D.C. It was in this capacity that he led the successful effort to double the BIRD Foundation endowment. Mr. Halperin now sits on the boards of several Israeli firms and heads several committees as a member of the Hebrew University Board of Trustees.

Dan Halperin Israel’s Former Director General of Economic Development, Economic Minister in Washington, D.C. 1979-1986

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 25 FOUNDERS, MOVERS & SHAKERS Director.: time that Mlavsky Ed as BIRD’s served Executive Undersecretary for Economic Affairs, during the Department of Commerce for Technology and Merrifield, former Assistant Secretary of the U.S. These pithy comments comefrom D. Bruce willfollow...and Democracy EntrepreneurshipExport

model for developing all countries...even those But more importantly, he it believes THE can be expectations. phenomenally successful, beyond anyone’s hopes or understands. First of he all, says, it has been model is far more significant than anyone It is Dr. Merrifield’s contention that BIRD the Economic Affairs, 1981-1989 Commerce for Technology and Undersecretary for Assistant Secretary of the U.S. Department of Dr. D. Bruce Merrifield as India, Finland Chile, and Ireland. BIRD modelinanumber of other countries, such Dr. Merrifield says he has successfully “cloned” the countries presently inconflict, deep such as Iraq. He explains: “The definition of an underdeveloped “Moreover currently, 40% to 60% of these people in country is one in which entrepreneurship is stifled the underdeveloped countries are younger than 25, – where entrepreneurs are illegal or suppressed. The with no foreseeable jobs: civil unrest and increased initiative and the ideas are there, but there is just no terrorism are almost inevitable. environment in which these ideas can flourish.” “The BIRDF model was so successful that it “The model is unique in global understanding: has already been copied now in other countries when you create the environment in which with equal success...but now urgently needs to entrepreneurs can flourish, you accelerate national be replicated much more widely to counter this development. Using the early BIRD model of socioeconomic trend pairing up small companies in a developing country “The key is to create an environment conducive (in this case Israel), with larger, more experienced to the formation of entrepreneurial new small companies in a developed country – such as the businesses, which in turn then creates multiple U.S. – you give the small company the skills and new jobs. The Israeli environment was in place, but resources to rapidly develop and commercialize. what BIRDF demonstrated was that joint ventures It’s the joint venture relationship that does it; you between start-ups with limited resources and big ensure development, growth and almost immediate companies with those resources, made all the market entry. difference in the rate of commercialization, and the “Look at Israel – today there are more degree of commercial success. entrepreneurs in Israel per head of population than I can envision a critical role for BIRDF in making in the United States. In the U.S. itself, the huge wave widely known both the need and the solution... in a of entrepreneurial growth occurred when amongst global context... other things, the Government reduced capital gains tax. This released huge amounts of capital into the The next 30 years? I would like to see BIRD and market which was available for investment and Israel expand this concept to help other developing growth. Government’s job is to create the right countries – to do what they have already done – its environment, then get out of the way…” simply a win-win formula...Israel could become famous for such an initiative.” “I say we should stop going on about exporting democracy: export entrepreneurship and democracy will follow.” Warming to his theme he added: “Two hundred years ago, the earth’s population was about 500 million people. Now it is 6.5 billion and on the way to 10 billion by the end of this century.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 27 FOUNDERS, MOVERS & SHAKERS Discount Investment Bank Corporation of which funds and one of few areas the of support was the were hard to come by. There were no venturecapital “Israelis had brains, the but money and support privatethe sector. tofrom academia and military the filtered then into was an explosion of intensive work which spread expand outside establishment. military the There France’s President Gaulle De forced to technology not times for easy Israel. Wars, embargos and He recounts that late the ‘60sand early ‘70swere immaculate Oxford accent. of complimentaryfulfilling needs,” he inhis added two countries two governments, –between and the itbecause was built on arare affinity the between of Israeli entrepreneurship. The model worked “Well, BIRD of was part reason the for success the Foundation? What have this does to do with BIRD the happened with that ‘useless’ invention,” he stated. and there is to nowhat need discuss eventually inventiveness moved on rapidly from that point “I am not sure ifit was achallenge, but Israeli prediction. Dan Tolkowsky this as he smiled recalled and declared that it would never succeed. American was not impressed, dismissed the invention their newest development –a“mini-computer”. The earliest hi-tech companies. They proudly displayed and was introduced to Elron, one of the country’s nameless –American entrepreneur visited Israel twinkle in any Government’s eye, aleading –albeit During the 1960s, long before BIRDwas even a Doing theImpossible who establishedwho Elbit, first the Israeli company Scientific Technology –later Scitex –and Uzia Galil “...but along then came Arazifounded Efi who inatentative,still learning stage. Dan Tolkowsky relates that hi-tech ‘60swas inthe invest money inhi-tech startups.” I was Deputy then Director. We were first the to changes inleadership, BIRD proved that it knew personalities to Foundation. the Despite the – approach. brought Each own their special Director had adifferent –and successful highly “What fascinated me was that each Executive dynamic. I retired in2006.It was always interesting and an advisor to that board for nearly 25years until governmental board and as its advisors. Iserved that projects all had approved to be by bi- the appropriate American companies. was Second First, it was able toIsraeli twin companies with BIRD “The Foundation was uniquetwo in ways. problems, he said. The interactiongreat was a formula forsolving forceful,experienced successful business people. dilemmastheir on one hand and on other the hand, They brought together young entrepreneurs and long meetings that were more like mini-seminars. He that recalls Foundation the originally held day- cooperative business model,” he said. other governments had ever created kindof this inhi-tech.function It was aunique agreement, no “Once BIRD was established useful a very it fulfilled Americans the between and Israelis. it was important to build on natural the affinity to go public. The major market was America and how to play the game. Different start-ups need different approaches and BIRD was flexible enough to handle all these dilemmas. It was and still is well managed and able to rise above politics.” What about BIRD’s role today and tomorrow? “BIRD is still vital even in the world of venture capital funds. It needs to raise more funds but it is managed very successfully,” Mr. Tolkowsky said. He believes there are new horizons to be tackled, such as Life Sciences, Homeland Security, and so on. “BIRD must be opportunistic and seek openings to make the impossible come true,” he asserts. Just like the mini-computer that would “never” succeed....

Dan Tolkowsky Advisor to BIRD – 1981-2006

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 29 FOUNDERS, MOVERS & SHAKERS between companies,”between he said. Israel creates an efficient and non-political bridge relationship special “The between America and Israel’s Ministry of Industry, Trade and Labor. investors, said Yigal Erlich, a former Chief Scientist of something that opens doors and always is good for The BIRD Foundation offersfree networking. is This A SpecialRelationship Israel Venture as Chief the Association, served Yigal Erlich, founder the and past chairman of the Israel. objectives of attracting American companies to budget, it enabled contacts and inits succeeded in comparison withScientist’s Chief the annual Although BIRD funding for projects is small tacit approval of Office of the Scientist. Chief the enabling still while to rule, them this receive the “BIRD funding exempts such companies from Israel. ScientistChief from know-how their selling outside incubator projects which receive money from the Scientist,Chief such as law the preventing those projects by imposed than those Office of the the In addition, there are fewer restrictions on BIRD project there are no investors sitting on your head. Scientist.Chief The advantagethat is with a BIRD rate were than ifthey by funded Office of the the though BIRD projects have ahigher repayment even repayment “The specific also very is model non political management. It is well-managed, efficient very and for andgood The BIRD specific. is model very defined. Theclear projectbe very to needs “In my opinion partnerships the must clearly be Americans coming here,” he said. Scientist’s Chief the job, it was nice to have the “Although, was this arelatively of part small evaluate Israeli the side of project. the major responsibility of Scientist Chief the was to ofBoard Governors of BIRD the Foundation. The as Scientist, Chief Mr. Erlich was amember of the from 1984to his 1992.During eight-year tenure Scientist of Israel’s Industry and Trade Ministry It was in this way that BIRD projects helped Israel to create their fame in technology, which attracts investments,” Mr. Erlich said He added: “BIRD is still relevant because it has the ability to facilitate small projects. The model still works and gets good results. We have seen many changes over the past 30 years; personal computers, mobile telephones and the proliferation of air travel. BIRD is still relevant but it must delve into new areas, such as alternative energy, “clean tech” projects, homeland security, nanotechnology and, especially DNA research that will eventually generate personal cures.”

Yigal Erlich Chief Scientist 1984 - 1992

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 31 FOUNDERS, MOVERS & SHAKERS Director General, Ministry of Finance, Israel Member of BIRDBoard of Governors, 1988-1992; Yarom Ariav in its matchmaking activities, he believes. Thisthe is messagethat canBIRD continue to bring is enormouslyin particular prosperous,” he stated. economy continues to thrive; and hi-tech the sector conflict with Palestinians the “...and yet the addition there are various ongoing the exposés, Minster Sharon and Lebanon Second the War. In He cited illness and the incapacitation of Prime Finance, referring to 2006. Yarom Ariav, Director General of Israel’s Ministry of has endured during the past year alone,” said Mr. “Just look at the severe very external shocks it be something of an understatement. To say that Israel has arobust economy today would Robust Economy BIRD’s RoleinIsrael’s

correctly right –inthe way. howOne see could to government also use money beingappliedpolicy from Israel’s point of view. yearsthose linkage the he could and see overall being incharge of Scientist’s Chief the budget in on of Board the Governors from 1988to 1992,and As representative the of Israel’s of Finance Ministry Foundation’s professionalism: He that added impressed he was very by BIRD the ‘pre start-up’ years.” inthose mode industry...as civilian R&Dwas inwhat Icall was enormous –it was encouraging infant contacts and matchmaking with U.S. companies contribution “The that BIRD made in getting

“The way they analyzed and assessed a project was small companies we do have some very large global intriguing. At each meeting we analyzed projects players. and we tried not to be too rigid regarding which “And of course our hi-tech today has enormous sector we were interested in. We looked across the world respect – we should use this as leverage.” entire spectrum. Looking to the future, he is optimistic about this “I considered our work as an investment in Israel’s kind of activity – cooperation, matchmaking and future.” the ties between Israel and the U.S. He added that it was easy to see Israel as the greater “They are very strong and will continue to be beneficiary, even though the investments and the strong – it’s important to preserve this kind of projects were for mutual benefit. activity and also to enter new fields: green energy, The BIRD Foundation’s main contribution over the nanotechnology, water desalination. These are years was in the economic value of the successful intensely interesting areas of activity for both projects that were initiated, which is possible to parties.” judge from statistics and the royalties that BIRD earned. “But the other contribution was at the human level, meeting and matching of cultures: We learnt how to deal internationally – in those days, our people didn’t have too much experience at that level and they learnt how to work with companies and people on an international scale. We learnt about marketing, how to raise money from investors, working in a global economy.” “The U.S. companies on the other hand, also learnt about how Israelis work and it was a fascinating cultural exchange...and to see how with a common goal, we were able to bridge the gap. This worked extremely well and the BIRD officials acted as facilitators – they made it happen,” he said. “Of course Israel’s economy is vastly different today. We have matured and this is my message to BIRD: “Look at our economy as much more mature than it was...and try to create matches between equals. Although we are still a small country with many

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 33 FOUNDERS, MOVERS & SHAKERS Executive Director Mlavsky. Ed was drawn into BIRD by outgoing then the major companies notched inhis belt, Dan Vilenski entrepreneurs, with three extremely successful as oneRecognized of Israel’s leading hi-tech one can be... office as adaily reminder of how seriously wrong A copy of response this hangs inDan Vilenski’s do not recommend its purchase.” a toy. is inherently This device of no to use us. We limitations of his which is device, hardly more than offacts situation, the and ...ignoring obvious the of understanding of technical the and economic rosy, are onimagination wild-eyed based and lack fancifulpredictions,…(these) sound they while message sent to any large city United inthe States? to telegraph the office and have aclear written impractical he when can amessenger send device would any person want to ungainly this use and is idiotic on of face the it. Furthermore, why ‘telephonetheir devices’ city. inevery The idea wantof miles....(they) several to one install of of sending recognizable over speech adistance “We capable ever be do not that will see device this investigate offer the following the filed report: patent for $100,000.Thecommittee appointed to had offeredGraham Bell his them to telephone sell by Western Union in1876afterAlexander To illustrate point, the he referred to aresponse thing?” he commented. rejecting something that may just be the next best know that you are not making amistake...and proposal than to reject one. “After all, how do you For Dan Vilenski it was always easier to accept a How to Pick a Winner by money; Iwantby money; to ensure that my children, do something to right. the earn I’m not motivated want to complain about something, you have to He “My added philosophy has always ifyou been: for 24hours...” hi-tech for bureaucracy?’thought Then I about it “I responded: ‘Are you crazy?Why should Ileave Executive Director, 1993-1997 Dan Vilenski education and systems. and most of we to need do something all with build country, the develop business and industry, –butstory Iam what an Industrial Icall Zionist... “I’m not about talking politics –that’s adifferent true. step up and do something to help make that come to live inavibrant and viable Israel to Ineeded –so grandchildren and great grandchildren able be will “I agreed to take the position for two years – and In this way we strengthened the chain and created a stayed for four I was enjoying it so much. I offered generally successful match.” to stay on because I felt I was making a positive In answer to the question of whether BIRD has contribution.” achieved its many objectives, he answered: “There Mr. Vilenski stated that not all projects accepted is no question that they have...if the mission was to by BIRD were successful. “How does one improve relationships between both countries...then evaluate results? If companies worked together, it has been a major success. There are examples of developed products and sold those products with U.S. companies which were reluctant to come to an the subsequent benefits for BIRD, then that was ‘unstable area’ – as Israel was perceived to be. But considered a tangible success. But not all projects we convinced them to come and there have been succeeded first time around. However, if there many great successes. BIRD provided that kick start was a continued connection and each company, to the business.” recognizing the potential in each other continued Looking to the future, Mr. Vilenski believes that working together to develop their products and BIRD will remain relevant. “I don’t think industrial services later – even if BIRD was not involved at matchmaking will disappear...somebody needs to that stage – then even that was considered a success make the match – it’s all about people. BIRD is an – albeit intangible. I often wonder just how many industrial matchmaker, but without people it will projects could have happened without BIRD’s not work. I’m confident there is a place for a much influence.” stronger BIRD.” He says the world will be based on Dan Vilenski views his tenure as Executive Director science and technology. And as Chairman of the as proactive: “I spent little time in the office as I was Fulbright Scholarship program in Israel, he is vitally traveling throughout Israel and the U.S. looking for concerned about education. what I called ‘golden eggs’... “Society needs scientific education. More money He said his formula was to seek out Israeli needs to be allocated; better teachers are needed for companies first and then he tried to find the match- our children. And to be successful, education needs up in the U.S. He explained further: “It was like to focus more on developing good communication looking for the weakest link in the chain. At that skills. This is a major weakness all over the world. time, Israel did not have much marketing expertise “Communication needs to be precise, quick, to the – this was Israel’s weak link. Our expertise was in point. This is our biggest educational challenge.” production, science, technology – often the weak link in the U.S. company. Today Mr. Vilenski is also intimately involved with the INNI – Israel National Nanotechnology “So I sought out the Israeli companies with Institute. excellence in their fields and matched them with U.S. companies which had excellence in the fields “Nanotechnology is going to be the next big thing. of marketing and bringing products to customers. This is where people should be focusing.”

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 35 FOUNDERS, MOVERS & SHAKERS Member of the Board of Governors – 1995-2000 Dr. StanleyAbramowitz establish Foundation the in1977. events which influenced decision the to eventually formation of BIRD and possibly long-forgotten But let’s wind back to years the long before the BIRD can play in the future... the next 30years and the important role he believes predicts we see will in these– and other –fields over He also is excited about the quantum leaps he and pure and applied science over the past 30years. which have taken place in the fields of biochemistry profession, he keenly is aware of the vast changes afascinatingis experience. APhysical Chemist by Taking atrip through time with Stanley Abramowitz Time Traveler Repayment of PL480 the loans wasinthe to be reconstruction aid. andto food them send other development and by war the and through whichU.S. the was able to help developing countries or affected those Law 480,known as PL480, afunding law designed After World Warthe II, United States Publicpassed There was no understanding of DNA • There was no Internet, certainly not sense the in • established? whatSo was life like years inthe that BIRD was results of decision. this foundations: BIRD the Foundation was one of the and to re-direct funds into those more focused it to was stop decided channeling PL480 to Israel other academic institutions. Then the during 1970s, Hebrewthe University, Weitzman the Institute and years, there were anumber of scientific projects at After receivingfunding PL480 for about 10 to 15 my here,” text books Dr. Abramowitz recalls. U.S.,the and Iwas when astudent, to buy Iused all was possible to buy inIsrael abook cheaper than in novels,books; general academic interest books, –it importing of from kinds of books America–all major PL480 projects inIsrael 1950swas inthe the “Not many remember people will that one of the recipients. in that country. Israel was among PL480 the to support used then other development projects country’s own currency, re-paid inthat and country development of medicine modern sequencing of Human the Genome to allow the public use…) network, “liberated” until Tim Berners-Lee it for it today is used –(Ed. note: there was amilitary • There was no technology for synthesizing drugs sunglasses – will minimize the use of energy. – e.g. recombinant DNA technology Energy: Windmills will become commonplace – • Nanotechnology didn’t exist – not even as a using the wind to generate power; we will be able to concept use different thermal levels in the ocean to generate energy, in much the same way as we do now with • A primitive Personal Computer was just springs. Silicon will become an energy source. beginning to surface... Robotics: Will enable health care over the Internet • A Computer Interface (MMI) for manufacturing – not only information (as is in wide use today), but [i.e. CAD/CAM] didn’t exist “virtual” surgery will be able to be carried out by • Semiconductors which made the development robots. It will also become a valuable training tool, of smaller computers, digital cameras, cell for distance learning. Car and other manufacturing phones etc. didn’t exist will be done entirely by robots, on a far wider scale • Cell phones didn’t exist than today. A whole new set of applications will exist. • There was no Venture Capital – certainly not in Israel In the next 30 years, BIRD will have more competition, says Stanley Abramowitz. “It will have Moving “fast forward” to the next 30 years, what to change in terms of the type of investments it does Dr. Abramowitz believe the future holds for makes – prior to my tenure, there was very little life the world and for BIRD? sciences in the portfolio, today there is a lot more. Health: We will all be carrying around details of “BIRD can be a powerful catalyst – introducing our own DNA – permanent genetic information. people for a professional exchange of ideas… Inexpensive DNA sequencing technologies will it needs to be more focused when networking make it possible to treat diseases in the individual – using its knowledge, data base, experience to help before they even occur! people meet other people, companies meet other Communications and Electronics: Computers will companies...doing what it does best: matchmaking totally run the household, allowing people to do at the highest level. things more efficiently. “Just look at what it’s done in the past 30 years... For example, the Smart refrigerator – already well Israel has changed far more than the United States into development – will advise the household and much of this has to do with BIRD’s role in on the state of its contents, automatically order the emergence of Israel’s hi-tech industries. This low running supplies via the Internet; the Smart is proven by the fact that among all the countries vacuum cleaner will know where and when to clean represented on NASDAQ, Israel is second only to without human intervention; Smart heating and Canada. cooling through utilities such as “smart windows” “If this is what we’ve done over the past 30 years, – working on similar principles to tinted the next 30 can be even better.”

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 37 FOUNDERS, MOVERS & SHAKERS Chief Scientist, 1997 -2000 Dr. Berry Orna Eitan Yudilevich.” Hershberg and current the Executive Director, Vilenski, Danny Tal worked (who for BIRD), Dov a great from deal people:Mlavsky, the Ed Dan from BIRD inaproject context, but Ilearned “As an entrepreneur, Ireally benefited not only entrepreneur. It is an amazing entity,” she said. boardthe inmy role as Scientist Chief and as an with BIRD from sides both –as amember of “I have lucky been enough to have involved been Governors from 1997to 2000. Trade and Labor and aMember of the Board of former Chief Scientist of the Ministry of Industry, intriguing question asked is by Dr. Berry, Orna Where would Israel be today without BIRD?This A Push Through theDoor She notes that serious about BIRD was very their and beyond our perceptions at that time.” background, his knowledge of marketing was above knowledgeable and beingfrom abusiness eye-opening for experience me. He was amazingly MlavskyEd was Executive Director. It was an Dr. continued: “I Berry first involved became when homeland security, human capital and education.” horizons of hi-tech into areas new like ‘cleantech’ and information technology, BIRD can expand the marketable technologies like telecommunications “While venture capital funds tend to at look role hi-tech inthe world. difference.the Even today BIRD plays asignificant foreign capital beinginvested inIsrael, BIRD made In early the days, she said, there when was no markets –astrong push through door.” the gave Israeli-developed these technologies access to mass. critical their But it was BIRDthat partnering companies had tremendous opportunities due to “Israel had amazing capabilities and American added. projects; organization, the legitimized this she Party to Profit for traditional sources. No matter how large a company, there are always projects that are just a Dov Hershberg became involved in BIRD in a funny little too farfetched. It is here that BIRD can step kind of way, he notes. “It was actually my son who in and provide primary funding for projects that saw the ‘wanted’ ad in a local newspaper for a new might be too risky for traditional sources. Executive Director. He thought that as I had spent several years working in hi-tech in the United States, “Even today, the BIRD Foundation continues to be I might be good for the job. I got the job and the rest an excellent resource for encouraging Israel to be a is history,” he added. global trader,” Mr. Hershberg adds. Social events and hi-tech may not seem to have Dov Hershberg was the founder and Chief a lot in common but since BIRD held two board Executive Officer – with colleagues from Stanford meetings a year, Mr. Hershberg, as the new University – of Molecular Applications Group Executive Director, thought that it would be useful (“MAG”); which created molecular function to make them into social events, leveraging them to software in biomedical research before assuming further BIRD’s objectives. “Annual board meetings the most senior executive position at BIRD. He conjure up rather dry images, so I turned these into holds graduate degrees in Mathematics from the social events that gave people the opportunity to Hebrew University in Jerusalem, Israel and in meet and network in a unique environment. The Applied Mathematics and Operations Research publicity generated from these social gatherings from Columbia University in New York City. gave us an opportunity to expose the BIRD Foundation and generate publicity. “It was in these informal settings that both Americans and Israelis from many different areas of technology were able to meet and talk and get acquainted. In the light of this innovative spirit, Israel has a very high number of early stage, start- up technology companies. I could say that small technology companies are one of Israel’s prized national resources. Making matches is one of the things that BIRD does well. In those years, Israel’s budding technology field really needed a boost and BIRD provided an amazing opportunity that certainly helped more than one Israeli start-up leave the nest. It was Dov Hershberg advantageous for both sides, since BIRD provides primary funding for projects that are too risky Executive Director 1997-2005

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 39 WINNERS & SUCCESS STORIES Commercializing successfully. Status: healthcare providers. to physicians, patients and other sent securely over Internet the information and images can be attachmentstheir that so patient e-mail messagesencrypt and which can healthcare services, for E-MailSecure Service Joint Development Product: (“ASES”) Advance eMail Secure System Project Title: digital. imaging products from analog to and marketing intelligent in developing, manufacturing Imaging Group is aworld leader Kodak: Eastman internet solutions. security enterprise information and developer of innovative Aliroo: and value of cooperation and matchmaking provided by the BIRDFoundation. Sciences to Communications, Homeland Security to Alternative Energy. Their common factoris the quality The following projects providesome examples of thescope of BIRD’s work. They cover everything from Life

Eastman Kodak Aliroo

an international

Kodak’s Health for cable networks. TDMMulti-service over packet Joint Development Product: Haul Transport. Optical Integrated with Long- Low-Cost EthernetOptical System Project Title: transport network market. equipment to optical the and lower radically sells cost Infinera Metropolitan Area networks. of Ethernet Carrier solutions for Atrica Israel Commercializing successfully. Status:

Infinera Atrica Israel

designs manufactures, is a leading provider

Commercializing successfully. Status: (BMR). RouterMultimedia-Service BigBand Network’s Broadband Insertion (DPI) solution with – nCUBE’s Program Digital broadband network operators advertisingDigital solutions for Joint Development Product: Industry Cable TV Advertising Solutions for the NetworkedMulti-Service Digital Project Title: networks. solutionsmedia broadband to all Inc.) provides streaming scalable nCUBE Routers (BMR). Broadband Multimedia-Service manufactures, and sells supports BigBand

nCUBE BigBand

(acquired by C-Cor Networks designs,

BIOMEDICOM Cadent Career Harmony

Cassling Diagnostic 3M Unitek Manpower

Founded in 1998 as a spin- Cadent develops and sells Career Harmony a software off from Silicon Graphics, proprietary 3D-based services to company specializing in BIOMEDICOM is a medical dental offices. assessment and selection software company creating solutions for the recruitment and 3M Unitek designs, diagnostic and therapeutic career management markets. manufactures and sells software applications orthodontic appliances, and it Manpower, a world leader in Founded in 1984, Cassling is the world’s largest supplier of the staffing industry, providing Diagnostic Imaging is a full-line these products (acquired by 3M workforce management services sales and service organization for in 1987) and solutions to customers Siemens Medical Solutions through 3,900 offices in 61 Project Title: countries. Project Title: 3D Imaging for Orthodontics Fetal Weight Measurement Using Project Title: Joint Development Product: 3D Ultrasound NetSelect Development of a worldwide Joint Development Product: business to provide the Joint Development Product: The objective of the project orthodontic industry with Web-based Assessment is to develop a product for highly accurate, convenient and management system. NetSelect is accurate ultrasonic fetal weight attractively priced 3-D images of an innovative pre-screening tool measurement application teeth. that will provide an efficient and comprehensive assessment of job Status: Status: candidate suitability. Project completed. Commercializing successfully. Status: Commercialized successfully; repayments completed.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 41 WINNERS & SUCCESS STORIES by Gyrus. ACMI was subsequently acquired Note: ACMI acquired CByond; repayments completed; Commercialized successfully; Status: integrated LEDas alight source. Flexible endoscopewith Joint Development Product: Electronic Video Camera Project Title: industry. medical the endoscopy instrumentation for production of world’s the finest development inthe a leader and Makers Inc.), founded in1908,is ACMI applications. forvideo-scopes medical CByond

ACMI CByond (American Cystoscope

specializes indesigning specializes

Status: production floor. and quality assurance on the fordesigned process control Automated measurement systems Joint Development Product: for Automotive the Industry Flexible 3DMeasurement System Project Title: automotiveglobal market forsystems today’s and services quality manufacturing agile deliver range awide of high TESCO aerospace industries targeted at automotive the and industrial applications, mainly vision measurement systems for manufactures and markets 3D CogniTens HIROTEC AMERICA. has changed its name to Note: Group TESCO Companies repayments completed. Commercialized successfully;

TESCO CogniTens

Group Companies develops,

Lasertel systems of advanced defense and HLS Elbit In process. Status: applications. security perimeter for night-vision cameras in Low-cost illuminator laser Joint Development Product: Application Camera for Homeland Security Gated Intensified CMOS) LGICMOSLow-Cost (Laser Project Title: imaging and manufacturer of laser digital Presstek, aleading developer

is adeveloper and supplier Lasertel Elbit

is a subsidiary of is asubsidiary

FreshPoint GE Medical InfraCom

Ciba Robin Medical Apogee FreshPoint specializes in the GE Medical Systems Israel InfraCom specializes in design area of smart packaging, such as (presently GE Healthcare Israel) and development of short-range novel organic crystal-based time- a wholly-owned subsidiary of wireless communication links temperature indicator General Electric Company, is based on Diffused Infrared responsible for several Magnetic technology. Ciba Specialty Chemicals Resonance (MR) programs, Corp. a leading global company Apogee specializes in design including development of dedicated to producing high- and development of digital interventional and intra- value effects for its customers’ amplification ICs for the audio operative applications for MR products. industry. scanners. Project Title: Project Title: Robin Medical engaged in R&D Novel Time Temperature A Fully Digital Wireless of various medical devices, Indicators. Amplification Controller including ECG monitoring, Joint Development Product: non-invasive quantification of Joint Development Product: Novel printable & chargeable cardiovascular performance, A new low-cost chipset enabling time temperature indicator echo contrast imaging, and high-quality wireless links for provides freshness check at tracking during MRI. the audio market. The ASIC a glance.Time-temperature integrates Infra-Com’s IrGate Project Title: indicators show accumulated wireless technology, Apogee’s Tracking for Magnetic Resonance chill-chain history of perishables.. dynamic data exchange digital Imaging amplification technology, and Status: Joint Development Product: many other new capabilities. In process. The product uses electromagnetic Status: fields that are generated by the Project completed. MR scanner for tracking. The new technology can be easily used with any MR scanner as a “plug and play” option. Status: Project completed.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 43 WINNERS & SUCCESS STORIES Successfully commercialized. Status: production market. as well as for animal the food for human the market fertility system for analysis sperm both developing anext-generation Thetwo companies arejointly Joint Development Product: SQA III-Optibreed Project Title: solutions for agriculture. of hi-technologyinformation application inthe specializing instrumentveterinary company Progeny humans and animals. assessing inboth fertility male quality analyzers (SQA) for develops automated sperm Electronic Medical

Progeny Electronic Medical

Systems is aU.S.

Systems

dust, smog etc. The system conditions, such as fog, haze, landing inreduced visibility orientation. It allows visual provide day/night improved The EVScamera is designed to Joint Development Product: (EVS) AircraftEnhanced Vision System Project Title: systems contractor as well instruments as amedical commercial markets and military electro-optic systems supplying manufacturer of avionics and Kollsman components. Thermal Imaging Systems, and sensitive and cooled uncooled a leading supplier of highly OptronicOpgal repayments completed. Commercialized successfully; Status: pilot’s Field-Of-View. image, superimposed on the IR picture, and displays avideo provides and visual afused, near-

Kollsman Opgal Optronic

aleading

Industries

in multi-service access productsin multi-service company and leader atechnology communications technology Resolute Networks Project completed. Status: for cable networks. TDMMulti-service over packet Joint Development Product: services System for provisioning E1/T1 Project Title: business. and data to home the and for of delivery the voice, video broadband access networks local companytechnology providing Arris for IPnetworks.

acommunications Arris Resolute Networks

a digital adigital

Surf

Texas Instruments Surf is the leading provider of MoP (Media over Packet)- enabling technologies and solutions that enable true convergence of all media types. Texas Instruments is a world leader in digital signal processing technologies. Project Title: Surf Rider Resource Board for MoP (Media over Packet) Applications Joint Development Product: A high-density media conversion solution, which enables full conversion of all media types: Voice, Fax Mode and Video between Wireline, Wireless and Packet network types. Status: Commercializing successfully.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 45 HEARD ABOUT BIRD ... States and Israel. influence in the development of hi-tech in the United in all, they reflect the breadth of BIRD’s reach and Congressmen and Public Sector Professionals. All They include CEOs andBoard Chairmen, way or another. who have been involved with the Foundation in one work have been gathered from anumber of people These quotes and comments about BIRD and its Israeli cooperation. done by BIRD the Foundation inpromoting U.S.- in Israel, Igreatly value past the and present work with significant operations U.S. inthe both and As someone involved has who been incompanies Senior Vice President, BMC Dan Barnea BIOMED.” inIsraelindustry participation via inprograms like and we intend to step up our with the dialogue of efforts inIsraeli biotechnology inrecent years of renown, there adistinctmaturation has been Although Israel has long aresearch been location have subsequently atherapeutic licensed candidate. agreement with one group day the Iarrived and “I’mexperience: delighted to say that we an inked Mr. Bliss commented on his expectations and organizations.focused universities, institutes and other biotechnology- held, mostly at BIOMED but at also anumber of In total, nearly discussions 50partnering were Scientist’sChief Office. of Industry, Ministry the Trade and and Labor the and representatives of individual companies and incubators, university transfer technology groups hisDuring stay, he met with venture capital groups, Israel’s premier life conference. sciences meeting inChicago, Mr. Bliss attended BIOMED, Biotechnology Industry Organization’s annual As aresult of ameeting with BIRD at 2006 the Operations of Amgen Director of International Licensing and Licensing Thomas HookerBliss, Jr.

Congressman David Davis Levy Gerzberg (R-TN) Co-Founder, President and CEO of Zoran Corporation. “This legislation* is modeled after a partnership created by Congress in1977 between the United I attribute Zoran’s existence to a large extent to States and Israel. This was called the Binational BIRD! The BIRD support for Zoran, which started Industrial Research and Development Foundation more than 20 years ago, enabled us to develop and also known as BIRD. In 29 years, the BIRD deploy new, pioneering products that otherwise Foundation has invested $225 million in 690 would have never been possible. cooperative research and development projects The BIRD vision and outstanding support mutually beneficial to the United States and Israel.” triggered Zoran’s growth with cumulative revenues *Promoting Anti-Terrorism Cooperation through approaching $2 billion and market penetration into Technology and Science (PACTS) (Act HR 884) more than 300 million homes and offices. Thank you BIRD for helping us make it happen! Ra’ed Elmurib Vice President, General Manager, Bryant Isaacs Microprocessor & ASIC Product Division President, New Business Ventures, Arris PMC-Sierra The BIRD Foundation proved to be very easy to The concept of the BIRD Foundation and its efforts work with. They have a well defined process from in connecting start-up hi-tech companies out of project inception to completion. This process Israel with mature companies in the U.S. is very also reinforced the formation of a healthy trustful helpful to us in the Corporate Development side... relationship between the companies involved. It opens our eyes to new technologies and talents Our partner company was Resolute Networks based that we might not otherwise have known about. in Israel. ARRIS HFC technology and Resolute’s Thanks very much for all the support. Circuit Emulation technology were combined to provide a key business services solution for ARRIS Marvin Feuer cable TV customers. Director of Policy and Government Affairs AIPAC I commend the people that have made BIRD such a success for the past 30 years. I hope we can take advantage of BIRD’s successful model to expand joint U.S.-Israeli activities into exciting new areas like homeland security cooperation and the development of energy alternatives.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 47 HEARD ABOUT BIRD ... terrorism.” Israelis’ great and experience success incombating with Israel through BIRD the Foundation, and the we’ve benefited from acloseworking relationship of oursecurity homeland; and, for past the 29years, implementation of to is technology critical the like Israel.key allies The development and “Legislation build on will relationships with D.C. (September 27,2006): Anti-terror Technology Sharing Bill, Washington, U.S. Congressman King, on House the passage of Homeland Security (R-NY) Congressman Peter T. King world.” life for our citizens as well as for others around the improved economic the strength and quality of andscience for technology mutual benefit. We have value practical the of nations teaming to advance endeavor.in this The BIRD relationship has proven Institute of Standards and Technology has played Departmentthe of Commerce and its National cooperation. proud Iam especially of role the that Foundation has made to U.S.-Israel industrial “I am impressed by contribution the BIRD the and Technology (NIST) Director of the U.S. National Institute of Standards Dr. William Jeffrey

Chairman of the House Committee on

The KLA-Tencor Organization is indebted Ed to decision to build an operation inIsrael in1986. BIRD Foundation was instrumental inKLA’s The encouragement and financial support the of Corporation Chairman Emeritus KLA-Tencor Ken Levy those gapsthose were shortened... With BIRD support and encouragement, somehow machine. that required driving 30 minutes to nearest the fax to consider and sending was afax an operation no internet. Atelephone abroad call wascostly too Those werethedays where there was no email and involved with indealing American companies. itsurvival...and gave us afirst glance of what’s Indeed BIRD played an important role inour CEO M-Systems Dov Moran acquisition of OrAmir by Applied Materials. development program that ultimately to led the and OrAmir together through asuccessful joint important role inbringing Applied Materials thatI believe BIRD the Foundation played an President Emeritus, Applied Materials Dr. DanMaydan strong and profitable operation inIsrael. early years, that so we could ultimately build avery Mlavsky and his staff for helping us through the

Mickey Steiner Managing Director, SAP Labs Israel Ltd. In 1985 we started the first project with BIRD support between Kolnet Systems, a very small Israeli company and Console Systems Inc. (CSI), a mid-size California company, to develop an innovative communications system. The American company would have never done the project without BIRD and they were very impressed by the capabilities of the Israeli developers despite the fact that there were no resulting sales. Then Cylink – a security company – followed with yet another BIRD project, which again exposed the fine skills of the Israeli developers finally leading to the acquisition of “Algorithmic Research” by Cylink. BIRD was a strong catalyst in creating American exposure to Israeli talent, thus creating real value in Israel as well as successful cooperation. The BIRD team was professional, helpful, with a direct and “no nonsense” approach – not cutting any corners but also not putting up barriers. Their sole purpose was to get the best projects and the best partnerships off the ground!

Eyal Waldman Chairman & CEO, Mellanox Technologies BIRD Foundation helps to start and build companies as demonstrated with Galileo Technologies (now part of Marvell) and Mellanox Technologies. In both cases the BIRD Foundation has helped our funding in the early stages of the company.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 49 THE FUTURE Exhibition closewith light it will closes, electric Wilson, in 1878said who that “when Paris the I am not going to do better than Erasmus to try I have nowhat happen idea will future inthe and We now have to forward look ...to The Future. BIRD’s culture and making it what it is today. Many of were them directly responsible for shaping culturalthe elements that make special. BIRD so implicitly have interviewed those emphasized variousthe chapters, where either explicitly or “core ideology”, since you can read about that in I don’t articulate the to Ineed specifically think a unique organization. behavioral and which make cultural it aspects, such group of people, one can clearly special those detect a “core ideology”. In spite of beingarelatively small sure that BIRD the Foundation has a“culture” and After excitingthese first 16 months,can Isay for that remains consistent through .” time characteristics of an organization –its self-identity ideology”, as “the described which can be enduring and aleadership, may have a“culture” or a“core people, working together with acommon goal and on. so Even arelatively group small of differencesdetect divisions, between departments, supposedly predominant culture, one can still of personality. In large firms, with adeclared, and sub-organizations develop aculture, akind I am often puzzled the wayby organizations celebrations for the Foundation’s 30th Anniversary. year at BIRD, Ihave the privilege of being part of the only intensive 16very months and now in my second I have been as BIRD’s serving Executive Director for New Horizons ... Instead, Iwould like to tell you my thoughts about in abubble” . temperatures continue will rising or if “we are living notalso goingto predict world ifindeed to try is aworld market for maybefive computers”. Iam Wilson (no relation) in1943stated who that “there or than IBM’sand no more heard be of” Thomas BIRD’s objective is to have two companies activities, which are a“core capability” of BIRD. with regard true specifically to “matchmaking” synergies and to avoid duplications. This is organizations to advantage take of existing BIRD is increasingly cooperating with other technologies, such as Nanotechnology. water technologies and inemerging enabling in other Sustainable Technology Areas, e.g., new andEnergy we are studying and projects seeking point of view, such as Renewable and Alternative great importance from acommercial and social We have steps taken also to enter areas new of longer span time from development to sales. to projects inBiotechnology, which have amuch for example, by adapting proven the “BIRD Model” environment. We have already first the taken steps, To do so, we to need adjust to changing the and Israel. element relationship of special the U.S. the between officials, BIRD the Foundation is an important As stated many times by senior U.S. and Israeli companies and entrepreneurs countries. inboth projects, its originally defined mission, serving Israel cooperation through company-to-company First, BIRD must continue cultivating joint U.S.- contributing organization for many years to come. how BIRD can continue arelevant to be and perform a joint project and succeed. However, we BIRD Foundation is the quality of its people and strongly believe that an important contribution, their innovation. Today, most U.S. companies will a somewhat intangible value brought by BIRD, is also recognize the predominant importance of the to have the expertise and be able to help Israeli quality of their people to achieve short and long companies find their way in the U.S., as well as term success. In this aspect, there is no difference assist U.S. companies to find technologies and between a company and an organization like BIRD. innovation in Israel. This aspect of BIRD’s activities Given the right structure and the financial means, is often emphasized by our “customers”. Some the key factor for the making of a star organization even consider it more important than the funding is the quality of its leadership and its people. By provided. I personally believe that both go hand- now, I know the BIRD team pretty well, so I can in-hand and the matchmaking is more effective assure you it is of the highest quality. because of the potential funding we can provide. In all humility, I hope to be able to fulfill my own What else? A critical issue is the funds available. role and continue driving BIRD forward towards The last time BIRD received an increase in funding new horizons of success. was in 1984. Since then, inflation and the increased cost of R&D have reduced the buying power of the funds BIRD is able to provide to companies. We are already actively pursuing opportunities to increase BIRD’s availability of funds, specifically by focusing in areas such Renewable-Alternative Energy and Homeland Security. It is not very well known that the team at the BIRD Foundation has another very important role, assigned to it in 1996, when a joint U.S.-Israel- Jordan fund, named TRIDE, was established. This fund was provided with relatively small amounts of money by the three governments to support joint industrial R&D projects between companies from the three countries, following BIRD’s model. I believe this is a very important endeavor, in which the BIRD team has contributed to regional cooperation and economic growth. We plan to continue doing so and we aim to make TRIDE much stronger. Dr. Eitan Yudilevich The strongest asset Israel brings to the table in a relationship like the one formed with the U.S. in the Executive Director, BIRD Foundation

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 51 APPENDIX BIRD claims repayments as royalties only if • not BIRD does claim any repayments ifthe • BIRD funds up to 50%of each company’s R&D • BIRD offers conditional grants for joint • BIRD helps find strategic partners • BIRD’s Approach –Summary Company Company Budget Budget Israeli project commercial revenues are generated from the project doesn’t succeed associatedexpenses with joint the project development on arisk-sharing basis U.S. $ X $ Y +

Proposer The BIRDModel Conditional Grant Conditional Grant up to $1/2(Y) up to $1/2(X) Proposal Risk Sharing Risk Sharing Risk $ (X+Y)

100% upto 150% commercialization Repayments from of Grant upon

BIRD iiPoet 171 572 Mini Projects 743 Full Scale Number of Approved Projects Projects: BIRD’s Performance 1977-2006 ietSls $4.4B $82M $245M grant fully is repaid. sales information received is from the companies after the *The actualsales from BIRD projects are higher, since no Direct Sales* Repayments Grant Payments Grant Payments, Repayments &Direct Sales: No Revenues 44% Level ofConditional Grant Repayments Process 7% In Revenues 49% [0%-20%] 23% [Above 50%] [20%-50%] 7% 19% Board of Governors Ms. Ann Solomon Mr. Boaz Radai Applied Materials Israel Ltd. U.S. ISRAEL Ms. Sharon Regev Applied Spectral Imaging Ltd. Mr. Ken Ferguson Mr. Avraham Asheri Ms. Nili Ronen Aptel Ltd. Mr. Malachy Nugent Dr. Yossi Bachar Mr. Shlomo Shalev Aquaculture Prod Tch Ltd Mr. Marc Stanley Mr. David Baruch Mr. Udi Sheintal Arieli Computers & Software Ltd. ISRAEL Prof. Avi Ben Bassat Mr. Yochi Shochat ASI Ltd Mr. Yarom Ariav Dr. Orna Berry Atlas Research Ltd. Mr. Gabby Maimon Mr. Yoram Blizovsky Atrica Israel Ltd. Dr. Eli Opper Mr. David Brodet Former Advisors Audiocodes Ltd. Mr. Ra’anan Dinur Dr. Jordan J. Baruch U.S. Avaya Communication Israel Ltd. Mr. Yigal Erlich Dr. Jack E. Goldman U.S. Avian-Tech Ltd. Advisors Mr. Aharon Fogel Mr. Dan Tolkowsky ISRAEL AVR Communications Ltd. Dr. Dean Baker - U.S. Mr. Yehoshua Forer Mr. Amos Wilnai ISRAEL B.A.I.N. Ltd. Dr. Stephen Carpenter - U.S. Dr. Yehoshua Gleitman Baobab Technologies (Israel) Ltd.. Mr. Martin Gerstel - ISRAEL Mr. Dan Halperin BATM Adv. Communication Mr. Amir Hayek Former Executive Beta Vicam Ltd. Dr. Reuven Horesh Directors Beyond Technologies Ltd. Employees Mr. Zvi Koren A. Wade Blackman 1977-1979 BigBand Networks Ltd. Dr. EitanYudilevich Prof. Arie Lavie Dr. A.I. Mlavsky 1979-1993 Bio-Dar Ltd. Executive Director Mr. Yacob Lifshitz Dan Vilenski 1993-1997 Bio-Logic Syst. Corp Ltd Ruth Baum Mr. Amos Mar Haim Dov Hershberg 1997-2005 BIOMEDICOM Accounting Assistant Mr. Ohad Marani BioMediCom, Creative Biomedical Shlomo Cohen Mr. Victor Medina Computing Ltd. Chief Financial Officer Dr. Moshe Mandelbaum Former Employees* Bio-Rad Laboratories Israel Chava Doukhan Mr. Dov Mishor Uri Attir Biosearch Labs Ltd. Office Manager Prof. Yaacov Ne’eman Tania Ben-Shabat Bio-Technology General Ltd. Maha Mansour Mr. Amnon Neubach Anat Biel BitBand Technologies Ltd. Information Systems Manager Prof. Ezra Sadan Yael Bricker BRM Technologies Ltd. Dr. Emmanuel Sharon Cadent Ltd. Dr. Ron Maron Dov Eden Mr. Nathan Sharony Cardiosense Ltd. Director, Business Development Miriam Eisenberg Mr. Shalom Singer CareerHarmony Michal Miasnik Carmella Even Chen Mr. Amiram Sivan Carmel Biosensors Ltd. West Coast Representative Douglas Fish Mr. Shmuel Slavin CByond Ltd. Limor Nakar-Vincent Carey Fruitman Mr. Yosi Snir Cellect Instruments Ltd. East Coast and Midwest Representative Anat Ganor Mr. Carmel Vernia Cerel (Ceramic Technologies) Ltd. Einat Spivak Joan Goldstein Prof. Itzhak Yaakov Chipcom Ltd. Senior Administrative Assistant Ira Grinberg Prof. Ben Zion Zilberfarb CHIPX (ISRAEL) LTD. Dr. Yuval Weiss Yael Hollander Mr. Yoram Ziv CI Systems (Israel) Ltd. Chief Business Officer Liora Katzenstein Orna Kroch-Interator Cima Nano Tech Israel Ltd. Others who have served on the Board or who Irit Manskleid Cimatron Ltd. Former Board of have deputized for Board members Lise Messika Cleyal Ltd. U.S. Donna Pilpel CMT Medical Technologies Ltd. Governors Members Mr. Robert Anderson Pamela Richman CNOGA Medical Ltd. U.S. Ms. Catherine Bourgeois Ehud Shamai CogniFit Ltd. Dr. Stanley Abramowitz Dr. Edward L. Brady Kenneth Shostack CogniTens Ltd. Dr. Ernest Ambler Amb. Peter de Vos Chanan Steinhart Combact Diagnostic Sys. Ms. Kay Anske Ms. Catherine Downard Daniel Tal Comet Software Int’l Ltd Dr. Jordan J. Baruch Mr. Max Dupuy Naftali Trenter Moser Composit Comm. Ltd Dr. C. Fred Bergsten Dr. Claire M. Hubbard Yehuda Velsher Compugen Ltd. Mr. Frederick M. Bernthal Ms. Elizabeth Hughes Yuval Zak Comstream Israel Ltd. Dr. John P. Boright Mr. Michael Kaplan * Employed for at least one year Comsys Communication & Signal Dr. Charles H. Dallara Dr. Karl Kessler Processing Ltd Mr. George Dragnich Mr. Adnan Kifayat Comverse Future Technology Mr. James H. Fall Ms. Helen Lane Israeli Grantees Comverse Network Systems Ltd. Mr. George Folsom Mr. Charles Lawson 2AM Development Ltd. ComView Visual Systems Ltd. Mr. William Gaines Ms. Karen Mathiasen 3Meg Power Systems Ltd. Conlog Control Ltd. Mr. Kenneth F. Gordon Dr. Mariane McCurley 3P Technologies Ltd. ConMed Israel Ltd. Mr. Maureen Grewe Mr. William J. McFadden A To Z Technologies Ltd. Contahal Ltd. Mr. Brooke Holmes Ms. Magdalena Navarro A.R.T. Ltd. ConTIPI Mr. Samuel Kramer Mr. Jason Singer Academia Medica Ltd. Core Dynamics Ms. Nancy Lee ISRAEL Accord Video Communications Ltd. CoreFlow - Scientific Solutions Ltd. Mr. Marc E. Leland Mr. Avikam Beller Adacom Technologies Ltd. Creo IL Ltd. Dr. Meg Lunsager Mr. Ron Chaimovski ADI Video Technologies Ltd. CTP Systems Ltd. Amb. James L. Malone Mr. Josef Dancona Advanced Pneumatic Structures Ltd. Cyclone Aviation Prod. Mr. Jonathan Margolis Mr. Ron Dermer Advanced Semicond. Tech. CyOptics Ltd. Mr. Lawrence McDonald Dr. Sam Dershowitz Advanced Technology Ltd. Daisy Systems (is) Ltd. Mr. Mark Medish Mr. Dan Drach AE40 Ltd. Data JCE Electronics Ltd. Mr. C. Marshall Mills Mr. Amos Efrati A-Eye Advanced Vision Technology Ltd. DCL Systems Int’l Ltd. Dr. Patsy T. Mink Mr. Arieh Eitan Algatechnologies Ltd. Decision Systems Israel Dr. David C. Mulford Mr. Yossi Gordon Aliroo Ltd. Degem Systems Ltd. Amb. John D. Negroponte Mr. Azriel Hemar Allegro Intelligent Systems Dimex Ltd. Amb. Thomas R. Pickering Mr. Ishay Laks Any Soft Ltd. Discretix Technologies Mr. Martin Prochnik Mr. Yonathan Levy Applicom Systems Ltd. DSP Solutions (IS.) Ltd. Mr. Jeffery R. Shafer Mr. Yoel Naveh Applied Imaging Ltd. Dune Semiconductor Ltd.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 53 APPENDIX Infogear Technology Ltd. Industrial Development Corp. Impulse (Israel) Dynamics Ltd. Ltd.) Impact Internet Technologies Ltd. (I-labs IMI Ltd. -Institute for R&DLtd. Imco Ltd. Imarad Imaging Sys. Ltd. IsraelI-Logix Ltd. IBM Israel &Tech Sci Ltd. I.D.L Ltd. I.D. Tech Ltd. I.B.S. Ltd. I.A.I.- Ramta Division I.A.I. Ltd., MlmPlant Hypermed Ltd. Hynet Ltd. Home-Medicine.Com (Israel) Ltd. Holo-or Ltd. HI-G-TEK Ltd. Highway Info. Tech. Ltd. Helioss Communications Israel Ltd. Hazera Ltd. Harmonic Data Systems Ltd. Hadasit Ltd. GTEK Green Vision Systems Ltd. Green Care Laboratories (1980)Ltd.GMA Comm. Glycominds Ltd. Glucon Medical Ltd. Gilat Satellite Networks Gilat Communications Ltd. MicrowaveGeneral Ltd. GE Ultrasound Israel Ltd. GE Medical Systems Israel Ltd. Gaya Software Industries Ltd. GammaCan GamidaGen Ltd. Galram Techn. Industries TechnologyGalileo Ltd. Gal-El Galcon Kfar Blum GalayOr Networks Ltd. LaboratoriesGalai Ltd. FTA Advanced Marine Systems Freshpoint Assurance Quality Ltd. FrantzTech Ltd. Foxboro NMRLtd. Fibronics Ltd. Ferrofluidics Ltd. ExPlay Ltd. Exotech Bio Solutions Ltd Eureka U.S.A. Ltd. Ester Neurosciences Ltd. Espro Information Technologies Ltd. EquipNET Ltd. Epigenesis Ltd. Ephyx Technologies Ltd. Enzymotec Ltd. Ltd.Elspec Elron Software (2000) Ltd. Elpack 2000Ltd. MotionElmo Control Ltd. ElectronicsElisra Sys. Ltd. Electronics Ltd. Line Fuel Ltd.Electric Eldar Electronics Eldan Technologies Ltd. Ltd. Edusoft Ltd. Edunetics Ltd. Ecogen Is. Partnership ECI Telecom Ltd. Novellus Systems Inc. Notal Vision Ltd. North Hills Israel Ltd. Nice Systems Ltd. Nexus Telecom Sys Ltd. Neuromedical Systems Ltd Nester Ltd. Ness Tec Ophthalmic Systems Ltd. Ness Ltd. NCC Ltd. Nanomed Ltd. M-systems Flash Disk Ltd. Motorola Israel Ltd. Mobile Info. Sys. Ltd. MITAM Ltd. Mitam Ltd. Misat Ltd. Mint Technologies Ltd. Minerals &Refractories Mindset BioPharmaceuticals Ltd. Mindsense Biosystems BroadbandMillimetrix Networks Ltd. MicroSpec Technologies Ltd. Microkim Ltd. Micro-bit Ltd. Micro Components Ltd. -MCS Metalsoft Israel Ltd. Merlynet Communication Systems Ltd. Mercury Interactive Ltd Mennen Medical Ltd. Mempile Ltd. Mellanox Technologies Ltd. Medivision Medical Imaging Ltd. Medical Electronic Systems Ltd. (MES) Media Tech.& Serv. Ltd. Medcon Systems Ltd. Mazrek Ltd. Matmor Ltd. MATE -Media Access Technologies Ltd. Margulead Ltd. Makhteshim Work Chemical Maintek Ltd. Magic SoftwareEnt. Ltd. Macdermid Israel Ltd. Ltd.M.L.I. Lasers Luz Industries Ltd. Luxembourg Ltd Chemicals Lucid Information Tech Ltd LPT Technologies SystemsLiraz Ltd. Lingosense Ltd. Liacom Ltd. LDS Ltd. IndustriesLaser Ltd. Kulicke (israel) &Soffa Koor Foods Ltd. Kolnet Systems Ltd. Kollmorgen Ltd. Servotronix KLA-Tencor Corp. (Israel) TechnologiesKiloLambda Ltd. Kamada Ltd. Kailight Photonics Jordan Valley Applied Radation John (systems) Bryce Ltd TechnologiesJDC Ltd. Istec Ind. &Techn. Ltd. Israel Ltd. Chemicals Isomed Ltd. I-Sight Ltd. Center Intergraph Israel SoftwareDevelopment Integra5 Ltd. Intech Ltd. Infra-Com Ltd. GamidaGen Ltd. Galram Techn. Industries TechnologyGalileo Ltd. Gal-El Galcon Kfar Blum GalayOr Networks Ltd. LaboratoriesGalai Ltd. FTA Advanced Marine Systems Freshpoint Assurance Quality Ltd. FrantzTech Ltd. Foxboro NMRLtd. Fibronics Ltd. Ferrofluidics Ltd. ExPlay Ltd. Exotech Bio Solutions Ltd Eureka U.S.A. Ltd. Kulicke (israel) &Soffa Koor Foods Ltd. Kolnet Systems Ltd. Kollmorgen Ltd. Servotronix KLA-Tencor Corp. (Israel) TechnologiesKiloLambda Ltd. Kamada Ltd. Kailight Photonics Jordan Valley Applied Radation John (systems) Bryce Ltd TechnologiesJDC Ltd. Istec Ind. &Techn. Ltd. Israel Ltd. Chemicals Isomed Ltd. I-Sight Ltd. Center Intergraph Israel SoftwareDevelopment Integra5 Ltd. Intech Ltd. Infra-Com Ltd. Infogear Technology Ltd. Industrial Development Corp. Impulse (Israel) Dynamics Ltd. Ltd.) Impact Internet Technologies Ltd. (I-labs IMI Ltd. -Institute for R&DLtd. Imco Ltd. Imarad Imaging Sys. Ltd. IsraelI-Logix Ltd. IBM Israel &Tech Sci Ltd. I.D.L Ltd. I.D. Tech Ltd. I.B.S. Ltd. I.A.I.- Ramta Division I.A.I. Ltd., MlmPlant Hypermed Ltd. Hynet Ltd. Home-Medicine.Com (Israel) Ltd. Holo-or Ltd. HI-G-TEK Ltd. Highway Info. Tech. Ltd. Helioss Communications Israel Ltd. Hazera Ltd. Harmonic Data Systems Ltd. Hadasit Ltd. GTEK Green Vision Systems Ltd. Green Care Laboratories (1980)Ltd.GMA Comm. Glycominds Ltd. Glucon Medical Ltd. Gilat Satellite Networks Gilat Communications Ltd. MicrowaveGeneral Ltd. GE Ultrasound Israel Ltd. GE Medical Systems Israel Ltd. Gaya Software Industries Ltd. GammaCan MATE -Media Access Technologies Ltd. Margulead Ltd. Makhteshim Work Chemical Maintek Ltd. Magic SoftwareEnt. Ltd. Macdermid Israel Ltd. Ltd.M.L.I. Lasers Luz Industries Ltd. Luxembourg Ltd Chemicals Lucid Information Tech Ltd LPT Technologies SystemsLiraz Ltd. Lingosense Ltd. Liacom Ltd. LDS Ltd. IndustriesLaser Ltd. Oridion Medical Ltd. Orgenics Ltd. Orex Computed Radiography Ltd. Ordacard HiTech Ind. Ltd Orckit Communications Ltd. Orbit F.R Engineering Ltd. OptronicOpgal Ind. Ltd. Onyx Technologies Ltd. Onset Technology Ltd. BiopharmaceuticalsOmrix Ltd. OMRI Laboratories Ltd. Omikron Scientific Ltd. Olive Software Ltd. Ogentech Ltd. Ogdan Systems Ltd. (Israel) Comm. Octel Ltd Integ.Oceana Tech Ltd. Nutricognia Ltd. Numalog Ltd. Novia Pharmaceuticals Ltd. Novellus Systems Inc. Notal Vision Ltd. North Hills Israel Ltd. Nice Systems Ltd. Nexus Telecom Sys Ltd. Neuromedical Systems Ltd Nester Ltd. Ness Tec Ophthalmic Systems Ltd. Ness Ltd. NCC Ltd. Nanomed Ltd. M-systems Flash Disk Ltd. Motorola Israel Ltd. Mobile Info. Sys. Ltd. MITAM Ltd. Mitam Ltd. Misat Ltd. Mint Technologies Ltd. Minerals &Refractories Mindset BioPharmaceuticals Ltd. Mindsense Biosystems BroadbandMillimetrix Networks Ltd. MicroSpec Technologies Ltd. Microkim Ltd. Micro-bit Ltd. Micro Components Ltd. -MCS Metalsoft Israel Ltd. Merlynet Communication Systems Ltd. Mercury Interactive Ltd Mennen Medical Ltd. Mempile Ltd. Mellanox Technologies Ltd. Medivision Medical Imaging Ltd. Medical Electronic Systems Ltd. (MES) Media Tech.& Serv. Ltd. Medcon Systems Ltd. Mazrek Ltd. Matmor Ltd. Micro Components Ltd. - MCS Ltd. Ultracom (Israel) Ltd. Beth Israel Deaconess Medical Center Micro-bit Ltd. Ramot TAU & Deutch Ind. Unipier Mobile Ltd. Bio-Logic Systems Corp. Microkim Ltd. RaySat Israel Ltd. Unipower UPC Ltd. Bio-Rad Laboratories Inc. MicroSpec Technologies Ltd. Ready Systems (Israel) Ltd. United Medical Sys. Ltd. Bogen Communications Inc Millimetrix Broadband Networks Ltd. Real Vision Ltd. Univercol-Nirlat Boole And Babbage Inc. Mindsense Biosystems RED-C Optical Networks Ltd. Valor Systems Ltd. Bosch Telecom Inc. Mindset BioPharmaceuticals Ltd. Reiter Software Systems VCON Telecommunication Ltd. Boston Whaler Inc. Minerals & Refractories Remon Medical Technologies Ltd. VDonet Corporation Ltd. Brinkmann Instrument Inc Mint Technologies Ltd. Resolute Networks Ltd. Veterix Ltd Brooktree Corporation Misat Ltd. Ricor Ltd. VI[Z]RT Ltd. Brooktrout Technology Mitam Ltd. Riverdeep Interactive Learning Ltd. Viryanet Ltd. Caere Corporation Inc. MITAM Ltd. Robomatix Ltd. VisAccess Ltd. Canberra Industries Inc Mobile Info. Sys. Ltd. Rokar International Ltd. Vishay Israel Ltd. Canoga Perkins Corp. Motorola Israel Ltd. Ronipal Ltd. Visionix Ltd. Capella Photonics Inc. M-systems Flash Disk Ltd. Rosetta Genomics Ltd. Visus Ltd. Carl Zeiss Meditec Inc. Nanomed Ltd. Rotem Ltd. VYYO Ltd. Cassling Diagnostic Imaging (CDI) NCC Ltd. Rotlex Optics Ltd. WaveAccess Ltd. Cedars Sinai Health System (CSHS) Ness Ltd. S.E.S. Ltd. WideMed Ltd. Celesco Inc. Ness Tec Ophthalmic Systems Ltd. SAE Afikim Com Dairy Sys Xanadu Ltd. Chip Express Corporation Nester Ltd. Saifun Semicond. Ltd. Zoran Microelectronics Chipcom Corporation Neuromedical Systems Ltd Sandisk Israel Chromadex Inc. Nexus Telecom Sys Ltd. SandLinks Ciba Specialty Chemicals Corp. Nice Systems Ltd. SAP Labs Israel Ltd. U.S. Grantees Cidco Inc. North Hills Israel Ltd. Sapiens Technologies Ltd 21st Century Robotics Cincinnati Electr. Corp. Notal Vision Ltd. Savyon Diagnostics Ltd. 3M Unitek Ciphergen Biosystems Inc. Novellus Systems Inc. Schema Ltd. A. Gage Inc. Circe Biomedical Inc. Novia Pharmaceuticals Ltd. Scitex Corporation Ltd. Abiomed Inc. Cirrus Logic Inc. Numalog Ltd. Sensiv Ltd. Accelrys Inc. Cleveland Clinic Foundation Nutricognia Ltd. Sensotech Automotive Ltd. Accurate Chem & Sci Corp Codex Corporation Oceana Integ. Tech Ltd. Serum Tech. Ltd. ACMI Inc. Coherent Components Inc. Octel Comm. (Israel) Ltd Shellcase Ltd. Acoustiguide Corporation Comp. Lodging Systems Ogdan Systems Ltd. Shiron Satellite Communications Ltd. ACT Networks Inc. Compaq Computer Corporation Ogentech Ltd. Simtech Ltd. Adacom Corporation Computer Methods Corp. Olive Software Ltd. Simulog Ltd. ADC Magnetic Controls Co Comsat RSI Inc. Omikron Scientific Ltd. Sivan Ltd. Advanced Power Tech Inc. Comverse Technology Inc OMRI Laboratories Ltd. Sizary Materials Purification Ltd. Advanced Technology Intl Condor Computer Corp. Omrix Biopharmaceuticals Ltd. Sky Mobile Media (Israel) Ltd. Aerotrans Corporation ConMed Corporation Onset Technology Ltd. SLP Ltd. AFP Imaging Corporation Console Systems Inc. Onyx Technologies Ltd. Sogo Electronics Ltd. Agar Corporation Continental Cablevision Opgal Optronic Ind. Ltd. Soundesigns Comm. System Agilent Technologies Inc. Corelis Inc. Orbit F.R Engineering Ltd. SpaceLogic Ltd. Alcide Corporation Craig Hospital / Adaptive Equipment Co. Orckit Communications Ltd. SRD Medical Ltd. Allpoints Systems Inc. Creative Labs Inc. Ordacard HiTech Ind. Ltd Steag CVD Systems Ltd. Alpha Industries Inc. Cromemco Inc. Orex Computed Radiography Ltd. Sterling Software Ltd. AlphaMicron Inc. Cygna Corporation Orgenics Ltd. STMicroelectronics Inc. Altec Lansing Tech. Inc. Cylink Corporation Oridion Medical Ltd. Surf Communication Solutions Ltd. Altera Corporation D&R Technology LLC Ornet Ltd. Svivot Ltd. AMAT - Applied Materials Daisy/Cadnetix Inc. Or-X Ltd. Synel Systems Ltd. Amcol International - Nanocor Inc. Data General Corporation Osnat Synopsis Systems Ltd. America Online Inc. Datascope Corporation P.C.B. Ltd. Systel Development & Industries Ltd. American Paging Inc. David Systems Inc. Paradigm Geophysical Ltd Tadiran Scopus Digital Video Compression American Red Cross (ARC) DCT Utilase Systems Paragon Communications Ltd. Taldor Computer Sys. Ltd Analog Devices Inc. Decision Systems Inc. Peptor Ltd. Tapi Information Systems Animed Inc. DeLaval Inc. Persys Technology Ltd. TaskMail Ltd. Apogee Technology Inc. Designatronics Inc. Pharmos Ltd. TAT Technologies Ltd. Apollo Laser Inc. Diasonics Ultrasound Inc Pixel Broadband Studios Ltd. TDSoft Ltd. Applied Imaging Corp. Diatech Diagnostics Inc Pladot Ein Harod Meuchad Tecnomatix Ltd. Applied Materials Inc. Digital Equipment Corp. Plasma-Laser Technologies Ltd. Tedea Ltd. Aquila Technologies Inc. Digital Pathways Inc. Plasma-Laser Technologies Ltd. Telegate Ltd. Archer Daniels Midland Company (ADM) Display Technologies Inc Plastopil Hazorea Telematics Wireless Ltd. ARINC Inc. Dixie Steel Corporation PMS (Israel) Ltd. Telrad Networks Ltd. Arkema Inc. DSP Solutions Inc. Polyeitan Composites Ltd. TeraOp Ltd. Arraycomm Inc. DxRay Inc. Polyoptics Ltd. Teva Pharmaceutical Ltd. Arris International EA Systems Inc. PrimeLayer Technologies Ltd. Texas Instruments (Israel) Cable Broadband Avaya Inc. Eastman Kodak Company Prochon Biotech Communications Ltd. AVR Sonovation Inc. ECI Telecom Inc. Proneuron BioTechnologies Ltd. Tidex Systems Ltd Baird Corporation Ecogen Inc. ProteOptics Time And Frequency Ltd. Bausch & Lomb (blp) Inc. EG&G Astrophysics Research Corporation Provigent Ltd. Timex Development Ltd. Bay Networks Inc. EG&G Power Systems Inc. QBI Enterprises Ltd. Total Graphics Ltd. Bayer Pharmaceutical Division Electro Scientific Industries R3-Real-Time Radiography Readout Ltd. Ltd. BBN Systems & Techn Corp Electrocom Automation Rad Computers Ltd. TrainVision Becton Dickinson and Company Electronic Arts Inc. Rad Network Devices Ltd Transky Ltd. Becton Dickinson Ophthalmic Division Electrosound Group Inc. Rada Ltd. TTI Team Telecom Inc. Berlitz Int’l. Inc. Elron Software Inc. Radcom Ltd. Ubique Ltd. Beta Scientific Inc. Embrex Inc.

Partnering for Progress 30 Years of Collaboration 1977-2007 BIRD FOUNDATION 55 APPENDIX Intelicoat Technologies, LLC Integrated Network Corp. Integrated Tech’y Device Inrange Technologies Corp. Infrared Solutions Inc. Infinera Corporation Inc.I-Logix Inc.ILOG Inc. IIMAK -International Imaging Materials iDirect Technologies IDEO Global I.T.E. Inc. Honeywell International Inc. High Voltage Eng. Corp. Heinle &Heinle HCC Industries Inc. Harris Corporation Harris Corp./Semiconductor Harris Corp./Digital Tel Harris Adacom Corp. Division Harris Microwave Communications Harper Publisher Collins Harmonic Inc Guidant Corporation Griffin Corporation GreenFuel Technologies Corp. Graphic Corp. Science GNB Technologies Inc. Globecomm Systems Inc. Glenayre Electronics Inc. Gibco Div., Dexter Corp. Auto. Dairy Germania Inc Scientific InternationalGerber Inc. GarmentGerber Tech. Inc Geotek Communications Inc TransgenicsGenzyme Corp Refractories General MicrowaveGeneral Corp. InstrumentGeneral Corp. DatacommGeneral Inc. Rest Mill GroupGen Inc PlayingGemaco Card Company Gelesis Inc. GE-GRC GE Security GE Medical Systems Gaston County Company MotionGalil Control Inc G.B.I. International Inc Frequency Electronics Frantz Medical Develop. Foxboro Sys. Analytical Fore Systems Inc. FMC Corporation Flextronics International Flextronics Inc. Fibronics Int’l Inc. Ferrofluidics Corp. Ferno Washington Inc. Fastcomm Corp. Comm. Farrall Instruments Inc. Fairchild Semiconductors Fairchild Data Corp. FAAC Inc. Executone Inf. Sys. Inc. Evans &Sutherland Corp. Eton Systems Inc. Equator Technologies Inc. BiochemEnzo Inc. Enforsys Systems Inc. Encore Time Real Computing Inc. Emcore Corporation Open-Silicon Inc. Office Channel Inc. OnlineComputerOCLC Center Library Inc. Numar Corp. Nuera Communications Inc. Novellus Systems Inc. Novell Inc. North Hills Electronics New Horizons Diagnostics Neuromedical Sys. Inc. Network Associates Inc. nCUBE Corporation NCR Corporation Napco Syst Inc Security (MTF) Musculoskeletal Transplant Foundation MSA Company Mountain View Pharmaceuticals Inc. Motorola Inc. Molex Optics, Division Fiber of Molex Inc. Millitech Corporation Milgo Solutions Inc. Corporation Metron Technology Distribution Metalsoft Inc. Mercury Interactive Corp Mercury Graphics Corp. Mennen Medical Inc. Meganet Corporation Martin Marietta Data Sys Manpower Inc. Magic SoftwareEnt. Inc Macdermid Incorporated Luz International Corp. Lucent ENCorp. LSL Biotechnologies Inc ArchitectsLogica-Data Martin Ocean Lockheed Limco-Airepair Inc. Life Therapeutics Liacom Inc. 8SystemsLevel Inc. Inc. Beiser Leo Lemmon Company TechnologiesLearn Interactive Inc.Lasertel Laserscope Larscom Inc. Inc.Lansco L-3 Communications -Telemetry West Systems L3 Communications -Satellite Transmission Kulicke Ind. &Soffa Inc Kopin Corporation Kollsman Inc. Kollmorgen Motion Group InstrumentsKLA Corp. Kineret Engineering Kesmai OnlineGames Johnson &Johnson Professional Inc. JDS Uniphase Corporation Isra-Tech Dev’t Corp. Isocor Isis Pharmaceuticals Inc. Iris Graphics Inc. Intl. Teletrac Systems Int’l. Corp. Rectifier Int’l Imaging Systems Interwave Communications Inc. Intervoice-Brite Inc. International Corp. Systems Services Intergraph Computer Systems Interactive Systems Inc. Interact Corporation Philips Semiconductors Phibro Animal Health Corporation Pharmos Corporation Pharmacopeia Inc. Perceptronics Inc. Pentacom Inc. Para Research Inc. Pals Inc. Packard Nec Inc. Bell Pacific Micro Data Inc. Diagnostics Inc.Ortho-Clinical Orgenics Intnl. Inc. Oread -Company closed Orbot Incorporated Orbit Advanced Tech. Inc Ophthalmic Imaging Systems Inc. Summit Technology Inc. Sugen Inc. Stratus Computer Inc. Stratex Networks STMicroelectronics Inc. Sterling Software Inc. Steag CVDSystems Inc. Startel Corporation Standard Microsystems Square D SPI Microtech Inc. Spectragraphics Corp. Specialty Minerals Spansion LLC Spacenet Inc. Spacenet Inc. Spacelabs Healthcare Inc. Sonoma Systems SoftwareCenter Inc. Smithkline Inc. (sbcl) Simulog Inc. Silverplatter Info. Inc. Silicon Valley Group Inc. Siemens Medical Sys. Inc SHL Systemhouse Corp. Sharplan Inc. Lasers SolutionsSer Inc. Sensormatic Electronics Corp. Scitex N AmericaCorp Schott Glass Technologies Inc. Sceptor Industries Inc. Sapiens USAInc. Sanmina-SCI Corporation Sandisk Corporation Sabeus Systems Sensor Inc. Roland Corporation U.S. Robin Medical Inc. Richardson Electronics Ltd. Inc.Remec Ready Systems Inc. Read-Rite Corp. ComstreamRadyne Radionics Inc. EquipmentRadcom Inc. Data CommunicationsRad Inc. Quintiles Transnational Ltd. (QTRN) Projects In Knowledge Inc. Progeny Systems, LLC PRI Automation Inc Prentice-Hall Software Precision Circuits Inc. Polychrome Corporation Polyair Corp. Policy Management System PMC-Sierra U.S. Inc. Plato Inc. Learning Plastigone Technologies Phoenix Technologies Ltd Telcordia Technologies Telco Systems Inc. Tektronix Inc. Tekelec Inc. Tecnomatix Technol. Inc. Technology Inc. Control Services TCSI Corporation Tasco Inc. Syva Company System Programming Ltd. Syntel Inc. Symbol Technologies Inc. Corporation Syllogy Sygen International Supco Inc. Sunrise Medical Inc. Zoran Corporation ElectronicsZenith Inc. Xyvision Systems Design Xoma Corporation Wynn’s Climate Sys. Inc. Workstation Tech. Inc. Wings For Inc. Learning Wideband Data Corp. Wicat Systems Inc. Wheelabrator Water Technologies Weston International Westell Weldmation Inc. Welch Inc. Allyn Watsco Inc. WatchMark Corp. W.L. Gore &Associates Inc. VTel Corporation Visonic Inc. Vishay Intertech. Inc. VI[Z]RT Inc. Vesuvius Corporation Verilink Corporation Veeco Instruments Inc. Varian Medical Systems Inc. Valor Systems Inc. Utilase Inc. USWeb Corporation CapitalUSBC Corporation URO-Care Laboratories Univision Tech. Inc. Universal Sonics Corp. United Medical Sys. Inc. Unimation/Westinghouse Unify Corporation Ungermann-Bass Inc. Ultracom Inc. TriQuint Semiconductor Inc. TranSwitch Corp. Tracor Aerospace Inc. TLSI Timex Corporation CorporationElectronThermo DataThe Group Inc. The BioSolution Group Texas Instruments Inc. Tesco Engineering Inc. Tender Loving Care Inc. Tencor Instruments Telrad Telecomm. Inc. Telematics Intnl. Inc. Teledyne The BIRD Team Limor Nakar-Vincent, Michal Miasnik, Maha Mansour, Ruth Baum, Eitan Yudilevich, Shlomo Cohen, Chava Doukhan, Einat Spivak, Yuval Weiss and Ron Maron

BIRD Foundation

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