TEL AVIV, Israel -- Elron Electronic Industries Ltd. (NASDAQ & TASE: ELRN) today announced that, subject to obtaining required consents and the signing of definitive agreements, it has reached agreement with several Israeli institutional investors to sell all its shares in Partner Communications Company Ltd. (NASDAQ and TASE: PTNR; LSE: PCCD) for an aggregate purchase price of approximately $40 million. Elron currently holds 3,906,085 Partner shares, all of which are currently restricted under Partner’s license from the Israel Minister of Communications. Accordingly, any sale of these restricted shares would be subject to the approval of the Israel Minister of Communications.

Upon the sale of these Partner shares, if completed, Elron would realize a net (after tax) gain of approximately $16 million under U.S. generally accepted accounting principles (U.S. GAAP) and approximately $23 million under Israeli generally accepted accounting principles (Israeli GAAP).

There is no assurance that the sale will be completed.

Elron Software