Elron Electronic Industries (Nasdaq: ELRN; TASE: ELRN) today announced that it has completed a new round of investment of approximately $7 million in BrainsGate Ltd.

Israeli start-up BrainsGate is developing implantable medical devices to treat various central nervous system (CNS) related diseases. The company's core technology utilizes a miniature implant which increases the brain's blood vessel diameter and enables a controlled opening of the blood brain barrier.

Following the investment, Elron will hold 20% of BrainsGate, on a fully diluted basis. Existing investors in BrainsGate include Boston Scientific Ltd., Pitango Venture Capital Fund, FBR Infinity II Ventures (a related venture capital fund) and MB Venture Capital Fund.

Elron president and CEO Doron Birger, said: "Our investment in BrainsGate provides us with a promising opportunity to participate in the development of its innovative technology to enable the use of a broad variety of medications and treatments for brain related diseases".

Through affiliates, Elron is engaged with a group of high technology operating companies in the fields of medical devices, telecom, semiconductors and advanced materials.

Published by Globes [online], Israel business news ? www.globes.co.il ? on Thursdayy, August 11, 2005