Ra'anana, Israel, March 21, 2007 ? BrainsGate Ltd. today announced that it has been selected by Red Herring as one of the most promising 100 private companies in Europe driving the future of technology and leading the next wave of innovation.

"We are honored to be recognized by Red Herring as one of the top 100 private companies driving innovation in Europe and Israel," said Avinoam Dayan, CEO, BrainsGate. "We have recently won a series of prestigious awards that indicate international recognition in BrainsGate's technology for the treatment of various CNS conditions. Our first application is focused on ischemic stroke, offering hope for millions of people who suffer from limitations of current treatments,? Mr. Dayan concluded.
Red Herring?s lists of top private companies are an important part of the company?s tradition of identifying new and innovative technology companies and entrepreneurs. Companies like Google, eBay and Skype were spotted in their early days by Red Herring editors, and touted as leaders that would change the way we live and work.
 
?This year?s impressive list of winners demonstrates Europe?s emergence as a major player in the global technology sector,? said Red Herring Editor-in-Chief, Joel Dreyfuss. ?The exceptional accomplishments of European technology companies and entrepreneurs are a testament to the rapid advancements being made in building the European innovation ecosystem.?

Red Herring?s editorial staff rigorously evaluated more than 700 private companies through a careful analysis of financial data and subjective criteria, including quality of management, execution of strategy, and dedication to research and development. The Red Herring?s Annual European award includes companies from across Europe and Israel.

About BrainsGate Ltd.
BrainsGate?s technology involves electrical stimulation of the Spheno-Palatine Ganglion (SPG), a nerve center located above the roof of the mouth. This stimulation causes blood vessels feeding the brain to dilate, thus supplying more blood to the brain. The SPG is easily accessible, using a needle-size device which is implanted in a minimally invasive, local anesthesia surgery, lasting approximately 15 minutes. The device can then be activated using an external system.

BriansGate's leading indication is treatment of acute ischemic stroke, where current treatments are effective only if given within 3 hours from stoke onset, resulting in 96% of patients receiving no treatment. BrainsGate's device can be implanted in patients up to 24 hours from stroke onset, thus widening the therapeutic window and making it relevant to practically all the patient population.
SPG stimulation is a general platform which can be used to treat a host of CNS related indications. Clinical testing of BrainsGate's system for the stroke application is ongoing in a multi-center, multi-national trial, with initial proof of efficacy expected in late 2007.

BrainsGate is a medical device company headquartered in Israel. Lead investors include Boston Scientific, Pitango Venture capital, Elron Electronic industries (NASDAQ:ELRN), Alice ventures and Infinity ventures. For more information please visit http://www.brainsgate.com.