TEL AVIV, Israel--(BUSINESS WIRE)--Aug. 11, 2005--Elron Electronic Industries Ltd. (NASDAQ & TASE: ELRN) today announced that it has completed a new investment of approximately $7 million in BrainsGate Ltd. BrainsGate is an Israeli company that is developing implantable medical devices to treat various central nervous system 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 Limited, Pitango Venture Capital Fund, FBR Infinity II Ventures (a related venture capital fund) and MB Venture Capital Fund.
