January 4, 2006--- Tel Aviv - Safend, a leader in end-point security solutions today closed a Series B funding, in which Elron Electronic Industries, (NASDAQ & TASE: ELRN) joined existing investors, Intel Capital (www.intel.com) and Walden Israel Venture Capital (www.walden.co.il) for a second round funding of $7.4 million.

Founded in 2004, Safend develops enterprise security solutions that prevent data leakage from the enterprise and intrusion to the enterprise through desktops, laptops, mobile devices and the many devices that can be connected to these endpoints through all physical and wireless communication channels including media players, Smart Phones with Bluetooth, Disk on Keys, and other portable storage devices.

“Safend’s is committed to developing best-of-breed endpoint security products that meet the evolving needs of enterprise customers,” said Gil Sever, CEO of Safend. “This new round of funding will help Safend solidify its US presence and further expand the business into additional global markets, as well as enhance and expand our product offering in order to provide wider-reaching protection against ever-growing security threats”.

Noga Kap, General Partner at Walden Israel, which exclusively invested in Safend’s initial funding in 2004, noted, “We are extremely pleased with Safend’s progress, which is already ahead of plan -- in terms of product development, execution, and market penetration. The market has already been very receptive to Safend and we expect that the trend will only intensify.”

Doron Birger, President & Chief Executive Officer of Elron commented: "This announcement reflects Elron's continued investment in new leading edge technology companies. Safend is a leading company in a new fast growing market of end point security solutions of information leakage detection and prevention. With its innovative technology, top management and highly experienced professional team, we are confident that Safend will develop into a successful, high value company".

About Elron
Elron Electronic Industries Ltd. is a high technology holding company based in Israel. Through affiliates, Elron is engaged with a group of high technology operating companies in the fields of medical devices, telecom, semiconductors and advanced materials.
For further information, visit http://www.elron.com, or contact Rinat Remler, +972-3-6075555 or rinat@elron.net.

About Intel Capital
Intel Capital, Intel’s venture investment program, focuses on making minority equity investments to grow the Internet economy in support of Intel’s strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. Intel Capital has invested more than US$4 billion in approximately 1,000 companies in more than 30 countries since 1991. Since its inception, about 160 portfolio companies have been acquired by other companies and another 150 have gone public on various exchanges around the world. Intel Capital employs investment managers in about 25 countries worldwide. Last year alone, Intel Capital invested more than US$130 million in about 110 deals with approximately 40 percent of its investments made outside the United States. For more information, visit www.intel.com/capital.

About Walden Israel
Walden Israel is one of the first Israeli early-stage venture capital funds. Founded in 1993, Walden Israel manages $185 million and focuses on investments in areas of communications and information technology. Walden Israel is affiliated with the Walden International and Walden VC Groups, which manage collectively over $2.5 billion and have established presence in the US and over ten countries in Asia and the Pacific Rim.
For more information, contact Noga Kap, Walden Israel General Partner, +972-9-961-8000, +972-54-4428289, or +1 (415) 215-8106 or Leslie Perlberg, Director of Marketing Communications, +972+54-661-7611.

About Safend
Safend is headquartered in Tel Aviv, Israel, with US offices in Philadelphia, PA, and is funded by Walden Israel, Elron electronic industries and Intel Capital. Safend provides the world’s most comprehensive end-point security solutions for the enterprise with its USB Port Protector and Safend Protector, which are available exclusively through authorized resellers worldwide. For more information on Safend and its products, visit www.safend.com.