System Management
Vertical Industry View
Internet Software
Consumer Applications
Information Applications
Cross Industry Applications
Data Warehouse
Services
Development Tools
Middleware,Servware
Other


Dear Colleagues,

Israel's remarkably successful software industry is based on the incisive ability of the
country's specialists to identify market needs and develop innovative software products
and packages to meet those requirements. Consequently, the software sector is Israel's
fastest growing export industry, with overseas sales soaring at a striking rate of 20%-25%.
Exports reached $2.6 billion in year 2000 and are expected to climb by hundreds of millions
in 2001.

The country's hundreds of software houses and over 14,500 scientists and engineers have been
contributing factors to the Israeli economy's average annual growth. Software ingenuity has
made Israel one of the world's fastest growing economies. The Information Technology industries
have become the driving force behind the new socio-economic revolution of the State of
Israel. Israel, with its thousands of start-up companies, is ranked second in the world after
the United States in the number of technological start-ups.

Israel's talented software specialists bring a unique approach and standards of excellence,
innovation and originality to the development of cutting edge technologies, packages and products,
as well as related hardware accessories, in such fields as multimedia, imaging, voice response,
voice recognition, artificial intelligence, object oriented application generators, data
communications, CAD/CAM applications, courseware software, Internet related products,
firewalls and e-commerce.

From product conception through design, development and marketing, Israeli experts exhibit
entrepreneurship and initiative that transform visions into effective software. Local scientists
and engineers act in the tradition of Theodore Herzl, the founder of political Zionism, who said:
"if you will it, then it will be."

In addition to this exceptional approach based on novelty and enterprise, Israel has the highest
standard universities and R&D institutes (including the Technion - Israel Institute of Technology
and the Weizmann Institute), which provide a talented stream of highly educated computer science
and system engineering graduates, not to mention that the Israel Defense Forces (IDF) is considered
one of the best technology schools in the world.

This reservoir of technical expertise has been further enriched by the wave of highly educated
immigrants from the former Soviet Union, as well as Jewish immigrants from the west and Israelis
returning home after studying or building successful careers in North America and Europe. There
also exists a deep pool of experienced software experts waiting to immigrate or to return home to
Israel.

At the same time the Israeli government policies have inspired impressive growth. Strategic programs
designed to encourage software development have been implemented by the Office of the Chief
Scientist of the Ministry of Industry & Trade. These include the formation of bi-national funds,
incubators to nurture fledgling start-ups, and the Magnet program that directs funds to generic
technologies.

As a result, Israel has emerged as a world center for software research, development and production.
Major multinational companies have established R&D centers in the country. These include IBM, Intel,
Compaq, Hewlett Packard, Microsoft, Motorola, National Semiconductor, and others. Microsoft set up
its first research center outside of the US in Haifa, while Intel was so satisfied with its existing
design facilities that it recently chose to open its largest R&D center worldwide here in Israel.
These investments have enabled the world's major players to explore new horizons and benefit from
Israel's outstanding talent.

Furthermore, Israeli companies have attracted billions of dollars in investments from overseas partners,
either through direct investments or through issues of shares on foreign stock exchanges.
Over one hundred venture capital funds have targeted Israeli start-up companies. These investment funds have not only generated new technologies and products, but have also enhanced Israeli companies' marketing capabilities worldwide.

The Israeli Association of Software Houses (IASH), operating under the auspices of the Manufacturers'
Association of Israel, serves as a liaison that matches the expertise of Israeli software houses with
potential strategic partners. IASH acts as a commercial link, develops bilateral relationships and joint
projects in the R&D of software technologies and products, and identifies viable opportunities for
joint ventures.

This site is intended to provide an introductory overview of some of Israel's remarkable software capabilities. We hope you will find it informative and interesting and we look forward to joining you in mutually productive and profitable cooperation.

Amiram Shore, Chairman
Israeli Association of Software Houses