American-Israel Chamber of Commerce

Southeast Region




AICC
AICC

American-Israel Chamber of Commerce, Southeast Region
400 Northridge Road, Suite 250, Atlanta, GA 30350
Tel: (404)843-9426 Fax: (404)843-1416 e-mail: aiccse@aiccse.org website: www.aiccse.org

  June 12, 2006
 From The Leadership
Tom Glaser, President

Andre Schnabl,
Chairman of the Board

 

As we conclude another successful program year, it is timely to reflect on the reasons and elements that made 2005-06 the most productive in our 14 year history.  Certainly, as we are also completing the 3rd in our 3-year plan, the strategies approved in 2004 have proven themselves to be a productive pathway for the Chamber.

Deal Flow was at an all time high, driven by the activities of our committees and by the two successful state level missions that we organized last fall.  The US-Israel Broadband Business Exchange achieved a new level of effectiveness and produced over 600 one-on-one meetings for the participating Israeli and American companies.

Educational Programming included successful annual events such as the Professional Seminar and Eagle Star Awards Gala, and we added special focus events in Security, Software, and Medical.  Member Involvement reached an all time high through committees and programs, and Revenue Generation produced our best financial results in the Chamber’s history.

The accomplishments are documented in the annual report that our members will be receiving shortly through the mail and that will be posted on our website.  Many thanks to all of you for your continued support, and we look forward to another banner year in 2006-07!

 Upcoming Calendar Events (click on event for details)

6/14/2006 8:00 AM Telecommunications Committee Meeting
6/19/2006 – 6/20/2006 IVA Hi-Tech Conference 2006
6/20/2006 8:00 AM Medical Committee Meeting
6/21/2006 7:30 AM Strategic Plan Input Session
6/22/2006 8:00 AM Software Committee Meeting
7/4/2006 8:30 AM Ofice Closed

 Sponsor Message

AICC offers an exclusive sponsorship for each e-Newsletter. For information on sponsoring future e-Newsletters, contact Shelley Samach, aiccse@aiccse.org.

 The Latest News
Developments & Transactions



Tescom and RAD Data Communications/BellSouth Earn Eagle Star Awards

   
Mika Liss (center) receives the Israeli Company of the Year award for Tescom
Oded Ilan of RAD Data Communications (2nd from left), and BellSouth’s Mel Levine (center) and Doug Duett (2nd from right) receive the Deal of the Year award

Tescom was named “Israeli Company of the Year” at the May 23rdEagle Star Awards Gala in recognition of the jobs they have created, strong customer base in the region, and community involvement.  RAD Data Communications and their U.S. partner, BellSouth, were recognized as “Deal of the Year” for utilizing Israeli technology to restore communications to New Orleans following the devastation of Hurricane Katrina.

The Eagle Star Awards Gala is AICC’s community flagship event that honors the people and companies who have contributed most to Southeast-Israel business relationship.  The event was hosted this year by IBM at their Atlanta corporate campus, and featured a keynote presentation of how this global technology leader is incorporating Israeli innovation and expertise in solutions for its customers worldwide.

Also recognized were Dr. Mark Braunstein who received the “Chamber Founders” award for his leadership of AICC since its founding and as the inventor of the acclaimed “Industry-Specific Business Exchange” economic development model.  The Georgia International Law Enforcement Exchange (GILEE) received the “Community Partner” award in recognition of its collaboration with the Chamber on programs that showcase Israeli security technologies to both the public and private sectors in the Southeast.

“We congratulate these outstanding companies for their role in bringing cutting-edge technologies to the US market and for their contributions to the economic growth and reputation in our region and Israel.  We were also pleased to showcase the contributions of a key individual and organization to the advancement of our cause,” said André Schnabl, AICC Board chairman.

Other finalists for “Israeli Company of the Year” included Metalink and Vyyo.  Other finalists for “Deal of the Year” included Foamix/Stiefel Laboratories and McKesson/Medcon.

Tel Aviv-based Tescom (www.tescom-usa.com) is a software quality assurance consulting company that works with clients to help improve the performance of their information technology.  The company’s US headquarters is in Atlanta, with major customers in the region including UPS, CDC, City of Atlanta, and Georgia Department of Transportation.

Tescom went public on the Tel Aviv exchange in 2004 with a second successful IPO in London’s AIM market in 2005.  The company is active in both AICC and the community, sponsoring events and serving on committees and technology organizations.  The management team is composed of both Israelis and Americans with backgrounds in business and technology.

Tel Aviv-based RAD Data Communications (www.radusa.com) and its US partner, BellSouth (www.bellsouth.com) received the Deal of the Year award.  RAD Data Communications manufactures network access equipment for data communications applications that are sold in the telecommunications, enterprise, and government markets.

In a competitive environment, RAD was awarded a contract with BellSouth to replace an existing router product that was successfully utilized in providing wireless broadband service to restore data communications to New Orleans immediately following the devastation of Hurricane Katrina.  Three wireless base stations were installed on the city’s tallest building to provide high-speed Internet access, allowing businesses to communicate with their customers and other companies.

The Chamber thanks chairman Jonathan Minnen (Smith Gambrell & Russell) and our corporate sponsors for their support of the 5th annual Gala:

IBM, Atlanta Business Chronicle, The Coca-Cola Company, Grant Thornton, BellSouth, Delta Air Lines, Smith Gambrell & Russell, McKesson, TTI Telecom, Veritas Venture Partners, Troutman Sanders, Deutsche Bank, McKenna Long & Aldridge, National Distributing Company, Sutherland Asbill & Brennan, WMLB, Given ImagingConsulate General of Israel, The Miller Richmond Company, Marsh and McLennan, Omni National Bank, and The Blass Group.

For complete details, visit www.eaglestargala.com.




Georgia and Israel Audiences Discover Life Science Synergies at May Videoconference Event

The May 17th joint event in Atlanta of the American-Israel Chamber of Commerce, SE Region and Georgia Biomedical Partnership went international through an innovative videoconference that connected an audience of Israeli medical technology companies gathered at IBM in Petach Tikvah.

The first part of the program introduced the Israeli audience to an overview of Georgia’s life science industry, the services of AICC and GBP, and the success already achieved with Israeli bioscience companies including Given Imaging, Mazor, dbMotion, ProChon, Alpha Omega, Proneuron, and Medcon.  The Atlanta area is one of the leading centers of Israeli company activity with almost 50 of them maintaining their US or regional headquarters in the region.

The program next focused on the Israeli side with presentations to the Georgia audience by four cell therapy companies — CellCure, GeneGrafts, Pluristem, and Insight Biopharmaceuticals.  It has been determined that this sector is a “sweet spot” for collaboration due to GTEC (Georgia Tech-Emory Center for the Engineering of Living Tissues) and concentration of private companies such as Cell Dynamics and Cryolife in the Atlanta area.

The event concluded with an interactive panel session featuring CEOs of 3 Israeli bioscience companies and their Georgia-based executives and Israeli VC firm Medica Ventures who discussed various issues related to operating in the multi-country environment.

“This experimental event exceeded our expectations and served to begin a constructive dialogue between our two life science communities,” said Charlie Harrison (Critical Strategies), chairman of the Chamber’s Medical Committee.

AICC thanks organizational co-sponsors ILSI and GBP and corporate sponsors IBM, Fleishman-Hillard, Pearl Cohen Zedek Latzer, d&a, and Merchant & Gould for their support of this unique program.

Israeli Companies Contacting Us

Heartburn Treatment – Rehovot-based R&D pharma company is developing innovative solutions for the eradication of H. pylori and treatment of nocturnal acid with proton pump inhibitors.  Entering clinical trials for proof of concept in men, and seeking $15 million for Phase I and II clinical trials.

Data Storage – Yehud-based company has technology that compresses data in “real time,” working in full transparency with every level of an organization, typically shrinking the file data to a third of the original space.  Allows organizations to retain fast access to files and databases while saving capital, operation and maintenance costs.  Seeking introductions to system integrators, distributors, resellers, and potential customers with sales of over $100 million.

Plastic Injection – Israeli company is seeking introduction to Southeast-based plastic injection operations that have 200-600 ton capacity for contract manufacturing in the US.

Gene Therapy – Haifa-based company has developed a somatic cell therapy for cardiac arrhythmias and neurological disorders, based on a discovery at the Technion.  The product is autologous genetically modified cells extracted from the patient through a skin biopsy and transplanted to the brain by stereotaxis injection.  Seeking $5 million investment and introduction to potential partners for licensing and R&D collaboration.

Economic News From Israel

Construction: is Revival at Hand?
Residential and non-residential construction starts

Source: Central Bureau of Statistics

Is construction activity beginning to revive, at long last?

One of the most interesting features of the current macro-economic revival, that began in mid-2003 (i.e. we are now in the third year of recovery), is that construction has until recently not shown any signs of participating in the growth process.  This is quite unusual for a period of economic recovery, since construction is usually an early participant (not only in Israel, but in other economies as well).

Recent data on construction starts for the 1st quarter of 2006, published on May 31, point to the clear possibility that 2006 will be a turning point year for construction.  Why are starts so important as an indicator of a construction revival?  Because they reflect the intention of building contracts to begin new construction projects, and we can assume that contractors would not show this increased intention (reflected in an increasing volume of starts), if they did not consider that there was good reason to expand their activity.

The graph shows an increase in early 2006 of both residential and non-residential starts – that is, we are looking at a general expansion of construction activity.  Why private sector – rather than total – residential starts?  Because private sector starts constitute the main part of total starts (over 80% in 2005).  But most importantly, because private sector residential starts are a much more reliable indicator of trend changes in residential construction activity than are public sector starts.  The latter, which are initiated by the government and continued to decline in the 1st quarter of 2006, are influenced by factors other than current demand trends (e.g. government budget constraints).

What is the “good reason,” mentioned above, that has apparently persuaded building contractors to start expanding their activity?  We can assume that they see increasing demand, both at present and down the road; otherwise, they would not be willing to commit themselves to a greater volume of new building projects.

And what does increased demand for the products (both residential and non-residential) of construction activity tell us about the nature of the current macro-economic revival?  That it is strengthening, because potential home purchasers have decided to come back into the real estate market to buy homes, because new office buildings and malls are being put up, because new factories are being built.  Israel has seen much less of all these over the past 10 years when construction and real estate were in recession.  So if indeed, construction activity is beginning to revive, this is really good news that we have been waiting for a long time.

Provided as a service to AICC by I-Biz – Israel Business Information Services Ltd.   For more information on I-Biz information services, visit www.i-biz.co.il or contact info@i-biz.co.il.

  • Yakum-based Metalink, with its US headquarters in Atlanta, has signed a major contract with Philips Electronics that maintains its US headquarters also in Atlanta.  Philips will use Metalink’s WiFi wireless solutions for its television, set-top boxes, and home media adaptors.
  • Ra’anana-based dbMotion has announced its strategic partnership with Dallas-based ACS to deliver a medical information sharing solution for the global healthcare market.  dbMotion maintains its US headquarters in Atlanta.
  • Nasdaq plans to launch an index that is expected to include 75 Nasdaq-listed Israeli companies as soon as the end of June.  Since January, Israel-based IncrediMail and Omrix Biopharmaceuticals have had successful IPOs on the exchange.
  • Cisco has invested $6.3 million in Ramat Gan-based Guardium, a database security company.  Other investors included Veritas Venture Partners that maintains its US office in Atlanta.
  • Microsoft has acquired Whale Communications for $75 million.  The Rosh Ha’ayin-based company provides secure virtual personal network services using SSL encryption.
  • Africa-Israel investments tops the 2006 “Globes 100″ list of best Israeli companies.  The Tel Aviv-based holding company, whose interests cover real estate, infrastructure, textiles, steel, fashion, energy, and tourism, is planning a joint venture Hard Rock Entertainment Park in Myrtle Beach, South Carolina.
  • Durham, North Carolina-based Cato Research has made its Tel Aviv subsidiary of the headquarters for the company’s operations outside North America.  Cato offers biopharm and biomed companies a wide spectrum of drug and device development services including pre-clinical, regulatory, and clinical trial operations and is currently carrying out 26 multi-national clinical trials in Israel and ROW.
  • Israel software industry had aggregate revenue of $4.3 billion in 2005, 12% more than in 2004, according to Business Data Israel.  Exports rose 12% to $3.3 billion in 2005.
  • About half of the patent applications filed in Israel in 2005 were in the Life Sciences including biotechnology, medical devices, and pharmaceuticals, according to a study by the life sciences and chemistry group at Reinhold Cohn & Partners law firm.  Israel remains one of the top countries in terms of patent applications per capita.
  • Israel’s economy grew by an annualized 6.6% in the first quarter of 2006, well above forecasts and faster than the 5.2% growth in 2005 as a whole, according to the Central Bureau of Statistics.  GDP per capita rose by 5.1% in the quarter, compared with 3.3% growth in 2005, and 2.6% in 2004.
  • Over 148,000 new jobs were created in Israel since 2003, an increase of 6.3%.  Unemployment fell to a seasonally adjusted 8.7% in the first quarter of 2006, the lowest rate in 6 years.
  • Israel ranked 20th among 61countries in 2006 according to the World Competitive Center at Swiss business school IMD.  The country rose 22 places from its 42nd place ranking in 2005 based on criteria of government, bureaucracy, infrastructure, and business activity.

 Events

SCENES FROM EAGLE STAR 2006
(Click here for more photos)

 Membership
AICC Welcomes New Members!

AICC Thanks Members for Renewing!

 Other
AICC copyright 2006

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