Paramount is already in talks to combine its DVDmanufacturing and distribution

Paramount is already in talks to combine its DVDmanufacturing and distribution operations with a rival studiosuch as News Corp's Fox or Sony Corp's (6758.T) Sony Picturesto cut costs, a source told Reuters last week. Variety's Peter Bart last month named theDreamWorks Animation (DWA.O) movie studio as a target, andViacom, which distributes DreamWorks movies through itsParamount division, as a rival suitor. Chatter also is surfacing over whether Bewkes is in abuying mood. Time Warner Chief Executive Jeffrey Bewkes plans to spinoff AOL before the end of the year, and speculation is growingon whether he will also ditch the struggling Time Inc magazineunit -- the kinds of decisions that guests are known to make asthey linger by the duck pond or knock back a beer. This year, the drama may lie with Time Warner Inc (TWX.N),Viacom Inc (VIAb.N) and CBS Corp (CBS.N) as their executivesstroll with a passel of rich money managers like Time Warnerinvestor Vivi Nevo and Yahoo shareholder Gordon Crawford. Last year, SunValley was about Microsoft Corp's (MSFT.O) failed bid to buyYahoo Inc (YHOO.O). "They're in the analog world, and the world is becomingdigital," he said.

"They're insecure about what's going tohappen to their businesses." This year's conference from July 7-12 will feature paneldiscussions, including likely themes from globalization to U.S.President Barack Obama's handling of the financial crisis But the real action will be deal action. "People in the traditional media world are terrified," saidKen Auletta, a New Yorker magazine media writer and author ofseveral books about the media industry, who will chair a panelon new media at this week's conference. But never before have the media elite been harder pressedto find ways to survive and grow, whether through acquisitionsor alliances that they forge over hikes, horseback rides andafter-dinner drinks at this historical meeting ground for mediaand technology deal makers. Herb Allen's boutique investment bank Allen & Co hasorganized this retreat in the affluent mountain resort town insouth-central Idaho every summer for 27 years, inviting guestssuch as Rupert Murdoch, Sumner Redstone and Barry Diller. Elron Electronic Industries Ltd.Rinat Remler, 972-3-6075555Vice President & Copyright Business Wire 2009. * Allen & Co Sun Valley conference from July 7-12 Stocks  |  Mergers & Acquisitions  |  Media  |  France * Expected guests include News Corp, IAC, Viacom CEOs * Recession, Web threaten media business models * Wave of movie, TV dealmaking expected By Robert MacMillan NEW YORK, July 5 (Reuters) - The global recession,shrinking advertising sales and fears that the Internet couldrender big media empires obsolete provide an ominous backdropfor executives at this week's Sun Valley conference. Elron assumes no obligationto update the information in this press release and disclaims any obligation topublicly update or revise any such forward-looking statements to reflect anychange in its expectations or in events, conditions, or circumstances on whichany such statements may be based, or that may affect the likelihood that actualresults will differ from those set forth in the forward-looking statements.Reference to Elron`s website above does not constitute incorporation of any ofthe information thereon into this press release.

The restricted availability offinancing for young technology companies, the limited availability of profitable"exits" and the increased volatility in the securities markets may affect ourbusiness results and compliance with bank covenants. These risks include, but are not limited to theimpact of: the global financial crisis and economic downturn on Elron and itsgroup companies, any decrease in the market value of Given Imaging, thecontinuing losses incurred by certain group companies, the need of Elron`s groupcompanies for additional capital in order to reach profitability, thepossibility of further impairment charges and other risk factors detailed fromtime to time in the Company`s Annual Report on Form 20-F and other periodicreports filed by the Company with the Securities and Exchange Commission, whichthe Company urges investors to consider. Included in our group companies are wellestablished companies who are leaders in their fields, such as Given Imaging and013 NetVision, together with innovative start-up companies who possess growthpotential in Israel and the rest of the world. For further information, pleasevisit Any statements in this press release that may be considered forward-lookingstatements are subject to risks and uncertainties that could cause actualresults to differ materially.

Elron`s group companies currently comprise adiverse range of publicly-traded and privately held companies primarily in thefields of medical devices, information & communications technology, cleantechnology and semiconductors. (TASE & NASDAQ: ELRN), a member of the IDBHolding group, is a high-technology holding company traded in the Nasdaq and inthe Tel-Aviv Stock Exchange. The transaction is subject to the parties reaching and entering into adefinitive agreement as well as obtaining applicable corporate and regulatoryapprovals and there is no assurance of the occurrence, timing or terms of suchtransaction Elron Electronic Industries Ltd. Elron, DIC and Clal are parties to a shareholdersagreement in connection with their respective holdings of Netvision shares. DICand Clal currently hold approximately 31% and 24%, respectively, of Netvision'soutstanding ordinary shares. In addition,Elron intends to engage an independent expert to express an opinion as to thefairness for Elron of the price to be determined. DIC currently holds approximately 49% of Elron`s outstanding ordinary shares.DIC and Clal are both majority owned subsidiaries of IDB Development Ltd.