<html>
  <head>
    <title>
      Unassociated Document
</title><!-- Licensed to: vintage-->
<!-- Document Created using EDGARIZER HTML 3.0.2.1 -->
<!-- Copyright 2005 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div>&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
    </div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td width="33%">&#160;</td>
            <td valign="top" width="33%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="bottom" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OMB
                APPROVAL</font></div>
            </td>
          </tr>
          <tr>
            <td width="33%">&#160;</td>
            <td align="left" valign="top" width="33%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td width="33%">
              <div><font size="2">OMB Number:<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3235-0060</font></font></div>
              <div><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expires:<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
                31, 2008</font></font></font></div>
              <div><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                average burden </font></font></font>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hours
                  per response</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38.0</font></div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>______________</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>FORM
      8-K</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
      TO SECTION 13 OR 15(d) OF THE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>February
      28, 2006</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>ISRAEL
      TECHNOLOGY ACQUISITION CORP</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
            </td>
            <td valign="top" width="3%">&#160;</td>
            <td valign="top" width="21%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">000-51259</font></div>
            </td>
            <td valign="top" width="3%">&#160;</td>
            <td valign="top" width="23%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20-2374143</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or Other Jurisdiction</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                Incorporation)</font></div>
            </td>
            <td valign="top" width="3%">&#160;</td>
            <td valign="top" width="21%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                Number)</font></div>
            </td>
            <td valign="top" width="3%">&#160;</td>
            <td valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                No.)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="53%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7
                Gush Etzion, 3</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>rd</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                Floor, Givaat Shmuel, Israel </font></div>
            </td>
            <td valign="top" width="13%">&#160;</td>
            <td valign="top" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54030</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="53%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of Principal Executive Offices)</font></div>
            </td>
            <td valign="top" width="13%">&#160;</td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Postal
                Code)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(011)
      972-3-532-5918</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Not
      Applicable</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#253;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">COMMENCING
      SHORTLY AFTER THE FILING OF THIS CURRENT REPORT ON FORM 8-K, ISRAEL TECHNOLOGY
      ACQUISITION CORP. (&#8220;ITAC&#8221;) INTENDS TO HOLD PRESENTATIONS FOR CERTAIN OF ITS
      STOCKHOLDERS, AS WELL AS OTHER PERSONS WHO MIGHT BE INTERESTED IN PURCHASING
      ITAC SECURITIES, REGARDING ITS MERGER WITH IXI MOBILE, INC. (&#8220;IXI&#8221;), AS
      DESCRIBED IN THIS REPORT. THIS CURRENT REPORT ON FORM 8-K, INCLUDING SOME OR
      ALL
      OF THE EXHIBITS HERETO, WILL BE DISTRIBUTED TO PARTICIPANTS AT SUCH
      PRESENTATIONS.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EARLYBIRDCAPITAL,
      INC. (&#8220;EBC&#8221;), THE MANAGING UNDERWRITER OF ITAC&#8217;S INITIAL PUBLIC OFFERING (&#8220;IPO&#8221;)
      CONSUMMATED IN JULY 2005, AND MAXIM GROUP (&#8220;MAXIM&#8221;), A MEMBER OF THE
      UNDERWRITING SYNDICATE FOR THE IPO, ARE ASSISTING ITAC IN THESE EFFORTS WITHOUT
      CHARGE, OTHER THAN THE REIMBURSEMENT OF THEIR OUT-OF-POCKET EXPENSES. ITAC
      AND
      ITS DIRECTORS AND EXECUTIVE OFFICERS AND EBC AND MAXIM MAY BE DEEMED TO BE
      PARTICIPANTS IN THE SOLICIATION OF PROXIES FOR THE SPECAL MEETING OF ITAC
      STOCKHOLDERS TO BE HELD TO APPROVE THE MERGER.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STOCKHOLDERS
      OF ITAC AND OTHER INTERESTED PERSONS ARE ADVISED TO READ, WHEN AVAILABLE, ITAC&#8217;S
      PRELIMINARY PROXY STATEMENT AND DEFINITIVE PROXY STATEMENT IN CONNECTION WITH
      ITAC&#8217;S SOLICITATION OF PROXIES FOR THE SPECIAL MEETING BECAUSE THESE PROXY
      STATEMENTS WILL CONTAIN IMPORTANT INFORMATION. SUCH PERSONS CAN ALSO READ ITAC&#8217;S
      FINAL PROSPECTUS, DATED JULY 12, 2005, FOR A DESCRIPTION OF THE SECURITY
      HOLDINGS OF THE ITAC OFFICERS AND DIRECTORS AND OF EBC AND MAXIM AND THEIR
      RESPECTIVE INTERESTS IN THE SUCCESSFUL CONSUMMATION OF THIS BUSINESS
      COMBINATION. THE DEFINITIVE PROXY STATEMENT WILL BE MAILED TO STOCKHOLDERS
      AS OF
      A RECORD DATE TO BE ESTABLISHED FOR VOTING ON THE MERGER. STOCKHOLDERS WILL
      ALSO
      BE ABLE TO OBTAIN A COPY OF THE DEFINITIVE PROXY STATEMENT, WITHOUT CHARGE,
      BY
      DIRECTING A REQUEST TO: ISRAEL TECHNOLOGY ACQUISITION CORP., 7 GUSH ETZION,
      3</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>RD</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      FLOOR,
      GIVAAT SHMUEL, ISRAEL 54030. THE PRELIMINARY PROXY STATEMENT AND DEFINITIVE
      PROXY STATEMENT, ONCE AVAILABLE, AND THE FINAL PROSPECTUS CAN ALSO BE OBTAINED,
      WITHOUT CHARGE, AT THE SECURITIES AND EXCHANGE COMMISSION&#8217;S INTERNET SITE
      (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>http://www.sec.gov</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">).</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>General;
      Structure of Merger</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      February 28, 2006, Israel Technology Acquisition Corp. (&#8220;ITAC&#8221;) entered into an
      Agreement and Plan of Merger (&#8220;Merger Agreement&#8221;) with IXI Mobile, Inc. A wholly
      owned subsidiary of ITAC, formed to effectuate the merger by merging with and
      into IXI, is also a party to the Merger Agreement. As a result of the merger,
      IXI will be the surviving corporation and will be a wholly owned subsidiary
      of
      ITAC. ITAC will change its name to &#8220;IXI Mobile, Inc.&#8221; and IXI will change its
      name to &#8220;IXI Mobile (USA), Inc.&#8221; As used in this Report, &#8220;IXI&#8221; includes IXI
      Mobile, Inc. and all of its subsidiaries.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      is a
      privately owned company founded in 2000 that delivers devices and services
      designed to improve mobile communications and increase mobile data usage. Its
      Ogo&#8482; devices are designed to deliver popular messaging applications, such as
      instant messaging, email, news, and SMS on optimized devices, increasing data
      usage and enhancing the mobile experience. IXI markets its solutions to mobile
      operators and Internet service providers worldwide.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      products can be tailored to meet operator requirements, both hardware and
      software needs, providing a platform for future revenues. IXI also provides
      Hosted Services to mobile operators and Internet service providers worldwide,
      including all necessary gateways and backend servers, and related support
      services.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gideon
      Barak, IXI&#8217;s Chairman of the Board, and Amit Haller, IXI&#8217;s President and Chief
      Executive Officer, will continue after the merger in the positions they now
      hold
      with IXI. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      consummation of the merger, the board of directors of ITAC will be increased
      to
      seven members, of whom five have been designated in the Merger Agreement and
      two
      will be designated by ITAC prior to the closing, subject to the reasonable
      approval of IXI. All seven designees will be presented for election by the
      ITAC
      stockholders at the meeting called to approve the merger. In connection with
      the
      merger, ITAC will seek approval of an amendment to its certificate of
      incorporation removing the board classification requirement from its certificate
      and the new board will not be classified into different classes, as presently
      required under ITAC&#8217;s certificate of incorporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Merger Agreement has been approved and adopted by stockholders of IXI holding
      a
      majority of the required IXI voting power, in accordance with the Delaware
      General Corporation Law (&#8220;DGCL&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
      is a
      condition to ITAC&#8217;s obligations to consummate the merger that security holders
      of IXI who hold, in the aggregate, not less than 95% of the shares of IXI common
      stock on a fully-diluted basis will be parties to agreements that restrict
      them
      from selling any of the shares of ITAC common stock that they receive at the
      closing for a period of six months following the closing. It is also a condition
      that executives and certain stockholders of IXI will be parties to agreements
      that restrict their ability to sell shares of ITAC stock they receive at closing
      for periods ranging up to 450 days after closing. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      merger is expected to be consummated in the third quarter of 2006, after the
      required approval by the stockholders of ITAC and the fulfillment of certain
      other conditions, as discussed herein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Merger
      Consideration</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Merger Agreement, (i) the holders (&#8220;IXI Stockholders&#8221;) of shares of IXI
      common stock (&#8220;IXI Stock&#8221;), (ii) the holders (&#8220;IXI Employee Option Holders&#8221;) of
      IXI employee options (&#8220;IXI Employee Options&#8221;) and (iii) the holders (&#8220;IXI
      Warrant Holders&#8221;) of IXI warrants (&#8220;IXI Warrants&#8221;) will be entitled, in exchange
      for their IXI securities, to acquire an aggregate of approximately 7,818,000
      shares of common stock of ITAC (&#8220;ITAC Stock&#8221;). In addition, as further
      consideration, the IXI Stockholders will be entitled to receive, or in the
      case
      of IXI Employee Option Holders and IXI Warrant Holders will be entitled to
      acquire, up to an aggregate of 10.0 million additional shares of ITAC Stock
      based on attaining the following targets:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                ITAC&#8217;s total revenues equal or exceed $45.0 million for the calendar year
                ending December 31, 2006, an aggregate of 1.0 million additional
                shares of
                ITAC Stock (the &#8220;Revenue Shares&#8221;);</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                ITAC&#8217;s net income exceeds $15.0 million for the calendar year ending
                December 31, 2007, up to an aggregate of 1.0 million additional shares
                of
                ITAC Stock in proportion to the amount by which ITAC&#8217;s net income exceeds
                $15.0 million up to a maximum of $25.0 million (the &#8220;2007 Net Profit
                Shares&#8221;); </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                ITAC&#8217;s net income exceeds $20.0 million for the calendar year ending
                December 31, 2008, up to an aggregate of 2.0 million additional shares
                of
                ITAC Stock in proportion to the amount by which ITAC&#8217;s net income exceeds
                $20.0 million up to a maximum of $45.0 million (the &#8220;2008 Net Profit
                Shares&#8221;); and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                the ITAC Stock trades, for any 20 trading days out of any consecutive
                30
                trading days period at any time during the period commencing on the
                closing date and ending on the fourth anniversary thereof, at an
                amount
                equal to or exceeding:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$8.50
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the &#8220;First Share Price Shares&#8221;); </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$9.50
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the &#8220;Second Share Price Shares&#8221;);
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$12.00
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the &#8220;Third Share Price Shares&#8221;, and, together with the First Share Price
                Shares and Second Share Price Shares, the &#8220;Share Price
                Shares&#8221;).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      ITAC
      engages in a change of control transaction after the consummation of the merger
      and prior to the fourth anniversary thereof in which the consideration paid
      to
      holders of ITAC Stock exceeds $11.00 per share, then the IXI Stockholders will
      be entitled to receive, and IXI Employee Option Holders and IXI Warrant Holders,
      will be entitled to acquire, the Revenue Shares, the 2007 Net Profit Shares,
      the
      2008 Net Profit Shares, the First Share Price Shares and the Second Share Price
      Shares to the extent that:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
                shares have not already been distributed;
                or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                the case of the Revenue Shares, the 2007 Net Profit Shares and the
                2008
                Net Profit Shares, the applicable measurement periods have not expired
                prior to the date of the change of control
                transaction.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, if the consideration paid to holders of ITAC Stock in a change of
      control transaction equals or exceeds $12.00 per share, then the IXI
      Stockholders will also be entitled to receive, and the IXI Employee Option
      Holders and IXI Warrant Holders will be entitled to acquire, the Third Share
      Price Shares to the extent that such shares have not already been
      distributed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      the
      purposes of the Merger Agreement, a change of control transaction refers to
      any
      of the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt"></font>&#160;</div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">&#160;</td>
              <td style="width: 18pt;"><font style="FONT-FAMILY: Symbol" size="2">&#183;</font></td>
              <td><font size="2">a sale of all or substantially all of ITAC&#8217;s
                assets;</font></td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">&#160;</td>
              <td style="width: 18pt;">&#160;</td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">&#160;</td>
              <td style="width: 18pt;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
              </td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  acquisition of beneficial ownership (as defined by Rule 13-d as
                  promulgated under the Securities Exchange Act of 1934, as amended
                  (the
                  &#8220;Exchange Act&#8221;)) by any person of 80% or more of the voting stock of ITAC;
                  and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">&#160;</td>
              <td style="width: 18pt;">&#160;</td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 18pt;">&#160;</td>
              <td style="width: 18pt;"><font style="FONT-FAMILY: Symbol" size="2">&#183;</font></td>
              <td><font size="2">a merger or other consolidation of ITAC with another
                entity.</font></td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt"></font>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Revenue Shares, the 2007 Net Profit Shares, the 2008 Net Profit Shares and
      the
      Share Price Shares will be issued to an escrow agent and will be held by the
      agent until they are earned. During such period, the escrow agent will vote
      all
      of such shares in the same manner as the majority of all other ITAC shares
      are
      voted with respect to any matter that is presented for a vote by the
      stockholders of ITAC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Representations
      and Warranties</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Merger Agreement contains representations and warranties of each of IXI and
      ITAC
      relating to, among other things, (a) proper corporate organization and similar
      corporate matters, (b) capital structure of each constituent company, (c) the
      authorization, performance and enforceability of the Merger Agreement, (d)
      licenses and permits, (e) taxes, (f) financial information and absence of
      undisclosed liabilities, (g) holding of leases and ownership of other
      properties, including intellectual property, (h) accounts receivable, (i)
      contracts, (j) title to properties, and environmental condition thereof, (k)
      title and condition of assets, (l) absence of certain changes, (m) employee
      matters, (n) compliance with laws, (o) litigation and (p) compliance with
      applicable provisions of securities laws. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Covenants</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC
      and
      IXI have each agreed to take such actions as are necessary, proper or advisable
      to consummate the merger. They have also agreed to continue to operate their
      respective businesses in the ordinary course prior to the closing and not to
      take certain specified actions without the prior written consent of the other
      party. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Merger Agreement also contains additional covenants of the parties, including
      covenants providing for: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      parties to use commercially reasonable efforts to obtain all necessary approvals
      from stockholders, governmental agencies and other third parties that are
      required for the consummation of the transactions contemplated by the Merger
      Agreement; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      protection of confidential information of the parties and, subject to the
      confidentiality requirements, the provision of reasonable access to
      information;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC
      to
      prepare and file a registration statement, which shall contain a
      prospectus/proxy statement, to register, under the Securities Act of 1933,
      as
      amended (&#8220;Securities Act&#8221;), the shares of ITAC Stock to be issued or issuable in
      the merger and to solicit proxies from the ITAC stockholders to vote in favor
      of
      proposals regarding the adoption of the Merger Agreement and the approval of
      the
      merger, the change of ITAC&#8217;s name to &#8220;IXI Mobile, Inc.,&#8221; the increase, following
      the merger, of the number of authorized shares of ITAC common stock from
      21,000,000 to 55,000,000, an amendment to ITAC&#8217;s certificate of incorporation
      deleting Article Sixth thereof (relating to the classification of ITAC&#8217;s board
      of directors and certain matters that will no longer be applicable after the
      merger) and renumbering the following provisions accordingly, the issuance
      to
      Gideon Barak, IXI&#8217;s Chairman, and Amit Haller, its President and Chief Executive
      Officer, of options to purchase an aggregate of 1,500,000 shares of its common
      stock, and the election of specified persons to its board of directors;
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC
      and
      IXI to use their reasonable best efforts to obtain the listing for trading
      on
      Nasdaq of ITAC&#8217;s common stock, warrants and units; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      to
      waive its rights to make claims against ITAC to collect from a trust fund
      (&#8220;Trust Fund&#8221;) established for the benefit of the ITAC stockholders who
      purchased their securities in ITAC&#8217;s initial public offering (&#8220; IPO&#8221;) for any
      moneys that may be owed to them by ITAC for any reason whatsoever, including
      breach by ITAC of the Merger Agreement or its representations and warranties
      therein; and </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      non-solicitation by either ITAC or IXI of other transactions regarding business
      combinations until November 15, 2006 if, by that date, IXI has received
      additional capital of at least $15,000,000;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
      cash
      payment by ITAC, at the election of certain of IXI&#8217;s stockholders, in lieu of
      the issuance to such stockholders of Share Price Shares that they would be
      entitled to receive if, in the opinion of counsel reasonably satisfactory to
      ITAC, the receipt by such stockholders of Share Price Shares would cause them
      to
      become liable to ITAC for &#8220;short swing profits&#8221; pursuant to Section 16(b) of the
      Exchange Act;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(viii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      to
      seek a tax pre-ruling from Israeli tax authorities with respect to deferment
      of
      Israeli income taxes by Israeli citizens or residents who receive shares of
      ITAC
      Stock in the merger (the &#8220;Israeli Tax Pre-Ruling&#8221;);</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ix)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC
      and
      IXI to cooperate and use all commercially reasonable efforts to procure bridge
      financing for IXI in an amount sufficient to allow it to continue to operate
      in
      accordance with its current business plan and projections until the closing
      of
      the merger; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(x)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      survival of indemnification rights in favor of persons who were officers or
      directors of IXI or ITAC as of or prior to the date of the Merger Agreement
      as
      provided in the respective certificates of incorporation and by-laws of IXI
      and
      ITAC or in any indemnification agreements between either IXI or ITAC and the
      indemnified persons until seven years after the closing and the maintenance,
      for
      a period of seven years after the closing, of existing directors&#8217; and officers&#8217;
liability insurance policies by IXI and ITAC if annual premiums do not exceed
      specified amounts.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Conditions
      to Closing</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>General
      Conditions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consummation
      of the transactions is conditioned on the ITAC stockholders, at a meeting called
      for these purposes, (i) adopting the Merger Agreement and approving the merger,
      (ii) approving the change of ITAC&#8217;s name, and (iii) approving the increase of
      the authorized shares of ITAC&#8217;s common stock from 21,000,000 shares to
      55,000,000 shares. The stockholders will also be asked to approve the removal
      of
      all of the provisions of Article Sixth of ITAC&#8217;s certificate of incorporation
      including those relating to ITAC&#8217;s board of directors and the renumbering of the
      following provisions accordingly, to approve the issuance to Gideon Barak,
      IXI&#8217;s
      Chairman, and Amit Haller, its President and Chief Executive Officer, of options
      to purchase up to 1,500,000 shares of ITAC common stock if the conditions for
      the issuance of the Revenue Shares, the 2007 Net Profit Shares, the 2008 Net
      Profit Shares and the&#160;Share Price Shares are met, and to elect specified
      persons to comprise the board of directors of ITAC after the
      merger.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      adoption of the Merger Agreement will require the affirmative vote of a majority
      of the shares sold in the IPO (&#8220;Public Shares&#8221;) cast at the meeting. The holders
      of the ITAC common stock issued prior to its IPO, including the current officers
      and directors of ITAC, have agreed to vote their shares in the matter of the
      approval of the Merger Agreement to the same effect as the majority of the
      shares sold in the IPO are voted</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Additionally, if holders owning 20% or more of the Public Shares vote against
      the transaction and exercise their right to convert their Public Shares into
      a
      pro-rata portion of the funds held in the Trust Fund, then the transactions
      contemplated by the Merger Agreement cannot be consummated. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      approval of the ITAC name change and the increase in the number of authorized
      shares of ITAC common stock will require the affirmative vote of the holders
      of
      a majority of the outstanding common stock of ITAC and such approvals are
      conditions to the consummation of the merger. The approval of the stock options
      will require the affirmative vote of a majority of the outstanding ITAC common
      stock present in person or by proxy at the stockholder meeting and the deletion
      of Article Sixth of ITAC&#8217;s certificate of incorporation will require the
      affirmative vote by the holders of a majority </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      the
      outstanding common stock of ITAC, but these approvals are not conditions to
      the
      consummation of the merger. Directors of ITAC will be elected by a plurality
      of
      the shares voting on the matter.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the consummation of the transactions contemplated by the Merger
      Agreement is conditioned upon (i) no order, stay, judgment or decree being
      issued by any governmental authority preventing, restraining or prohibiting
      in
      whole or in part, the consummation of such transactions, (ii) the execution
      by
      and delivery to each party of each of the various transaction documents, (iii)
      the delivery by each party to the other party of a certificate to the effect
      that the representations and warranties of the certifying party are true and
      correct in all material respects as of the closing and all covenants contained
      in the Merger Agreement have been materially complied with by such certifying
      party, (iv) the receipt of all necessary consents and approvals by third parties
      and the completion of necessary proceedings, (v) holders of not more than 5%
      of
      the shares of IXI&#8217;s common stock outstanding immediately before the closing not
      having taken action to exercise their appraisal rights under the DGCL, (vi)
      the
      registration statement providing for the registration of the shares of common
      stock being issued by ITAC in the merger under the Securities Act shall have
      been declared effective, and (vii) ITAC&#8217;s common stock being quoted on the OTC
      Bulletin Board or listed for trading on Nasdaq. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>IXI&#8217;s
      Conditions to Closing</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      obligations of IXI to consummate the transactions contemplated by the Merger
      Agreement also are conditioned upon, among other things, each of the
      following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      shall have been no material adverse change in the assets, liabilities or
      financial condition of ITAC or its business since the date of the Merger
      Agreement; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Trust
      Fund shall not contain less than $32,955,360, less amounts paid to ITAC
      stockholders who have elected to convert their shares to cash in accordance
      with
      ITAC&#8217;s certificate of incorporation, and shall be dispersed to ITAC immediately
      upon the closing; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI&#8217;s
      existing directors&#8217; and officers&#8217; liability insurance policy (or a policy
      permitted to be substituted therefor) shall be in full force and
      effect;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Registration Rights Agreement (described below) shall be in full force and
      effect;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approvals
      of the merger from the Israel Ministry of Industry, Trade and Labor and the
      Israeli Investment Center of such Ministry shall have been received by
      IXI;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      shall
      have obtained the Israeli Tax Pre-Ruling; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Either
      IXI shall have received a requested exemption under Israeli securities laws
      or
      ITAC shall have purchased IXI employee options from a sufficient number of
      holders thereof as shall permit IXI to avoid certain prospectus requirements
      under Israeli securities laws; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(viii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      investor rights agreements specified in the Merger Agreement shall have been
      terminated. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>ITAC&#8217;s
      Conditions to Closing</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      obligations of ITAC to consummate the transactions contemplated by the Merger
      Agreement also are conditioned upon each of the following, among other
      things:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      closing, there shall have been no material adverse change in the assets,
      liabilities or financial condition of IXI, its subsidiaries or their businesses
      since the date of the Merger Agreement;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      shares of IXI&#8217;s preferred stock outstanding immediately prior to the closing
      shall have been converted into shares of IXI common stock;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      warrants for the purchase of shares of IXI preferred stock shall have been
      converted into warrants to purchase shares of IXI common stock or
      terminated;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      employment agreement </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">between
      IXI Mobile (R&amp;D) Ltd., a subsidiary of IXI, and Gideon Barak, IXI&#8217;s
      Chairman, and the employment agreement between IXI and Amit Haller, IXI&#8217;s
      President and Chief Executive Officer, as amended, shall be in full force and
      effect; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
      holders of IXI who hold not less than 95% of the shares of IXI common stock
      on a
      fully-diluted basis will be parties to agreements that restrict them from
      selling any of the ITAC shares of common stock that they receive at the closing
      for a period of 180 days or more following the closing;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      indebtedness owed to IXI by any director, executive officer or stockholder
      of
      IXI or any immediate family member thereof shall have been repaid in full;
      and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC&#8217;s
      existing directors&#8217; and officers&#8217; liability insurance policy (or a policy
      permitted to be substituted therefor) shall be in full force and
      effect.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Indemnification</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      ITAC&#8217;s
      sole remedy for its rights to indemnification under the Merger Agreement, there
      will be placed in escrow (with an independent escrow agent) from the shares
      of
      ITAC Stock to be issued upon consummation of the merger, a total of 10% of
      such
      shares (&#8220;Escrow Fund&#8221;). Any indemnification payments shall be paid solely from
      the shares placed in escrow. Claims for indemnification may be asserted by
      ITAC
      once the damages exceed $1,000,000 and are fully indemnifiable from the first
      dollar once damages exceed that amount. However, claims with respect to IXI&#8217;s
      representations and warranties regarding its capitalization and certain other
      specified matters are not subject to such threshold. Any shares of ITAC Stock
      remaining in the Escrow Fund on December 31, 2007, other than those applying
      to
      claims made by that date that have not then been resolved, shall be released
      to
      the persons entitled to them. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Termination</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Merger Agreement may be terminated at any time, but not later than the closing,
      as follows: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      mutual
      written consent of ITAC and IXI;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      either
      ITAC or IXI if the merger is not consummated on or before December 31,
      2006;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      either
      ITAC or IXI if a governmental entity shall have issued an order, decree or
      ruling or taken any other action, in any case having the effect of permanently
      restraining, enjoining or otherwise prohibiting the merger, which order, decree,
      ruling or other action is final and nonappealable;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      either
      ITAC or IXI if the other party has breached any of its covenants or
      representations and warranties in any material respect and has not cured its
      breach within thirty days of the notice of an intent to terminate, provided
      that
      the terminating party is itself not in breach; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      either
      ITAC or IXI if, at the ITAC stockholder meeting, the Merger Agreement and the
      transactions contemplated thereby shall fail to be approved and adopted by
      the
      affirmative vote of the holders of ITAC&#8217;s common stock or 20% or more of the
      Public Shares request conversion of their shares into the pro rata portion
      of
      the Trust Fund in accordance with ITAC&#8217;s certificate of
      incorporation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Lock-Up
      Agreements</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      IXI
      stockholder who holds more than 4% of the outstanding IXI common stock will
      execute a lock-up agreement (the "Stockholder Lock-Up") relating to all shares
      of ITAC Stock which&#160;it may receive in connection with the consummation of
      the merger.&#160; These stockholders beneficially own an aggregate of&#160; 77%
      of the fully diluted equity of IXI. The Stockholder Lock-Up provides that the
      IXI stockholders&#160;who are subject to its terms&#160;will not sell or
      otherwise transfer any such&#160;shares of ITAC Stock for a period of 180 days
      after the closing.&#160; After the initial 180 day period, 25% of such shares of
      ITAC Stock will be released from the terms of the Stockholder Lock-Up&#160;and
      an additional 25% of such shares will be released every 90 days thereafter
      until
      all such shares of ITAC Stock are released; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provided,
      however, that during the first 360 days after the closing,&#160;no sale or other
      transfer may be made unless the last sales price of the ITAC Stock is at least
      $6.00.&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In
      addition, after the initial 180 day period,&#160;if the last reported sale price
      of ITAC Stock equals or exceeds $8.50 for 20 trading days out any consecutive
      30
      trading day period, then 50% of&#160;the shares of ITAC Stock that such IXI
      stockholders receive in connection with merger will be released from the terms
      of the Stockholder Lock-Up.&#160; If the last reported sale price of ITAC Stock
      equals or exceeds $9.50 for 20 trading days out any consecutive 30 trading
      day
      period after the initial 180 day period, then all of&#160;such shares of ITAC
      Stock will be released from the terms of the Stockholder Lock-Up.&#160; In the
      event that ITAC's board of directors releases&#160;in whole or in part&#160;any
      IXI stockholder who beneficially owns 4% or more of the outstanding ITAC Stock
      from the terms of the Stockholder Lock-Up, then all other IXI stockholders
      who
      executed the Stockholder Lock-Up will also be released to the same extent.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, Gideon Barak and Amit Haller will also execute a lock-up agreement
      (the "Executive Lock-Up") relating to all shares of ITAC Stock which they may
      receive in connection with the consummation of the merger or in accordance
      with
      their respective employment agreements.&#160; The Executive Lock-Up provides
      that Messrs. Barak and Haller will not sell or otherwise transfer such shares
      of
      ITAC Stock for a period of 360 days after the closing.&#160; After the initial
      360 day period, 75% of such shares of ITAC Stock held by Messrs. Barak and
      Haller will be released from the terms of the Executive Lock-Up&#160;and the
      remaining 25% of such shares will be released 90 days thereafter.&#160; In
      addition, after the initial 360 day period,&#160;if the last reported sale price
      of ITAC Stock equals or exceeds $8.50 for 20 trading days out any consecutive
      30
      trading day period, then all of such shares of ITAC Stock that Messrs. Barak
      and
      Haller receive in connection with merger and their respective employment
      agreements will be released from the terms of the Executive
      Lock-Up.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      will
      also use its reasonable best efforts to cause all IXI stockholders, IXI Employee
      Option Holders and IXI Warrant Holders who are not covered by the agreements
      described above to execute a Stockholder Lock-Up or an Executive Lock-Up or
      similar commitment, and it is a condition to the closing of the merger that
      IXI
      stockholders holding at least 95% of the shares of IXI on a fully diluted basis
      are subject to the Stockholder Lock-Up or are otherwise subject to restrictions
      relating to the sale or other transfer of&#160;the shares of ITAC Stock which
      such IXI stockholders receive in connection with the consummation of the merger
      for at least 180 days after the closing.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Employment
      Agreements</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gideon
      Barak, IXI&#8217;s Chairman, and Amit Haller, its President and Chief Executive
      Officer, are parties to separate employment agreements. Mr. Barak&#8217;s agreement is
      with IXI Mobile (R&amp;D) Ltd., a subsidiary of IXI. Mr. Haller&#8217;s agreement is
      with IXI. In anticipation of the merger, each of these agreements has been
      amended. The following descriptions are of the agreements, as
      amended.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Gideon
      Barak Employment Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barak&#8217;s employment agreement provides for him to serve in the position of
      co-Chairman of the Board of the group of companies consisting of ITAC, IXI
      and
      IXI Mobile (R&amp;D) Ltd. (the &#8220;Group&#8221;) beginning on the closing date of the
      merger and continuing until the agreement may be terminated by either party
      on
      90 days&#8217; prior notice to the other party. The agreement will also terminate upon
      a &#8220;Termination for Cause&#8221; (as defined in the agreement) by the subsidiary or if
      terminated by Mr. Barak for &#8220;Justifiable Reason&#8221; (as defined in the agreement).
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barak&#8217;s agreement provides for an annual salary of $250,000 effective upon
      closing of the merger. He is eligible to participate in all of IXI&#8217;s benefit
      plans.&#160;He is also entitled to reimbursement for all normal, usual and
      necessary expenses incurred or paid by him in the performance of his duties.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Barak
        will be granted, immediately under consummation of the merger, options to
        purchase up to 750,000 shares of ITAC Stock (&#8220;Additional Options&#8221;), exercisable,
        to the extent such options become vested, at $5.00 per share. The Additional
        Options will vest based on the Group attaining the following
        targets:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                  the Group&#8217;s net income equals or exceeds $15.0 million for the calendar
                  year ending December 31, 2007, options will vest to purchase up
                  to 150,000
                  shares of ITAC Stock in proportion to the amount by which the Group&#8217;s net
                  income exceeds $15.0 million up to a maximum of $25.0 million (the
&#8220;2007
                  Net Income Additional Options&#8221;), and to the extent that less than 150,000
                  shares of ITAC Stock will become vested, the options representing
                  the
                  difference between the options so vested and 150,000 shall
                  expire;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                  the Group&#8217;s net income equals or exceeds $20.0 million for the calendar
                  year ending December 31, 2008, options will vest to purchase up
                  to 150,000
                  shares of ITAC Stock in proportion to the amount by which the Group&#8217;s net
                  income exceeds $20.0 million up to a maximum of $45.0 million (the
&#8220;2008
                  Net Income Additional Options&#8221;), and to the extent that less than 150,000
                  shares of ITAC Stock will become vested, the options representing
                  the
                  difference between the options so vested and 150,000 shall
                  expire;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                  ITAC Stock trades, for any 20 trading days out of any consecutive
                  30
                  trading days period at any time during the period commencing on
                  the
                  consummation of the merger and ending on the fourth anniversary,
                  at an
                  amount equal to or exceeding:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$8.50
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the &#8220;First Share Price Additional
                  Options&#8221;);</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$9.50
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the &#8220;Second Share Price Additional Options&#8221;);
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$12.00
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the &#8220;Third Share Price Additional
                  Options&#8221;).</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If&#160;
        ITAC engages in a change of control transaction after the consummation of
        the
        merger and prior to the fourth anniversary thereof in which the consideration
        paid to holders of ITAC Stock exceeds $11.00 per share then the 2007 Net
        Income
        Additional Options, the 2008 Net Income Additional Options, the First Share
        Price Additional Options and the Second Share Price Additional Options will
        vest, to the extent that such options have not already vested.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, if the consideration paid to holders of ITAC Stock in a change
        of
        control transaction equals or exceeds $12.00 per share, then the Third Share
        Price Additional Options will vest, to the extent that such options have
        not
        already vested.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, Mr. Barak is entitled to an &#8220;Annual Bonus&#8221; and &#8220;Target Bonuses.&#8221; The
      Annual Bonus entitles Mr. Barak, commencing with the 2006 calendar year, to
      a
      payment equal to 2% of that portion of the annual consolidated net profit of
      the
      Group that exceeds the amount of consolidated net profit of the Group for the
      immediately preceding calendar year. In calculating the &#8220;net profit,&#8221;
&#8220;Management Incentive Expenses&#8221; (as defined in the Merger Agreement) are not
      included.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Target Bonuses entitle Mr. Barak to the following payments:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                cash bonus (the &#8220;Share Price Bonus&#8221;) of $200,000 upon the achievement of
                the First Share Price Trigger prior to the fourth anniversary of
                the
                closing of the merger;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                Mr. Barak becomes entitled to the Share Price Bonus, he will be eligible
                to receive additional cash bonuses of up to $800,000 (&#8220;Second Bonus&#8221;) in
                the following circumstances: (i) if ITAC receives funds of not less
                than
                $45,000,000 upon the exercise of its warrants outstanding on February
                28,
                2006 (&#8220;Parent Warrants&#8221;), he will be entitled to the full amount of
                $800,000; (ii) if the ITAC board of directors calls for the cashless
                exercise of the lower of (a) all outstanding Parent Warrants or (b)
                at
                least 69% of the number of Parent Warrants issued in the IPO, Mr.
                Barak
                shall be entitled to the full amount of $800,000; and (iii) if ITAC
                receives proceeds from the exercise of Parent Warrants of less than
                $45,000,000, then Mr. Barak shall be entitled to a bonus in the amount
                that bears the same proportion to $800,000 as the amount of such
                proceeds
                received by ITAC bears to $45,000,000. In no event shall the bonuses
                payable to Mr. Barak that are described in this paragraph exceed
                $800,000.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                Barak shall also be entitled to cash bonuses of $200,000 each for
                the
                achievement of each of the following: (i) if the Group&#8217;s total revenues
                for calendar year 2006 (calculated as set forth in the Merger Agreement)
                equal or exceed $45,000,000; (ii) the Second Share Price Trigger;
                and
                (iii) the Third Share Price Trigger, in each case prior to the fourth
                anniversary of the closing of the
                merger.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                the Group&#8217;s net income for calendar year 2007 exceeds $15,000,000, Mr.
                Barak shall be entitled to a cash bonus equal to $200,000 multiplied
                by
                the lesser of (a) one or (b) a fraction the numerator of which is
                the
                excess of the Group&#8217;s net income for such year over $15,000,000 and the
                denominator of which is
                $10,000,000.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 45pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
                the Group&#8217;s net income for calendar year 2008 exceeds $20,000,000, Mr.
                Barak shall be entitled to a cash bonus equal to $200,000 multiplied
                by
                the lesser of (a) one or (b) a fraction the numerator of which is
                the
                excess of the Group&#8217;s net income for such year over $20,000,000 and the
                denominator of which is
                $25,000,000.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barak&#8217;s employment agreement also provides that he shall be insured under an
      accepted &#8220;Manager&#8217;s Insurance Scheme&#8221; pursuant to which 5% of his salary will be
      deducted by the subsidiary and paid towards the insurance for his benefit;
      the
      subsidiary will contribute an additional amount of up to 2.5% of his salary
      toward disability insurance; and the subsidiary will contribute an additional
      amount equal to 8-1/3% of his salary to fund the subsidiary&#8217;s potential future
      obligations for severance compensation. Mr. Barak&#8217;s salary, including the
      insurance scheme, social benefits and fringe benefits, will continue to be
      paid
      during any period of his military reserve service. The agreement also provides
      that the subsidiary will contribute an amount equal to 7.5% of Mr. Barak&#8217;s
      salary and he shall contribute an additional 2.5% of his salary toward the
      maintenance of an advanced study fund which will available to him for his
      benefit. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barak
      will also be entitled to sick leave and recreation pay in accordance with
      applicable Israeli law and, at his option, the subsidiary will provide him
      with
      an automobile and pay the expenses associated therewith subject to an agreed
      decrease in his salary. So long as he is provided with an automobile, Mr. Barak
      will not be entitled to reimbursement of travel expenses or similar
      costs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      Mr.
      Barak&#8217;s employment agreement is terminated by the subsidiary for any reason
      other than Termination for Cause or is terminated by him for Justifiable Reason,
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 54pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">he
                will be entitled to receive his salary and benefits (including Target
                Bonuses and Annual Bonuses) for the twelve-month following such
                termination (the &#8220;Severance Period&#8221;);
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 54pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
                Additional Options that are not vested will vest upon occurrence
                of the
                triggering events even if such triggering events occur after
                termination;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 54pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">all
                options held by him to purchase shares of ITAC that were converted
                from
                options to purchase shares of IXI will become vested; and the exercise
                period of such options and all Additional Options shall be extended
                to the
                full term of such options, which shall be deemed to be 10 years if
                the
                plan governing any such option does not contain a provision in such
                regard
                or earlier upon a &#8220;change of control&#8221; event (as defined in the
                subsidiary&#8217;s stock option plan);</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 54pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                the Severance Period ends prior to the completion of any calendar
                year or
                prior to the publication of the financial statements of the Group
                for a
                given calendar year, he will be entitled to a proportionate share
                of all
                Target Bonuses and Annual Bonuses;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 54pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                the First Share Price Trigger is achieved following the effective
                date of
                termination but before the fourth anniversary of the closing of the
                merger, he shall be entitled to receive the Share Price Bonus and
                the
                Second Bonus, subject to fulfillment of the pre-conditions described
                above.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      a
      Termination for Cause of Mr. Barak&#8217;s employment is effected by the subsidiary or
      his employment is terminated by him for a reason other than Justifiable Reason,
      he shall be entitled only to the salary and benefits and the Annual Bonuses,
      Target Bonuses, Share Price Bonus, Second Bonus and Additional Options (subject
      to vesting events and conditions precedent) that would have been due to him
      in
      the three-month period following giving of the notice of termination. Options
      that vest prior to the expiration of such three-month period shall be
      exercisable no later than six months following such date or earlier upon a
      &#8220;change of control&#8221; event (as defined in the relevant stock option
      plan).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Barak&#8217;s employment agreement also contains provisions relating to the protection
      of the confidentiality of proprietary information, assignment of inventions
      and
      restrictions on his ability to compete and solicit employees and customers
      until
      six months following termination of his employment. Also, he may replace his
      employee/employer relationship with a management service agreement at no
      additional cost to the Group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Amit
      Haller Employment Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Haller&#8217;s employment agreement provides for him to serve as President and Chief
      Executive Officer of IXI. The agreement may be terminated by either party on
      90
      days&#8217; prior notice to the other party. The agreement may also be terminated by
      either party for &#8220;just cause&#8221; (as defined in the agreement).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      agreement provides for an annual salary of $250,000 effective upon the closing
      of the merger, payable in equal monthly installments. Mr. Haller is eligible
      to
      participate in all of IXI&#8217;s benefit plans. He is also entitled to reimbursement
      for all normal, usual and necessary expenses incurred or paid by him in the
      performance of his duties.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Haller is also entitled to Additional Options, Annual Bonuses and Target Bonuses
      in the same amounts and on the same conditions as apply to Mr. Barak&#8217;s
      Additional Options, Annual Bonuses and Target Bonuses.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      Mr.
      Haller&#8217;s employment agreement is terminated by IXI other than for just cause or
      is terminated by Mr. Haller for just cause, he will be entitled to the same
      severance benefits as are described above with respect to a termination by
      the
      subsidiary of Mr. Barak&#8217;s employment other than a Termination for Cause or a
      termination by Mr. Barak for Justifiable Reason. Similarly, if Mr. Haller&#8217;s
      employment is terminated by IXI for just cause or by Mr. Haller other than
      for
      just cause, Mr. Haller will be entitled to the same severance benefits as are
      described above with respect to a Termination for Cause by the subsidiary of
      Mr.
      Barak&#8217;s employment or a termination by Mr. Barak other than for Justifiable
      Reason.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Haller&#8217;s employment agreement also contains provisions relating to the
      protection of the confidentiality of proprietary information, assignment of
      inventions and restrictions on his ability to compete with IXI for six months
      following termination of his employment and on his ability to solicit employees
      and customers until one year following termination of his
      employment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Registration
      Rights Agreement</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ITAC
      will
      enter into a Registration Rights Agreement with those officers and directors
      of
      IXI, who, by virtue of their affiliation with IXI, may be subject to
      restrictions under United States securities laws on their ability to sell shares
      of the ITAC Stock they receive as a result of the merger. Such agreement will
      give such persons, acting upon request of holders of at least 25% of the shares
      of ITAC Stock held by them, the right to require ITAC to register their ITAC
      Stock under the Securities Act at any time commencing 180 days after the
      closing, provided that it is reasonably anticipated that the aggregate offering
      price of the shares to be registered will be at least $5,000,000. Such persons
      may make such demand for registration no more than two times. They will also
      have the right (subject to customary exceptions) to have their ITAC shares
      included in any other registration statement filed by ITAC and, upon request
      by
      holders of at least 5% of the shares of ITAC Stock held by them, to require
      ITAC
      to file a registration statement on Form S-3 under the Securities Act, provided
      that it is reasonably anticipated that the aggregate offering price of the
      shares to be registered will be at least $1,000,000. Such persons may make
      such
      demand for filing of a registration statement on Form S-3 no more than twice
      per
      year. Form S-3 allows eligible filers to incorporate information about the
      registrant from other documents filed by the registrant under the securities
      laws.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      7.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Regulation
      FD Disclosure</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      offers solutions that bring innovative, data-centric mobile devices and services
      to the mass market. IXI&#8217;s Ogo&#8482; devices are designed to improve the mobile user
      experience and increase mobile data usage. IXI markets a turn-key solution
      to
      mobile operators, mobile virtual network operators (MVNOs), and Internet service
      providers (ISPs) worldwide to launch and support Ogo products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Over
      recent years, wireless carriers have developed wireless data communication
      networks of increasing bandwidth in order to increase their offering of advanced
      information services for consumers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2005,
      worldwide mobile phone subscribers exceeded 2.1 billion (according to Portio
      Research). To date, operators have relied on mobile voice and data services
      such
      as SMS, MMS, and multi-media downloads as key revenue drivers. As the market
      matures, however, operators are looking to leading desktop applications,
      including email and instant messaging (IM), to increase mobile data
      traffic.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email
      and
      IM are highly popular applications, with worldwide email users estimated at
      over
      660 million in 2005 (according to Radicati Group), and worldwide IM users
      estimated at over 300 million in 2005, generating 1.2 billion messages daily
      (according to ComScore Media Metrix and IDC). These applications, while popular
      on the PC, have had limited mobile penetration. In addition, mobile email has
      largely been focused on the corporate market rather than the mobile mass market.
      In fact, the mobile email leader, catering mainly to corporate users, has only
      4.5 to 5.0 million subscribers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      marketing of advanced data services on the cellular network is a complex process
      which requires an infrastructure and technical solutions on the network side
      and
      the availability of affordable and suitable mobile devices. Wireless carriers
      and ISPs face the following challenges:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increasing
                the usage of data services by offering applications previously available
                to computer-based Internet users, such as instant messaging (IM)
                and
                email, through the existing installed base of mobile
                phones.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Introducing
                new mobile devices that are user friendly and ergonomically suited
                to
                extensive text input. These devices should have features such as
                a full
                keyboard, a large horizontal screen, and additional functions in
                order to
                facilitate a robust mobile messaging experience, including sending
                messages of larger volume and with rapid turnaround. These devices
                should
                be priced such that they are accessible to a broad consumer market
                (unlike
                high-end smartphones which offer rich functionality but are relatively
                expensive).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lowering
                subscriber acquisition costs and simplifying the process of incorporating
                advanced data services on their
                platforms.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Ogo
      family of devices delivers popular mobile applications, including instant
      messaging, email, SMS and news, on optimized, easy-to-use handheld devices
      for a
      true on-the-go mobile messaging experience. Since launching Ogo in September
      2004, IXI has shipped approximately $20 million of Ogo products to customers
      including AT&amp;T Wireless (now Cingular Wireless), Swisscom Mobile, the
      leading Swiss mobile operator, and e-kolay.net, one of the largest Internet
      Service Providers (&#8220;ISPs&#8221;) in Turkey, in collaboration with Telsim (now
      Vodafone) and Avea, leading Turkish mobile operators. Ogo is no longer being
      sold by Cingular Wireless; however, service for existing customers continues.
      IXI has recently signed a contract to sell Ogo to one of the largest ISPs in
      Europe with over 20 million subscribers. The agreement is expected to be
      publicly announced by IXI&#8217;s customer. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      is
      also the inventor of PMG&#174; (Personal Mobile Gateway) technology, which combines
      cellular and short distance wireless technologies (such as Bluetooth or WiFi)
      to
      enable a variety of companion electronic devices. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      was
      incorporated in Delaware in 2000 under the name Ovdat, Inc. Its U.S. offices
      are
      located in Redwood City, California, and it maintains research and development
      facilities in Israel and Romania. IXI also has regional sales
      offices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      closing, IXI, with the cooperation of ITAC, will seek to raise additional
      capital to support current opportunities and future growth.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Products
      And Services</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      delivers devices and services that improve the mobile experience and increase
      mobile data usage. IXI markets its solutions to wireless carriers and Internet
      service providers worldwide.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>End-to-End
      Solutions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      delivers mobile messaging devices and related services targeting the mass
      market. The Ogo devices are designed to deliver popular messaging applications,
      such as instant messaging, email, news, and text messaging on optimized devices,
      increasing data usage and enhancing the mobile experience. These products can
      be
      tailored to meet carrier requirements, both hardware and software needs,
      providing a platform for future revenues. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      also
      provides hosted services to mobile operators and service providers worldwide,
      including all necessary gateways and backend servers, and related support
      services.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI's
      end-to-end Ogo solutions benefit both consumers and service
      providers:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Consumers</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      benefit
      from access to innovative, affordable mobile devices and applications, such
      as
      email, instant messaging and news; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Mobile
      Operators</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>and
      Service Providers</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      benefit
      from increased data usage, increased customization, and improved customer
      satisfaction</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI's
      first messaging device, the Ogo, was launched by AT&amp;T Wireless (now Cingular
      Wireless) in the United States in September 2004. Ogo was the first and only
      device of its kind to provide simultaneous, unlimited instant messaging and
      email from three leading portals - AOL, MSN, and Yahoo! - plus text messaging,
      all in a sleek, clamshell device. Ogo is currently available in Switzerland,
      Turkey and IXI expects to introduce it soon in other countries. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
      IXI
      Mobile does not directly control Ogo&#8217;s pricing to consumers, Ogo devices have
      been sold at retail at prices ranging from $0 (fully subsidized by the service
      provider) to $99, with a monthly service fee of approximately $15-18, offering
      a
      compelling alternative to higher-priced offerings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo
      extends the desktop experience to the mobile world and increases mobile data
      usage. Mobile operators and service providers, leveraging the growing popularity
      of desktop and mobile messaging, can deploy the device quickly and easily,
      increasing data revenue and customer satisfaction. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo
      can
      be tailored to meet mobile service provider requirements. The Ogo&#8217;s graphical
      user interface and hardware can be customized to address branding and customer
      experience needs. For instant messaging and email, the Ogo can fully
      interoperate with leading portals, as well as operator communities.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo
      devices offer the following key features:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                &#8220;clamshell&#8221; design that unfolds to display a large, color screen and
                keypad </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                full QWERTY keypad and 8-way navigation joystick pad for familiar
                and easy
                navigation </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compactness
                (4.5 in. x 3 in. x 1 in. when closed, 5.7 oz.)
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Special
                &#8220;hot keys&#8221; for simple navigation, such as &#8220;emoticon&#8221; button for inserting
                emoticons into chats </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
                button displays all active messages and chats on one screen
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ability
                to customize and assign unique sounds and visual animations to different
                contacts </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Instant
                messaging that is compatible with all major providers
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email
                on most leading providers</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Access
                to email from Internet Service Providers and POP3 accounts
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                consolidated inbox, allowing users to view all email and text messages
                in
                one mailbox or sort by account</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ability
                to receive SMS messages and RSS
                feeds</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ability
                to send a single message in multiple formats (e.g., email and
                SMS)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Currently,
      Ogo supports the most common email protocols (POP3, IMAP4, AOL Mail, MSN
      Hotmail, Yahoo! Mail). Users can receive email but at present cannot view email
      attachments. IXI is currently developing a software enhancement for Ogo that
      will enable users to view attachments in &#8220;DOC&#8221;, &#8220;PDF&#8221; and various image
      formats.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>PMG&#174;
      (Personal Mobile Gateway) Technology</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      products also feature its proprietary PMG&#174; (Personal Mobile Gateway) Technology.
      PMG technology allows a mobile phone or other data device (such as messaging
      devices, watches, cameras, and MP3 players) to enable a variety of companion
      devices for the Internet wirelessly. The PMG is the single connection between
      the wireless network and a collection of affordable and best-of-breed mobile
      devices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      PMG
      platform enables mobile device manufacturers to expand the ability of their
      products by linking them to additional mobile electronic devices. PMG technology
      enables wireless communications by means of the Bluetooth protocol between
      the
      core mobile device (personal mobile gateway) and other peripheral electronic
      devices such as a wireless earpiece, a digital camera, a mobile game console
      or
      a digital wristwatch. This allows the user to expand the capability of the
      core
      mobile device on a gradual basis by adding other electronic devices that are
      optimized to deliver their primary application. These peripheral devices also
      share resources with the core device without replicating some costly overhead
      functions such as memory, processing, etc., providing a cheaper and more
      flexible alternative to smartphones. PMG technology enables cellular providers
      and Internet service providers to create additional income sources from the
      data
      transmission and the sale of additional wireless electronic devices that can
      be
      used in conjunction with existing cellular devices. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      has
      entered into several licensing agreements for the development and manufacture
      of
      PMG-based devices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Hosted
      Services </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      makes
      it easy for its customers to offer Ogo in their market by providing
      customization as well as launch and support services.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      can
      customize Ogo&#8217;s language, content and applications to meet market and user
      requirements. Customers can choose from a variety of value-added applications,
      including instant messaging, push email, news, SMS and voice. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      also
      provides launch and support services that enable mobile operators and service
      providers to successfully sell Ogo. This enables IXI&#8217;s customers, even those
      with limited mobile data application delivery experience, to bring to market
      Ogo
      devices quickly and easily. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      offers the following services as part of its complete solution:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Instant
      messaging gateway</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Email
      gateway</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Push
      email</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Over-the-air
      version upgrades and provisioning</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Attachment
      reformatting</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Microsoft
      certified MSN services (including Hotmail and Messenger) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Current
      Development</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
      research and development projects that IXI has undertaken include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Software
                enhancements to allow </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo
                users to view email attachments.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                new generation device that will interface with MS Exchange Server
                including the ability to synchronize data appearing on the user's
                device
                and data appearing on the mail server (including e-mail, calendar
                and
                contacts). </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adding
                an Internet browser to Ogo, facilitating WAP and HTML web
                browsing.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                new generation of Ogo devices for individual and professional users
                based
                on a new, more advanced, technology platform and a modified hardware
                design.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Sales
      And Marketing</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      commenced marketing of Ogo in the United States in 2004 under an agreement
      with
      AT&amp;T Wireless Services, Inc. In April 2005, following the acquisition of
      AT&amp;T Wireless by Cingular Wireless, Inc., an agreement was concluded between
      Cingular and IXI to cancel the agreement directly relating to the marketing
      of
      Ogo in the United States. Pursuant to the agreement with Cingular, IXI received
      a one-time cash payment of approximately $3.85&#160;million, return of all
      inventory held by Cingular (valued at approximately $5.7&#160;million), and
      transfer of all intellectual property rights relating to Ogo, including the
      URL
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.ogo.com</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      and
      associated goodwill. As a result of this, IXI recorded a one-time gain of
      $11.44&#160;million.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2005, IXI entered into an agreement with Swisscom Mobile AG, Switzerland&#8217;s
      largest cellular provider, for the sale to Swisscom of Ogo devices for resale
      by
      Swisscom to end users in Switzerland and Liechtenstein. Swisscom has launched
      Ogo and the service on November 2005 (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.ogo.ch</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">).
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      December 2005, IXI entered into an agreement with one of the largest European
      ISPs, pursuant to which the customer has agreed to purchase certain minimum
      quantities of Ogo devices. IXI shipped devices worth approximately $2 million
      in
      December 2005 and the customer has agreed to purchase an additional $16 million
      of devices through the first quarter of 2007. However, the customer can
      terminate the contract in 2006 without significant penalty.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      has
      contracted to sell Ogo devices to e-kolay.net, a leading Turkish ISP, in
      collaboration with Telsim (now Vodafone) and Avea, leading Turkish wireless
      carriers. The sales of Ogo to e-kolay.net is done through Mobicom, a Turkish
      distributor. e-kolay.net launched Ogo in August 2005 (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.e-kolay.net/ogo</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      ).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to independent distributors, IXI maintains a direct sales
      force.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Competition</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      are
      a number of companies developing and marketing mobile devices for the transfer
      of digital information of various sorts with each one of the devices enabling
      the transfer of some types of digital information. Accurate measures of market
      share are difficult because each of the devices on the market offers a different
      collection of functions, but due to the recent introduction of Ogo and the
      termination of the relationship with Cingular, IXI&#8217;s share of this market is, at
      present, negligible. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      dominant products in the market are the BlackBerry, marketed by Research In
      Motion, the Treo line of smartphones marketed by Palm, Inc. as well as
      smartphones marketed by a broad array of other manufacturers, and the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Sidekick</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      marketed
      by Danger, Inc. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      table
      below provides a comparison of the principal features of the various classes
      of
      products:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Type
                of Device</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Examples</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Target
                Audience</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Included
                Applications</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Average
                Purchase Price (after rebates and subsidies)</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Average
                Monthly Payment for Provided Services</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Scope
                of Solution for Consumer Market</strong></font></div>
            </td>
            <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Scope
                of Solution for Professional Market</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email
                devices</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BlackBerry
                7100</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BlackBerry
                7290</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Large
                enterprises and professional users; government users</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State-of-the-art
                email (fully synchronized) and basic cell phone</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$200-350</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$40-50+</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Partial
                solution, limited IM support</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">End-to-End
                solution including installation of service at the enterprise with
                highest
                level of security</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Smartphones</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Treo
                650, Nokia 9300</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Large
                enterprises and professional users</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State-of-the-art
                email (fully synchronized), smartphone, Internet surfing, open operating
                system</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$400-500</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$40-50+</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Partial
                solution, limited IM support</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Limited
                solution requiring involvement of external suppliers</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email
                and IM devices</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sidekick
                II</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Youth</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email,
                basic cell phone, Internet surfing, basic instant
                messaging</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$200-250</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$30</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consumer
                youth focused product; limited IM support</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Partial
                solution; </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email
                and IM devices</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Youth
                and professional users </font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Email,
                basic cell phone, basic instant messaging, RSS, SMS</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0-99</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$15-18</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">End-to-End
                solution</font></div>
            </td>
            <td width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">End-to-End
                solution for small to medium sized businesses and professional
                users</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
      all
      price information was taken from wireless carriers&#8217; public information; such
      information is subject to change</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      believes that, by focusing on a market segment that is distinct from its
      competitors&#8217;, it can create differentiation that allows it to compete
      successfully with its competitors&#8217; products.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Manufacturing</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ogo
      products are manufactured for IXI by Chi Mei Communications Systems, Inc. of
      Taiwan, currently a sole source supplier.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Facilities</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      maintains its principal offices in approximately 11,500 square feet of space
      in
      Redwood City, CA. In addition, it maintains research and development facilities
      comprising approximately 20,500 square feet in Raanana, Israel and in
      approximately 4,200 square feet in Romania. IXI believes that these facilities
      are adequate to satisfy its requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Intellectual
      Property</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI&#8217;s
      success depends, in large part, on its proprietary technology, processes, trade
      secrets and other proprietary information, and upon its ability to protect
      this
      information from unauthorized disclosure or use. IXI relies on a combination
      of
      copyright, trade secret and trademark laws, confidentiality agreements,
      contractual provisions and other similar measure common in high technology
      companies to protect its proprietary information.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When
      approaching the strategy of protecting IXI&#8217;s intellectual property, IXI has
      taken a long-term horizontal approach which covers both conceptual broad ideas
      and specific implementation practices. IXI&#8217;s patent portfolio includes
      conceptual patents, detailed implementation patents for both software and
      hardware, and also business practices oriented patents. IXI has filed some
      50
      patent applications to date and intends to continue filing patents to protect
      its unique intellectual property emerging from the development of its products.
      When filing patents, IXI goes through the following filing phases: First, filing
      is done in the USA; Second, filing is done through the Patent Cooperation Treaty
      (PCT); Finally filing is done in specific countries as needed after the PCT
      period expires. Most of IXI&#8217;s patents are pending approval of the patent
      offices. Three patents have been approved to date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      has
      registered trademarks on the names &#8220;IXI&#8221; and &#8220;PMG&#8221; and on the stylized IXI logo
      and owns various URLs relating to its product names and other
      goodwill.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Management</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI
      is
      led by a strong team of seasoned managers with significant industry
      expertise.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gideon
      Barak is a co-founder and Chairman of IXI. Mr. Barak is currently a Board member
      of several other technology companies. Mr. Barak has over 25 years of experience
      in the communications industry, with leading positions such as Chief Financial
      Officer of DSP Group Inc. (NASDAQ: DSPG), Co-Founder and CEO of DSP
      Communications, which was acquired by Intel Corporation, and Founder and
      Chairman of Envara, Inc. and Butterfly VLSI, Ltd. acquired by Intel and Texas
      Instruments, respectively. Mr. Barak was also a Board member of Modem Art and
      WIDCOMM, Inc., which were acquired by Agere Systems and Broadcom Corporation,
      respectively. Mr. Barak serves as a Director of additional semiconductor and
      communications companies, including Metalink Ltd. (NASDAQ: MTLK) and Advasense
      (founder and Chairman). Mr. Barak also serves as venture partner with Benchmark
      Capital. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amit
      Haller is a co-founder, President and CEO of IXI. Mr. Haller has 17 years of
      experience in wireless technology and business development. From 1989 to 1993,
      Mr. Haller worked in the Israel Defense Forces&#8217; Research and Development Unit.
      From 1993 to 1999, he founded and served as CEO of Butterfly VLSI Ltd., where
      he
      created the Short Distance Wireless (SDW) vision and developed the first
      complete SDW chipset (RF, Baseband and Software). Butterfly was acquired by
      Texas Instruments in 1999. From 1999 to 2000, Mr. Haller worked for Texas
      Instruments, Inc., where he directed the Short Distance Wireless (Bluetooth)
      business unit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IXI&#8217;s
      Board of Directors includes, in addition to Messrs. Barak and Haller, Yossi
      Sela. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Sela
      is the Managing Partner of Gemini Israel Funds, a leading venture capital fund,
      which invests primarily in seed and early stage Israeli technology
      company.&#160; In this capacity, Mr. Sela sits on the board of a number of
      Gemini portfolio companies, including Adimos Inc., Allot Communications, Ltd.,
      and Saifun Semiconductors Ltd. (NASDAQ: SFUN).&#160; Mr. Sela&#8217;s past board
      positions include Commtouch Software Ltd. (NASDAQ: CTCH), Precise Software
      Solutions Ltd. and Envara Inc.&#160; In 1995, he served as the Chief Executive
      Officer of Ornet Data Communication Technologies Ltd., which was a Gemini
      portfolio company.&#160; Mr. Sela led that company until its acquisition by
      Siemens AG in September 1995.&#160; From 1990 to 1992, Mr. Sela served as Vice
      President of Marketing at DSP Group, an American-Israeli company specializing
      in
      proprietary digital signal processing for consumer and telecommunication
      applications.&#160; He later served as VP Marketing at DSP Communications, Inc.,
      a spin-off of DSP Group.&#160; From 1985 to 1989, Mr. Sela worked at Daisy
      Systems Inc. where he was Director for CAD Development and PCB Marketing Manager
      for Europe.&#160; From 1974 to 1984, he served in the Israel Defense Forces and
      was responsible for the definition and development of systems for communication
      applications.&#160; Mr. Sela holds a B.Sc. in Electrical Engineering from the
      Technion - Israel Institute of Technology and an MBA from Tel Aviv
      University.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to Messrs. Barak and Haller, the following persons are executive
      officers of IXI:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lihi
      Segal has served as IXI Vice President and Chief Financial Officer since
      September 2005. Ms. Segal served as Chief Financial Officer of RFWaves Ltd.,
      a
      short-distance wireless semiconductor company, from 2002 to 2005, where she
      managed the company&#8217;s financial, legal and worldwide operations. From 1999 to
      2002, Ms. Segal was part of Mr. Gideon Barak&#8217;s core management team and served
      as Vice President Corporate Development and General Counsel of all of Mr.
      Barak&#8217;s companies, including IXI Mobile, Envara and RFWaves. From 1996 to 1999,
      Ms. Segal was an attorney with Danziger, Klagsbald, Rosen &amp; Co., Attorneys
      at Law, a law firm specializing in commercial and corporate law. Ms. Segal
      holds
      an LLB (JD equivalent) from the Buchman Faculty of Law, Tel-Aviv University,
      and
      an MBA from the Joint Executive MBA Program at Recanati, Tel Aviv University
      and
      Kellogg, Northwestern University. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gadi
      Meroz, Vice President, Corporate Development, has over 8 years experience in
      providing financial and legal services. Prior to joining IXI in July 2001,
      Mr.
      Meroz was an attorney at Volovelsky, Dinstein, Sneh &amp; Co. where he focused
      on business and venture funding, representing public and private companies
      as
      well as venture investors. He earned his LLB from the University of Leicester,
      UK School of Law, and holds an LL.M degree from the University of California,
      Berkeley and Tel Aviv University. In addition, Mr. Meroz holds an MBA degree
      from the University of Leicester, UK. Mr. Meroz is admitted to the Israeli
      Bar
      and the Law Society of England &amp; Wales.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Employees</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      January 31, 2006 IXI employed 75 people, of whom 31 were engaged in research
      and
      development in IXI&#8217;s Israeli facility, and 11 were engaged in research and
      development in IXI&#8217;s Romanian facility. The sales and customer support
      department employed 11 employees, with the remainder filling general and
      administrative, information technology, product marketing, operations and
      internal support functions. In addition, IXI had 12 subcontractors engaged
      in
      and sales functions and research and development. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">21</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Government
      Grants And Assistance Programs</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Israeli
      Approved Enterprise Status</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Israel Law for the Encouragement of Capital Investments, 1959 (the &#8220;Investment
      Law&#8221;), provides that capital investment in a production facility (or other
      eligible assets) may, upon application to and approval by the Investment Center
      of the Israeli Ministry of Industry, Trade and Labor be designated as an
      Approved Enterprise. Each certificate of approval for an Approved Enterprise
      relates to a specific investment program in the Approved Enterprise, delineated
      both by the financial scope of the investment and by the physical
      characteristics of the facility or the asset. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
      approved enterprise is entitled to certain benefits, including Israeli
      government cash grants or tax benefits. An Approved Enterprise may elect to
      forego any entitlement to the grants otherwise available under the Investment
      Law and, in lieu of the foregoing, participate in an alternative benefits
      program, under which the undistributed income from the Approved Enterprise
      is
      fully exempt from corporate tax for a defined period of time. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to a Letter of Approval of May 27, 2002 (including supplements to the approval
      and update of the investments list of July 20, 2003), the Investment Center
      of
      the Israeli Ministry of Industry, Trade and Labor granted to IXI&#8217;s Israeli
      facility the status of an Approved Enterprise. IXI has elected to participate
      in
      the alternative program. The period of tax exemption will be two years
      commencing with the year in which its Israeli subsidiary first generates taxable
      income from the relevant Approved Enterprise, and is subject to a reduced tax
      rate as low as 10%-25% for an additional period of between five to eight years
      from when the tax exemption began. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      actual tax rates will depend on the percentage of the non- Israeli investment
      in
      a company&#8217;s share capital (conferring rights to profits, voting and appointment
      of directors) and the percentage of its combined share and loan capital owned
      by
      non-Israeli residents, would apply. The lowest level of foreign investment
      during the year will be used to determine the relevant tax rate for that year.
      These tax benefits are granted for a limited period not exceeding seven years
      or
      ten years with respect to a company whose foreign investment level exceeds
      25%
      from the first year in which the Approved Enterprise has taxable income after
      utilizing its net operating losses. The period of benefits may in no event,
      however, exceed the lesser of (a) 12 years from the year in which the program
      was activated or (b) 14 years from the year of receipt of Approved Enterprise
      status.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      April
      1, 2005, the Israeli Parliament passed an amendment to the Investment Law,
      in
      which it revised the criteria for investments qualified to receive tax benefits.
      An eligible investment program under the amendment will qualify for benefits
      as
      a Privileged Enterprise (rather than the previous terminology of Approved
      Enterprise). Among other things, the amendment provides tax benefits to both
      local and foreign investors and simplifies the approval process. As a result
      of
      the amendment, tax-exempt income generated under the provisions of the new
      law
      will subject IXI to taxes upon distribution or liquidation and IXI may be
      required to record deferred tax liability with respect to such tax-exempt
      income. The amendment does not apply to investment programs approved prior
      to
      December 31, 2004. The new tax regime will apply to new investment programs
      only. IXI is currently evaluating the impact the amendment will have on
      it.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">22</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  9.01. </font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  Statements, Pro Forma Financial Information and
                  Exhibits.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits:</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibit</u></font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description</u></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Merger
                  Agreement dated February 28, 2006, among Israel Technology Acquisition
                  Corp, IXI Mobile, Inc. and ITAC Acquisition Subsidiary
                  Corp.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Stockholder Lock-Up Agreement to be executed by certain stockholders
                  of
                  IXI Mobile, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Executive Lock-Up Agreement to be executed by certain executive
                  officers of IXI Mobile, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Registration Rights Agreement to be executed by ITAC and certain
                  stockholders of iXI.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Personal
                  Employment Agreement effective January 1, 2006, between IXI Mobile
                  (R&amp;D) Ltd. and Gideon Barak.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.6</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Addendum
                  to Employment Agreement between IXI Mobile (R&amp;D) Ltd. and Gideon Barak
                  dated February 28, 2006.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.7</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                  Agreement effective March 1, 2001, between IXI Mobile, Inc. and
                  Amit
                  Haller, together with addenda thereto effective June 1, 2001 and
                  January
                  1, 2006. </font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.8</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Addendum
                  to Employment Agreement between IXI Mobile, Inc. and Amit Haller
                  dated
                  February 28, 2006.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  release of Israel Technology Acquisition Corp. dated March 1, 2006
                  </font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Slide
                  Show Presentation</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.3</font></div>
              </td>
              <td align="left" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fact
                  Sheet</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">23</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Dated:<font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt" size="3">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
              1, 2006</font></font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">ISRAEL
              TECHNOLOGY
              ACQUISITION CORP. </font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Israel
              Frieder</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Name:
              Israel Frieder </font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:
                </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">24</font></div>
      <div style="WIDTH: 100%; TEXT-ALIGN: center">
        <hr style="COLOR: black" noshade size="2">
      </div>
    </div>
    <div id="HDR">
      <div id="GLHDR" style="WIDTH: 100%" align="right">
      </div>
    </div>
  </body>
</html>
{"company-data": {"conformed-name": "Israel Technology Acquisition Corp.", "cik": "0001319644", "assigned-sic": "6770", "irs-number": "202374143", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51259", "film-number": "06656209"}, "business-address": {"street1": "23 KARLIBACH STREET", "city": "TEL AVIV", "state": "L3", "zip": "67132", "phone": "972545582452"}, "mail-address": {"street1": "23 KARLIBACH STREET", "city": "TEL AVIV", "state": "L3", "zip": "67132"}}
Unassociated Document
OMB
                APPROVAL
OMB Number:
3235-0060
Expires:
January
                31, 2008
Estimated
                average burden
Hours
                  per response
38.0
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
______________
FORM
      8-K
CURRENT
      REPORT
PURSUANT
      TO SECTION 13 OR 15(d) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      Report (Date of earliest event reported):
February
      28, 2006
ISRAEL
      TECHNOLOGY ACQUISITION CORP
.
(Exact
      Name of Registrant as Specified in Charter)
Delaware
000-51259
20-2374143
(State
                or Other Jurisdiction
of
                Incorporation)
(Commission
File
                Number)
(IRS
                Employer
Identification
                No.)
7
                Gush Etzion, 3
rd
Floor, Givaat Shmuel, Israel
54030
(Address
                of Principal Executive Offices)
(Postal
                Code)
Registrant's
      telephone number, including area code:
(011)
      972-3-532-5918
Not
      Applicable
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
¨
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
ý
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
¨
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
¨
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
COMMENCING
      SHORTLY AFTER THE FILING OF THIS CURRENT REPORT ON FORM 8-K, ISRAEL TECHNOLOGY
      ACQUISITION CORP. ("ITAC") INTENDS TO HOLD PRESENTATIONS FOR CERTAIN OF ITS
      STOCKHOLDERS, AS WELL AS OTHER PERSONS WHO MIGHT BE INTERESTED IN PURCHASING
      ITAC SECURITIES, REGARDING ITS MERGER WITH IXI MOBILE, INC. ("IXI"), AS
      DESCRIBED IN THIS REPORT. THIS CURRENT REPORT ON FORM 8-K, INCLUDING SOME OR
      ALL
      OF THE EXHIBITS HERETO, WILL BE DISTRIBUTED TO PARTICIPANTS AT SUCH
      PRESENTATIONS.
EARLYBIRDCAPITAL,
      INC. ("EBC"), THE MANAGING UNDERWRITER OF ITAC'S INITIAL PUBLIC OFFERING ("IPO")
      CONSUMMATED IN JULY 2005, AND MAXIM GROUP ("MAXIM"), A MEMBER OF THE
      UNDERWRITING SYNDICATE FOR THE IPO, ARE ASSISTING ITAC IN THESE EFFORTS WITHOUT
      CHARGE, OTHER THAN THE REIMBURSEMENT OF THEIR OUT-OF-POCKET EXPENSES. ITAC
      AND
      ITS DIRECTORS AND EXECUTIVE OFFICERS AND EBC AND MAXIM MAY BE DEEMED TO BE
      PARTICIPANTS IN THE SOLICIATION OF PROXIES FOR THE SPECAL MEETING OF ITAC
      STOCKHOLDERS TO BE HELD TO APPROVE THE MERGER.
STOCKHOLDERS
      OF ITAC AND OTHER INTERESTED PERSONS ARE ADVISED TO READ, WHEN AVAILABLE, ITAC'S
      PRELIMINARY PROXY STATEMENT AND DEFINITIVE PROXY STATEMENT IN CONNECTION WITH
      ITAC'S SOLICITATION OF PROXIES FOR THE SPECIAL MEETING BECAUSE THESE PROXY
      STATEMENTS WILL CONTAIN IMPORTANT INFORMATION. SUCH PERSONS CAN ALSO READ ITAC'S
      FINAL PROSPECTUS, DATED JULY 12, 2005, FOR A DESCRIPTION OF THE SECURITY
      HOLDINGS OF THE ITAC OFFICERS AND DIRECTORS AND OF EBC AND MAXIM AND THEIR
      RESPECTIVE INTERESTS IN THE SUCCESSFUL CONSUMMATION OF THIS BUSINESS
      COMBINATION. THE DEFINITIVE PROXY STATEMENT WILL BE MAILED TO STOCKHOLDERS
      AS OF
      A RECORD DATE TO BE ESTABLISHED FOR VOTING ON THE MERGER. STOCKHOLDERS WILL
      ALSO
      BE ABLE TO OBTAIN A COPY OF THE DEFINITIVE PROXY STATEMENT, WITHOUT CHARGE,
      BY
      DIRECTING A REQUEST TO: ISRAEL TECHNOLOGY ACQUISITION CORP., 7 GUSH ETZION,
      3
RD
FLOOR,
      GIVAAT SHMUEL, ISRAEL 54030. THE PRELIMINARY PROXY STATEMENT AND DEFINITIVE
      PROXY STATEMENT, ONCE AVAILABLE, AND THE FINAL PROSPECTUS CAN ALSO BE OBTAINED,
      WITHOUT CHARGE, AT THE SECURITIES AND EXCHANGE COMMISSION'S INTERNET SITE
      (
http://www.sec.gov
).
2
Item
      1.01
Entry
      into a Material Definitive Agreement.
General;
      Structure of Merger
On
      February 28, 2006, Israel Technology Acquisition Corp. ("ITAC") entered into an
      Agreement and Plan of Merger ("Merger Agreement") with IXI Mobile, Inc. A wholly
      owned subsidiary of ITAC, formed to effectuate the merger by merging with and
      into IXI, is also a party to the Merger Agreement. As a result of the merger,
      IXI will be the surviving corporation and will be a wholly owned subsidiary
      of
      ITAC. ITAC will change its name to "IXI Mobile, Inc." and IXI will change its
      name to "IXI Mobile (USA), Inc." As used in this Report, "IXI" includes IXI
      Mobile, Inc. and all of its subsidiaries.
IXI
      is a
      privately owned company founded in 2000 that delivers devices and services
      designed to improve mobile communications and increase mobile data usage. Its
      Ogo™ devices are designed to deliver popular messaging applications, such as
      instant messaging, email, news, and SMS on optimized devices, increasing data
      usage and enhancing the mobile experience. IXI markets its solutions to mobile
      operators and Internet service providers worldwide.
IXI
      products can be tailored to meet operator requirements, both hardware and
      software needs, providing a platform for future revenues. IXI also provides
      Hosted Services to mobile operators and Internet service providers worldwide,
      including all necessary gateways and backend servers, and related support
      services.
Gideon
      Barak, IXI's Chairman of the Board, and Amit Haller, IXI's President and Chief
      Executive Officer, will continue after the merger in the positions they now
      hold
      with IXI.
Upon
      consummation of the merger, the board of directors of ITAC will be increased
      to
      seven members, of whom five have been designated in the Merger Agreement and
      two
      will be designated by ITAC prior to the closing, subject to the reasonable
      approval of IXI. All seven designees will be presented for election by the
      ITAC
      stockholders at the meeting called to approve the merger. In connection with
      the
      merger, ITAC will seek approval of an amendment to its certificate of
      incorporation removing the board classification requirement from its certificate
      and the new board will not be classified into different classes, as presently
      required under ITAC's certificate of incorporation.
The
      Merger Agreement has been approved and adopted by stockholders of IXI holding
      a
      majority of the required IXI voting power, in accordance with the Delaware
      General Corporation Law ("DGCL").
It
      is a
      condition to ITAC's obligations to consummate the merger that security holders
      of IXI who hold, in the aggregate, not less than 95% of the shares of IXI common
      stock on a fully-diluted basis will be parties to agreements that restrict
      them
      from selling any of the shares of ITAC common stock that they receive at the
      closing for a period of six months following the closing. It is also a condition
      that executives and certain stockholders of IXI will be parties to agreements
      that restrict their ability to sell shares of ITAC stock they receive at closing
      for periods ranging up to 450 days after closing.
The
      merger is expected to be consummated in the third quarter of 2006, after the
      required approval by the stockholders of ITAC and the fulfillment of certain
      other conditions, as discussed herein.
3
Merger
      Consideration
Pursuant
      to the Merger Agreement, (i) the holders ("IXI Stockholders") of shares of IXI
      common stock ("IXI Stock"), (ii) the holders ("IXI Employee Option Holders") of
      IXI employee options ("IXI Employee Options") and (iii) the holders ("IXI
      Warrant Holders") of IXI warrants ("IXI Warrants") will be entitled, in exchange
      for their IXI securities, to acquire an aggregate of approximately 7,818,000
      shares of common stock of ITAC ("ITAC Stock"). In addition, as further
      consideration, the IXI Stockholders will be entitled to receive, or in the
      case
      of IXI Employee Option Holders and IXI Warrant Holders will be entitled to
      acquire, up to an aggregate of 10.0 million additional shares of ITAC Stock
      based on attaining the following targets:
·
if
                ITAC's total revenues equal or exceed $45.0 million for the calendar year
                ending December 31, 2006, an aggregate of 1.0 million additional
                shares of
                ITAC Stock (the "Revenue Shares");
·
if
                ITAC's net income exceeds $15.0 million for the calendar year ending
                December 31, 2007, up to an aggregate of 1.0 million additional shares
                of
                ITAC Stock in proportion to the amount by which ITAC's net income exceeds
                $15.0 million up to a maximum of $25.0 million (the "2007 Net Profit
                Shares");
·
if
                ITAC's net income exceeds $20.0 million for the calendar year ending
                December 31, 2008, up to an aggregate of 2.0 million additional shares
                of
                ITAC Stock in proportion to the amount by which ITAC's net income exceeds
                $20.0 million up to a maximum of $45.0 million (the "2008 Net Profit
                Shares"); and
·
if
                the ITAC Stock trades, for any 20 trading days out of any consecutive
                30
                trading days period at any time during the period commencing on the
                closing date and ending on the fourth anniversary thereof, at an
                amount
                equal to or exceeding:
·
$8.50
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the "First Share Price Shares");
·
$9.50
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the "Second Share Price Shares");
                and
·
$12.00
                per share of ITAC Stock, an aggregate of 2.0 million shares of ITAC
                Stock
                (the "Third Share Price Shares", and, together with the First Share Price
                Shares and Second Share Price Shares, the "Share Price
                Shares").
If
      ITAC
      engages in a change of control transaction after the consummation of the merger
      and prior to the fourth anniversary thereof in which the consideration paid
      to
      holders of ITAC Stock exceeds $11.00 per share, then the IXI Stockholders will
      be entitled to receive, and IXI Employee Option Holders and IXI Warrant Holders,
      will be entitled to acquire, the Revenue Shares, the 2007 Net Profit Shares,
      the
      2008 Net Profit Shares, the First Share Price Shares and the Second Share Price
      Shares to the extent that:
·
such
                shares have not already been distributed;
                or
·
in
                the case of the Revenue Shares, the 2007 Net Profit Shares and the
                2008
                Net Profit Shares, the applicable measurement periods have not expired
                prior to the date of the change of control
                transaction.
In
      addition, if the consideration paid to holders of ITAC Stock in a change of
      control transaction equals or exceeds $12.00 per share, then the IXI
      Stockholders will also be entitled to receive, and the IXI Employee Option
      Holders and IXI Warrant Holders will be entitled to acquire, the Third Share
      Price Shares to the extent that such shares have not already been
      distributed.
4
For
      the
      purposes of the Merger Agreement, a change of control transaction refers to
      any
      of the following:
·
a sale of all or substantially all of ITAC's
                assets;
·
the
                  acquisition of beneficial ownership (as defined by Rule 13-d as
                  promulgated under the Securities Exchange Act of 1934, as amended
                  (the
                  "Exchange Act")) by any person of 80% or more of the voting stock of ITAC;
                  and
·
a merger or other consolidation of ITAC with another
                entity.
The
      Revenue Shares, the 2007 Net Profit Shares, the 2008 Net Profit Shares and
      the
      Share Price Shares will be issued to an escrow agent and will be held by the
      agent until they are earned. During such period, the escrow agent will vote
      all
      of such shares in the same manner as the majority of all other ITAC shares
      are
      voted with respect to any matter that is presented for a vote by the
      stockholders of ITAC.
Representations
      and Warranties
The
      Merger Agreement contains representations and warranties of each of IXI and
      ITAC
      relating to, among other things, (a) proper corporate organization and similar
      corporate matters, (b) capital structure of each constituent company, (c) the
      authorization, performance and enforceability of the Merger Agreement, (d)
      licenses and permits, (e) taxes, (f) financial information and absence of
      undisclosed liabilities, (g) holding of leases and ownership of other
      properties, including intellectual property, (h) accounts receivable, (i)
      contracts, (j) title to properties, and environmental condition thereof, (k)
      title and condition of assets, (l) absence of certain changes, (m) employee
      matters, (n) compliance with laws, (o) litigation and (p) compliance with
      applicable provisions of securities laws.
Covenants
ITAC
      and
      IXI have each agreed to take such actions as are necessary, proper or advisable
      to consummate the merger. They have also agreed to continue to operate their
      respective businesses in the ordinary course prior to the closing and not to
      take certain specified actions without the prior written consent of the other
      party.
The
      Merger Agreement also contains additional covenants of the parties, including
      covenants providing for:
(i)
the
      parties to use commercially reasonable efforts to obtain all necessary approvals
      from stockholders, governmental agencies and other third parties that are
      required for the consummation of the transactions contemplated by the Merger
      Agreement;
(ii)
the
      protection of confidential information of the parties and, subject to the
      confidentiality requirements, the provision of reasonable access to
      information;
(iii)
ITAC
      to
      prepare and file a registration statement, which shall contain a
      prospectus/proxy statement, to register, under the Securities Act of 1933,
      as
      amended ("Securities Act"), the shares of ITAC Stock to be issued or issuable in
      the merger and to solicit proxies from the ITAC stockholders to vote in favor
      of
      proposals regarding the adoption of the Merger Agreement and the approval of
      the
      merger, the change of ITAC's name to "IXI Mobile, Inc.," the increase, following
      the merger, of the number of authorized shares of ITAC common stock from
      21,000,000 to 55,000,000, an amendment to ITAC's certificate of incorporation
      deleting Article Sixth thereof (relating to the classification of ITAC's board
      of directors and certain matters that will no longer be applicable after the
      merger) and renumbering the following provisions accordingly, the issuance
      to
      Gideon Barak, IXI's Chairman, and Amit Haller, its President and Chief Executive
      Officer, of options to purchase an aggregate of 1,500,000 shares of its common
      stock, and the election of specified persons to its board of directors;
5
(iv)
ITAC
      and
      IXI to use their reasonable best efforts to obtain the listing for trading
      on
      Nasdaq of ITAC's common stock, warrants and units;
(v)
IXI
      to
      waive its rights to make claims against ITAC to collect from a trust fund
      ("Trust Fund") established for the benefit of the ITAC stockholders who
      purchased their securities in ITAC's initial public offering (" IPO") for any
      moneys that may be owed to them by ITAC for any reason whatsoever, including
      breach by ITAC of the Merger Agreement or its representations and warranties
      therein; and
(vi)
the
      non-solicitation by either ITAC or IXI of other transactions regarding business
      combinations until November 15, 2006 if, by that date, IXI has received
      additional capital of at least $15,000,000;
(vii)
a
      cash
      payment by ITAC, at the election of certain of IXI's stockholders, in lieu of
      the issuance to such stockholders of Share Price Shares that they would be
      entitled to receive if, in the opinion of counsel reasonably satisfactory to
      ITAC, the receipt by such stockholders of Share Price Shares would cause them
      to
      become liable to ITAC for "short swing profits" pursuant to Section 16(b) of the
      Exchange Act;
(viii)
IXI
      to
      seek a tax pre-ruling from Israeli tax authorities with respect to deferment
      of
      Israeli income taxes by Israeli citizens or residents who receive shares of
      ITAC
      Stock in the merger (the "Israeli Tax Pre-Ruling");
(ix)
ITAC
      and
      IXI to cooperate and use all commercially reasonable efforts to procure bridge
      financing for IXI in an amount sufficient to allow it to continue to operate
      in
      accordance with its current business plan and projections until the closing
      of
      the merger; and
(x)
the
      survival of indemnification rights in favor of persons who were officers or
      directors of IXI or ITAC as of or prior to the date of the Merger Agreement
      as
      provided in the respective certificates of incorporation and by-laws of IXI
      and
      ITAC or in any indemnification agreements between either IXI or ITAC and the
      indemnified persons until seven years after the closing and the maintenance,
      for
      a period of seven years after the closing, of existing directors' and officers'
liability insurance policies by IXI and ITAC if annual premiums do not exceed
      specified amounts.
Conditions
      to Closing
General
      Conditions
Consummation
      of the transactions is conditioned on the ITAC stockholders, at a meeting called
      for these purposes, (i) adopting the Merger Agreement and approving the merger,
      (ii) approving the change of ITAC's name, and (iii) approving the increase of
      the authorized shares of ITAC's common stock from 21,000,000 shares to
      55,000,000 shares. The stockholders will also be asked to approve the removal
      of
      all of the provisions of Article Sixth of ITAC's certificate of incorporation
      including those relating to ITAC's board of directors and the renumbering of the
      following provisions accordingly, to approve the issuance to Gideon Barak,
      IXI's
      Chairman, and Amit Haller, its President and Chief Executive Officer, of options
      to purchase up to 1,500,000 shares of ITAC common stock if the conditions for
      the issuance of the Revenue Shares, the 2007 Net Profit Shares, the 2008 Net
      Profit Shares and the Share Price Shares are met, and to elect specified
      persons to comprise the board of directors of ITAC after the
      merger.
6
The
      adoption of the Merger Agreement will require the affirmative vote of a majority
      of the shares sold in the IPO ("Public Shares") cast at the meeting. The holders
      of the ITAC common stock issued prior to its IPO, including the current officers
      and directors of ITAC, have agreed to vote their shares in the matter of the
      approval of the Merger Agreement to the same effect as the majority of the
      shares sold in the IPO are voted
.
Additionally, if holders owning 20% or more of the Public Shares vote against
      the transaction and exercise their right to convert their Public Shares into
      a
      pro-rata portion of the funds held in the Trust Fund, then the transactions
      contemplated by the Merger Agreement cannot be consummated.
The
      approval of the ITAC name change and the increase in the number of authorized
      shares of ITAC common stock will require the affirmative vote of the holders
      of
      a majority of the outstanding common stock of ITAC and such approvals are
      conditions to the consummation of the merger. The approval of the stock options
      will require the affirmative vote of a majority of the outstanding ITAC common
      stock present in person or by proxy at the stockholder meeting and the deletion
      of Article Sixth of ITAC's certificate of incorporation will require the
      affirmative vote by the holders of a majority
of
the
      outstanding common stock of ITAC, but these approvals are not conditions to
      the
      consummation of the merger. Directors of ITAC will be elected by a plurality
      of
      the shares voting on the matter.
In
      addition, the consummation of the transactions contemplated by the Merger
      Agreement is conditioned upon (i) no order, stay, judgment or decree being
      issued by any governmental authority preventing, restraining or prohibiting
      in
      whole or in part, the consummation of such transactions, (ii) the execution
      by
      and delivery to each party of each of the various transaction documents, (iii)
      the delivery by each party to the other party of a certificate to the effect
      that the representations and warranties of the certifying party are true and
      correct in all material respects as of the closing and all covenants contained
      in the Merger Agreement have been materially complied with by such certifying
      party, (iv) the receipt of all necessary consents and approvals by third parties
      and the completion of necessary proceedings, (v) holders of not more than 5%
      of
      the shares of IXI's common stock outstanding immediately before the closing not
      having taken action to exercise their appraisal rights under the DGCL, (vi)
      the
      registration statement providing for the registration of the shares of common
      stock being issued by ITAC in the merger under the Securities Act shall have
      been declared effective, and (vii) ITAC's common stock being quoted on the OTC
      Bulletin Board or listed for trading on Nasdaq.
IXI's
      Conditions to Closing
The
      obligations of IXI to consummate the transactions contemplated by the Merger
      Agreement also are conditioned upon, among other things, each of the
      following:
(i)
There
      shall have been no material adverse change in the assets, liabilities or
      financial condition of ITAC or its business since the date of the Merger
      Agreement;
(ii)
The
      Trust
      Fund shall not contain less than $32,955,360, less amounts paid to ITAC
      stockholders who have elected to convert their shares to cash in accordance
      with
      ITAC's certificate of incorporation, and shall be dispersed to ITAC immediately
      upon the closing;
7
(iii)
IXI's
      existing directors' and officers' liability insurance policy (or a policy
      permitted to be substituted therefor) shall be in full force and
      effect;
(iv)
The
      Registration Rights Agreement (described below) shall be in full force and
      effect;
(v)
Approvals
      of the merger from the Israel Ministry of Industry, Trade and Labor and the
      Israeli Investment Center of such Ministry shall have been received by
      IXI;
(vi)
IXI
      shall
      have obtained the Israeli Tax Pre-Ruling;
(vii)
Either
      IXI shall have received a requested exemption under Israeli securities laws
      or
      ITAC shall have purchased IXI employee options from a sufficient number of
      holders thereof as shall permit IXI to avoid certain prospectus requirements
      under Israeli securities laws; and
(viii)
Certain
      investor rights agreements specified in the Merger Agreement shall have been
      terminated.
ITAC's
      Conditions to Closing
The
      obligations of ITAC to consummate the transactions contemplated by the Merger
      Agreement also are conditioned upon each of the following, among other
      things:
(i)
At
      the
      closing, there shall have been no material adverse change in the assets,
      liabilities or financial condition of IXI, its subsidiaries or their businesses
      since the date of the Merger Agreement;
(ii)
All
      shares of IXI's preferred stock outstanding immediately prior to the closing
      shall have been converted into shares of IXI common stock;
(iii)
All
      warrants for the purchase of shares of IXI preferred stock shall have been
      converted into warrants to purchase shares of IXI common stock or
      terminated;
(iv)
The
      employment agreement
between
      IXI Mobile (R&D) Ltd., a subsidiary of IXI, and Gideon Barak, IXI's
      Chairman, and the employment agreement between IXI and Amit Haller, IXI's
      President and Chief Executive Officer, as amended, shall be in full force and
      effect;
(v)
Security
      holders of IXI who hold not less than 95% of the shares of IXI common stock
      on a
      fully-diluted basis will be parties to agreements that restrict them from
      selling any of the ITAC shares of common stock that they receive at the closing
      for a period of 180 days or more following the closing;
(vi)
All
      indebtedness owed to IXI by any director, executive officer or stockholder
      of
      IXI or any immediate family member thereof shall have been repaid in full;
      and
(vii)
ITAC's
      existing directors' and officers' liability insurance policy (or a policy
      permitted to be substituted therefor) shall be in full force and
      effect.
Indemnification
As
      ITAC's
      sole remedy for its rights to indemnification under the Merger Agreement, there
      will be placed in escrow (with an independent escrow agent) from the shares
      of
      ITAC Stock to be issued upon consummation of the merger, a total of 10% of
      such
      shares ("Escrow Fund"). Any indemnification payments shall be paid solely from
      the shares placed in escrow. Claims for indemnification may be asserted by
      ITAC
      once the damages exceed $1,000,000 and are fully indemnifiable from the first
      dollar once damages exceed that amount. However, claims with respect to IXI's
      representations and warranties regarding its capitalization and certain other
      specified matters are not subject to such threshold. Any shares of ITAC Stock
      remaining in the Escrow Fund on December 31, 2007, other than those applying
      to
      claims made by that date that have not then been resolved, shall be released
      to
      the persons entitled to them.
8
Termination
The
      Merger Agreement may be terminated at any time, but not later than the closing,
      as follows:
(i)
By
      mutual
      written consent of ITAC and IXI;
(ii)
By
      either
      ITAC or IXI if the merger is not consummated on or before December 31,
      2006;
(iii)
By
      either
      ITAC or IXI if a governmental entity shall have issued an order, decree or
      ruling or taken any other action, in any case having the effect of permanently
      restraining, enjoining or otherwise prohibiting the merger, which order, decree,
      ruling or other action is final and nonappealable;
(iv)
By
      either
      ITAC or IXI if the other party has breached any of its covenants or
      representations and warranties in any material respect and has not cured its
      breach within thirty days of the notice of an intent to terminate, provided
      that
      the terminating party is itself not in breach; and
(v)
By
      either
      ITAC or IXI if, at the ITAC stockholder meeting, the Merger Agreement and the
      transactions contemplated thereby shall fail to be approved and adopted by
      the
      affirmative vote of the holders of ITAC's common stock or 20% or more of the
      Public Shares request conversion of their shares into the pro rata portion
      of
      the Trust Fund in accordance with ITAC's certificate of
      incorporation.
Lock-Up
      Agreements
Each
      IXI
      stockholder who holds more than 4% of the outstanding IXI common stock will
      execute a lock-up agreement (the "Stockholder Lock-Up") relating to all shares
      of ITAC Stock which it may receive in connection with the consummation of
      the merger.  These stockholders beneficially own an aggregate of  77%
      of the fully diluted equity of IXI. The Stockholder Lock-Up provides that the
      IXI stockholders who are subject to its terms will not sell or
      otherwise transfer any such shares of ITAC Stock for a period of 180 days
      after the closing.  After the initial 180 day period, 25% of such shares of
      ITAC Stock will be released from the terms of the Stockholder Lock-Up and
      an additional 25% of such shares will be released every 90 days thereafter
      until
      all such shares of ITAC Stock are released;
provided,
      however, that during the first 360 days after the closing, no sale or other
      transfer may be made unless the last sales price of the ITAC Stock is at least
      $6.00.
In
      addition, after the initial 180 day period, if the last reported sale price
      of ITAC Stock equals or exceeds $8.50 for 20 trading days out any consecutive
      30
      trading day period, then 50% of the shares of ITAC Stock that such IXI
      stockholders receive in connection with merger will be released from the terms
      of the Stockholder Lock-Up.  If the last reported sale price of ITAC Stock
      equals or exceeds $9.50 for 20 trading days out any consecutive 30 trading
      day
      period after the initial 180 day period, then all of such shares of ITAC
      Stock will be released from the terms of the Stockholder Lock-Up.  In the
      event that ITAC's board of directors releases in whole or in part any
      IXI stockholder who beneficially owns 4% or more of the outstanding ITAC Stock
      from the terms of the Stockholder Lock-Up, then all other IXI stockholders
      who
      executed the Stockholder Lock-Up will also be released to the same extent.
9
In
      addition, Gideon Barak and Amit Haller will also execute a lock-up agreement
      (the "Executive Lock-Up") relating to all shares of ITAC Stock which they may
      receive in connection with the consummation of the merger or in accordance
      with
      their respective employment agreements.  The Executive Lock-Up provides
      that Messrs. Barak and Haller will not sell or otherwise transfer such shares
      of
      ITAC Stock for a period of 360 days after the closing.  After the initial
      360 day period, 75% of such shares of ITAC Stock held by Messrs. Barak and
      Haller will be released from the terms of the Executive Lock-Up and the
      remaining 25% of such shares will be released 90 days thereafter.  In
      addition, after the initial 360 day period, if the last reported sale price
      of ITAC Stock equals or exceeds $8.50 for 20 trading days out any consecutive
      30
      trading day period, then all of such shares of ITAC Stock that Messrs. Barak
      and
      Haller receive in connection with merger and their respective employment
      agreements will be released from the terms of the Executive
      Lock-Up.
IXI
      will
      also use its reasonable best efforts to cause all IXI stockholders, IXI Employee
      Option Holders and IXI Warrant Holders who are not covered by the agreements
      described above to execute a Stockholder Lock-Up or an Executive Lock-Up or
      similar commitment, and it is a condition to the closing of the merger that
      IXI
      stockholders holding at least 95% of the shares of IXI on a fully diluted basis
      are subject to the Stockholder Lock-Up or are otherwise subject to restrictions
      relating to the sale or other transfer of the shares of ITAC Stock which
      such IXI stockholders receive in connection with the consummation of the merger
      for at least 180 days after the closing.
Employment
      Agreements
Gideon
      Barak, IXI's Chairman, and Amit Haller, its President and Chief Executive
      Officer, are parties to separate employment agreements. Mr. Barak's agreement is
      with IXI Mobile (R&D) Ltd., a subsidiary of IXI. Mr. Haller's agreement is
      with IXI. In anticipation of the merger, each of these agreements has been
      amended. The following descriptions are of the agreements, as
      amended.
Gideon
      Barak Employment Agreement
Mr.
      Barak's employment agreement provides for him to serve in the position of
      co-Chairman of the Board of the group of companies consisting of ITAC, IXI
      and
      IXI Mobile (R&D) Ltd. (the "Group") beginning on the closing date of the
      merger and continuing until the agreement may be terminated by either party
      on
      90 days' prior notice to the other party. The agreement will also terminate upon
      a "Termination for Cause" (as defined in the agreement) by the subsidiary or if
      terminated by Mr. Barak for "Justifiable Reason" (as defined in the agreement).
Mr.
      Barak's agreement provides for an annual salary of $250,000 effective upon
      closing of the merger. He is eligible to participate in all of IXI's benefit
      plans. He is also entitled to reimbursement for all normal, usual and
      necessary expenses incurred or paid by him in the performance of his duties.
Mr.
        Barak
        will be granted, immediately under consummation of the merger, options to
        purchase up to 750,000 shares of ITAC Stock ("Additional Options"), exercisable,
        to the extent such options become vested, at $5.00 per share. The Additional
        Options will vest based on the Group attaining the following
        targets:
·
if
                  the Group's net income equals or exceeds $15.0 million for the calendar
                  year ending December 31, 2007, options will vest to purchase up
                  to 150,000
                  shares of ITAC Stock in proportion to the amount by which the Group's net
                  income exceeds $15.0 million up to a maximum of $25.0 million (the
"2007
                  Net Income Additional Options"), and to the extent that less than 150,000
                  shares of ITAC Stock will become vested, the options representing
                  the
                  difference between the options so vested and 150,000 shall
                  expire;
·
if
                  the Group's net income equals or exceeds $20.0 million for the calendar
                  year ending December 31, 2008, options will vest to purchase up
                  to 150,000
                  shares of ITAC Stock in proportion to the amount by which the Group's net
                  income exceeds $20.0 million up to a maximum of $45.0 million (the
"2008
                  Net Income Additional Options"), and to the extent that less than 150,000
                  shares of ITAC Stock will become vested, the options representing
                  the
                  difference between the options so vested and 150,000 shall
                  expire;
10
·
If
                  ITAC Stock trades, for any 20 trading days out of any consecutive
                  30
                  trading days period at any time during the period commencing on
                  the
                  consummation of the merger and ending on the fourth anniversary,
                  at an
                  amount equal to or exceeding:
·
$8.50
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the "First Share Price Additional
                  Options");
·
$9.50
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the "Second Share Price Additional Options");
                  and
·
$12.00
                  per share of ITAC Stock, options to purchase up to 150,000 shares
                  of ITAC
                  Stock will vest (the "Third Share Price Additional
                  Options").
If 
        ITAC engages in a change of control transaction after the consummation of
        the
        merger and prior to the fourth anniversary thereof in which the consideration
        paid to holders of ITAC Stock exceeds $11.00 per share then the 2007 Net
        Income
        Additional Options, the 2008 Net Income Additional Options, the First Share
        Price Additional Options and the Second Share Price Additional Options will
        vest, to the extent that such options have not already vested.
In
        addition, if the consideration paid to holders of ITAC Stock in a change
        of
        control transaction equals or exceeds $12.00 per share, then the Third Share
        Price Additional Options will vest, to the extent that such options have
        not
        already vested.
In
      addition, Mr. Barak is entitled to an "Annual Bonus" and "Target Bonuses." The
      Annual Bonus entitles Mr. Barak, commencing with the 2006 calendar year, to
      a
      payment equal to 2% of that portion of the annual consolidated net profit of
      the
      Group that exceeds the amount of consolidated net profit of the Group for the
      immediately preceding calendar year. In calculating the "net profit,"
"Management Incentive Expenses" (as defined in the Merger Agreement) are not
      included.
The
      Target Bonuses entitle Mr. Barak to the following payments:
·
A
                cash bonus (the "Share Price Bonus") of $200,000 upon the achievement of
                the First Share Price Trigger prior to the fourth anniversary of
                the
                closing of the merger;
·
If
                Mr. Barak becomes entitled to the Share Price Bonus, he will be eligible
                to receive additional cash bonuses of up to $800,000 ("Second Bonus") in
                the following circumstances: (i) if ITAC receives funds of not less
                than
                $45,000,000 upon the exercise of its warrants outstanding on February
                28,
                2006 ("Parent Warrants"), he will be entitled to the full amount of
                $800,000; (ii) if the ITAC board of directors calls for the cashless
                exercise of the lower of (a) all outstanding Parent Warrants or (b)
                at
                least 69% of the number of Parent Warrants issued in the IPO, Mr.
                Barak
                shall be entitled to the full amount of $800,000; and (iii) if ITAC
                receives proceeds from the exercise of Parent Warrants of less than
                $45,000,000, then Mr. Barak shall be entitled to a bonus in the amount
                that bears the same proportion to $800,000 as the amount of such
                proceeds
                received by ITAC bears to $45,000,000. In no event shall the bonuses
                payable to Mr. Barak that are described in this paragraph exceed
                $800,000.
·
Mr.
                Barak shall also be entitled to cash bonuses of $200,000 each for
                the
                achievement of each of the following: (i) if the Group's total revenues
                for calendar year 2006 (calculated as set forth in the Merger Agreement)
                equal or exceed $45,000,000; (ii) the Second Share Price Trigger;
                and
                (iii) the Third Share Price Trigger, in each case prior to the fourth
                anniversary of the closing of the
                merger.
11
·
If
                the Group's net income for calendar year 2007 exceeds $15,000,000, Mr.
                Barak shall be entitled to a cash bonus equal to $200,000 multiplied
                by
                the lesser of (a) one or (b) a fraction the numerator of which is
                the
                excess of the Group's net income for such year over $15,000,000 and the
                denominator of which is
                $10,000,000.
·
If
                the Group's net income for calendar year 2008 exceeds $20,000,000, Mr.
                Barak shall be entitled to a cash bonus equal to $200,000 multiplied
                by
                the lesser of (a) one or (b) a fraction the numerator of which is
                the
                excess of the Group's net income for such year over $20,000,000 and the
                denominator of which is
                $25,000,000.
Mr.
      Barak's employment agreement also provides that he shall be insured under an
      accepted "Manager's Insurance Scheme" pursuant to which 5% of his salary will be
      deducted by the subsidiary and paid towards the insurance for his benefit;
      the
      subsidiary will contribute an additional amount of up to 2.5% of his salary
      toward disability insurance; and the subsidiary will contribute an additional
      amount equal to 8-1/3% of his salary to fund the subsidiary's potential future
      obligations for severance compensation. Mr. Barak's salary, including the
      insurance scheme, social benefits and fringe benefits, will continue to be
      paid
      during any period of his military reserve service. The agreement also provides
      that the subsidiary will contribute an amount equal to 7.5% of Mr. Barak's
      salary and he shall contribute an additional 2.5% of his salary toward the
      maintenance of an advanced study fund which will available to him for his
      benefit.
Mr.
      Barak
      will also be entitled to sick leave and recreation pay in accordance with
      applicable Israeli law and, at his option, the subsidiary will provide him
      with
      an automobile and pay the expenses associated therewith subject to an agreed
      decrease in his salary. So long as he is provided with an automobile, Mr. Barak
      will not be entitled to reimbursement of travel expenses or similar
      costs.
If
      Mr.
      Barak's employment agreement is terminated by the subsidiary for any reason
      other than Termination for Cause or is terminated by him for Justifiable Reason,
·
he
                will be entitled to receive his salary and benefits (including Target
                Bonuses and Annual Bonuses) for the twelve-month following such
                termination (the "Severance Period");
·
all
                Additional Options that are not vested will vest upon occurrence
                of the
                triggering events even if such triggering events occur after
                termination;
·
all
                options held by him to purchase shares of ITAC that were converted
                from
                options to purchase shares of IXI will become vested; and the exercise
                period of such options and all Additional Options shall be extended
                to the
                full term of such options, which shall be deemed to be 10 years if
                the
                plan governing any such option does not contain a provision in such
                regard
                or earlier upon a "change of control" event (as defined in the
                subsidiary's stock option plan);
·
if
                the Severance Period ends prior to the completion of any calendar
                year or
                prior to the publication of the financial statements of the Group
                for a
                given calendar year, he will be entitled to a proportionate share
                of all
                Target Bonuses and Annual Bonuses;
                and
·
if
                the First Share Price Trigger is achieved following the effective
                date of
                termination but before the fourth anniversary of the closing of the
                merger, he shall be entitled to receive the Share Price Bonus and
                the
                Second Bonus, subject to fulfillment of the pre-conditions described
                above.
12
If
      a
      Termination for Cause of Mr. Barak's employment is effected by the subsidiary or
      his employment is terminated by him for a reason other than Justifiable Reason,
      he shall be entitled only to the salary and benefits and the Annual Bonuses,
      Target Bonuses, Share Price Bonus, Second Bonus and Additional Options (subject
      to vesting events and conditions precedent) that would have been due to him
      in
      the three-month period following giving of the notice of termination. Options
      that vest prior to the expiration of such three-month period shall be
      exercisable no later than six months following such date or earlier upon a
      "change of control" event (as defined in the relevant stock option
      plan).
Mr.
      Barak's employment agreement also contains provisions relating to the protection
      of the confidentiality of proprietary information, assignment of inventions
      and
      restrictions on his ability to compete and solicit employees and customers
      until
      six months following termination of his employment. Also, he may replace his
      employee/employer relationship with a management service agreement at no
      additional cost to the Group.
Amit
      Haller Employment Agreement
Mr.
      Haller's employment agreement provides for him to serve as President and Chief
      Executive Officer of IXI. The agreement may be terminated by either party on
      90
      days' prior notice to the other party. The agreement may also be terminated by
      either party for "just cause" (as defined in the agreement).
The
      agreement provides for an annual salary of $250,000 effective upon the closing
      of the merger, payable in equal monthly installments. Mr. Haller is eligible
      to
      participate in all of IXI's benefit plans. He is also entitled to reimbursement
      for all normal, usual and necessary expenses incurred or paid by him in the
      performance of his duties.
Mr.
      Haller is also entitled to Additional Options, Annual Bonuses and Target Bonuses
      in the same amounts and on the same conditions as apply to Mr. Barak's
      Additional Options, Annual Bonuses and Target Bonuses.
If
      Mr.
      Haller's employment agreement is terminated by IXI other than for just cause or
      is terminated by Mr. Haller for just cause, he will be entitled to the same
      severance benefits as are described above with respect to a termination by
      the
      subsidiary of Mr. Barak's employment other than a Termination for Cause or a
      termination by Mr. Barak for Justifiable Reason. Similarly, if Mr. Haller's
      employment is terminated by IXI for just cause or by Mr. Haller other than
      for
      just cause, Mr. Haller will be entitled to the same severance benefits as are
      described above with respect to a Termination for Cause by the subsidiary of
      Mr.
      Barak's employment or a termination by Mr. Barak other than for Justifiable
      Reason.
Mr.
      Haller's employment agreement also contains provisions relating to the
      protection of the confidentiality of proprietary information, assignment of
      inventions and restrictions on his ability to compete with IXI for six months
      following termination of his employment and on his ability to solicit employees
      and customers until one year following termination of his
      employment.
Registration
      Rights Agreement
ITAC
      will
      enter into a Registration Rights Agreement with those officers and directors
      of
      IXI, who, by virtue of their affiliation with IXI, may be subject to
      restrictions under United States securities laws on their ability to sell shares
      of the ITAC Stock they receive as a result of the merger. Such agreement will
      give such persons, acting upon request of holders of at least 25% of the shares
      of ITAC Stock held by them, the right to require ITAC to register their ITAC
      Stock under the Securities Act at any time commencing 180 days after the
      closing, provided that it is reasonably anticipated that the aggregate offering
      price of the shares to be registered will be at least $5,000,000. Such persons
      may make such demand for registration no more than two times. They will also
      have the right (subject to customary exceptions) to have their ITAC shares
      included in any other registration statement filed by ITAC and, upon request
      by
      holders of at least 5% of the shares of ITAC Stock held by them, to require
      ITAC
      to file a registration statement on Form S-3 under the Securities Act, provided
      that it is reasonably anticipated that the aggregate offering price of the
      shares to be registered will be at least $1,000,000. Such persons may make
      such
      demand for filing of a registration statement on Form S-3 no more than twice
      per
      year. Form S-3 allows eligible filers to incorporate information about the
      registrant from other documents filed by the registrant under the securities
      laws.
13
Item
      7.01
Regulation
      FD Disclosure
IXI
      offers solutions that bring innovative, data-centric mobile devices and services
      to the mass market. IXI's Ogo™ devices are designed to improve the mobile user
      experience and increase mobile data usage. IXI markets a turn-key solution
      to
      mobile operators, mobile virtual network operators (MVNOs), and Internet service
      providers (ISPs) worldwide to launch and support Ogo products.
Over
      recent years, wireless carriers have developed wireless data communication
      networks of increasing bandwidth in order to increase their offering of advanced
      information services for consumers.
In
      2005,
      worldwide mobile phone subscribers exceeded 2.1 billion (according to Portio
      Research). To date, operators have relied on mobile voice and data services
      such
      as SMS, MMS, and multi-media downloads as key revenue drivers. As the market
      matures, however, operators are looking to leading desktop applications,
      including email and instant messaging (IM), to increase mobile data
      traffic.
Email
      and
      IM are highly popular applications, with worldwide email users estimated at
      over
      660 million in 2005 (according to Radicati Group), and worldwide IM users
      estimated at over 300 million in 2005, generating 1.2 billion messages daily
      (according to ComScore Media Metrix and IDC). These applications, while popular
      on the PC, have had limited mobile penetration. In addition, mobile email has
      largely been focused on the corporate market rather than the mobile mass market.
      In fact, the mobile email leader, catering mainly to corporate users, has only
      4.5 to 5.0 million subscribers.
The
      marketing of advanced data services on the cellular network is a complex process
      which requires an infrastructure and technical solutions on the network side
      and
      the availability of affordable and suitable mobile devices. Wireless carriers
      and ISPs face the following challenges:
·
Increasing
                the usage of data services by offering applications previously available
                to computer-based Internet users, such as instant messaging (IM)
                and
                email, through the existing installed base of mobile
                phones.
·
Introducing
                new mobile devices that are user friendly and ergonomically suited
                to
                extensive text input. These devices should have features such as
                a full
                keyboard, a large horizontal screen, and additional functions in
                order to
                facilitate a robust mobile messaging experience, including sending
                messages of larger volume and with rapid turnaround. These devices
                should
                be priced such that they are accessible to a broad consumer market
                (unlike
                high-end smartphones which offer rich functionality but are relatively
                expensive).
·
Lowering
                subscriber acquisition costs and simplifying the process of incorporating
                advanced data services on their
                platforms.
14
The
      Ogo
      family of devices delivers popular mobile applications, including instant
      messaging, email, SMS and news, on optimized, easy-to-use handheld devices
      for a
      true on-the-go mobile messaging experience. Since launching Ogo in September
      2004, IXI has shipped approximately $20 million of Ogo products to customers
      including AT&T Wireless (now Cingular Wireless), Swisscom Mobile, the
      leading Swiss mobile operator, and e-kolay.net, one of the largest Internet
      Service Providers ("ISPs") in Turkey, in collaboration with Telsim (now
      Vodafone) and Avea, leading Turkish mobile operators. Ogo is no longer being
      sold by Cingular Wireless; however, service for existing customers continues.
      IXI has recently signed a contract to sell Ogo to one of the largest ISPs in
      Europe with over 20 million subscribers. The agreement is expected to be
      publicly announced by IXI's customer.
IXI
      is
      also the inventor of PMG® (Personal Mobile Gateway) technology, which combines
      cellular and short distance wireless technologies (such as Bluetooth or WiFi)
      to
      enable a variety of companion electronic devices.
IXI
      was
      incorporated in Delaware in 2000 under the name Ovdat, Inc. Its U.S. offices
      are
      located in Redwood City, California, and it maintains research and development
      facilities in Israel and Romania. IXI also has regional sales
      offices.
Prior
      to
      closing, IXI, with the cooperation of ITAC, will seek to raise additional
      capital to support current opportunities and future growth.
Products
      And Services
IXI
      delivers devices and services that improve the mobile experience and increase
      mobile data usage. IXI markets its solutions to wireless carriers and Internet
      service providers worldwide.
End-to-End
      Solutions
IXI
      delivers mobile messaging devices and related services targeting the mass
      market. The Ogo devices are designed to deliver popular messaging applications,
      such as instant messaging, email, news, and text messaging on optimized devices,
      increasing data usage and enhancing the mobile experience. These products can
      be
      tailored to meet carrier requirements, both hardware and software needs,
      providing a platform for future revenues.
IXI
      also
      provides hosted services to mobile operators and service providers worldwide,
      including all necessary gateways and backend servers, and related support
      services.
IXI's
      end-to-end Ogo solutions benefit both consumers and service
      providers:
·
Consumers
benefit
      from access to innovative, affordable mobile devices and applications, such
      as
      email, instant messaging and news; and
·
Mobile
      Operators
and
      Service Providers
benefit
      from increased data usage, increased customization, and improved customer
      satisfaction
IXI's
      first messaging device, the Ogo, was launched by AT&T Wireless (now Cingular
      Wireless) in the United States in September 2004. Ogo was the first and only
      device of its kind to provide simultaneous, unlimited instant messaging and
      email from three leading portals - AOL, MSN, and Yahoo! - plus text messaging,
      all in a sleek, clamshell device. Ogo is currently available in Switzerland,
      Turkey and IXI expects to introduce it soon in other countries.
15
While
      IXI
      Mobile does not directly control Ogo's pricing to consumers, Ogo devices have
      been sold at retail at prices ranging from $0 (fully subsidized by the service
      provider) to $99, with a monthly service fee of approximately $15-18, offering
      a
      compelling alternative to higher-priced offerings.
Ogo
      extends the desktop experience to the mobile world and increases mobile data
      usage. Mobile operators and service providers, leveraging the growing popularity
      of desktop and mobile messaging, can deploy the device quickly and easily,
      increasing data revenue and customer satisfaction.
Ogo
      can
      be tailored to meet mobile service provider requirements. The Ogo's graphical
      user interface and hardware can be customized to address branding and customer
      experience needs. For instant messaging and email, the Ogo can fully
      interoperate with leading portals, as well as operator communities.
Ogo
      devices offer the following key features:
·
A
                "clamshell" design that unfolds to display a large, color screen and
                keypad
·
A
                full QWERTY keypad and 8-way navigation joystick pad for familiar
                and easy
                navigation
·
Compactness
                (4.5 in. x 3 in. x 1 in. when closed, 5.7 oz.)
·
Special
                "hot keys" for simple navigation, such as "emoticon" button for inserting
                emoticons into chats
·
One
                button displays all active messages and chats on one screen
·
Ability
                to customize and assign unique sounds and visual animations to different
                contacts
·
Instant
                messaging that is compatible with all major providers
·
Email
                on most leading providers
·
Access
                to email from Internet Service Providers and POP3 accounts
·
A
                consolidated inbox, allowing users to view all email and text messages
                in
                one mailbox or sort by account
·
Ability
                to receive SMS messages and RSS
                feeds
·
Ability
                to send a single message in multiple formats (e.g., email and
                SMS)
Currently,
      Ogo supports the most common email protocols (POP3, IMAP4, AOL Mail, MSN
      Hotmail, Yahoo! Mail). Users can receive email but at present cannot view email
      attachments. IXI is currently developing a software enhancement for Ogo that
      will enable users to view attachments in "DOC", "PDF" and various image
      formats.
PMG®
      (Personal Mobile Gateway) Technology
IXI
      products also feature its proprietary PMG® (Personal Mobile Gateway) Technology.
      PMG technology allows a mobile phone or other data device (such as messaging
      devices, watches, cameras, and MP3 players) to enable a variety of companion
      devices for the Internet wirelessly. The PMG is the single connection between
      the wireless network and a collection of affordable and best-of-breed mobile
      devices.
The
      PMG
      platform enables mobile device manufacturers to expand the ability of their
      products by linking them to additional mobile electronic devices. PMG technology
      enables wireless communications by means of the Bluetooth protocol between
      the
      core mobile device (personal mobile gateway) and other peripheral electronic
      devices such as a wireless earpiece, a digital camera, a mobile game console
      or
      a digital wristwatch. This allows the user to expand the capability of the
      core
      mobile device on a gradual basis by adding other electronic devices that are
      optimized to deliver their primary application. These peripheral devices also
      share resources with the core device without replicating some costly overhead
      functions such as memory, processing, etc., providing a cheaper and more
      flexible alternative to smartphones. PMG technology enables cellular providers
      and Internet service providers to create additional income sources from the
      data
      transmission and the sale of additional wireless electronic devices that can
      be
      used in conjunction with existing cellular devices.
16
IXI
      has
      entered into several licensing agreements for the development and manufacture
      of
      PMG-based devices.
Hosted
      Services
IXI
      makes
      it easy for its customers to offer Ogo in their market by providing
      customization as well as launch and support services.
IXI
      can
      customize Ogo's language, content and applications to meet market and user
      requirements. Customers can choose from a variety of value-added applications,
      including instant messaging, push email, news, SMS and voice.
IXI
      also
      provides launch and support services that enable mobile operators and service
      providers to successfully sell Ogo. This enables IXI's customers, even those
      with limited mobile data application delivery experience, to bring to market
      Ogo
      devices quickly and easily.
IXI
      offers the following services as part of its complete solution:
·
Instant
      messaging gateway
·
Email
      gateway
·
Push
      email
·
Over-the-air
      version upgrades and provisioning
·
Attachment
      reformatting
·
Microsoft
      certified MSN services (including Hotmail and Messenger)
Current
      Development
Current
      research and development projects that IXI has undertaken include:
·
Software
                enhancements to allow
Ogo
                users to view email attachments.
·
A
                new generation device that will interface with MS Exchange Server
                including the ability to synchronize data appearing on the user's
                device
                and data appearing on the mail server (including e-mail, calendar
                and
                contacts).
·
Adding
                an Internet browser to Ogo, facilitating WAP and HTML web
                browsing.
·
A
                new generation of Ogo devices for individual and professional users
                based
                on a new, more advanced, technology platform and a modified hardware
                design.
17
Sales
      And Marketing
IXI
      commenced marketing of Ogo in the United States in 2004 under an agreement
      with
      AT&T Wireless Services, Inc. In April 2005, following the acquisition of
      AT&T Wireless by Cingular Wireless, Inc., an agreement was concluded between
      Cingular and IXI to cancel the agreement directly relating to the marketing
      of
      Ogo in the United States. Pursuant to the agreement with Cingular, IXI received
      a one-time cash payment of approximately $3.85 million, return of all
      inventory held by Cingular (valued at approximately $5.7 million), and
      transfer of all intellectual property rights relating to Ogo, including the
      URL
www.ogo.com
,
      and
      associated goodwill. As a result of this, IXI recorded a one-time gain of
      $11.44 million.
In
      March
      2005, IXI entered into an agreement with Swisscom Mobile AG, Switzerland's
      largest cellular provider, for the sale to Swisscom of Ogo devices for resale
      by
      Swisscom to end users in Switzerland and Liechtenstein. Swisscom has launched
      Ogo and the service on November 2005 (
www.ogo.ch
).
In
      December 2005, IXI entered into an agreement with one of the largest European
      ISPs, pursuant to which the customer has agreed to purchase certain minimum
      quantities of Ogo devices. IXI shipped devices worth approximately $2 million
      in
      December 2005 and the customer has agreed to purchase an additional $16 million
      of devices through the first quarter of 2007. However, the customer can
      terminate the contract in 2006 without significant penalty.
IXI
      has
      contracted to sell Ogo devices to e-kolay.net, a leading Turkish ISP, in
      collaboration with Telsim (now Vodafone) and Avea, leading Turkish wireless
      carriers. The sales of Ogo to e-kolay.net is done through Mobicom, a Turkish
      distributor. e-kolay.net launched Ogo in August 2005 (
www.e-kolay.net/ogo
).
In
      addition to independent distributors, IXI maintains a direct sales
      force.
Competition
There
      are
      a number of companies developing and marketing mobile devices for the transfer
      of digital information of various sorts with each one of the devices enabling
      the transfer of some types of digital information. Accurate measures of market
      share are difficult because each of the devices on the market offers a different
      collection of functions, but due to the recent introduction of Ogo and the
      termination of the relationship with Cingular, IXI's share of this market is, at
      present, negligible.
The
      dominant products in the market are the BlackBerry, marketed by Research In
      Motion, the Treo line of smartphones marketed by Palm, Inc. as well as
      smartphones marketed by a broad array of other manufacturers, and the
Sidekick
marketed
      by Danger, Inc.
The
      table
      below provides a comparison of the principal features of the various classes
      of
      products:
18
Type
                of Device
Examples
Target
                Audience
Included
                Applications
Average
                Purchase Price (after rebates and subsidies)
Average
                Monthly Payment for Provided Services
Scope
                of Solution for Consumer Market
Scope
                of Solution for Professional Market
Email
                devices
BlackBerry
                7100
BlackBerry
                7290
Large
                enterprises and professional users; government users
State-of-the-art
                email (fully synchronized) and basic cell phone
$200-350
$40-50+
Partial
                solution, limited IM support
End-to-End
                solution including installation of service at the enterprise with
                highest
                level of security
Smartphones
Treo
                650, Nokia 9300
Large
                enterprises and professional users
State-of-the-art
                email (fully synchronized), smartphone, Internet surfing, open operating
                system
$400-500
$40-50+
Partial
                solution, limited IM support
Limited
                solution requiring involvement of external suppliers
Email
                and IM devices
Sidekick
                II
Youth
Email,
                basic cell phone, Internet surfing, basic instant
                messaging
$200-250
$30
Consumer
                youth focused product; limited IM support
Partial
                solution;
Email
                and IM devices
Ogo
Youth
                and professional users
Email,
                basic cell phone, basic instant messaging, RSS, SMS
$0-99
$15-18
End-to-End
                solution
End-to-End
                solution for small to medium sized businesses and professional
                users
*
      all
      price information was taken from wireless carriers' public information; such
      information is subject to change
19
IXI
      believes that, by focusing on a market segment that is distinct from its
      competitors', it can create differentiation that allows it to compete
      successfully with its competitors' products.
Manufacturing
Ogo
      products are manufactured for IXI by Chi Mei Communications Systems, Inc. of
      Taiwan, currently a sole source supplier.
Facilities
IXI
      maintains its principal offices in approximately 11,500 square feet of space
      in
      Redwood City, CA. In addition, it maintains research and development facilities
      comprising approximately 20,500 square feet in Raanana, Israel and in
      approximately 4,200 square feet in Romania. IXI believes that these facilities
      are adequate to satisfy its requirements.
Intellectual
      Property
IXI's
      success depends, in large part, on its proprietary technology, processes, trade
      secrets and other proprietary information, and upon its ability to protect
      this
      information from unauthorized disclosure or use. IXI relies on a combination
      of
      copyright, trade secret and trademark laws, confidentiality agreements,
      contractual provisions and other similar measure common in high technology
      companies to protect its proprietary information.
When
      approaching the strategy of protecting IXI's intellectual property, IXI has
      taken a long-term horizontal approach which covers both conceptual broad ideas
      and specific implementation practices. IXI's patent portfolio includes
      conceptual patents, detailed implementation patents for both software and
      hardware, and also business practices oriented patents. IXI has filed some
      50
      patent applications to date and intends to continue filing patents to protect
      its unique intellectual property emerging from the development of its products.
      When filing patents, IXI goes through the following filing phases: First, filing
      is done in the USA; Second, filing is done through the Patent Cooperation Treaty
      (PCT); Finally filing is done in specific countries as needed after the PCT
      period expires. Most of IXI's patents are pending approval of the patent
      offices. Three patents have been approved to date.
IXI
      has
      registered trademarks on the names "IXI" and "PMG" and on the stylized IXI logo
      and owns various URLs relating to its product names and other
      goodwill.
Management
IXI
      is
      led by a strong team of seasoned managers with significant industry
      expertise.
Gideon
      Barak is a co-founder and Chairman of IXI. Mr. Barak is currently a Board member
      of several other technology companies. Mr. Barak has over 25 years of experience
      in the communications industry, with leading positions such as Chief Financial
      Officer of DSP Group Inc. (NASDAQ: DSPG), Co-Founder and CEO of DSP
      Communications, which was acquired by Intel Corporation, and Founder and
      Chairman of Envara, Inc. and Butterfly VLSI, Ltd. acquired by Intel and Texas
      Instruments, respectively. Mr. Barak was also a Board member of Modem Art and
      WIDCOMM, Inc., which were acquired by Agere Systems and Broadcom Corporation,
      respectively. Mr. Barak serves as a Director of additional semiconductor and
      communications companies, including Metalink Ltd. (NASDAQ: MTLK) and Advasense
      (founder and Chairman). Mr. Barak also serves as venture partner with Benchmark
      Capital.
20
Amit
      Haller is a co-founder, President and CEO of IXI. Mr. Haller has 17 years of
      experience in wireless technology and business development. From 1989 to 1993,
      Mr. Haller worked in the Israel Defense Forces' Research and Development Unit.
      From 1993 to 1999, he founded and served as CEO of Butterfly VLSI Ltd., where
      he
      created the Short Distance Wireless (SDW) vision and developed the first
      complete SDW chipset (RF, Baseband and Software). Butterfly was acquired by
      Texas Instruments in 1999. From 1999 to 2000, Mr. Haller worked for Texas
      Instruments, Inc., where he directed the Short Distance Wireless (Bluetooth)
      business unit.
IXI's
      Board of Directors includes, in addition to Messrs. Barak and Haller, Yossi
      Sela.
Mr.
      Sela
      is the Managing Partner of Gemini Israel Funds, a leading venture capital fund,
      which invests primarily in seed and early stage Israeli technology
      company.  In this capacity, Mr. Sela sits on the board of a number of
      Gemini portfolio companies, including Adimos Inc., Allot Communications, Ltd.,
      and Saifun Semiconductors Ltd. (NASDAQ: SFUN).  Mr. Sela's past board
      positions include Commtouch Software Ltd. (NASDAQ: CTCH), Precise Software
      Solutions Ltd. and Envara Inc.  In 1995, he served as the Chief Executive
      Officer of Ornet Data Communication Technologies Ltd., which was a Gemini
      portfolio company.  Mr. Sela led that company until its acquisition by
      Siemens AG in September 1995.  From 1990 to 1992, Mr. Sela served as Vice
      President of Marketing at DSP Group, an American-Israeli company specializing
      in
      proprietary digital signal processing for consumer and telecommunication
      applications.  He later served as VP Marketing at DSP Communications, Inc.,
      a spin-off of DSP Group.  From 1985 to 1989, Mr. Sela worked at Daisy
      Systems Inc. where he was Director for CAD Development and PCB Marketing Manager
      for Europe.  From 1974 to 1984, he served in the Israel Defense Forces and
      was responsible for the definition and development of systems for communication
      applications.  Mr. Sela holds a B.Sc. in Electrical Engineering from the
      Technion - Israel Institute of Technology and an MBA from Tel Aviv
      University.
In
      addition to Messrs. Barak and Haller, the following persons are executive
      officers of IXI:
Lihi
      Segal has served as IXI Vice President and Chief Financial Officer since
      September 2005. Ms. Segal served as Chief Financial Officer of RFWaves Ltd.,
      a
      short-distance wireless semiconductor company, from 2002 to 2005, where she
      managed the company's financial, legal and worldwide operations. From 1999 to
      2002, Ms. Segal was part of Mr. Gideon Barak's core management team and served
      as Vice President Corporate Development and General Counsel of all of Mr.
      Barak's companies, including IXI Mobile, Envara and RFWaves. From 1996 to 1999,
      Ms. Segal was an attorney with Danziger, Klagsbald, Rosen & Co., Attorneys
      at Law, a law firm specializing in commercial and corporate law. Ms. Segal
      holds
      an LLB (JD equivalent) from the Buchman Faculty of Law, Tel-Aviv University,
      and
      an MBA from the Joint Executive MBA Program at Recanati, Tel Aviv University
      and
      Kellogg, Northwestern University.
Gadi
      Meroz, Vice President, Corporate Development, has over 8 years experience in
      providing financial and legal services. Prior to joining IXI in July 2001,
      Mr.
      Meroz was an attorney at Volovelsky, Dinstein, Sneh & Co. where he focused
      on business and venture funding, representing public and private companies
      as
      well as venture investors. He earned his LLB from the University of Leicester,
      UK School of Law, and holds an LL.M degree from the University of California,
      Berkeley and Tel Aviv University. In addition, Mr. Meroz holds an MBA degree
      from the University of Leicester, UK. Mr. Meroz is admitted to the Israeli
      Bar
      and the Law Society of England & Wales.
Employees
As
      of
      January 31, 2006 IXI employed 75 people, of whom 31 were engaged in research
      and
      development in IXI's Israeli facility, and 11 were engaged in research and
      development in IXI's Romanian facility. The sales and customer support
      department employed 11 employees, with the remainder filling general and
      administrative, information technology, product marketing, operations and
      internal support functions. In addition, IXI had 12 subcontractors engaged
      in
      and sales functions and research and development.
21
Government
      Grants And Assistance Programs
Israeli
      Approved Enterprise Status
The
      Israel Law for the Encouragement of Capital Investments, 1959 (the "Investment
      Law"), provides that capital investment in a production facility (or other
      eligible assets) may, upon application to and approval by the Investment Center
      of the Israeli Ministry of Industry, Trade and Labor be designated as an
      Approved Enterprise. Each certificate of approval for an Approved Enterprise
      relates to a specific investment program in the Approved Enterprise, delineated
      both by the financial scope of the investment and by the physical
      characteristics of the facility or the asset.
An
      approved enterprise is entitled to certain benefits, including Israeli
      government cash grants or tax benefits. An Approved Enterprise may elect to
      forego any entitlement to the grants otherwise available under the Investment
      Law and, in lieu of the foregoing, participate in an alternative benefits
      program, under which the undistributed income from the Approved Enterprise
      is
      fully exempt from corporate tax for a defined period of time.
According
      to a Letter of Approval of May 27, 2002 (including supplements to the approval
      and update of the investments list of July 20, 2003), the Investment Center
      of
      the Israeli Ministry of Industry, Trade and Labor granted to IXI's Israeli
      facility the status of an Approved Enterprise. IXI has elected to participate
      in
      the alternative program. The period of tax exemption will be two years
      commencing with the year in which its Israeli subsidiary first generates taxable
      income from the relevant Approved Enterprise, and is subject to a reduced tax
      rate as low as 10%-25% for an additional period of between five to eight years
      from when the tax exemption began.
The
      actual tax rates will depend on the percentage of the non- Israeli investment
      in
      a company's share capital (conferring rights to profits, voting and appointment
      of directors) and the percentage of its combined share and loan capital owned
      by
      non-Israeli residents, would apply. The lowest level of foreign investment
      during the year will be used to determine the relevant tax rate for that year.
      These tax benefits are granted for a limited period not exceeding seven years
      or
      ten years with respect to a company whose foreign investment level exceeds
      25%
      from the first year in which the Approved Enterprise has taxable income after
      utilizing its net operating losses. The period of benefits may in no event,
      however, exceed the lesser of (a) 12 years from the year in which the program
      was activated or (b) 14 years from the year of receipt of Approved Enterprise
      status.
On
      April
      1, 2005, the Israeli Parliament passed an amendment to the Investment Law,
      in
      which it revised the criteria for investments qualified to receive tax benefits.
      An eligible investment program under the amendment will qualify for benefits
      as
      a Privileged Enterprise (rather than the previous terminology of Approved
      Enterprise). Among other things, the amendment provides tax benefits to both
      local and foreign investors and simplifies the approval process. As a result
      of
      the amendment, tax-exempt income generated under the provisions of the new
      law
      will subject IXI to taxes upon distribution or liquidation and IXI may be
      required to record deferred tax liability with respect to such tax-exempt
      income. The amendment does not apply to investment programs approved prior
      to
      December 31, 2004. The new tax regime will apply to new investment programs
      only. IXI is currently evaluating the impact the amendment will have on
      it.
22
Item
                  9.01.
Financial
                  Statements, Pro Forma Financial Information and
                  Exhibits.
(c)
Exhibits:
Exhibit
Description
10.1
Merger
                  Agreement dated February 28, 2006, among Israel Technology Acquisition
                  Corp, IXI Mobile, Inc. and ITAC Acquisition Subsidiary
                  Corp.
10.2
Form
                  of Stockholder Lock-Up Agreement to be executed by certain stockholders
                  of
                  IXI Mobile, Inc.
10.3
Form
                  of Executive Lock-Up Agreement to be executed by certain executive
                  officers of IXI Mobile, Inc.
10.4
Form
                  of Registration Rights Agreement to be executed by ITAC and certain
                  stockholders of iXI.
10.5
Personal
                  Employment Agreement effective January 1, 2006, between IXI Mobile
                  (R&D) Ltd. and Gideon Barak.
10.6
Addendum
                  to Employment Agreement between IXI Mobile (R&D) Ltd. and Gideon Barak
                  dated February 28, 2006.
10.7
Employment
                  Agreement effective March 1, 2001, between IXI Mobile, Inc. and
                  Amit
                  Haller, together with addenda thereto effective June 1, 2001 and
                  January
                  1, 2006.
10.8
Addendum
                  to Employment Agreement between IXI Mobile, Inc. and Amit Haller
                  dated
                  February 28, 2006.
99.1
Press
                  release of Israel Technology Acquisition Corp. dated March 1, 2006
99.2
Slide
                  Show Presentation
99.3
Fact
                  Sheet
23
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Dated:
March
              1, 2006
ISRAEL
              TECHNOLOGY
              ACQUISITION CORP.
By:
/s/ Israel
              Frieder
Name:
              Israel Frieder
Title:
Chairman
24