Nasdaq's

announcement that

Check Point Software Technologies

(CHKP) - Get Report

and

Mercury Interactive

(MERQ)

are to join

Comverse Technologies

(CMVT)

in the prestigious

Nasdaq 100

index explains why their stocks leaped by more than 15% Friday.

The two stocks will be added to the index Dec. 18. Their inclusion means that index mutual funds and exchange traded funds that track the Nasdaq 100 will buy these two Israeli companies.

That puts the three Israeli high-tech companies in pretty good company. The index's top five are

Cisco

(CSCO) - Get Report

,

Microsoft

(MSFT) - Get Report

,

Intel

(INTC) - Get Report

,

Oracle

(ORCL) - Get Report

and

Qualcomm

(QCOM) - Get Report

. All maintain development centers in Israel.

Check Point's market cap is up to $27 billion, four times that of

TMP Worldwide

(TMPW)

, another newcomer on the Nasdaq 100, putting the Israeli company among the index's 25 most valuable companies.

Check Point will make up 1.28% of the index, placing it in 22nd position. Its positioning is a function of both market cap and negotiability, but Check Point is in the top 30 in the second category too.

Check Point has been on the market for four of its eight years.

Apple

,

Amazon

,

eBay

and

USA Networks

together don't match its market value.

Even

Yahoo!

is today worth only $18 billion, half the value of Check Point, as companies have been buying Check Point's data security systems and virtual private networks while Yahoo!'s business model has increasingly come under fire.

TheMarker is a leading source for technology and business news information in Israel. The site is a venture backed by the Israeli daily Ha'aretz and TheStreet.com. For more stories, go to

http://www.themarker.com/eng.