The Nisko Ardan Group today reports plans to invest about another $1 million in the video conferencing and multimedia system specialist Imagine, in exchange for a 15% stake in the company.

The multi-step investment will be made by Nisko¿s subsidiary, Nisko Projects & Communications. The investment reflects a $6.7 million company value for Imagine. Nisko's stake in Imagine, fully diluted, will be 74%.

Imagine fared better in the past. In November 1999 the company raised about $10 million, at a $50 million company value. In April 2000 it raised another $5 million at a $190 million value after money.

The hi-tech market crisis has dealt a substantial blow to both the company's value and Nisko's plans to issue Imagine abroad.

Nisko's board of directors audit panel said the reason for the additional investment in Imagine is "Imagine's substantial advancement in product development and a possible breakthrough in the marketing of these products." The audit panel believes the expected investment in Imagine "could bear fruit for the company in the future."

Nisko's shareholders' will be asked to approve the investment at their December 31 meeting, as well as an appendix to Efraim Sagie's employment contract, which stipulates he will be allocated options in Nisko Hi-Tech, which he heads. Sagie may also receive a one-time grant if Nisko Hi-Tech posts any profits on its holdings in startups.

Nisko Ardan posted an NIS 29 million loss in the first nine months of the year, compared with an NIS 98.4 million profit in the same time last year.