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VC fund Mofet to write down $2.85 million on Correlate and Zing Networks

Mofet controlled by fund of funds Green of businessman Yitzhak Tshuva

Tel Aviv-traded Mofet Israel Technology Fund (TASE: MOFT ) today announced it is going to write off $2.85 million on Correlate Technologies and Zing Networks, both San Francisco based firms.

Mofet is owned by Tel-Aviv traded Green Venture Capital (TASE: GREN )(51%), which is controlled by businessman Yitzhak Tshuva.

Mofet said that it is to write off its entire investment in Correlate, $1.75 million, and that it will be writing down $900,000 on its Zing investment.

Correlate developed corporate information management software. Its main product, Correlate, enables interfacing from a single user interface with Internet operations and the organization's information systems.

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Mofet, which owns 12.3% in Correlate, related its decision to the significant slowdown in Correlate's business in the second half of 2001. Mofet explained that Correlate hadn't managed to complete another financing round and the fund doubts the company's "going concern" status.

Zing specializes in distributing on the Web virtual pictures and picture albums. The company encountered difficulties related to changes in the online picture market. Zing changed its business strategy, and the shareholders approved equity restructuring. This led to the dilution of Mofet's holdings and to the write down.

Before the equity restructuring Mofet owned 1.9% in Zing. Following the write down, Mofet's Zing investment will be posted as $250,000.