| Delaware                                                                                          | 20-2374143                                                               |
|---------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
| (State                or other Jurisdiction of Incorporation                or Organization) | (I.R.S.                Employer  Identification                No.) |

| 7                Gush Etzion, 3rd                Floor, Givaat Shmuel, Israel 54030 |
|-------------------------------------------------------------------------------------|
| (Address                of Principal Executive Office)                              |

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|                                          |                                                                                                   |                 | Page   |   |
|-----------------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------|--------|--------|
| Part                I: Financial Information: |                                                                                                   |                 |   |
|                                          | Item                  1 - Financial Statements (Unaudited):                                            |                 |   |   |
|                                          | Condensed                  Balance Sheet                                                               |                 | 3      |   |
|                                          | Condensed                  Statements of Operations                                                    |                 | 4      |   |
|                                          | Condensed                  Statements of Stockholders' Equity                                          |                 | 5      |   |
|                                          | Condensed                  Statements of Cash Flows                                                    |                 | 6      |   |
|                                          | Notes                  to Condensed Financial Statements                                               |                 | 7      |   |
|                                          | Item                  2 - Management's Discussion and Analysis or Plan of                  Operation   |                 | 10     |   |
|                                          | Item                  3 - Controls and Procedures                                                      |                 | 11     |   |
| Part                II. Other Information     |                                                                                                   |                 |   |
|                                          | Item                  2 - Unregistered Sales of Equity Securities and Use of                  Proceeds |                 | 12     |   |
|                                          | Item                  6 - Exhibits                                                                     |                 | 12     |   |
| Signatures                                    |                                                                                                   |    13 |   |

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**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      BALANCE SHEET**

|                                                                                                 |   |   | **September                30,**  |   |
|------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                                 |   |   | **2005**                               |   |
|                                                                                                 |   |   | **Unaudited**                     |   |
| **ASSETS**                                                                                           |   |   |                                   |   |
|                                                                                                 |   |   |                                   |   |
| CURRENT                ASSETS                                                                        |   |   |                                   |   |
| Cash                and cash equivalents                                                             |   | $      | 417,681                                |   |
| Short                term deposit                                                                    |   |   | 500,000                                |   |
| Cash                held in Trust Fund                                                               |   |   | 33,184,870                             |   |
| Prepaid                expenses                                                                      |   |   | 55,237                                 |   |
|                                                                                                 |   |   |                    |   |
| Total                current assets                                                                  |   | $      | 34,157,788                             |   |
|                                                                                                 |   |   |                                   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                              |   |   |                                   |   |
|                                                                                                 |   |   |                                   |   |
| CURRENT                LIABILITIES                                                                   |   |   |                                   |   |
| Accrued                expenses                                                                      |   | $      | 8,694                                  |   |
|                                                                                                 |   |   |                                   |   |
| Total                liabilities                                                                     |   |   | 8,694                                  |   |
|                                                                                                 |   |   |                                   |   |
| Common                stock , subject to possible conversion,                                        |   |   |                                   |   |
| 1,262,968                shares at conversion value                                                  |   |   | 6,633,667                              |   |
|                                                                                                 |   |   |                                   |   |
| STOCKHOLDERS'                EQUITY                                                                  |   |   |                                   |   |
| Share                capital:                                                                        |   |   |                                   |   |
| Preferred                Stock, $0.0001 par value -                                                  |   |   |                                   |   |
| Authorized:                1,000,000                shares; none issued                              |   |   |                                   |   |
| Common                stock, $0.0001 par value-                                                      |   |   |                                   |   |
| Authorized                30,000,000 shares, issued and outstanding: 7,818,000                shares |   |   |                                   |   |
| (less                1,262,968 subject to possible conversion )                                      |   |   | 661                                    |   |
| Additional                paid-in capital                                                       |   |   | 27,395,351                             |   |
| Accumulated                earnings during development stage                                         |   |   | 119,415                                |   |
|                                                                                                 |   |   |                                   |   |
| Total                stockholders' equity                                                       |   |   | 27,515,427                             |   |
|                                                                                                 |   |   |                                   |   |
| Total                liabilities and stockholders' equity                                       |   | $      | 34,157,788                             |   |
|                                                                                                 |   |   |                                   |   |

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**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENERPRISE)**

**CONDENSED      BALANCE SHEET**

|                                                           |   |   | **For                the periodFebruary 22,2005 (inception) toSeptember                30,**  |   |   | **Three                months ended****September                30,** |   |
|-----------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------|--------|
|                                                      |   |   | **2005**                                                                                           |   |   | **2005**                                                              |   |
|                                                      |   |   | **Unaudited**                                                                                      |   |   | **Unaudited**                                                         |   |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
| General                and administrative expenses        |   | $      | 68,202                                                                                             |   | $      | 65,602                                                                |   |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
| Operating                loss                             |   |   | (68,202                                                                                            | )      |   | (65,602                                                               | )      |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
| Financial                income, net                      |   |   | 187,617                                                                                            |   |   | 187,617                                                               |   |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
| Net                income                                 |   | $      | 119,415                                                                                            |   | $      | 122,015                                                               |   |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
|                                                      |   |   |                                                                                               |   |   |                                                                  |   |
| Basic                and diluted net income per share     |   | $      | 0.03                                                                                               |   | $      | 0.02                                                                  |   |
| Weighted                average number of Common          |   |   |                                                                                               |   |   |                                                                  |   |
| shares                used in computing basic and diluted |   |   |                                                                                               |   |   |                                                                  |   |
| Net                income per share                       |   |   | 3,629,944                                                                                          |   |   | 6,450,522                                                             |   |

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**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**STATEMENT      OF STOCKHOLDERS’ EQUITY**

|                                                        |        | **Common                Stock** |                                        | **Additional**paid-in |         |                                  | **Accumulated**earningsduring                    thedevelopment |        |                                  | **Total**stockholders' |        |
|-------------------------------------------------------------|--------|---------------------------------|----------------------------------------|-----------------------|---------|----------------------------------|-----------------------------------------------------------------|--------|----------------------------------|------------------------|--------|
|                                                        |   |                            | **Shares                (1)**     |                  |    | **Amount**                       |                                                            |   | **capital**                      |                   |   | **stage** |   |   | **equity** |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Common                shares issued February 22,            |   |                            | 1,500,000                              |                  | $       | 150                              |                                                            | $      | 24,850                           |                   | $      | - |   | $ | 25,000 |   |
| 2005                at $0.0167                              |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Sale                of 6,000,000 units , net of             |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| underwriters’                discount and offering    |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| expenses                (include 1,199,400 shares           |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| subject                to possible conversion )             |   |                            | 6,000,000                              |                  |    | 600                              |                                                            |   | 32,238,542                       |                   |   | - |   |   | 32,239,142 |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Proceeds                from issuance of option             |   |                            | -                                      |                  |    | -                                |                                                            |   | 100                              |                   |   | - |   |   | 100 |   |
| compensation                                                |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Allotment                of 318,000 units , net of          |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| underwriters’                discount and offering    |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| expenses                                                    |   |                            | 318,000                                |                  |    | 32                               |                                                            |   | 1,719,505                        |                   |   | - |   |   | 1,719,537 |   |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Proceeds                subject to possible conversion      |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| of                1,262,968 shares                          |   |                            | -                                      |                  |    | (121                             | )                                                               |   | (6,587,646                       | )                      |   | - |   |   | (6,587,767 | ) |
|                                                        |   |                            |                                   |                  |    |                             |                                                            |   |                             |                   |   |   |   |   |   |   |
| Net                income                                   |   |                            | -                                      |                  |    | -                                |                                                            |   | -                                |                   |   | 119,415 |   |   | 119,415 |   |
|                                                        |   |                            |                    |                  |    |                   |                                                            |   |                   |                   |   |                    |   |   |                    |   |
| Balance                as of September 30, 2005 (Unaudited) |   |                            | 7,818,000                              |                  | $  | 661                              |                                                            | $      | 27,395,351                       |                   | $      | 119,415 |   | $ | 27,515,427 |   |

|  (1)                Share amounts have been restated to reflect a stock dividend of one                share                of common stock for each outstanding share of common stock affected                on                April 14, 2005. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                           |   |   | **For                the period February 22, 2005(inception) to September                30,**  |   |   | **Three                months ended****September                30,** |   |
|---------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------|--------|
|                                                                      |   |   | **2005**                                                                                             |   |   | **2005**                                                              |   |
|                                                                      |   |   | **Unaudited**                                                                                   |   |   | **Unaudited**                                                         |   |
| Cash                flows from operating activities:                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Net                income                                                 |   | $      | 119,415                                                                                              |   | $      | 122,015                                                               |   |
| Iecrease                in other accounts                                 |   |   |                                                                                                 |   |   |                                                                  |   |
| receivable                and prepaid expenses                            |   |   | (55,237                                                                                              | )      |   | (55,237                                                               | )      |
| Increase                (decrease) in accrued expenses                    |   |   | 8,694                                                                                                |   |   | (17,608                                                               | )      |
| Accumulated                interest on cash held in trust                 |   |   | (183,610                                                                                             | )      |   | (183,610                                                              | )      |
| Net                cash used in operating activities                      |   |   | (110,738                                                                                             | )      |   | (134,440                                                              | )      |
|                                                                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Cash                flows from investing activities:                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Long                term deposit                                          |   |   | (500,000                                                                                             | )      |   | (500,000                                                              | )      |
| Cash                held in trust fund                                    |   |   | (32,955,360                                                                                          | )      |   | (32,955,360                                                           | )      |
| Net                cash used in investing activities                      |   |   | (33,455,360                                                                                          | )      |   | (33,455,360                                                           | )      |
|                                                                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Cash                flows from financing activities:                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Gross                proceeds                                             |   |   | 37,908,056                                                                                           |   |   | 37,908,056                                                            |   |
| Proceeds                from notes payable, stockholders                  |   |   | 83,000                                                                                               |   |   | -                                                                     |   |
| Payment                of notes payables, stockholders                    |   |   | (83,000                                                                                              | )      |   | (83,000                                                               | )      |
| Proceeds                from sale of shares of common stock               |   |   | 25,000                                                                                               |   |   | -                                                                     |   |
| Proceeds                from issuance of option                           |   |   | 100                                                                                                  |   |   | 100                                                                   |   |
| Payment                of deferred offering costs                         |   |   | (3,949,377                                                                                           | )      |   | (3,819,247                                                            | )      |
| Net                cash provided by financing activities                  |   |   | 33,983,779                                                                                           |   |   | 34,005,909                                                            |   |
|                                                                      |   |   |                                                                                                 |   |   |                                                                  |   |
| Net                change in cash and cash equivalents                    |   |   | 417,681                                                                                              |   |   | 416,109                                                               |   |
| Cash                  and cash equivalents at the beginning of the period |   |   | -                                                                                                    |   |   | 1,572                                                                 |   |
| Cash                and cash equivalents at the end of the period         |   | $      | 417,681                                                                                              |   | $      | 417,681                                                               |   |
|                                                                      |   |   |                                                                                                 |   |   |                                                                  |   |

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**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**NOTES      TO CONDENSED UNAUDITED FINANCIAL STATEMENTS - CONTINUED**

| **1.  ** | **BASIS                OF PRESENTATION** |
|--------------------|------------------------------------------|

| **2.  ** | **ORGANIZATION                AND BUSINESS OPERATIONS** |
|--------------------|---------------------------------------------------------|

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**ISRAEL        TECHNOLOGY ACQUISITION CORP.**

**(A        DEVELOPMENT STAGE ENTERPRISE)**

**NOTES        TO CONDENSED UNAUDITED FINANCIAL STATEMENTS -        CONTINUED**

| **3.  ** | **COMMITMENTS** |
|--------------------|-----------------|

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**ISRAEL        TECHNOLOGY ACQUISITION CORP.**

**(A        DEVELOPMENT STAGE ENTERPRISE)**

**NOTES        TO CONDENSED UNAUDITED FINANCIAL STATEMENTS - CONTINUED**

| **4.  ** | **NOTES                  PAYABLE, STOCKHOLDER** |
|--------------------|-------------------------------------------------|

| **5.  ** | **COMMON                STOCK** |
|--------------------|---------------------------------|

| **6.  ** | **INITIAL                PUBLIC OFFERING** |
|--------------------|--------------------------------------------|

**.      **

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**ITEM      2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**Forward      Looking Statements**

**Overview**

**Results      of Operations**

**Financial      Condition and Liquidity**

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**ITEM      3. CONTROLS AND PROCEDURES.**

** **

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**PART      II. **

**OTHER      INFORMATION**

**ITEM      2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      6: EXHIBITS**

| (a)    |   | Exhibits:                                       |
|--------|--------|------------------------------------------------------|
|   |   |                                                 |
|   |   | 14 - Code of Ethics                             |
|   |   |                                                 |
|   |   | 31.1 - Section 302 Certification by              CEO |
|   |   |                                                 |
|   |   | 31.2 - Section 302 Certification by              CFO |
|   |   |                                                 |
|   |   | 32.1 - Section 906 Certification by              CEO |
|   |   |                                                 |
|   |   | 32.2 - Section 906 Certification by              CFO |

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**SIGNATURES**

|                           |   | **ISRAEL              TECHNOLOGY **                  |
|--------------------------------|--------|----------------------------------------------------------------|
|                           |   | **ACQUISITION              CORP. **                  |
|                           |   |                                                           |
|                           |   |                                                           |
|                           |   |                                                           |
| Dated: November 14, 2005  |   | /s/ Israel Frieder                                        |
|                           |   | Israel Frieder                                            |
|                           |   | Chairman              of the Board and Chief Executive Officer |
|                           |   |                                                           |
|                           |   | /s/ Glen Shear                                            |
|                           |   | Glen Shear                                                |
|                           |   | Chief Financial              Officer                      |

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