| ý | Quarterly                report under Section 13 or 15(d) of the Securities Exchange Act of                1934 For the quarterly period ended March                31, 2006 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | Transition                report under Section 13 or 15(d) of the Exchange Act For the transition period from _____________                to _____________ |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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)                              |

----

**Explanatory        Note**

|                                                                                                             |   |  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 |   |       | 11     |   |
|                                                                                                             |   |       |   |   |
| Item                  3 – Controls and Procedures                                                          |   |       | 13     |   |
|                                                                                                             |   |       |   |   |
| Part                  II. Other Information                                                                      |   |       |   |   |
|                                                                                                             |   |       |   |   |
| Item                  2 – Unregistered Sales of Equity Securities and Use of                  Proceeds     |   |       | 14     |   |
|                                                                                                             |   |       |   |   |
| Item                  6 – Exhibits                                                                         |   |       | 14     |   |
|                                                                                                             |   |       |   |   |
| Signatures                                                                                                       |   |       | 15     |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      BALANCE SHEET**

|                                                                                                                         |   | **March                  31,** |       | **December                  31,** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|-----------------------------------|--------|
|                                                                                                                         |   | **2006**                       |       | **2005**                          |   |
|                                                                                                                         |   | **Unaudited**                  |       | **Audited**                       |   |
| **ASSETS**                                                                                                                   |   |                           |       |                              |   |
|                                                                                                                         |   |                           |       |                              |   |
| CURRENT                  ASSETS                                                                                              |   |                           |       |                              |   |
| Cash                  and cash equivalents                                                                                   |   | $                              | 601,680    |                              | $      | 372,952 |   |
| Short                  term deposit                                                                                          |   |                           | -          |                              |   | 500,000 |   |
| Cash                  held in Trust Fund                                                                                     |   |                           | 33,812,870 |                              |   | 33,472,678 |   |
| Prepaid                  expenses                                                                                            |   |                           | 15,000     |                              |   | 30,000 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| Total                  current assets                                                                                        |   | $                              | 34,429,550 |                              | $      | 34,375,630 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                    |   |                           |       |                              |   |   |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| CURRENT                  LIABILITIES                                                                                         |   |                           |       |                              |   |   |   |
| Accrued                  expenses                                                                                            |   | $                              | 124,491    |                              | $      | 7,921 |   |
| Income                  tax payable                                                                                          |   |                           | -          |                              |   | 96,000 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| Total                  liabilities                                                                                           |   |                           | 124,491    |                              |   | 103,921 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| Common                  stock , subject to possible conversion,                                                              |   |                           |       |                              |   |   |   |
| 1,262,968                  shares at conversion value                                                                        |   |                           | 6,759,192  |                              |   | 6,691,188 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| STOCKHOLDERS'                  EQUITY                                                                                        |   |                           |       |                              |   |   |   |
| Share                  capital:                                                                                              |   |                           |       |                              |   |   |   |
| Preferred                  Stock, $0.0001 par value -                                                                        |   |                           |       |                              |   |   |   |
| Authorized:                  1,000,000                  shares; none issuedCommon                  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 )                                                            |   |                           | 656        |                              |   | 656 |   |
| Additional                  paid-in capital                                                                             |   |                           | 27,395,347 |                              |   | 27,395,347 |   |
| Accumulated                  earnings during development stage                                                               |   |                           | 149,864    |                              |   | 184,518 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| Total                  stockholders' equity                                                                             |   |                           | 27,545,867 |                              |   | 27,580,521 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |
| Total                  liabilities and stockholders' equity                                                             |   | $                              | 34,429,550 |                              | $      | 34,375,630 |   |
|                                                                                                                         |   |                           |       |                              |   |   |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENERPRISE)**

**CONDENSED      STATEMENT OF OPERATIONS**

|                                                           |   | **Three                  months ended****March                  31,** |      | **For                  the period**** February                  22, 2005 (inception) to****March                  31,** |   | **For                  the period**** February                  22, 2005 (inception)****to                  March 31,** |   |
|----------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                           |   | **2006**                                                              |      | **2005**                                                                                                                     |   | **2006**                                                                                                                     |   |
|                                                           |   | **Unaudited**                                                         |      | **Unaudited**                                                                                                                |   | **Unaudited**                                                                                                                |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |
| General                  and administrative expenses           |   | $                                                                     | 280,700   |                                                                                                                         | $      | 1,100                                                                                                                        |   | $ | 424,487 |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Operating                  loss                                |   |                                                                  | (280,700  | )                                                                                                                            |   | (1,100                                                                                                                       | )      |   | (424,487 | ) |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Financial                  income, net                         |   |                                                                  | 275,442   |                                                                                                                         |   | -                                                                                                                            |   |   | 699,747 |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Net                  income ( loss) before income taxes        |   |                                                                  | (5,258    | )                                                                                                                            |   | (1,100                                                                                                                       | )      |   | 275,260 |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Income                  taxes                                  |   |                                                                  | (29,396   | )                                                                                                                            |   | -                                                                                                                            |   |   | (125,396 | ) |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Net                  income (loss)                             |   | $                                                                     | (34,654   | )                                                                                                                            | $      | (1,100                                                                                                                       | )      | $ | 149,864 |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Basic                  and diluted net income (loss) per share |   | $                                                                     | (0.01     | )                                                                                                                            | $      | (0.00                                                                                                                        | )      |   | 0.03 |   |
|                                                           |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| Weighted                  average number of common             |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| shares                  used in computing basic and diluted    |   |                                                                  |      |                                                                                                                         |   |                                                                                                                         |   |   |   |   |
| net                  income per share                          |   |                                                                  | 6,555,032 |                                                                                                                         |   | 1,500,000                                                                                                                    |   |   | 5,549,028 |   |

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**STATEMENT      OF STOCKHOLDERS’ EQUITY**

|                                                       |   |                              |       |        |   |                   |   | **Accumulated**                 |       |       |   |
|------------------------------------------------------------|--------|-----------------------------------|------------|-------------|--------|------------------------|--------|---------------------------------|------------|------------|--------|
|                                                       |   |                              |       |        |   |                   |   | **earnings**                    |       |       |   |
|                                                       |   |                              |       |        |   | **Additional**         |   | **during                  the** |       | **Total**  |   |
|                                                       |   | **Common                  Stock** |       | **paid-in** |   | **development**        |   | **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                       |   |                              | (1,262,968 | )           |   | (126                   | )      |                            | (6,587,650 | )          |   | - |   |   | (6,587,776 | ) |
|                                                       |   |                              |       |        |   |                   |   |                            |       |       |   |   |   |   |   |   |
| Net                  income                                |   |                              | -          |        |   | -                      |   |                            | -          |       |   | 184,518 |   |   | 184,518 |   |
|                                                       |   |                              |       |        |   |                   |   |                            |       |       |   |   |   |   |   |   |
| Balance                  as of December 31, 2005           |   |                              | 6,555,032  |        |   | 656                    |   |                            | 27,395,347 |       |   | 184,518 |   | $ | 27,580,521 |   |
|                                                       |   |                              |       |        |   |                   |   |                            |       |       |   |   |   |   |   |   |
| Net                  loss                                  |   |                              | -          |        |   | -                      |   |                            | -          |       |   | (34,654 | ) |   | (34,654 | ) |
|                                                       |   |                              |       |        |   |                   |   |                            |       |       |   |   |   |   |   |   |
| Balance                  as of March 31, 2006 (Unaudited)  |   |                              | 6,555,032  |        |   | 656                  $ |   | $                               | 27,395,347 |       | $      | 149,864 |   | $ | 27,545,867 |   |

|  (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. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ISRAEL      TECHNOLOGY ACQUISITION CORP.**

**(A      DEVELOPMENT STAGE ENTERPRISE)**

**CONDENSED      STATEMENTS OF CASH FLOWS**

|                                                                   |   |   **Three                  months ended****March                  31,** |     |   **For                  the period February 22, 2005 (inception) to****March                  31,** |   |  **For                  the period February 22, 2005 (inception) to****March                  31,** |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|----------|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                   |   | **2006**                                                                          |     | **2005**                                                                                                       |   | **2006**                                                                                                 |   |
|                                                                   |   | **Unaudited**                                                                     |     | **Unaudited**                                                                                                  |   | **Unaudited**                                                                                            |   |
| Cash                  flows from operating activities:                 |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |
| Net                  ( profit) loss                                    |   | $                                                                                 | (34,654  | )                                                                                                              | $      | (1,100                                                                                                   | )      | $ | 149,864 |   |
| Decrease                  ( increase) in other accounts                |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| receivable                  and prepaid expenses                       |   |                                                                              | 15,000   |                                                                                                           |   | -                                                                                                        |   |   | (15,000 | ) |
| Increase                  in accrued expenses                          |   |                                                                              | 20,570   |                                                                                                           |   | 1,100                                                                                                    |   |   | 124,491 |   |
| Accumulated                  interest on cash held in trust            |   |                                                                              | (272,188 | )                                                                                                              |   | -                                                                                                        |   |   | (686,094 | ) |
| Net                  cash used in operating activities                 |   |                                                                              | (271,272 | )                                                                                                              |   | -                                                                                                        |   |   | (426,739 | ) |
|                                                                   |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| Cash                  flows from investing activities:                 |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| Decrease                  long term deposit                            |   |                                                                              | 500,000  |                                                                                                           |   | -                                                                                                        |   |   | - |   |
| Cash                  held in trust fund                               |   |                                                                              | -        |                                                                                                           |   | -                                                                                                        |   |   | (32,955,360 | ) |
| Net                  cash provided by ( used in ) investing activities |   |                                                                              | 500,000  |                                                                                                           |   | -                                                                                                        |   |   | (32,955,360 | ) |
|                                                                   |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| Cash                  flows from financing activities:                 |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| Gross                  proceeds from issuance of common stock          |   |                                                                              | -        |                                                                                                           |   | -                                                                                                        |   |   | 37,908,056 |   |
| Proceeds                  from notes payable, stockholders             |   |                                                                              | -        |                                                                                                           |   | 70,000                                                                                                   |   |   | 83,000 |   |
| Payment                  of notes payables, stockholders               |   |                                                                              | -        |                                                                                                           |   | -                                                                                                        |   |   | (83,000 | ) |
| Proceeds                  from issuance of shares of common stock      |   |                                                                              | -        |                                                                                                           |   | 25,000                                                                                                   |   |   | 25,000 |   |
| Proceeds                  from issuance of option                      |   |                                                                              | -        |                                                                                                           |   | -                                                                                                        |   |   | 100 |   |
| Payment                  of deferred offering costs                    |   |                                                                              | -        |                                                                                                           |   | (25,000                                                                                                  | )      |   | (3,949,377 | ) |
| Net                  cash provided by financing activities             |   |                                                                              | -        |                                                                                                           |   | 70,000                                                                                                   |   |   | 33,983,779 |   |
|                                                                   |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
|                                                                   |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| Net                  change in cash and cash equivalents               |   |                                                                              | 228,728  |                                                                                                           |   | 70,000                                                                                                   |   |   | 601,680 |   |
| Cash                  and cash equivalents at the beginning            |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| of                  the period                                         |   |                                                                              | 372,952  |                                                                                                           |   | -                                                                                                        |   |   | - |   |
| Cash                  and cash equivalents at the end                  |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |
| of                  the period                                         |   | $                                                                                 | 601,680  |                                                                                                           | $      | 70,000                                                                                                   |   | $ | 601,680 |   |
|                                                                   |   |                                                                              |     |                                                                                                           |   |                                                                                                     |   |   |   |   |

----

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

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

----

|   | **2.** | **COMMITMENTS** |
|--------|--------|-----------------|

----

|   | **3.** | **NOTES                PAYABLE, STOCKHOLDER** |
|--------|--------|-----------------------------------------------|

|   | **4.** | **COMMON                STOCK** |
|--------|--------|---------------------------------|

|   | **5.** | **INITIAL                PUBLIC OFFERING** |
|--------|--------|--------------------------------------------|

----

**.      **

|   | **6.** | **PROPOSED                BUSINESS COMBINATION** |
|--------|--------|--------------------------------------------------|

----

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

**Forward      Looking Statements**

**Overview**

**Recent      Development**

----

**Results      of Operations**

**Financial      Condition and Liquidity**

----

**ITEM      3. CONTROLS AND PROCEDURES.**

----

**PART      II. **

**OTHER      INFORMATION**

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

**ITEM      6: EXHIBITS**

----

**SIGNATURES**

|                                        |                                                                     |                                 |
|---------------------------------------------|--------------------------------------------------------------------------|--------------------------------------|
|                                        | **ISRAEL                TECHNOLOGY****ACQUISITION                CORP.** |
|                                   |                                                                |                            |
| Dated:              November 14, 2006  |                                                                     | /s/ Israel              Frieder |
|                                        | Israel              Frieder                                              |
|                                        | Chairman              of the Board and Chief Executive Officer           |
|         |                                 |                             |
|--------------|--------------------------------------|----------------------------------|
|    |                            |                        |
|         |                                 | /s/ Glen              Shear |
|         | Glen              Shear              |
|         | Chief              Financial Officer |

----