Microsoft has bought into in an Israeli company called VDOnet, which specialises in software to enable video transmission over the Internet.
The extent of Microsoft's stake has not been revealed, but it is believed to be the first time the company has made an investment in Israel.
VDOnet's software gives users access to high quality video over low-bandwidth communications. It can be used for video conferencing and video broadcast over the Internet, telephone lines and private LANs.
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