Mideast Report

JERUSALEM (JPS) --Fortune magazine's list of the top 100 fastest-growing companies this week featured an Israeli company based in Silicon Valley, Mercury Interactive, which ranked No. 13.

Mercury, a Web-site testing and monitoring company, saw its earnings per share grow 79 percent in the past three years, its revenue increase by percent and a total stock market return of 196 percent.

Based in Sunnyvale, with a research and development branch in Or Yehuda, Mercury registered a net income of $43.7 million in the past four quarters, with a revenue of $237.6 million.

Fortune's Fastest-100 list is compiled from companies that have been in operation for three years with revenues and a minimum market capitalization of $50 million.

Another Barak blow: Chief of staff bails

JERUSALEM (JPS) -- Ehud Barak's chief of staff resigned after an Israeli newspaper quoted him as saying the prime minister refuses to trust his advisers.

Haim Mendel-Shaked served as Barak's principal gatekeeper, responsible for his schedule and determining who would be given access to the prime minister.

His resignation, effective immediately, is particularly bruising for Barak, since Mendel-Shaked is considered one of his most loyal supporters, and a man who has served under him in various capacities for 15 years.

Barak said that he will not immediately replace Mendel-Shaked, and that his duties will be split between National Security Adviser Danny Yatom and Director General Yossi Kucik.

The resignation is being seen as further proof of the weakness of the Barak's government, which is functioning with support of only 42 of 120 Knesset members.

Israeli president meets with Masorti, Reform

JERUSALEM (JTA) -- Israeli President Moshe Katsav met with leaders of the Israeli Reform and Masorti (Conservative) movements for the first time since his election earlier this month.

Thursday's meeting, during which Katsav pledged to represent all streams of Judaism during his seven-year term, took place after the president came under fire from some Israeli liberals for comments seen as disparaging by secular Jews.

He later said his comments were taken out of context.

Druze cross border via elaborate route

JERUSALEM (JTA) -- Two Lebanese Druze claiming to be fleeing Hezbollah crossed into Israel undetected last week, sending the northern region into full security alert.

The two, who speak some Hebrew, crossed the border by foot, hitched a ride in an Israeli military vehicle toward the Israeli community of Kiryat Shmona and later caught a taxi south before being stopped at a police roadblock. Police had not charged the pair as of Wednesday.

The Druze are an Arab people who practice a secret religion that is not Muslim, and often serve side by side with Jews in the Israeli army and the former SLA.