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This report expands the concept of e-learning to include the full range of Internet activities related to education and training such as distribution of information, communications, designing curricular materials and online learning. Its main objective is to contribute to the discussion on e-learning, to exchange best practices and to identify convergent strategies between the European Union (EU) Member States and Israel in this field. The contents are: Executive summary; Introduction; ICT facilities and programmes in the Israeli education and training system; Learning and teaching in an ICT environment; The digital gap; Innovation and excellence in the integration of ICT in education and training institutions; Funding; Research on effectiveness and quality of ICT in education and training; Challenges and key issues for further discussion. Included as annexes are: Glossary of key ICT terms used in the report; Israeli ICT experts interviewed for the report; Innovative and pioneering Israeli ICT institutions.