Magal Reports the Acquisition of a European Security Systems Integration Company

Acquisition Expected to Contribute to Improved Revenues and Income 


YAHUD, Israel, September 5  /PRNewswire-FirstCall/ -- Magal Security Systems, Ltd. (NASDAQ GM: MAGS) (TASE:MAGS), today announced the acquisition of a European company involved in the installation and integration of security systems. The consideration consists of a cash payment of 6.8 million Euros and additional consideration that will be based on performance and will be payable over the next five years. The acquired company is active in geographic areas where Magal has limited activity.

This acquisition is in line with the Company's strategic plan and is expected to contribute to the Company's expansion in the integration field, particularly in countries with strong growth potential for Magal's leading security solutions.

Magal expects that the acquired company will immediately contribute to revenues and income in 2007 and beyond.

Mr. Izhar Dekel, CEO of Magal commented, "This acquisition serves as an important step in the implementation of Magal's overall strategic expansion plan of penetrating new territories and regions, while further expanding our solutions offering. We believe that this acquisition increases our ability to offer our comprehensive security solutions to new customers by expanding our global footprint into new markets."

About Magal Security Systems, Ltd.:

Magal Security Systems Ltd. is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies video monitoring services through Smart Interactive Systems, Inc., a subsidiary in the U.S. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats.

Magal trades under the symbol MAGS in the U.S. on the NASDAQ Global Market and in Israel on the Tel-Aviv Stock Exchange (TASE).

This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.

  Contacts:
  Company
  Magal Security Systems, Ltd
  Raya Asher, CFO
  Tel: [phone]
  Fax: [phone]
  E-mail: 

  Investor Relations
  GK Investor Relations
  Ehud Helft/Kenny Green
  Tel: [phone]
  E-mail: 

DATASOURCE: Magal Security Systems Ltd



CONTACT:  Contacts: Company: Magal Security Systems, Ltd., Raya Asher,

CFO, Tel: [phone], Fax: [phone], E-mail:

; Investor Relations: GK Investor Relations,     Ehud

Helft/Kenny Green, Tel: [phone], E-mail: 

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