OTI Reports FY 2006 Fourth Quarter and Full Year Financial Results

- Annual revenues of $40.6 million; gross margin increased to 46% from 39% in 2005




FORT LEE, N.J., March 5  /PRNewswire-FirstCall/ -- On Track Innovations Ltd. (OTI) (NASDAQ:OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2006.

   - Revenues: Revenues for the year ended December 31, 2006 were $40.6
     million, an increase of 14% compared to $35.7 million in the same
     period last year. Revenues for the fourth quarter reached $13.2
     million, an increase of 42% compared to $9.3 million in the same period
     last year.
   - Gross Margin: Gross margin for the year ended December 31, 2006 was 46%
     compared to 39% in the same period last year. Gross margin for the
     fourth quarter was 48% compared to 52% in the fourth quarter of 2005.
   - GAAP Net Income (Loss): GAAP net loss for the year decreased to $(6.6)
     million from $(9.1) million in the same period last year. GAAP net loss
     for the fourth quarter was $(0.3) million, a substantial decrease
     compared to $(2.3) million in the fourth quarter last year.
   - Non-GAAP Net Income (Loss): Non-GAAP net loss for the year ended
     December 31, 2006 was $(3.4) million, a substantial decrease compared
     to $(8.4) million in the same period last year. Non GAAP net income for
     the fourth quarter was $0.5 million compared to a net loss of $(1.9)
     million in the fourth quarter last year.
   - GAAP Net Income (Loss) per Share: GAAP loss per share for the year was
     $(0.47) compared to $(0.96) in the same period last year. GAAP loss per
     share for the fourth quarter was $(0.02), compared to $(0.22) in the
     fourth quarter of 2005.
   - Non-GAAP Income (Loss) per Share: Non-GAAP net loss per share for the
     year was $(0.25), compared to $(0.88) in the same period last year.
     Non-GAAP net income per share for the fourth quarter was $0.03 compared
     to a net loss per share of $(0.18) for the same period last year.
   - Strong Balance Sheet with cash, equivalents and short term investment
     totaling $48.3 Million.
   - GAAP operating expenses: GAAP operating expenses for the year were
     $26.8 million compared to $24.2 million for the same period last year.
     GAAP operating expenses for the fourth quarter were $6.8 million
     compared to $7.3 million for the same period last year.
   - Non-GAAP Operating Expenses: $ 23.6 million for the year ended December
     31, 2006 compared to $23.5 million for the same period last year. Non-
     GAAP operating expenses for the fourth quarter were $6.0 million
     compared to $6.9 million in the same period last year.



Non-GAAP results for the fourth quarter and fiscal year ended December 31, 2006 excludes the impact of SFAS 123(R) and amortization of intangible assets. Non-GAAP results for the fourth quarter and fiscal year of 2005 excludes amortization of intangible assets.  Please see the attached tables for a full reconciliation of GAAP to Non-GAAP results.

Commenting on the results, Oded Bashan, Chairman, President & CEO of OTI, said, "We are pleased with the company results in 2006, we had good revenue performance, improved gross margin, which, together with our ability to control operating expenses on a Non-GAAP basis, enabled us to significantly reduce our GAAP loss and achieve a net profit on a non-GAAP basis.  The modest decline in cash primarily reflects the need to invest in working capital to support large projects in hand and future growth.

"Looking ahead, we believe the two strategic acquisitions we completed during 2006 will enhance our capabilities in both the payments and ID markets and position us to increase market share and expand the number of opportunities.  The primary impact of the SuperCom IPS assets acquisition will occur in the second half of 2007.

"While quarter to quarter lumpiness is characteristic of the early-stage markets in which we participate, we see no major changes in business conditions in any of our vertical markets and we expect to achieve our long term growth trend of 20%-25% for 2007, we expect the second half to be significantly stronger than the first half and growth to be driven mainly by the petroleum and ID markets as well as expansion in the payment markets."

Conference call and Webcast Information

The Company has scheduled a conference call and simultaneous Web cast for Monday, March 5, 2007, which will be hosted by Oded Bashan, President and CEO, Guy Shafran, CFO, and Ohad Bashan, Chief Marketing Officer and President OTI America, for 9:00 AM EST to discuss operating results and future outlook. To participate, call: 1-888-868-9083 (U.S. toll free), 1-809-245-917 (Israel toll free), 0-800-180-8316 (Germany toll free), 1-973-935-8512 (Standard international).

To attend the Web cast, use the following links: http://www.otiglobal.com/content.aspx?id=226

For those unable to participate, the teleconference will be available for replay until midnight March 11th, by calling U.S/: 877-519-4471 or International; 973-341-3080 and entering the PIN number # 8503799 or on the web at: http://www.otiglobal.com/content.aspx?id=226

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, OTI uses non-GAAP measures of gross profit, net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS 123(R) and amortization of intangible assets. OTI management believes the non-GAAP financial information provided in this release provides meaningful supplemental information regarding our performance and enhances the understanding of the Company's on-going economic performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating the business and as such deemed it important to provide all this information to investors.

About OTI

Established in 1990, OTI (NASDAQ:OTIV) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets.  Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking and loyalty programs. OTI has a global network of regional offices to market and support its products. The company was awarded the Frost & Sullivan 2005 and

2006 Company of the Year Award in the field of smart cards. For more information on OTI, visit http://www.otiglobal.com/.

  OTI Contact:
  Galit Mendelson
  Director of Corporate Communications
  201 944 5200 ext. 111
  

  (TABLES TO FOLLOW)

  Safe Harbor for Forward-Looking Statements:


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws.  Whenever we use words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions, we are making forward-looking statements.  Because such statements deal with future events and are based on OTI's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could differ materially from those described in or implied by the statements in this press release.  For example, forward-looking statements include statements regarding our goals, beliefs, future growth strategies, objectives, plans or current expectations.  Forward-looking statements could be impacted by the effects of the protracted evaluation and validation period in the U.S. contactless payment cards market , our inability to successfully integrate the purchase of assets of SuperCom or to otherwise achieve the expected benefits of the acquisition, to close to due a failure to satisfy closing conditions, market acceptance of new and existing products and our ability to execute production on orders, as well as the other risk factors discussed in OTI's Annual Report on Form 20-F for the year ended December 31, 2005, which is on file with the Securities and Exchange Commission.   Although OTI believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved.  OTI disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

                         ON TRACK INNOVATIONS LTD
              CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                               Year ended             Three months ended
                               December 31               December 31
                            2006         2005         2006         2005
  Revenues
  Sales                  $35,171      $32,266      $10,417       $8,082
  Licensing and
   transaction fees        5,382        3,398        2,775        1,183
  Total revenues          40,553       35,664       13,192        9,265

  Cost of Revenues
  Cost of sales           21,871       21,629        6,911        4,422
  Total cost of revenues  21,871       21,629        6,911        4,422

  Gross profit            18,682       14,035        6,281        4,843

  Operating Expenses
  Research and development 7,065        5,405        1,811        1,187
  Less - participation by
   the Office of the
   Chief Scientist             -          618            -          (33)
  Research and development,
   net                     7,065        4,787        1,811        1,220
  Selling and marketing    7,072        7,620        1,952        2,811
  General and
   administrative         11,948        9,666        2,771        2,764
  Amortization of
   intangible assets         821          700          264          415
  Expenses relating to
   raising of capital,
   exchange of subsidiary's
   employees equity interests
   in equity interest of
   the company and new
   acquisitions in the
   Far East*                   -        1,768            -            -
  Loss (Gain) from sale
   of subsidiaries          (122)        (374)           -          136
  Total operating
   expenses               26,784       24,167        6,798        7,346

  Operating loss          (8,102)     (10,132)        (517)      (2,503)
  Financial income, net    1,712          669          434          107
  Other expenses, net        (75)         (84)         (95)        (137)
  Loss before taxes on
   income and minority
   interests              (6,465)      (9,547)        (178)      (2,533)
  Tax on income              323          175            9          352
  Minority interests         625         (185)          32         (106)
  Equity in loss of
   affiliate              (1,087)           -         (118)          (5)
  Loss before
   extraordinary item    $(6,604)     $(9,557)       $(255)     $(2,292)
  Extraordinary item           -          444            -            -

  Net loss               $(6,604)     $(9,113)       $(255)     $(2,292)

  Basic and diluted
   net loss per ordinary
   share from:
  Loss before
   extraordinary item    $ (0.47)     $ (1.01)     $ (0.02)     $ (0.22)
  Extraordinary item         $ -       $ 0.05           $-           $-
  Net loss               $ (0.47)     $ (0.96)     $ (0.02)     $ (0.22)

  Weighted average number
   of ordinary shares
   used in computing
   basic and diluted
   net loss per
   ordinary share     13,919,958    9,512,198   15,309,225   10,403,971
  *    Consist of:
       Research and
        development           $-          $78           $-           $-
       Selling and marketing   -          231            -            -
       General and
        administrative         -        1,459            -            -
                              $-       $1,768           $-           $-



                         ON TRACK INNOVATIONS LTD
         CONDENSED NON-GAAP CONSOLIDATED STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                               Year ended             Three months ended
                               December 31               December 31
                            2006         2005         2006         2005

  Revenues
  Sales                  $35,171      $32,266      $10,417       $8,802
  Licensing and
   transaction fees        5,382        3,398        2,775        1,183
  Total revenues          40,553       35,664       13,192        9,265

  Cost of Revenues
  Cost of sales           21,856       21,629        6,907        4,422
  Total cost of revenues  21,856       21,629        6,907        4,422

  Gross profit            18,697       14,035        6,285        4,843
  Operating Expenses
  Research and development 6,019        5,405        1,563        1,187
  Less - participation by
   the Office of the Chief
   Scientist                   -          618            -          (33)
  Research and development,
   net                     6,019        4,787        1,563        1,220
  Selling and marketing    6,957        7,620        1,935        2,811
  General and
   administrative         10,769        9,666        2,509        2,764
  Expenses relating to
   raising of capital,
   exchange of subsidiary's
   employees equity
   interests in equity
   interest of the company

   and new acquisitions
   in the Far East*            -        1,768            -            -
  Gain (Loss) from sale
   of subsidiaries          (122)        (374)           -          136
  Total operating
   expenses               23,623       23,467        6,007        6,931
  Operating Gain (loss)   (4,926)      (9,432)         278       (2,088)
  Financial income, net    1,712          669          434          107
  Other expenses, net        (75)         (84)         (95)        (137)
  Gain (Loss) before taxes
   on income and
   minority interests     (3,289)      (8,847)         617       (2,118)
  Tax on income              323          175            9          352
  Minority interests         625         (185)          32         (106)
  Equity in loss
   of affiliate           (1,087)           -         (118)          (5)
  Gain (Loss) before
   extraordinary item    $(3,428)     $(8,857)        $540      $(1,877)
  Extraordinary item           -          444            -            -
  Net gain (loss)        $(3,428)     $(8,413)        $540      $(1,877)
  Basic and diluted
   net loss per
   ordinary share from:
  Gain (loss) before
   extraordinary item    $ (0.25)     $ (0.93)       $0.03      $ (0.18)
  Extraordinary item         $ -       $ 0.05          $ -           $-
  Net income (loss)      $ (0.25)     $ (0.88)       $0.03      $ (0.18)

  Weighted average number
   of ordinary shares used
   in computing net income
   (loss) per ordinary
   share -
  Basic               13,919,958    9,512,198   15,309,225   10,403,971
  Dilutive            13,919,958    9,512,198   15,978,747   10,403,971
  *    Consist of:
       Research and
        development           $-          $78           $-           $-
       Selling and marketing   -          231            -            -
       General and
        administrative         -        1,459            -            -
                              $-       $1,768           $-           $-

  See next tables for full reconciliation of GAAP to Non-GAAP results.



                         ON TRACK INNOVATIONS LTD
                 RECONCILIATION BETWEEN GAAP TO NON-GAAP
                         STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                                           Year ended December
                                                31, 2006
                                   GAAP        Adjustments      Non-GAAP

  Revenues
  Sales                           $35,171               -       $35,171
  Licensing and transaction fees    5,382               -         5,382
  Total revenues                   40,553                        40,553

  Cost of Revenues
  Cost of sales                    21,871        (15) (a)        21,856
  Total cost of revenues           21,871            (15)        21,856

  Gross profit                     18,682             15         18,697

  Operating Expenses
  Research and development          7,065     (1,046) (a)         6,019
  Selling and marketing             7,072       (115) (a)         6,957
  General and administrative       11,948     (1,179) (a)        10,769
  Amortization of intangible assets   821       (821) (b)             -
  Gain from sale of subsidiaries     (122)              -          (122)
  Total operating expenses         26,784           3,161        23,623

  Operating loss                   (8,102)          3,176        (4,926)
  Financial income, net             1,712               -         1,712
  Other expenses, net                 (75)              -           (75)
  Loss before taxes on income
   and minority interests          (6,465)          3,176        (3,289)
  Taxes on income                     323               -           323
  Minority interests                  625               -           625
  Equity in loss of affiliate      (1,087)              -        (1,087)
  Net loss                        $(6,604)         $3,176      $ (3,428)


  Basic and diluted net loss
   per ordinary share              $(0.47)          $0.22        $(0.25)
  Weighted average number of
   ordinary shares used in
   computing basic and diluted
   net loss per ordinary share 13,919,958                    13,919,958

   (a) The effect of stock-based compensation. The Company adopted the
       provisions of Statement of Financial Accounting Standards No. 123(R),
       "Share-Based Payment" on January 1, 2006 using the modified-
       prospective transition method.

   (b) The effect of amortization of intangible assets.



                         ON TRACK INNOVATIONS LTD
                 RECONCILIATION BETWEEN GAAP TO NON-GAAP
                         STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                                                Three months
                                                    ended
                                             December 31, 2006
                                    GAAP         Adjustments     Non-GAAP

  Revenues
  Sales                           $10,417          -            $10,417
  Licensing and transaction fees    2,775          -              2,775
  Total revenues                   13,192                        13,192

  Cost of Revenues
  Cost of sales                     6,911         (4) (a)         6,907
  Total cost of revenues            6,911         (4)             6,907

  Gross profit                      6,281          4              6,285

  Operating Expenses
  Research and development          1,811       (248) (a)         1,563
  Selling and marketing             1,952        (17) (a)         1,935
  General and administrative        2,771       (262) (a)         2,509
  Amortization of intangible assets   264       (264) (b)             -
  Total operating expenses          6,798        791              6,007

  Operating gain (loss)             (517)        795                278
  Financial income, net              434           -                434
  Other expenses, net                (95)          -                (95)
  Gain (Loss) before taxes on income
   and minority interests           (178)        795                617
  Tax on income                        9           -                  9
  Minority interests                  32           -                 32
  Equity in loss of affiliate       (118)          -               (118)
  Net Income(loss)                 $(255)       $795               $540


  Basic and diluted net income
   (loss) per ordinary share      $(0.02)      $0.05              $0.03
  Weighted average number of
   ordinary shares used in
   computing basic net loss
   per ordinary share         15,309,225                     15,309,225
  Weighted average number of
   ordinary shares used in
   computing diluted net loss
   per ordinary share         15,978,747                     15,978,747

  (a) The effect of stock-based compensation. The Company adopted the
      provisions of Statement of Financial Accounting Standards No. 123(R),
      "Share-Based Payment" on January 1, 2006 using the modified-
      prospective transition method.

  (b) The effect of amortization of intangible assets.



                         ON TRACK INNOVATIONS LTD
                 RECONCILIATION BETWEEN GAAP TO NON-GAAP
                         STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                                               Year ended
                                            December 31, 2005
                                    GAAP       Adjustments       Non-GAAP

  Revenues
  Sales                           $32,266          -            $32,266
  Licensing and transaction fees    3,398          -              3,398
  Total revenues                   35,664          -             35,664

  Cost of Revenues
  Cost of sales                    21,629          -             21,629
  Total cost of revenues           21,629          -             21,629

  Gross profit                     14,035          -             14,035

  Operating Expenses
  Research and development          5,405          -              5,405
  Less - participation by the
   Office of the Chief Scientist      618          -                618
  Research and development, net     4,787          -              4,787
  Selling and marketing             7,620          -              7,620
  General and administrative        9,666          -              9,666
  Amortization of intangible assets   700       (700) (b)             -
  Expenses relating to raising
   of capital, exchange of
   subsidiary's employees equity
   interests in equity interest of
   the company and new acquisitions
   in the Far East*                 1,768          -              1,768
  Gain from sale of subsidiaries     (374)         -               (374)
  Total operating expenses         24,167        700             23,467

  Operating loss                  (10,132)       700             (9,432)
  Financial income, net               669          -                669
  Other expenses, net                 (84)         -                (84)
  Loss before taxes on income and
   minority interests              (9,547)       700             (8,847)
  Tax on income                       175          -                175
  Minority interests                 (185)         -               (185)
  Loss before extraordinary item   (9,557)         -             (8,857)
  Extraordinary item                  444          -                444
  Net loss                        $(9,113)      $700            $(8,413)


  Basic and diluted net loss
   per ordinary share
  Loss before extraordinary item   $(1.01)     $0.07             $(0.93)
  Extraordinary item                $0.05          -              $0.05
  Net loss                         $(0.96)     $0.07             $(0.88)

  Weighted average number of
   ordinary shares used in
   computing basic and diluted
   net loss per ordinary share  9,512,198                     9,512,198
  *    Consist of:
       Research and development       $78
       Selling and marketing          231
       General and administrative   1,459
                                   $1,768

  (b) The effect of amortization of intangible assets.


                         ON TRACK INNOVATIONS LTD
                 RECONCILIATION BETWEEN GAAP TO NON-GAAP
                         STATEMENT OF OPERATIONS
             (In thousands, except share and per share data)

                                    GAAP     Three Months Ended   Non-GAAP
                                              December 31, 2005
                                                Adjustments

  Revenues
   Sales                           $8,802               -        $8,802
   Licensing and transaction fees   1,183               -         1,183
   Total revenues                   9,265               -         9,265

  Cost of Revenues
   Cost of sales                    4,422               -         4,422
   Total cost of revenues           4,422               -         4,422

  Gross profit                      4,843               -         4,843

  Operating Expenses
   Research and development         1,187               -         1,187
   Less - participation by the
    Office of the Chief Scientist     (33)              -           (33)
   Research and development, net    1,220               -         1,220
   Selling and marketing            2,811               -         2,811
   General and administrative       2,764               -         2,764
   Amortization of intangible
    assets                            415            (415) (b)        -
   Loss from sale of subsidiaries     136                           136
  Total operating expenses          7,346            (415)        6,931

  Operating loss                   (2,503)            415        (2,088)
   Financial income, net              107               -           107
   Other expenses, net               (137)                         (137)
   Loss before taxes on income
    and minority interests         (2,533)            415        (2,118)
   Tax on income                      352               -           352
   Minority interests                (106)              -          (106)
   Equity loss of affiliate            (5)              -            (5)
   Net loss                       $(2,292)           $415       $(1,877)

   Basic and diluted net loss
    per ordinary share             $(0.22)          $0.04        $(0.18)

  Weighted average number of
   ordinary shares used in
   computing basic and
   diluted net loss per
   ordinary share              10,403,971                    10,403,971


  (b) The effect of amortization of intangible assets.



                         ON TRACK INNOVATIONS LTD
                   CONDENSED CONSOLIDATED BALANCE SHEET
             (In thousands, except share and per share data)

                                                December 31   December 31
                                                      2006           2005
  Assets

  Current Assets
   Cash and cash equivalents                       $30,049        $29,657
   Short-term investments                           18,232         20,004
   Trade receivables (net of allowance for
    doubtful accounts of $234 and $785 as of
    December 31, 2006 and December 31, 2005,
    respectively)                                   10,155          8,350
   Other receivables and prepaid expenses            2,109          3,156
   Inventories                                      10,344          6,747

   Total current assets                             70,889         67,914

  Severance Pay Deposits Fund                        1,087            583
  Long-Term Receivables                              1,043            878
  Investment in an affiliated company                1,627          2,607
  Property, Plant and Equipment, Net                13,318          7,009
  Intangible Assets, Net                             5,823          1,921
  Goodwill                                          23,387          4,146
  Total Assets                                    $117,174        $85,058

  Liabilities and Shareholders' Equity

  Current Liabilities
   Short-term bank credit and current
    maturities of long-term bank loans                $498          $ 760
   Trade payables                                    6,869          4,245
   Other current liabilities                         3,331          5,771
   Total current liabilities                        10,698         10,776

  Long-Term Liabilities
   Long-term loans, net of current maturities        2,117          1,535
  Accrued severance pay                              3,209          1,909
  Deferred tax liabilities                             992            293
  Total long-term liabilities                        6,318          3,737
  Total liabilities                                 17,016         14,513

  Minority interests                                 1,004            310
  Shareholders' equity
   Ordinary shares of NIS 0.1 par value:
    authorized - 50,000,000 shares as of
    December 31, 2006 and 30,000,000 as of
    December 31, 2005; issued 18,592,880 and
    11,932,074 shares as of December 31, 2006
    and December 31, 2005, respectively;
    outstanding 18,243,539 and 11,932,074 shares
    as of December 31, 2006 and December 31,
    2005, respectively                                 431            274
   Additional paid-in capital                      163,102        128,761
   Deferred compensation                                 -           (833)
   Accumulated other comprehensive income              424            232
   Accumulated deficit                             (64,803)       (58,199)


  Total shareholders' equity                        99,154         70,235
  Total Liabilities and Shareholders' Equity      $117,174        $85,058



                         ON TRACK INNOVATIONS LTD
              CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
             (In thousands, except share and per share data)

                                                    Year ended December, 31
                                                      2006           2005
  Cash flows from operating activities
   Net loss                                        $(6,604)       $(9,113)
   Adjustments required to reconcile net loss
    to net cash used in operating activities:
   Stock-based compensation related to options
    and shares issued to employees and others        3,783          9,841
   Extraordinary item                                    -           (444)
   Gain from sale of subsidiaries                     (122)          (374)
   Loss (gain) on sale of property and equipment        44            (20)
   Amortization of intangible assets                   821            700
   Depreciation                                      1,862            981
   Equity in net losses of an affiliated company     1,087              -

   Accrued severance pay, net                          796            560
   Minority share in income (loss) of subsidiaries    (625)          (185)
   Accrued interest and linkage differences on
    long-term loans                                   (254)            67
   Increase (decrease) in deferred tax liabilities    (216)            13
   Decrease in short-term investments                    -              -
   Increase in trade receivables                    (2,424)          (587)
   Decrease (increase) in other receivables and
    prepaid expenses                                 1,142         (1,168)
   Increase in inventories                          (3,204)          (987)
   Increase (decrease) in trade payables             2,558         (1,119)
   Increase (decrease) in other current
    liabilities                                     (2,147)           895
   Net cash used in operating activities            (3,503)          (940)

  Cash flows from investing activities

   Receipts on account of loans and receivables        350            909
   Acquisition of business operations, net of
    cash acquired (Supplement C)                       (23)            80
   Sale of a consolidated subsidiary, net of
    cash disposed of (Supplement D)                   (105)             -
   Investment in an affiliated company                   -         (2,444)
   Purchase of property and equipment               (3,107)        (1,918)
   Purchase of available-for-sale securities       (23,643)       (17,875)
   Proceeds from maturity of available-for-sale
    securities                                      25,446          2,431
   Other, net                                           (9)            20
   Net cash used in investing activities            (1,091)       (18,797)

  Cash flows from financing activities
   Increase (decrease) in short-term bank
    credit, net                                       (231)          (630)
   Proceeds from issuance of shares and
    detachable warrants, net of issuance expenses        -         20,051
   Proceeds from long-term bank loans                  978              -
   Repayment of long-term bank loans                  (570)          (721)
   Proceeds from minority in subsidiary              1,548              -
   Proceeds from exercise of options and
    warrants, net                                    3,196          6,709
   Net cash provided by financing activities         4,921         25,409

   Effect of exchange rate changes on cash              65             68

  Increase in cash and cash equivalents                392          5,740
  Cash and cash equivalents at the beginning
   of the year                                      29,657         23,917

  Cash and cash equivalents at the
   end of the year                                 $30,049        $29,657


DATASOURCE: On Track Innovations Ltd.



CONTACT:  Galit Mendelson, Director of Corporate Communications of On

Track Innovations Ltd., [phone] ext. 111, or  



Web site:  http://www.otiglobal.com/

http://www.otiglobal.com/content.aspx?id=226 

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