The Basel Border Crossing Project Utilizing OTI's SmartID Product is Extended to More Border Crossings

The Basel Border Crossing Project Utilizing OTI's SmartID Product
is Extended to More Border Crossings
Expansion Planned to all Passages Between Israel and Palestinian Authority



FORT LEE, N.J., April 19  /PRNewswire-FirstCall/ -- On Track Innovations Ltd,
(OTI) (Nasdaq: OTIV; Prime Standard [Frankfurt]: OT5), a global leader in
contactless microprocessor-based smart card solutions for homeland security,
payments, petroleum payments and other applications, today announced that the
Basel Project, a border crossing system that includes contactless smart cards
and biometrics for identifying Palestinians who wish to enter Israel, is being
extended to more access points.

The Basel Project contract for the Erez border crossing at the Gaza Strip was
awarded in September 1999 to a consortium including OTI who furnishes the front
end solution based on its SmartID product, including ISO 14443 compliant cards,
readers and related software. The Basel Project is currently the only
operational project to use a contactless smart card with biometrics and PKI
infrastructure. OTI's SmartID solution incorporates the highest levels of
security and provides solutions for national identification card programs,
e-passports, border crossing and registered traveler programs.

Oded Bashan, President and CEO of OTI, stated, "The extension of the Basel
Project is a testimony to the reliability, security and efficiency of our
SmartID product. OTI's SmartID solution meets the most stringent demands and
has proven itself in some of the most secured environments.  The solution and
the experience gained in the Basel project can be utilized for other ID
applications such as Electronic passports and national ID programs."

The biometric-based contactless smart identification system monitors the
entrance and exit of Palestinians while assuring a completely secure,
exceptionally fast border crossing.  The project is the most advanced
exit/entry border control system in the world to use encryption, contactless
smart card technology and both hand (hand geometry and fingerprints) and facial
biometrics as the primary methods of identification. The new gates are
currently under construction in different areas and the first cards have
already been issued.

Those wishing to cross into Israel will request from the Civil Administration a
contactless smart card that will be programmed with hand and facial biometrics
and include recent photos and personal information programmed on a contactless
chip embedded in the card.  In order to cross the gates, which is expected to
take no more than nine seconds, Palestinians will be required to place the card
on a contactless reader and place their hand on a biometric sensor for
identification.  Once the identity has been confirmed, an automatic gate will
open allowing the person to cross into Israel. If there is a problem with
identification, the person is directed to another gate for additional security
checks.

About OTI

Established in 1990, OTI (NASDAQ:OTIVNASDAQ:PrimeNASDAQ:Standard:NASDAQ:OT5)
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, micro payments, mass
transit ticketing, parking, loyalty programs and secure campuses. OTI has a
global network of regional offices to market and support its products. The
company was awarded the prestigious ESCAT Award for smart card innovation in
both 1998 and 2000. For more information on OTI, visit
http://www.otiglobal.com/ .

This press release contains forward-looking statements. Such statements are
subject to certain risks and uncertainties, such as market acceptance of new
products and our ability to execute production on orders, which could cause
actual results to differ materially from those in the statements included in
this press release. 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 otherwise. Results could differ materially from expected
results. OTI undertakes no obligation to update forward-looking statements to
reflect subsequently occurring events or circumstances. This press release and
other releases are available on http://www.otiglobal.com/ and
http://www.portfoliopr.com/ .

  OTI Contact:                                 Media Relations:
   Galit Mendelson                              Adam Handelsman
   Director of Corporate Communication, OTI     5W Public Relations
   201 944 5200 ext. 111                        212 999 5585
                             

  IR Contact:
   Paul Holm
   PortfolioPR
   212 736 9224
   

DATASOURCE: On Track Innovations Ltd



CONTACT:  OTI: Galit Mendelson, Director of Corporate Communication, OTI,

[phone] ext. 111, , Media Relations: Adam

Handelsman, 5W Public Relations, [phone], , IR:

Paul Holm, PortfolioPR, [phone], , both for On

Track Innovations Ltd



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

http://www.portfoliopr.com/ 

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