Potential Disposal

    Pilat Technologies International Ltd                      

                              Potential Disposal                               

Pilat Technologies International Ltd ("PTI" or the "Company") announces that on
2 December 2008 the Company agreed to countersign a non-binding letter of
intent ("the Letter") with a US based firm (the "Purchaser") for the sale of
the whole of the issued share capital of the Company's subsidiaries operating
in Europe, Pilat Europe Limited, and North America, Pilat (North America) Inc.
(the "Subsidiaries").

Under the terms of the Letter, the consideration for the whole of the share
capital of the Subsidiaries would be US$6 million, in aggregate, to be paid at
completion. In the nine months ended 30 September 2008, the Subsidiaries had
combined sales of £3.558 million and operating profits of £99,000. The
Subsidiaries have a book value of approximately £0.5 million on the balance
sheet of the Company.

Pursuant to the terms of the Letter, the Purchaser will undertake an extensive
due diligence process during which time the Company and the Purchaser will
proceed to negotiate a final sale agreement which would be expected to close in
early 2009. During this period the Company has agreed to grant exclusively to
the Purchaser.

The Letter is not binding on either of the parties to enter into a transaction
and at this stage, there is no certainty that the sale of the Subsidiaries (the
"Sale") will take place. The Subsidiaries are continuing their activities as
usual.

Under the AIM Rules for Companies, the Sale in accordance with the terms of the
Letter would constitute a fundamental change of business for the Company under
AIM Rule 15 and would be subject to the prior approval of shareholders.
However, on 30 October 2008, the Company announced its intention to cancel the
admission of its shares to trading on AIM with effect from 12 December 2008,
subject to the approval of the General Meeting of the Company to be held on 4
December 2008. The Directors do not expect the Sale to take place prior to 12
December 2008 and therefore, provided that the cancellation takes place as
anticipated, the Company would no longer be bound by the AIM Rules for
Companies and would not be required to seek shareholder approval for the Sale.
The Company continues to be listed on the Tel Aviv stock exchange.

A further announcement will be made in due course.

Enquiries                                                                    
                                                                             
Pilat Technologies International Ltd   00 972 3 767 9200                     
                                                                             
Chaim Helfgott, Corporate Secretary                                          
                                                                             
Hanson Westhouse Limited               0113 246 2610                         
                                                                             
Tim Feather / Matthew Johnson                                                



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