OTI releases its annual results

Rosh-Pina, Israel (PROTEXT) - On Track Innovations Ltd. (OTI),world pioneer in contact/contactless microprocessor based smartcard telchnology, announced today its consolidated annualfinancial results for 1999. Included in the consolidatedfinancial results, both in the current quarter and historically,are the results of the companys subsidiaries.

Compared with the 1998 annual results, there is an increasein both revenues and gross profit, and a decrease in the netloss. These results are in line with the management'sprojections. The revenues in 1999 grew by 39.1% to US$ 5.38 millioncompared to US$ 3.87 million in 1998. The gross profit in 1999 grew by 77.4% to US$ 3.26 millioncompared to US$ 1.84 million in 1998. The net loss in 1999 decreased by 35.19% to US$ 1.86 millioncomapred to US$ 2.87 million in 1998. This represents a loss of US$ 0.16 per share for 1999,compared to a loss of US$ 0.27 per share in 1998. The 9-month report of 1999 showed US$ 2.57 million inrevenues, US$ 1.70 million in gross profit and US$ 1.44 millionin net loss. "The 1999 results show that the company is meeting itsojectives as planed," said Yaron Amir, CFO of OTI. "Furthermore,we expect the year 2000 annual results to meet our projections aswell." "Since the IPO we have experienced good businessdevelopments", said Oded Bashan, President & CEO of OTI. "Thecompany has expanded its activities in the Asian Pacific, SouthAfrican and North American markets." "We are now focusing on developing the European markets aswell," said Mr. Bashan, "For this purpose additional highlyskilled personnel is recruited." Among OTI's major business developments in 1999 were: * Winning the Israeli boarder crossing project with EDS * Launching of the 'VeriPass' product with VeriFone/HP in theUSA * Signing of a new agreement with BP in South Africa * Completion of the first stage of implementation o f theEasyPark Electronic street parking card in Israel * Establishment of OTI Africa * Second stage implementation of the Gasoline ManagementSystems for Turcas in Turkey * Completion of the Frankfurt Airport Trolleys project * Signing of an agreement with Credencial Argentina, a creditcard company * Acqsition of City Smart, OTI's system integrator in HongKong * Two additional revolutionary patents were granted to OTI,strengething its position as a leader in the field ofcotact/contactless microprocessor-based smart cards. OTI presented its complete financial statement at an analystsconference organized by DVFA on Tuesday, February 29th, 2000 thatwill be held during the CeBit exhibition in Hannover. About OTI OTI is the world's pioneer in microprocessor-based contactlesssmart card technology. The company has developed a portfolio ofpatented contactless smart card technologies, including themicroprocessor-based contactless/contact EYECON' MultiCardsystem, which provides optional DES, Triple-DES, RSA or ECC leveldata encryption between the card and the reader. In 1997, OTI wasawarded the prestigious ESCAT Award for the "Most InnovativeSmart Card Accomplishment of the Year." Established in 1990, OTIhas applied its technologies in a variety of applicationsworldwide. The implementation of numerous applications such asthe electronic purse, mass transit, parking, gas managementsystems, loyalty schemes, ID and security as well as other uniquecustomized applications have put OTI and its products at thecutting edge of contactless smart card technology. Headquarteredin Israel, OTI has offices and subsidiaries in the United States,Europe, Africa, and China. OTI was listed at the Frankfurt stock exchange "Neuer Markt"on August 31st, 1999. ots Originaltextservice: OTI Internet:http://www.newsaktuell.de For more information please visitOTI's website www.oti.co.il or contact: Ofer Tziperman, VPMarketing

Kirchhoff Consult AG OTIBritta Cirkel Tel: +972-6-693-8884

Tel.: 040 - 609186 50 Fax: +972-6-693-8887

Fax: 040 - 609 186 71 E-mail: ofer-t@inter.net.il

E-Mail: britta.cirkel@kirchhoff.de

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