MIND CTI Reports Cash Flow From Operating Activities of Over $2 Million for the Third Quarter 2007

Estimated Over 10% Internal Sequential Growth in Q4 2007


YOQNEAM, ISRAEL--(Marketwire - November 5, 2007) - MIND CTI Ltd. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for tier 2 and tier 3 carriers worldwide, today announced results for the third quarter 2007.

Monica Eisinger, Chairperson and CEO, commented: "We are confident in our long-term strategy and our execution and we expect to see the results of our successfully completed transition commencing in the fourth quarter of 2007. We started over a year ago to invest heavily in the enhancement of our solutions, while focusing on building our business for the long term, with larger deals and long-term contracts. The focus on larger deals that require longer sales-cycles and longer revenue spread has influenced our results in the last four quarters. Our visibility has continually increased since. Our outstanding operational execution enabled us to maintain profitability. In addition to new wins, great positive cash flow and significant recurrent revenue from our customer base in the third quarter, we also succeeded recently in achieving an additional long-term goal -- acquisition of a UK-based company.

"We believe that we have achieved all the goals we set until now and we are prepared for the next goal, revenue growth. We expect to achieve over 10% internal growth in the fourth quarter of 2007 compared to the third quarter of 2007 and to reach in total a new revenue record of approximately $5.4 million."

Financial Highlights of Q3 2007

--  Revenues of $4.03 million, compared with $4.66 million in the third
    quarter of 2006.
--  Operating income, excluding amortization of intangible assets and
    equity-based compensation expense, of $550 thousand.
--  Net income, excluding amortization of intangible assets and equity-
    based compensation expense, of $1.11 million or $0.05 per share.
--  GAAP net income of $955 thousand or $0.04 per share.
--  Cash flow from operating activities of $2.04 million.
--  Strong cash position of approximately $37.4 million on September 30,
    2007.
    

Dividend Distribution

In July 2003, the Board of Directors adopted our current dividend policy. We have since distributed dividends five times and we intend to continue to distribute cash dividends based on factors that include our cash position and our activities.

Today, the Board of Directors resolved that the Company should take the necessary steps (including if required a court approval) in order to enable a distribution for the year 2007 of approximately $0.20 per share, which is similar to previous years' average. Under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a distribution in order to ensure that the Company's creditors are not harmed by the action. The Company expects to obtain such court approval within eight to twelve weeks, although there is no guarantee that such approval will not be delayed or denied.

Prior to paying any dividend, which is still subject to specific Board approval, the Company will issue a press release announcing the exact dividend amount, record date and distribution date.

"Given our strong cash position and our positive operating cash flow, we believe that our dividend policy enhances shareholders' value," stated Monica. "We are well positioned and have the required resources to respond to potentially increasing market needs and at the same time we are focused on targeting potential acquisitions that could benefit the company growth."

Accounting Treatment of Auction Rate Securities

On November 5, 2007, the Board of Directors, after discussions with the Company's independent registered public accounting firm, concluded that the balance sheets and statements of cash flows included in the Company's Form 20-F for the fiscal year ended December 31, 2006 should be amended in order to correct the classification of auction rate securities on the balance sheets and in the statements of cash flows of the Company. Auction rate securities are long-term bonds that provide liquidity through a Dutch auction process that resets the applicable interest rate at pre-determined calendar intervals, generally every 28 days. This mechanism allows existing investors either to roll over their holdings, whereby they will continue to own their respective securities, or liquidate their holding by selling such securities at par. Given the liquid nature of such securities, they had previously been classified as cash equivalents on both the balance sheets and in the statements of cash flows. However, given that such auction rate securities have long-term stated maturities and that the issuers of such auction rate securities are under no obligation to redeem them prior to their stated maturities, the Company has determined that its investments in such securities, consisting of $22.8 million as of December 31, 2006, should have been classified as short-term investments, rather than as cash equivalents.

This amendment will have no impact on previously reported results of operations, cash flow from operating activities, total current assets, total assets or stockholders' equity.

Investors or other interested parties should refer to the Company's amended Annual Report on Form 20-F/A for the fiscal year ended December 31, 2006, expected to be filed with the SEC within the next 30 days, for additional information.

The recent uncertainties in the credit markets have affected the liquidity of our holdings in auction rate securities, as auctions have been unsuccessful, but at the same time we continue to receive interest every 28 days. While our investments are of high credit quality (AAA/Aaa), at this time we are uncertain as to whether or when the liquidity issues relating to these investments will worsen or improve. We do not believe that it is necessary at this time to adjust the fair value of our portfolio of auction rate securities, but we have decided to classify them as long-term marketable securities on our balance sheet commencing in the third quarter of 2007. As of September 30, 2007, we have a total of $20.3 million invested in auction rate securities.

Conference Call Information

MIND will host a conference call on November 6, 2007 at 8:30 a.m., Eastern Time, to discuss the Company's third quarter 2007 results and other financial and business information. The call will be carried live on the Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.

About MIND

MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid end-to-end billing and customer care solutions for Wireless, Wireline, VoIP and Quad-play carriers worldwide. A global company, with over ten years of experience in providing solutions to carriers, MIND operates from offices in Europe, Israel and the United States, serving customers in more than 40 countries around the world. For more information, visit MIND at: www.mindcti.com.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.


                             MIND C.T.I. LTD.
                  CONDENSED CONSOLIDATED BALANCE SHEETS


                                                 September 30     December
                                              ------------------     31,
                                                2007      2006      2006
                                              --------  --------  --------
                                                  (Unaudited)     (Audited)
                                              ------------------  --------
                                                   U.S. $ in thousands
                                              ----------------------------
               A  s  s  e  t  s

CURRENT ASSETS:
   Cash and cash equivalents (1)              $  7,138  $  4,247  $  4,771
   Short-term investments (1)                             22,400    22,800
   Accounts receivable:
      Trade                                      3,798     4,862     5,385
      Other                                        630       923       231
   Deferred income taxes                           133         8       154
   Inventories                                      35        30        35
                                              --------  --------  --------
         T o t a l  current assets              11,734    32,470    33,376
INVESTMENTS AND OTHER NON CURRENT
 ASSETS:
   Marketable debentures                        10,000              10,000
   Marketable securities (1)                    20,300
   Long term bank deposit                                 10,000
   Other                                           958       834     1,003
PROPERTY AND EQUIPMENT, net of accumulated
 depreciation                                    1,342     1,790     1,558
INTANGIBLE ASSETS, net of accumulated
 amortization                                      580       980       888
GOODWILL                                         6,966     6,966     6,966

                                              --------  --------  --------
         T o t a l  assets                    $ 51,880  $ 53,040  $ 53,791
                                              ========  ========  ========
    Liabilities and shareholders' equity
CURRENT LIABILITIES:
   Accounts payable and accruals:
      Trade                                   $    495  $    594  $    464
      Other                                      1,596     1,497     2,509
   Deferred revenues                             1,486     1,580     1,236
   Advances from customers                         365       171       241
                                              --------  --------  --------
         T o t a l  current liabilities          3,942     3,842     4,450
EMPLOYEE RIGHTS UPON RETIREMENT                  1,488     1,495     1,482
                                              --------  --------  --------
         T o t a l liabilities                   5,430     5,337     5,932
                                              --------  --------  --------
SHAREHOLDERS' EQUITY:
   Share capital                                    54        53        54
   Additional paid-in capital                   59,642    59,510    59,547
   Capital surplus                                 525       244       325
   Accumulated deficit                         (13,771)  (12,104)  (12,067)
                                              --------  --------  --------
         T o t a l  shareholders' equity        46,450    47,703    47,859
                                              --------  --------  --------
      T o t a l  liabilities and
       shareholders' equity                   $ 51,880  $ 53,040  $ 53,791
                                              ========  ========  ========

(1) See "Accounting Treatment of Auction Rate Securities" above



                             MIND C.T.I. LTD.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                              Nine months       Three months     Year ended
                           ended September 30 ended September 30  December
                           ------------------ ------------------    31,
                             2007     2006      2007     2006      2006
                           -------- --------  -------- --------- ---------
                              (Unaudited)        (Unaudited)     (Audited)
                           ------------------------------------- ---------
                             U.S. $ in thousands (except per share data)
                           -----------------------------------------------
REVENUES                   $ 12,884 $ 14,985  $  4,028 $   4,659 $  20,060
COST OF REVENUES              3,659    4,482     1,039     1,392     5,675
                           -------- --------  -------- --------- ---------
GROSS PROFIT                  9,225   10,503     2,989     3,267    14,385
RESEARCH AND DEVELOPMENT
 EXPENSES                     4,053    4,715     1,271     1,389     6,118
SELLING AND MARKETING
 EXPENSES                     2,802    2,735       880       868     3,628
GENERAL AND ADMINISTRATIVE
 EXPENSES                     1,269    1,353       447       595     2,135
                           -------- --------  -------- --------- ---------
OPERATING INCOME              1,101    1,700       391       415     2,504
FINANCIAL INCOME (EXPENSES)
 - net                        1,574   * (749)      586       304    * (222)
                           -------- --------  -------- --------- ---------
INCOME BEFORE TAXES ON
 INCOME                       2,675      951       977       719     2,282
TAXES ON INCOME                  61       79        22         9     1,373
                           -------- --------  -------- --------- ---------
NET INCOME                 $  2,614 $    872  $    955 $     710 $     909
                           ======== ========  ======== ========= =========
EARNING PER SHARE:
   Basic and diluted       $   0.12 $   0.04  $   0.04 $    0.03 $    0.04
                           ======== ========  ======== ========= =========
WEIGHTED AVERAGE NUMBER OF
 ORDINARY SHARES USED IN
 COMPUTATION OF EARNINGS
 PER ORDINARY SHARE - IN
 THOUSANDS:
   Basic                     21,583   21,510    21,593    21,528    21,515
                           ======== ========  ======== ========= =========
   Diluted                   21,595   21,555    21,602    21,551    21,546
                           ======== ========  ======== ========= =========

*  Financial expenses for the 9 months period ended September 30, 2006 and
   for the year ended December 31, 2006 include a loss from a premature
   withdrawal of long-term deposits in the amount of $1,330,000.



                             MIND C.T.I. LTD.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                              Nine months        Three months    Year ended
                          ended September 30  ended September 30  December
                          ------------------  ------------------     31,
                            2007      2006      2007      2006      2006
                          --------  --------  --------  --------  --------
                              (Unaudited)         (Unaudited)     (Audited)
                          --------------------------------------  --------
                                        U.S. $ in thousands
                          ------------------------------------------------
CASH FLOWS FROM OPERATING
 ACTIVITIES:
  Net Income              $  2,614  $    872  $    955  $    710  $    909
  Adjustments to reconcile
   net income to net cash
   provided by (used in)
   operating activities:
    Depreciation and
     amortization              650     1,149       186       334     1,391
    Deferred income taxes,
     net                        76                   8                (293)
    Accrued severance pay        6       166        22        72       176
    Capital loss (gain) on
     sale of property and
     equipment - net            10        (9)        2        (1)       (3)
    Employees share based
     compensation expenses     200       244        69        83       325
    Changes in operating asset
     and liability items:
      Decrease (increase)
       in accounts receivable:
        Trade                1,587    (1,473)      874        20    (1,996)
        Interest accrued on
         marketable
         debentures           (131)               (133)                (37)
        Other                 (268)     (192)     (129)       25       537
      Increase in Inventories                                           (5)
      Increase (decrease)
       in accounts payable
       and accruals:
        Trade                   31       (92)       55      (105)     (222)
        Other                 (913)     (244)      (15)      (87)      768
      Increase (decrease)
       in deferred revenues    250       (64)      147       168      (408)
      Increase (decrease)
       in advances from
       customers, net          124      (619)       (1)     (171)     (549)
                          --------  --------  --------  --------  --------
  Net cash provided by
   (used in) operating
   activities                4,236      (262)    2,040     1,048       593
                          --------  --------  --------  --------  --------
CASH FLOWS FROM INVESTING
 ACTIVITIES:
  Decrease (increase) in
   short-term investments
   (1)                       2,500   (22,400)     (300)     (150)  (22,800)
  Purchase of property and
   equipment                  (256)     (339)      (89)      (43)     (379)
  Amounts funded in
   respect of accrued
   severance pay               (10)      (74)      (43)      (62)     (119)
  Acquisition of
   marketable debentures
   held-to-maturity                                                (10,000)
  Withdrawal of long-term
   bank deposits                      20,000                        30,000
  Proceeds from sale of
   property and Equipment      120        46        42        10       162
                          --------  --------  --------  --------  --------
Net cash provided by (used
 in) investing activities    2,354    (2,767)     (390)     (245)   (3,136)
                          --------  --------  --------  --------  --------
CASH FLOWS FROM FINANCING
 ACTIVITIES:
  Employee stock options
   exercised and paid           95       111         4                 149
  Dividend paid             (4,318)   (3,009)                       (3,009)
                          --------  --------  --------            --------
Net cash provided by (used
 in) financing activities   (4,223)   (2,898)        4              (2,860)
                          --------  --------  --------            --------
INCREASE (DECREASE) IN
 CASH AND CASH EQUIVALENTS   2,367    (5,927)    1,654       803    (5,403)
BALANCE OF CASH AND CASH
 EQUIVALENTS AT BEGINNING
 OF PERIOD (1)               4,771    10,174     5,484     3,444    10,174
                          --------  --------  --------  --------  --------
BALANCE OF CASH AND CASH
 EQUIVALENTS AT END OF
 PERIOD (1)               $  7,138  $  4,247  $  7,138  $  4,247  $  4,771
                          ========  ========  ========  ========  ========

SUPPLEMENTAL DISCLOSURE
 OF CASH FLOW AND NON
 CASH ACTIVITIES
  Cash paid during the
   year for income tax    $    867  $     31  $     14  $      9  $     39
                          ========  ========  ========  ========  ========

(1) See "Accounting Treatment of Auction Rate Securities" above

Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666