SOURCE: On Track Innovations Ltd.

On Track Innovations Ltd.

March 03, 2014 08:31 ET

oti Divests Intercard System Electronics GmbH

Sale of German Subsidiary Completes oti's Refocus on NFC and Cashless Payment Solutions

ROSH PINA, ISRAEL--(Marketwired - Mar 3, 2014) - On Track Innovations Ltd. (oti) (NASDAQ: OTIV), a global leader in cashless payment solutions based on contactless transactions and near-field communication (NFC), has sold its wholly owned German subsidiary, Intercard System Electronics GmbH, to a private party. Intercard manufactures electronic assemblies and devices, including oti's NFC readers and other non-oti related products.

"In 2013, we made the strategic decision to refocus our efforts in the fast growing market for cashless payment solutions and to divest businesses that are not within this business scope, such as this manufacturing facility," said Ofer Tziperman, CEO of oti. "This divestiture reduces unnecessary overhead, including a headcount reduction of 61 local employees, while allowing us to continue subcontracting the good services of Intercard under favorable terms. However, more importantly, we can now better focus on building our sales momentum and leveraging our growing industry adoption as a technology leader in the fast growing, multi-billion dollar NFC and cashless payments market."

The sale of Intercard includes an upfront payment of EUR 700,000 to oti and then future debt payments of certain amounts, as well as preferred pricing for Intercard services for the ongoing manufacturing of oti readers.

About oti
On Track Innovations Ltd. (oti) is a leader in contactless and NFC applications based on its extensive patent and IP portfolio. oti's field-proven innovations have been deployed around the world to address NFC and other cashless payment solutions, petroleum payment and management, cashless parking fee collection systems and mass transit ticketing. oti markets and supports its solutions through a global network of regional offices and alliances. For more information, visit www.otiglobal.com.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. 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 oti's success in actually reducing its costs and/or its operation expenses following the divestiture of Intercard and/or improving its manufacturing processes or successfully executing oti's growth plans. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in oti's annual report on Form 20-F for the year ended December 31, 2012 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, 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.

Contact Information

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