SOURCE: On Track Innovations, Ltd.

October 24, 2005 07:00 ET

OTI Estimates Revenues for the First Nine Months of 2005 to Reach Approximately $24 Million

Revenues From Its Program of Providing Inlays for Electronic Travel Documents to an Asian Country Expected to Reach Low Tens of Millions of Dollars Starting FY 2007

FORT LEE, NJ -- (MARKET WIRE) -- October 24, 2005 -- 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, has indicated that it expects revenues for the first nine months of 2005 to reach $24 million, which would represent an increase of 56% over first nine months of 2004. Revenues in the third quarter in 2005 are expected to be approximately $9.5 million. The increase is attributed mainly to growth in the contactless payments market.

OTI further indicated that it expects revenues in regards to its earlier announcement from September 29, in relations to the manufacture and sale of OTI-based Travel Document inlays for an Asian government, to reach low tens of millions of dollars per year starting from 2007 and onwards. It is estimated that the delivery of initial quantities will commence in the second half of 2006.

About OTI

Established in 1990, OTI (NASDAQ: OTIV) (Prime Standard: 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 Frost & Sullivan 2005 Company of the Year Award in the field of smart cards. For more information on OTI, visit 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 OTI's 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.

Contact Information

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