SOURCE: On Track Innovations, Ltd.

August 12, 2005 19:00 ET

OTI Reports on Status of US Electronic Passport Project

FORT LEE, NJ -- (MARKET WIRE) -- August 12, 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 and other applications, said that as previously reported, OTI America, Inc. filed a protest with the Government Accountability Office ("GAO") regarding the evaluation of our product by the Government Printing Office ("GPO"). The GPO's motion to dismiss OTI's protest was denied by the GAO. We were recently informed by the GAO that OTI's protest had been denied.

According to Oded Bashan, President & CEO, "The GAO denied OTI America, Inc.'s bid protest, which challenged the GPO decision to eliminate OTI from further consideration for award of the production portion of the GPO's Electronic Passport program." Mr. Bashan continued to say, "The GPO eliminated OTI based on a defect in a component provided by one of OTI's suppliers and was not related in any manner to OTI's own products or technology. OTI remains confident in the superiority of its technology and product. As previously said, the US Government electronic passport program was but one of many projects in which we are currently involved and as such, we have not included it in our financial projections."

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 prestigious ESCAT Award for smart card innovation in both 1998 and 2000. For more information on OTI, visit www.otiglobal.com

This press release contains forward-looking statements. Such statements, which include statements concerning the future of OTI's role in the electronic passport program, are subject to certain risks and uncertainties, such as market acceptance of new products and our 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

  • OTI Contact:
    Galit Mendelson
    Director of Corporate Communication, OTI
    201 944 5200 ext. 111
    Email Contact

    Media Relations
    Adam Handelsman
    5W Public Relations
    212 999 5585
    Email Contact

    IR Contact:
    Paul Holm
    PMH Group
    212 496 7238
    Email Contact