SOURCE: On Track Innovations, Ltd.

August 01, 2005 10:30 ET

OTI Reports on Status of US Electronic Passport Project

FORT LEE, NJ -- (MARKET WIRE) -- August 1, 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. was one of several contractors that have received contract awards from the United States Government Printing Office (GPO) for the production of electronic passports. The GPO has, as required by law, issued a stop work order, effectively halting work on the program by all contractors pending a decision by the Government Accountability Office (GAO). The stop work order was issued due to a protest filed by OTI regarding the evaluation of its product by the GPO with the GAO. The GPO's motion to dismiss the protest was denied by the GAO. Should the GAO rule in OTI America's favor, OTI, along with the other contractors, will continue work when the program resumes. (The contracts include several stages, running from testing and evaluation stages through production stages. OTI America successfully protested an earlier evaluation decision by the GPO at the outset of the program.)

According to Oded Bashan, President & CEO, "OTI is confident in the superiority of its technology and product. We are therefore hopeful of being selected as a supplier of electronic passports to the US Government. We look forward to a prompt and a favorable decision. It should also be noted that the US Government electronic passport program is 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.

This press release and other releases are available on www.otiglobal.com and www.portfoliopr.com.

Contact Information


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

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

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