Board of Directors authorizes share repurchase; Company to seek court approval

FORT LEE, N.J., Dec. 1 /PRNewswire-FirstCall/ -- On Track Innovations Ltd (OTI) (Nasdaq: OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced that its Board of Directors has authorized the repurchase of its shares in a total aggregate amount not to exceed $5 million. The timing and the amounts purchased are to be determined by the Company, and the purchases may occur in the open market or in negotiated or block transactions, all subject to regulatory requirements.

Under Israeli law, the program requires court approval. Accordingly, OTI will file an application with the District Court in Tel Aviv, Israel in the next few weeks, to approve the repurchase by the Company of up to $5 million of its ordinary shares.

"The strength of our balance sheet allows us to support current and future opportunities while increasing shareholder's value," said Oded Bashan, Chairman and CEO of OTI. "We want to assure that we have the ability to capture value that in our belief is not reflected in our shares at current prices."

The Company does not intend to repurchase shares from management or other insiders. The specific terms of the repurchase program are yet to be determined. However, it was determined that the Company is not obligated to acquire any specific number of shares, and the program may be suspended or discontinued at any time.

About OTI

Established in 1990, OTI (Nasdaq: OTIV) 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, 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 and 2006 Company of the Year Award in the field of smart cards.

For more information on OTI, visit www.otiglobal.com, the content of which is not part of this press release.

Safe Harbor for 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. Whenever we use words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions, we are making forward-looking statements. 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, when we say that we will file an application for court approval for our proposed share repurchase program, or that the strength of our balance sheet allows us to support current and future opportunities while increasing shareholder's value, or that we want to assure that we have the ability to capture value that in our belief is not reflected in our shares at current prices, we are using a forward looking statement. Forward-looking statements could be impacted by market acceptance of new and existing products and our ability to execute production on orders, as well as the other risk factors discussed in OTI's Annual Report on Form 20-F for the year ended December 31, 2007, which is on file with the Securities and Exchange Commission. 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. 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.

    OTI Contact:                               Investor Relations
    Galit Mendelson                            Paul Holm
    Vice President of Corporate Relations      portfoliopr
    201 944 5200 ext. 111                      212 888 4570
    galit@otiglobal.com                        paulh@portfoliopr.biz

SOURCE On Track Innovations Ltd.