MIND CTI Announces a Change in Cash Management Policy, Dated June 8, 2006





FORM 6-K



	SECURITIES AND EXCHANGE COMMISSION

	Washington D.C. 20549


Report of Foreign Private Issuer



Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934






	For the month of June, 2006 

	Commission File Number: 000-31215



	
MIND C.T.I. LTD.

	(Translation of registrant's name into English)

	
Industrial Park, Building 7, Yokneam 20692, Israel

	(Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:


	Form 20-F   XForm 40-F   _______





Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A


Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: 


	Yes   _______No   X


If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A



INCORPORATION BY REFERENCE


Exhibit 1 to this Report on Form 6-K is hereby incorporated by reference into: (i) the Registrant's Registration Statement on Form S-8, Registration No. 333-117054; (ii) the Registrant's Registration Statement on Form S-8, Registration No. 333-100804; and (iii) the Registrant's Registration Statement on Form S-8, Registration No. 333-54632.


CONTENTS


This report on Form 6-K consists of the following Exhibit, which are attached hereto and incorporated by reference herein:

    
	
  1. Press Release: MIND CTI Announces a Change in Cash Management Policy, Dated June 8, 2006.
    2. 



SIGNATURES



Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	
		Date 8 June, 2006
		
		MIND C.T.I. LTD.


		/s/ Monica Eisinger

		===================

		Title: Monica Eisinger

		Chairperson of the Board of Directors, President and Chief Executive Officer
		
	



EXHIBIT INDEX


Exhibit Number	Description of Exhibit

    
	
  1. Press Release: MIND CTI Announces a Change in Cash Management Policy, Dated June 8, 2006.
    2. 






	
Exhibit 1

	

	
MIND CTI Announces a  Change in Cash Management Policy

	
MIND will record a  one-time financial expense of approximately $1.3 million

	Investment strategy  since March 2002 has resulted in surplus in net financial income of  approximately $4 million



	Yoqneam,  Israel, June 8, 2006 - MIND C.T.I.  LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and  customer care solutions for medium size service providers worldwide, today  announced that it has withdrawn two  of its three $10 million structured deposits and placed the cash in risk-free  bank deposits. The financial expense arising from this transaction is expected  to be approximately $1.3 million in this quarter. MIND's cash position remains  strong with over $35 million.

	
Monica Eisinger, Chairperson and CEO,  commented: "We believe that when the interest rates were at very low  levels, our investment strategy was the right one. By investing in the  structured deposits from March 2002 until now, we earned interest in the  aggregate amount of approximately $8.5 million, which (after deducting the  current one-time penalty for withdrawal at this time) is approximately $4  million more than we would have earned had we invested that cash in standard  bank deposits during the same period. We now estimate that there is a risk that  the long-term structured deposits will continue to bear no interest for the  foreseeable future. Therefore, we have decided to reduce the risk by  withdrawing two seven-year deposits and converting them to highly-liquid bank  deposits."

	
Since March 2002, MIND has deposited most of its cash in  structured, callable time deposits. Under the arrangements with the banks,  whether or not the deposits bear interest depends upon the prevailing US dollar  LIBOR rates. Interest is payable in respect of days during which the US dollar  LIBOR is within a certain range and no interest is payable in respect of days  during which it exceeds the range. The banks had the option to call the  deposits periodically and new arrangements were reached every few months. In  November 2004, MIND deposited three amounts of $10 million each, two of them  for seven years and one for a ten-year period, with similar terms. Due to the  increase in the six-month LIBOR, since May 20, 2005 these deposits have not  earned any interest.

	
Ms. Eisinger added: "Regarding our  business, as previously stated, we see a strong revival in the US markets and  increased interest in the emerging markets. We are active in all these areas  and since the beginning of the quarter we have won new business both in the US  and in Eastern Europe. We believe that there are three major catalysts to our  business: the MVNO market with new players surfacing, the replacement of old  billing solutions driven by the multiple services offerings by carriers, which  require new platforms for billing, and the Next Gen Networks that are being  built by carriers in emerging markets. We believe that MIND is well positioned  in these three niches, and we are focusing on forming more partnerships and on  winning more significant deals."

	

	
About MIND

	  MIND CTI Ltd. is a leading provider of convergent prepaid  and postpaid end-to-end billing and customer care solutions for VoIP, Mobile,  Wireline and Quad-play carriers worldwide. Since 1997 MIND has been a pioneer  in enabling the VoIP technology for emerging and incumbent service providers.  In August 2005 MIND acquired Sentori, Inc., a US based provider of customer  care and billing solutions to wireless carriers and mobile virtual network operators  (MVNO's). Sentori, Inc. brings over ten years of wireless experience staff and  seven years of a wireless operational solution to carriers. A global company,  MIND operates from offices in Europe, Israel and the United States. MIND  employs over 300 IT professionals and serves customers in more than 35  countries around the world. 

	
For financial information, reports and presentations, please visit the Investor  Relations site: http://www.mindcti.com/ir



Cautionary Statement for  Purposes of the "Safe Harbor" Provisions of the Private Securities  Litigation Reform Act of 1995: All statements other than historical facts  included in the foregoing press release regarding the Company's business  strategy are "forward looking statements." These statements are based  on management's beliefs and assumptions and on information currently available  to management. Forward-looking statements are not guarantees of future  performance, and actual results may materially differ. The forward looking  statements involve risks, uncertainties, and assumptions, including the risks  discussed in the Company's filings with the United States Securities Exchange  Commission.  The Company does not  undertake to update any forward-looking information.


	For more information please  contact:
	Andrea Dray 

	MIND CTI Ltd. 

	Tel: +972-4-993-6666 

	investor@mindcti.com