On Track Innovations Ltd.
On Track Innovations Ltd.: SALE OF INTERCARD GMBH KARTENSYSTEME
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
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OTI CLOSES SALE OF INTERCARD GMBH KARTENSYSTEME SUBSIDIARY FOR $2.5 MILLION
Enables Focus on Three Main Vertical Markets of SmartID, Payments and
Petroleum
Fort Lee, New Jersey- January 19, 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,
micropayments, petroleum payments and other applications, announced today that
it has finalized the sale of its wholly-owned German subsidiary, InterCard
Kartensysteme GmbH for approximately $2.5 million. OTI will retain its
profitable InterCard Systemelectronic GmbH subsidiary, which provides OEM and
electronics manufacturing services.
The subsidiary sold is engaged in the sale and support of closed campus
systems, which is considered to be a highly competitive market with relatively
low margins and high operating expenses. This follows OTI’s acquisition of
ASEC S.A. of Poland that has since received some orders valued at
approximately $1.5 million for 2500 contactless reader equipped terminals.
The transactions are expected to improve the Company’s long-term profitability
with some decrease in revenues in the short term by adding a profitable
company with higher margins and recurring revenue businesses and by selling an
existing division with high operating expenses.
Mr. Oded Bashan, President & CEO of OTI noted, “The sale of InterCard
Kartensysteme GmbH is reducing operating expenses and debt and saving
significant resources, while the acquisition of ASEC introducing OTI to new
and growing clients within the emerging European countries market. These
actions are in accordance with OTI strategy to focus on three vertical markets
– Payment, Petroleum and SmartID where we provide complete solutions that
adhere to our higher margin and recurring revenues business model.”
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, micropayments, 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. Major clients include: MasterCard International, Atmel, BP,
Scheidt & Bachmann, EDS, Repsol, and the Government of Israel. For more
information on OTI, visit http://www.otiglobal.com .
end of message, (c)DGAP 19.01.2005
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WKN: 924895; ISIN: IL0010834682; Index:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hannover, München und Stuttgart
190700 Jän 05
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