OTI acquired SoftChip - Deepening its involvement in smart card chip design

Rosh-Pina, Israel (PROTEXT) - On Track Innovations Ltd. (OTI) and SoftChip Israel Ltd. and SoftChip Technologies (3000) Ltd. (SoftChip) have announced today that they had signed an agreement by which OTI acquired full ownership over SoftChip by way of swapping shares. The swapped shares have been derived from an increase of OTI's authorized capital by approximately 120,000 ordinary shares. The acquisition is another move of OTI to deepen and widen its involvement in designing of innovative chips for smart cards. SoftChip is a chip design house that has developed certain proprietary technology in the field of chip design, smart card's microprocessor design, CPU simulators, development of Operating System for Smart Cards, power line modems, Internet security as well as capabilities in the design of architecture for semiconductor products. SoftChip has a worldwide reputation and working relationship with leading smart card chip manufacturers. Among its clients are some of the world-leading semiconductor companies as well as the Japanese government. "We have been working with SoftChip for the last 18 months, and we believe that it has a complementary technology and know- how to OTI's, "said Oded Bashan, President & CEO for OTI. "Our intention is to develop the next generation of smart card microprocessors with both contact & contactless interfaces. SoftChip brings valuable know how and world-class experience that will enable OTI to come out with the best chip of its kind in the smart card market." According to Bashan, "This is in line with OTI's strategy as presented during the IPO, to acquire complementary technologies to its own, and to expand its involvement in the contactless technology level. In fact, the meaning of this transaction is to establish OTI as a fab-less design house for smart card microprocessors." "We are very pleased to join the OTI group," said Mickey Cohen, President & CEO for SoftChip. "We are confident this is a perfect match between two experienced companies in the field of smart cards that will result in the development of a unique and innovative new generation of contactless smart card chips and systems. We believe that the combined capabilities and efforts will result in much more than each is doing on his own." About OTI On Track Innovations Ltd. (OTI) is the world's pioneer in microprocessor-based contactless smart card technology. The company has developed a portfolio of patented contactless smart card technologies, including the microprocessor-based contactless/contact EYECON(tm) MultiCard system, which provides optional DES, Triple-DES, RSA or ECC level data encryption between the card and the reader. The company was awarded the prestigious ESCAT Award for the "Most Innovative Smart Card Accomplishment of the Year 1997". Established in 1990, OTI has applied its technologies in a variety of applications worldwide. The implementation of numerous applications such as the electronic purse, mass transit, parking, gas management systems, loyalty schemes, ID and security as well as other unique customized applications have put OTI and its products at the cutting edge of contactless smart card technology. OTI was listed at the "Neuer Markt" stock exchange in Frankfurt on August 31st, 1999. OTI has front offices and subsidiaries all over the world. It has recently established OTI Africa as well as acquired its Hong Kong system integrator, City Smart Ltd. OTI also controls EasyPark, which is now implementing the Israeli electronic parking system on a nationwide basis. ots Original Text Service: OTI Internet: http://www.newsaktuell.de For more information, please visit OTI's website, http://www.oti.co.il. Contact: Ofer Tziperman, VP Marketing, OTI Tel: +972-6-693-8884 Fax: +972-6- 693-8887 E-mail: ofer-t@inter.net.il Contact: Ohad Bashan, President, OTI America Tel: +1-408-919-5525 Fax:+1-408-919-5101 E-mail: ohad.bashan@otiamerica.com OTI On Track Innovations Ltd., Z.H.R. Industrial Zone, P.O. Box 32, Rosh Pina, 12000 Israel, Tel. 00972-6-693884, Fax: 00972-6-6938887, Internet: www.oti.co.il Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.