OTI Acquires InSeal SAS to Enhance Support of Contactless Payments Market
May 16 2006 - 6:00AM
PR Newswire (US)
InSeal SAS Provides Contactless Operating System for Payment
Applications FORT LEE, N.J., May 16 /PRNewswire-FirstCall/ -- On
Track Innovations Ltd, (OTI) (NASDAQ:OTIV), today announced that it
acquired 100% of InSeal SAS share capital for an aggregate of
243,800 of its ordinary shares and 180,000 warrants. The warrants,
which have a nominal exercise price, become exercisable in four
equal annual installments. This acquisition is in furtherance of
its strategy to become the world's leading provider of contactless
microprocessor-based smart card solutions for payments, homeland
security, and other applications. The transaction will expand OTI's
presence in the growing contactless industry as well as
strengthening its technological team and broadening its
intellectual property base. InSeal's revenues for 2005, the first
year in which their product was sold, were approximately $560,000
with about breakeven operating results. InSeal's revenues, which
are expected to grow rapidly, are derived mainly from licensing and
engineering fees. InSeal SAS is a Marseille, France based company
currently providing an operating system for contactless
applications to a variety of customers in the payments market.
InSeal's JayCOS(R) is currently in use in contactless payments
programs in the US. Commenting on the transaction, Oded Bashan,
Chairman, President and CEO, said, "InSeal is an excellent fit with
OTI. InSeal's operating system is complementary to our hardware,
software and operating system offering, which will enable us to
support InSeal's channel partners with a full solution. It will
expand our presence in the contactless payments market and our
solutions portfolio. We believe that together we will be able to
increase our combined market share in the rapidly growing
contactless market." Fabien Franceschini, CEO of InSeal SAS added,
"We are proud to become a part of OTI, the leader in the
contactless market. By joining OTI group, InSeal will be able to
offer to its customers and partners a more complete product
offering for their success in the contactless market." 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 Company of the Year Award
in the field of smart cards. For more information on OTI, visit
http://www.otiglobal.com/. This press release contains
forward-looking statements including statements as to what we
anticipate and expect and statements with regard to increase in our
products and services portfolio to the contactless payments
industry as well as statements with regard to strengthening our
technology team and broadening our intellectual property. Such
statements are subject to certain risks and uncertainties, such as
market acceptance of new products and our ability to incorporate
InSeal's, products, services and technology, 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 OTI Contact: Media Relations: Galit
Mendelson Adam Handelsman Director of Corporate Communications 5W
Public Relations 201 944 5200 ext. 111 212 999 5585 DATASOURCE: On
Track Innovations Ltd CONTACT: Galit Mendelson, Director of
Corporate Communications of OTI, +1-201-944-5200 ext. 111, or ; or
Adam Handelsman, Media Relations for 5W Public Relations,
+1-212-999-5585, or Web site: http://www.otiglobal.com/
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