OTI Awarded a Ten-Year Contract to Supply EasyFuel System to a Government Agency With Initial Order Totals $2.5 million
May 16 2011 - 7:00AM
On Track Innovations Ltd., (OTI) (Nasdaq:OTIV), a global leader in
contactless smart card solutions, today announced that it has been
awarded a contract, in conjunction with a local market partner, to
deploy its EasyFuel solution for a government ministry in Africa.
The contract's initial order is for $2.5 million and such
revenues are scheduled to be recognized by OTI this year. The
agreement, to facilitate automated refueling at both on-road
service stations and home bases, is for ten years. OTI will
generate ongoing revenues, in addition to product sales, from the
provision of a wide range of services including key account
management, fuel management reports and a comprehensive service
bureau. It is anticipated that additional orders will be
placed as the project expands to support other government
ministries that will select additional sites and vehicles.
As government vehicles refuel across the country, home base
facilities and priority on-road service stations will be equipped
during phase one of the project, with additional refueling
locations enabled thereafter. Vehicle identification will be
supported in conjunction with driver identification in an effort to
eliminate fraud and various risk management parameters such as fuel
grade and tank capacity checks. The EasyFuel system will provide
automatic odometer and/or engine hour outputs in order to assist
the government in its efforts to manage fuel consumption.
Oded Bashan, Chairman, & CEO of OTI commented, "The EasyFuel
product provides a perfect fit for monitoring and controlling fuel
consumption and fleet activity. It provides excellent value to
customers and presents a long–term, ongoing, high-margin revenue
stream for OTI by providing hardware, software and additional
services for each project."
EasyFuel is easy, quick and cost-effective to install and
maintain and the solution enables a fast turnaround at the pump.
The EasyFuel system has built-in benefits for oil companies,
commercial fleet operators, financial institutions and private
motorists. The oil companies build loyalty with fleet
companies via long-term contracts, as well as with private
motorists. The OTI solutions are easily integrated into existing
hardware and software systems. The system allows for 24-hour
non-attendant sales, as well as greater in-store purchases. Fleet
companies eliminate non-authorized fueling and receive
comprehensive billing and detailed operating
information. Financial institutions benefit from new
transaction fees and greater cash flow. Retail customers receive
24-hour, fast, cashless service as well as loyalty program
rewards.
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 and loyalty programs. 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 On Track Innovations Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5736 Safe
Harbor for Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the private 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,
forward-looking statements include statements regarding our goals,
beliefs, future growth strategies, objectives, plans or current
expectations such as those regarding the superiority of our
products or when we discuss the date in which the revenues
are scheduled to be generated and when we
anticipate that additional orders will be placed as the
project expands. Forward-looking statements could be impacted
by the failure of the energy company to use OTI solutions,
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, 2010, 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. 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.
CONTACT: OTI Contact:
Galit Mendelson
Vice President of Corporate Relations
732 429 1900 ext. 111
galit@otiglobal.com
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
Media Relations:
Christa Conte/Henry Feintuch
Feintuch Communications
212-808-4902/212-808-4901
oti@feintuchpr.com
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