InterCard, OTI's Subsidiary, Opens New Manufacturing Facilities

Sept. 17, 2007

FORT LEE, N.J., Sept. 17 /PRNewswire-FirstCall/ -- On Track Innovations Ltd. (OTI) (Nasdaq: OTIV), a global leader in contactless microprocessor-based smart card solutions for payments, petroleum payments, homeland security and other applications, announced today that its wholly owned subsidiary, InterCard Systemelectronic opened a new manufacturing facility in Germany on September 7, 2007 , in the presence of the mayor of the city of Bad Durrheim, company management, employees and distinguished customers and guests.

The new state-of-the-art facilities were built according to the ISO 90001:2000 and the strict TS 16949 standards, which are required by the automotive industry, and will allow the company to provide best-of-class products, including OEM boards, PCBs, Contactless Readers and Electronics Manufacturing Services.

In commenting on the new 2,200 square meter (24,000 square foot) facility, Oded Bashan, Chairman & CEO of OTI, said that, "The expansion of the InterCard facility marks an important step in supporting our customers. We have increased our production capacity and improved our processes and standards to meet and exceed the quality requirements of our customers. This step is part of our ongoing efforts to provide the best products and services to our clients."

Heinz Kuchenbecker, General Manager (Geschaftsfuhrer) of InterCard commented that, "Building the plant according to the highest quality standards allows us to provide products for a wider range of customers. In addition, the new facility is larger in size, which enables us to increase throughput without compromising product quality, while maintaining the same number of employees."

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 content of which is not part of this press release.

Safe Harbor for Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the 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 our belief that demand is growing in the contactless reader market. Forward-looking statements could be impacted by market acceptance of new and existing products and 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, 2006 , 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. Except as otherwise provided by law, 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.

OTI Contact: Investor Relations: Galit Mendelson Miri Segal Director of Corporate Communications Strategic Growth International 201 944 5200 ext. 111 212 838 1444 [email protected] [email protected]

SOURCE On Track Innovations Ltd.

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