CEO to Ring the NASDAQ Stock Market Opening Bell on First Day of Trading–Monday, December 20, 2004

Fort Lee, NJ, December 17, 2004–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, today announced that the NASDAQ National Market System (NMS) has approved OTI’s listing application. The Company common stock will be eligible for trading on the NMS effective Monday, December 20, 2004, and to celebrate the occasion, Oded Bashan, OTI Chairman and CEO will open the NASDAQ market. The trading symbol for common stock will continue to be OTIV.

OTI’s common stock has been trading on the NASDAQ Small Cap Market since November 2002. The Company’s initial public offering was in August, 1999, in the Neuer Market in Germany. In addition, the Company has been invited to participate in the Market Open ceremony at the NASDAQ Stock Market on Monday, December 20, 2004. Oded Bashan, the Company’s President & CEO, Guy Shafran, CFO, and Ohad Bashan, President & CEO of OTI America and Head of Global Marketing, together with other invited guests, will participate in the Market Open ceremony.

Charlotte Crosswell, Head of NASDAQ International commented, “We are delighted to be part of OTI’s growing success. Trading on the National Market can provide greater exposure, higher trading volumes and a larger audience of potential investors.”

Mr. Oded Bashan, President & CEO of OTI said, “This listing on the NASDAQ National Market, often considered the world’s premier stock market for high-tech companies, is an important milestone for OTI. We hope that this move will provide greater visibility for a larger investor base. We’re also honored by NASDAQ to ring its opening bell on this auspicious occasion for our company.”

The opening bell is provided live via satellite feed and is available from 9:20 a.m. to 9:35 a.m. on uplink IA-5 C-band/transponder 14. The downlink frequency is 3980 horizontal; audio: 6.2/6.8. The feed can also be found on Waterfront fiber 1623. The Market Open can also be accessed via NASDAQ web cam at the following link: http://www.nasdaq.com/reference/marketsite_about.stm under the heading MarketSite Live Web Cam. To obtain a hi-resolution photograph of the Market Open, please go to http://www.nasdaq.com/reference/marketsite_events.stm and click on OTI opening bell.

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, micro 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 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.