OTI’s Magna™ Platform, Offers an End-to-End Turnkey National eID Solution

Fort Lee, NJ, January 26, 2009 – On Track Innovations Ltd, (OTI) (NASDAQ-GM: OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security & eID Systems, payments, petroleum payments and other applications, announced today that it has signed a contract with the Registro Civil (Registry Office) of the Government of Ecuador to implement a limited scale pilot project for the country’s National eID system, which will serve as the first stage of the national eID system. The project includes issuance of new biometric-based electronic ID cards and other public certificates (birth, death, marriage, etc.) for the citizens of Ecuador. The value of this first stage project to OTI is estimated at $4 million, with deliveries scheduled for the first half of 2009.

OTI will supply its end-to-end turnkey solution, based on its proprietary state-of-the-art, field-proven eID Magna™ platform. The project includes supply of both stationary and mobile stations for data enrollment, creating a central registry database and issuing contactless, highly-secured smart ID cards. The solution also incorporates a Biometric Automatic Fingerprint Identification System (AFIS), which detects and prevents multiple registration attempts.

OTI’s secured ID solution supports both online and offline communication, thereby allowing every citizen, from cities to rural areas to apply for an ID card, regardless of the area’s communication infrastructure. This user-friendly solution is designed to provide maximum accuracy and security.

Oded Bashan, Chairman and CEO of OTI, stated, “OTI’s end-to-end Magna™ field proven solution, complemented by the company’s broad experience, technologies and IP portfolio, creates an unbeatable value proposition for countries wishing to implement a quick and cost effective secured identification and verification solutions, regardless of the country’s size and telecommunication infrastructure.”

About OTI

Established in 1990, OTI (NASDAQ-GM: 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 and 2006 Company of the Year Award in the field of smart cards.

For more information on OTI, visit http://www.otiglobal.com/, the content of which is not part of this press release.