Innovative Payment Tool–MasterCard® PayPass™ Contactless Payment Feature on 3-D Soccer Ball Key Chain

Fort Lee, NJ, May 22, 2006–On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, announced today that it is providing Taipei Fubon Bank a ‘Tap & Go™’ key fob solution. The device complies with MasterCard® PayPass™ and fits on a key chain for easy access, so customers can make purchases with a simple tap on a contactless reader at participating merchants.

Taipei Fubon Bank is offering the new device to its customers as part of their 2006 FIFA World Cup™ promotion. Customers have the opportunity to win prizes when using their PayPass-enabled key fob to pay for their purchases. The grand prize is a trip to watch the 2006 FIFA World Cup in Germany. OTI’s extensive experience provides a reliable and cost-effective way to bring contactless solutions to the market in any form factor necessary. OTI’s solution meets the stringent security requirements of the payments industry, while also providing the speed and convenience that is essential in contactless transactions. OTI provides a personalization solution, tailored to the special needs of unique form factors.

Taipei Fubon Bank has the largest network of branches among privately owned banks in Taiwan and the highest market share in Greater Taipei.

“OTI brings experience in contactless payment that is second to none. Providing a complete solution, we allow our customers to introduce a cost-effective, reliable and secure solution in short time to market.” said Oded Bashan, Chairman, President and CEO of OTI.

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.