OTI Receives First Commercial Orders From Hypercom Corporation For ‘contactless’ Reader Solutions

OTI Receives First Commercial Orders From Hypercom Corporation For ‘contactless’ Reader Solutions

Retailers to Benefit from OTI and Hypercom Technologies That Enable New, More Convenient, Contactless, Faster Payment Programs

Fort Lee, NJ, March 1, 2005–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 global payment technology leader Hypercom Corporation (NYSE: HYC) has ordered its first commercial quantities of OTI’s contactless reader solutions.

OTI’s contactless readers will be integrated into Hypercom’s high-speed, profit-building Optimum T4100 multi-application and Optimum L4100 signature capture card payment terminals specifically designed to speed the check-out lines at retailers worldwide to enable Hypercom’s fast, easy-use and intelligently integrated card payment terminals and transaction networking solutions to give retailers, Independent Sales Organizations (ISOs) and financial institutions the ability to generate new revenues and profits..

Hypercom has already integrated into its solution set OTI’s contactless Saturn 5000 reader, which offers a plug-and-play retro-fit option to merchants already using Hypercom technology at the point-of-transaction. OTI’s patented “matched-antenna” contactless technology coupled with Hypercom’s industry-leading card payment terminals enable fast, easy and seamless, reliable and secure communication. The combined solution also allows issuers to provide consumers with highly secure contactless cards and key fobs with smart stickers and custom designs, such as new specially equipped watches that feature transaction capabilities.

“We are pleased to provide Hypercom with our contactless reader solutions which are compliant with MasterCard PayPass™ and American Express ExpressPay™ and other payment programs and to support the growing demand for contactless payment solutions,” said Oded Bashan, president and CEO, OTI.

“Demand for our Optimum contactless payment terminals is escalating significantly,” said Eric Duprat, senior vice president, Global Marketing and Product Development, Hypercom Corporation. “The intelligent integration of OTI and Optimum is a win-win for retailers who want to speed the check-out line and boost the profit-line.”

About OTI (http://www.otiglobal.com)

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, micropayments, 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. For more information on OTI, visit http://www.otiglobal.com.