Order is for approximately 400,000 cards

Fort Lee, NJ, July 25, 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, today announced that its subsidiary, ASEC S.A. (“ASEC”) of Poland, has been awarded a tender by the Transport Department of the City of Warsaw to provide public transportation and street parking contactless tickets. Deliveries have commenced this month.

Warsaw residents will be able to use these cards as electronic tickets for their bus, tramway, or metro ride using one card, as well as paying fees for on street parking. The new tender further strengthens the introduction of OTI to new markets in the emerging European countries. This is another tender win for OTI in mass transit ticketing solutions, allowing OTI to bring its significant experience and technology platform to different cities and transit operators.

Anat Arazi, President of ASEC added: “This is a natural extension of ASEC’s offer of existing back office systems for transit and parking solutions and we are looking forward to be working with the City of Warsaw.”

Oded Bashan, President & CEO of OTI commented: “OTI is pleased to be the chosen provider for City of Warsaw mass transit system, especially considering Poland’s technological leadership among the new members of the European Union. OTI’s ticketing solutions provide a technology platform to support scalable multiple applications, enhancing the user experience at the point-of-payment.”

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.