Supercom Ltd. sells automated smart card production system to a European government

Supercom Ltd. sells automated smart card production system to a European government

Expected sales revenues at $1.25M in the fourth quarter 2004

New York, NY, and Ra’anana, Israel, November 1, 2004–SuperCom Ltd. (Euronext: SUP) a leading smart card and e-ID technology integrator and solutions provider serving governmental and commercial markets, announced today that the Company has sold an automated smart card production system. This technology is based on SuperCom’s latest technology “ePASS PRO” for the production of smart card and e-passports. The “ePASS PRO” product family was the technology involved in SuperCom’s award of the US electronic passport project. The expected revenues from the sale will amount to $1.25 million.

The system is for the production of secured documents and credentials issued by the government. SuperCom expects increased revenues through the sale of additional technology and raw materials in 2005. The automated production line is based on high-end technology and manufactures contactless smart cards and inlays with an antenna and chip.

“A significant part of SuperCom’s strategy is to provide the highest quality smart card access control systems and solutions for our customers worldwide. With our automatic production line, we have the ability to provide customers with a cost-effective and flexible solution,” said Eyal Tuchman, Chief Financial Officer of SuperCom. “We’re proud to see our technology being adopted by countries who value the importance of smart card security. With greater penetration into these markets, we expect revenues to be increased in 2005.”

About SuperCom:

SuperCom, Ltd. is engaged in research, development and marketing of advanced technologies and products for smart-card solutions and government e-ID projects. SuperCom offers a wide range of standard and customized smart-card-based solutions for physical and logical security, education, corrections facilities and air & seaports. SuperCom is also a leader in the manufacturing of secure and durable documents such as national identity cards, passports, visas, drivers’ licenses and vehicle registration. Together with its subsidiaries, SuperCom offers advanced, innovative and flexible solutions in contact and contactless smart-card technologies. Headquartered in Israel, SuperCom has subsidiaries in the US and Hong Kong. For more information, visit our website at http://www.supercomgroup.com.