Cimatron Declares Cash Distribution to Shareholders of NIS1.60 (approximately $0.43) per Share

Cimatron Declares Cash Distribution to Shareholders of NIS1.60 (approximately
                               $0.43) per Share

Cimatron also approves delisting of its shares from the Tel Aviv Stock
Exchange (TASE)

PR Newswire

GIVAT SHMUEL, Israel, December 27, 2012

GIVAT SHMUEL, Israel, December 27, 2012 /PRNewswire/ --

Cimatron Limited (NASDAQ and TASE: CIMT) today announced that its Board of
Directors has approved a cash distribution of NIS 1.60 (approximately US$0.43)
per share on outstanding ordinary shares, representing a total distribution of
approximately $4.0 million.

The distribution is payable on February 4^th, 2013 to shareholders of record
at the close of business on January 17^th, 2013.

This distribution will be made from paid-in capital, following a court
approval that was given in April 2012, allowing the distribution of up to $10M
to Cimatron shareholders, and following a ruling that was recently obtained
from the Israeli Tax Authority. Further distributions under the said court
approval and tax ruling, if any, are subject to subsequent Board approval of
specific payments out of the total potential distribution amount.

Concurrently with the announcement of the cash distribution, the Company also
announces today that its Board of Directors has resolved to delist its shares
from the TASE. Consequently, Cimatron intends to apply to the TASE and request
that TASE initiate the delisting process. The delisting in Israel will not
affect Cimatron's continued listing on the NASDAQ Capital Market in the United
States.

"Our confidence in continued profitability and positive cash flows going
forward, together with the conclusion of the regulatory process, allow us to
unlock value to our shareholders. We will examine further distributions
subject to our cash needs and market conditions," remarked Yossi Ben-Shalom,
Cimatron's Chairman of the Board of Directors. "We have decided to delist
from the TASE as we realized that such listing added no significant value to
our shareholders. We will continue being listed and traded on NASDAQ as
usual," Concluded Mr. Ben Shalom.

Under applicable Israeli law, the delisting of Cimatron's shares from trading
on the TASE will take place 90 days after the date of this announcement and
the publication thereof in Israeli newspapers which is expected to be on or
about April 1, 2013. During the interim period, Cimatron's ordinary shares
will continue to be traded on the TASE.

Cimatron will announce the exact date of its TASE delisting when it becomes
available.

About Cimatron

With 30 years of experience and more than 40,000 installations worldwide,
Cimatron is a leading provider of integrated, CAD/CAM software solutions for
mold, tool and die makers as well as manufacturers of discrete parts. Cimatron
is committed to providing comprehensive, cost-effective solutions that
streamline manufacturing cycles and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with
software solutions for mold design, die design, electrode design, 2.5 to 5
Axis milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining,
and tombstone machining. Cimatron's subsidiaries and extensive distribution
network serve and support customers in the automotive, aerospace, medical,
consumer plastics, electronics, and other industries in over 40 countries
worldwide.

Cimatron's shares are publicly traded on the NASDAQ exchange and the TASE
under the symbol CIMT. For more information, please visit Cimatron's web site
at: http://www.cimatron.com

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, which are subject to
risk and uncertainties that could cause actual results to differ materially
from those anticipated. Such statements may relate to Cimatron's plans,
objectives and expected financial and operating results. The words "may,"
"could," "would," "will," "believe," "anticipate," "estimate," "expect,"
"intend," "plan," and similar expressions or variations thereof are intended
to identify forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, many of which are beyond Cimatron's ability
to control. The risks and uncertainties that may affect forward looking
statements include, but are not limited to: currency fluctuations, global
economic and political conditions, marketing demand for Cimatron products and
services, long sales cycles, new product development, assimilating future
acquisitions, maintaining relationships with customers and partners, and
increased competition. For more details about the risks and uncertainties
related to Cimatron's business, refer to Cimatron's filings with the
Securities and Exchange Commission. Cimatron cannot assess the impact of or
the extent to which any single factor or risk, or combination of them, may
cause. Cimatron undertakes no obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise.

For More Information Contact:
Ilan Erez
Chief Financial Officer 
Cimatron Ltd.     
Phone: +972-73-237-0114
Email: ilane@cimatron.com

SOURCE Cimatron Ltd