Given Imaging Reports Second Quarter 2013 Financial Results

Given Imaging Reports Second Quarter 2013 Financial Results

    - Record Second Quarter 2013 Revenues Increase 11% to $49.5 million –

  -  Company Achieves Record Sales of 62,700 PillCam SB Capsules in Second
                                Quarter 2013 –

      -Second Quarter 2013 GAAP and Non-GAAP EPS Increase 71% and 35%,
                      respectively, to $0.16 and $0.22 –

YOQNEAM, Israel, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Given Imaging Ltd.
(Nasdaq:GIVN) today announced financial results for the second quarter ended
June 30, 2013.

Revenues were $49.5 million in the second quarter of 2013, an increase of
eleven percent compared to $44.5 million in the second quarter of 2012. Gross
margin on a GAAP-basis in the second quarter of 2013 was 77.5 percent,
compared to 77.1 percent in the second quarter of 2012. Gross margin on a
non-GAAP-basis in the second quarter of 2013 was 78.3 percent, compared to
78.2 percent in the second quarter of 2012.

On a GAAP-basis, operating profit increased 60 percent to $5.4 million in the
second quarter of 2013, compared to $3.4 million in the second quarter of
2012. Non-GAAP operating profit was $7.4 million in the second quarter of
2013, up 35% from $5.5 million in the same period in 2012. 

On a GAAP-basis, net income for the second quarter of 2013 increased 71
percent to $5.2 million, or $0.16 per share, compared to net income of $3.0
million, or $0.10 per share, in the same period in 2012.On a non-GAAP-basis,
net income for the second quarter of 2013 was $6.9 million or $0.22 per share
on a fully diluted basis, up 35% from net income of $4.9 million, or $0.16 per
share on a fully diluted basis in the second quarter of 2012.

A reconciliation of GAAP results to non-GAAP results is attached.

Cash generated from operating activities in the second quarter of 2013 was
$8.8 million. Cash and cash equivalents, short-term investments and marketable
securities on June 30, 2013 totaled $130.3 million.

"We are pleased to report that we achieved an eleven percent increase in
second quarter revenue, reflecting solid performance in all of our operating
regions, accompanied by a solid increase in operating margins and strong
operating cash flow," said Homi Shamir, president and CEO, Given Imaging Ltd.
"Looking ahead, we expect the recent and significant regulatory milestone –
the clearance of PillCam COLON in Japan, as well as the pending FDA decisions
regarding PillCam SB3 and PillCam COLON – to enable us to accelerate growth in
2014 and beyond."

Second Quarter 2013 Revenue Analysis

Revenues in the Americas region in the second quarter of 2013 increased eight
percent to $30.7 million from $28.4 million in the same period in 2012.The
increase is attributable to a 23 percent increase in sales of functional GI
diagnostics products ("GIFD") including the Bravo pH Monitoring System,
Digitrapper pH-Z, ManoScan and SmartPill products in the U.S. Revenues in the
EMEA region increased 18 percent to $12.5 million compared to $10.6 million in
the same period in 2012.APAC revenues increased by 15 percent to $6.3
million, compared to $5.4 million in the same period in 2012.

Worldwide PillCam SB sales increased six percent to 62,700 capsules in the
second quarter of 2013, compared to 59,200 capsules in the same period in
2012. PillCam SB sales in the Americas region decreased by two percent to
36,000 capsules in the second quarter of 2013, compared to 36,500 capsules in
the second quarter of 2012.PillCam SB sales in the EMEA region increased by
13 percent to 17,500 capsules, compared to 15,500 capsules in the second
quarter of 2012, while PillCam SB sales in the APAC region increased by 30
percent to 9,300 capsules, compared to 7,100 capsules in the same period in
2012.

Worldwide sales of GIFD products increased by 22 percent to $15.2 million in
the second quarter of 2013 compared to $12.4 million in the same period in
2012.Sales of GIFD products the second quarter of 2013 included $0.7 million
of sales of SmartPill products. SmartPill was acquired by the Company in the
last quarter of 2012. In the Americas region, functional GI diagnostics
product revenue increased by 23 percent in the second quarter of 2013 to $12.2
million compared to $9.9 million in the same period in 2012. Functional GI
diagnostics revenue in the EMEA region increased by 36 percent to $2.2
million, while revenue in the APAC region was $0.8 million, a decrease of 11
percent compared to the same quarter last year.

Supplemental second quarter data can be found at www.givenimaging.com in the
Investor Relations section.

Six Month Financial Results

For the six month period ended June 30, 2013, revenues increased by four
percent to $90.1 million compared to $86.3 million in the same period last
year.Revenues in the Americas region in the first half of 2013 decreased by
one percent to $54.6 million from $55.1 million in the same period last
year.Revenues in the EMEA region increased by 13 percent to $24.2 million
compared to $21.4 million in the same period last year.APAC revenues
increased by 17 percent to $11.3 million, compared to $9.7 million in the same
period in 2012.

Worldwide PillCam SB sales increased by one percent to 117,300 capsules in the
first half of 2013, compared to 115,600 capsules in the same period last
year.PillCam SB sales in the Americas region were approximately 66,800
capsules, a decrease of five percent compared to 70,200 capsules that were
sold in the first half of 2012.PillCam SB sales in the EMEA region increased
by eight percent to 33,000 capsules, compared to 30,600 capsules in the first
half of 2012, while PillCam SB sales in the APAC region increased by 18
percent to 17,500 capsules, compared to 14,800 capsules in the same period in
2012.

Worldwide sales of Given Imaging's GIFD products increased by five percent to
$26.2 million in the first half of 2013 compared to $25.0 million in the same
period last year. Sales of GIFD products in the first half of 2013 included
$1.3 million of sales of SmartPill products. In the Americas region, GIFD
products revenue increased by three percent in the first half of 2013 to $20.5
million compared to $19.9 million in the same period last year.Functional GI
diagnostics products revenue in the EMEA region increased 29 percent to $4.4
million, while revenue in the APAC region decreased by 26 percent to $1.3
million.

Gross margin on a GAAP basis in the first six months of 2013 was 77.3 percent,
compared to 76.4 percent in the same period in 2012. Gross margin on a
non-GAAP basis in the first six months of 2013 was 78.2 percent, compared to
77.2 percent in the same period in 2012.

On a GAAP basis, operating profit was $5.5 million in the first six months of
2013, compared to $3.8 million in the same period in 2012. Non-GAAP operating
profit was $9.4 million, compared to $7.6 million in the same period in 2012.
On a GAAP basis, net income for the first six months of 2013 increased 53
percent to $5.0 million, or $0.16 per share, compared to $3.2 million, or
$0.10 per share, in the same period last year. On a non-GAAP basis, net
income for the first six months of 2013 increased 24 percent to $8.4 million,
or $0.26 per share on a fully diluted basis, compared to $6.7 million, or
$0.21 per share on a fully diluted basis, in the same period in 2012.

Recent Developments

  *PillCam COLON Clearance in Japan

    PillCam COLON recently received marketing clearance by Japan's
    Pharmaceuticals & Medical Devices Agency.PillCam COLON was cleared for
    diagnosis of colonic disease when colonoscopy is required but difficult to
    conduct, including patients unwilling or unable to undergo colonoscopy.
    Reimbursement is expected to become effective during the first half of
    2014, subject to government discretion. The Company estimates that
    PillCam COLON will help in enhancing adherence to screening guidelines in
    Japan for over 1,000,000 potential patients.

Conference Call / Webcast Information

Given Imaging will host a conference call on Wednesday, August 7, 2013 at
9:00am ET, 4:00pm Israel time to discuss second quarter 2013 financial
results. To participate in the teleconference, please dial the following
numbers fifteen minutes before the call is scheduled to begin:U.S. and
Canada, 888-452-4023; Israel, 1-80-924-5906. Callers in other countries should
dial 719-457-2664. The passcode is 8996103.The call will also be webcast live
at www.givenimaging.com.

A replay of the call will be available for two weeks on the company's website,
or until August 21, 2013, by dialing 888-203-1112. Callers in Israel should
dial 1 80 924 6038. Callers outside of the U.S. and Israel should dial
719-457-0820. The replay participant code is 8996103.

Use of Non-GAAP Measures

This press release provides financial measures for net income and basic and
diluted earnings per share that exclude certain items and are therefore not
calculated in accordance with generally accepted accounting principles (GAAP).
Management believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance that enhances management's
and investors' ability to evaluate the Company's net income and earnings per
share and to compare it with historical net income and earnings per share.

The presentation of this non-GAAP financial information is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. Management uses both GAAP and
non-GAAP measures when evaluating the business internally and therefore felt
it is important to make these non-GAAP adjustments available to investors.

About Given Imaging Ltd.

Since pioneering the field of capsule endoscopy in 2001, Given Imaging has
become a world leader in GI medical devices, offering health care providers a
range of innovative options for visualizing, diagnosing and monitoring the
digestive system. The company offers a broad product portfolio including
PillCam® capsule endoscope for the small bowel, esophagus and colon. The
company also offers industry-leading GI functional diagnostic solutions
including ManoScan™ high-resolution manometry, Bravo® capsule-based pH
monitoring, Digitrapper® pH-Z impedance, and the SmartPill® GI monitoring
systems. Given Imaging is committed to delivering breakthrough innovations to
the GI community and supporting its ongoing clinical needs. Given Imaging's
headquarters are located in Yoqneam, Israel, with operating subsidiaries in
the United States, Germany, France, Japan, Australia, Vietnam, Hong Kong and
Brazil. For more information, please visit www.givenimaging.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements include, but are not limited to,
projections about our business and our future revenues, expenses and
profitability. Forward-looking statements may be, but are not necessarily,
identified by the use of forward-looking terminology such as "may,"
"anticipates," "estimates," "expects," "intends," "plans," "believes," and
words and terms of similar substance. Forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
events, results, performance, circumstances or achievements of the Company to
be materially different from any future events, results, performance,
circumstances or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements include statements relating to the
Company exploring strategic alternatives and considering possible strategic
transactions involving the Company. Factors that could cause actual events,
results, performance, circumstances or achievements to differ from such
forward-looking statements include, but are not limited to, the following: (1)
our ability to develop and bring to market new products, (2) our ability to
successfully complete any necessary or required clinical studies with our
products, (3) our ability to receive regulatory clearance or approval to
market our products or changes in regulatory environment, (4) our success in
implementing our sales, marketing and manufacturing plans, (5) the level of
adoption of our products by medical practitioners, (6) the emergence of other
products that may make our products obsolete, (7) lack of an appropriate bowel
preparation materials to be used with our PillCam COLON capsule, (8)
protection and validity of patents and other intellectual property rights, (9)
the impact of currency exchange rates, (10) the effect of competition by other
companies, (11) the outcome of significant litigation, (12) our ability to
obtain reimbursement for our product from government and commercial payors,
(13) quarterly variations in operating results, (14) the possibility of armed
conflict or civil or military unrest in Israel, (15) the impact of global
economic conditions, (16) our ability to successfully integrate acquired
businesses, (17) changes and reforms in applicable healthcare laws and
regulations, (18) quality issues and adverse events related to our products,
such as capsule retention, aspiration and failure to attach or detach,
bleeding or perforation that could require us to recall products and impact
our sales and net income, and (19) other risks and factors disclosed in our
filings with the U.S. Securities and Exchange Commission, including, but not
limited to, risks and factors identified under such headings as "Risk
Factors," "Cautionary Language Regarding Forward-Looking Statements" and
"Operating Results and Financial Review and Prospects" in the Company's Annual
Report on Form 20-F for the year ended December 31, 2012. You are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Except to the extent expressly
required under applicable law, the Company undertakes no obligation to release
publicly any revisions to any forward-looking statements, to report events or
to report the occurrence of unanticipated events.

                           Financial Tables Follow


Given Imaging Ltd. and its Consolidated Subsidiaries
Excluded Items
For the Three Months Ended June 30, 2012 and 2013
(Unaudited, dollars in thousands)
                                                                
                       Gross  Research    Selling   General Tax
                      Profit And         And       And     Expense   Total
                              Development Marketing Admin   (Benefit)
Three month period                                               
ended June 30, 2013                                              
Compensation expenses  $--   $229        $519      $745    $--      $1,493
Sierra & SmartPill PPA 399    --          93        --      (292)     200
Total                  $399   $229        $612      $745    ($292)    $1,693
                                                                
Three month period                                               
ended June 30, 2012                                              
Compensation expenses  $--   $192        $509      $856    $--      $1,557
Sierra PPA             459    --          81        --      (217)     323
Total                  $459   $192        $590      $856    ($217)    $1,880
                                                                
Given Imaging Ltd. and its Consolidated Subsidiaries
Excluded Items
For the Six Months Ended June 30, 2012 and 2013
(Unaudited, dollars in thousands)
                                                                
                              Research    Selling   General Tax
                      Gross  And         And       And     Expense
                       Profit Development Marketing Admin   (Benefit) Total
Six month period                                                 
ended June 30, 2013                                              
Compensation expenses  $--  $425        $937      $1,527  $--     $2,889
Sierra PPA             798    --          186       --      (463)     521
Total                  $798   $425        $1,123    $1,527  ($463)    $3,410
                                                                
Six month period                                                 
ended June 30, 2012                                              
Compensation expenses  $--  $350        $738      $1,898  $--     $2,986
Sierra PPA             696    --          162       --      (344)     514
Total                  $696   $350        $900      $1,898  ($344)    $3,500


Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the three months ended June 30, 2012 and 2013
Condensed, in thousands except share and per share data
                                                                 
                                   Q2/13                     Q2/12
                                  Specified Non             Specified Non
                           GAAP    Items (*) GAAP    GAAP    Items (*) GAAP
                                                                 
Gross profit               $38,347 $399      $38,746 $34,333 $459      $34,792
Research and development,  6,130   (229)     5,901   6,601   (192)     6,409
net
Sales and marketing       20,785  (612)     20,173  18,729  (590)     18,139
General and                5,894   (745)     5,149   5,568   (856)     4,712
administrative
Income tax expense         174     292       466     360     217       577
Net income attributable to $5,195  $1,693    $6,888  $3,043  $1,880    $4,923
shareholders
Diluted EPS attributable   $0.16   $0.06     $0.22   $0.10   $0.06     $0.16
to shareholders
                                                                 
Given Imaging Ltd. and its Consolidated Subsidiaries
Reconciliation of GAAP results to non-GAAP results
For the six months ended June 30, 2012and 2013
Condensed, in thousands except share and per share data
                                                                 
                                   YTD 13                    YTD 12
                                  Specified Non             Specified Non
                           GAAP    Items (*) GAAP    GAAP    Items (*) GAAP
                                                                 
Gross profit               $69,657 $798      $70,455 $65,979 $696      $66,675
Research and development,  12,101  (425)     11,676  13,345  (350)     12,995
net
Sales and marketing       40,416  (1123)    39,293  37,492  (900)     36,592
General and                11,455  (1527)    9,928   11,205  (1898)    9,307
administrative
Income tax expense         486     463       949     984     344       1328
Net income attributable to $4,974  $3,410    $8,384  $3,244  $3,500    $6,744
shareholders
Diluted EPS attributable   $0.16   $0.10     $0.26   $0.10   $0.11     $0.21
to shareholders


Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
                                                                
                                                                
                                              June 30  June 30    December 31
                                              2013     2012       2012
                                                                
Assets                                                           
                                                                
Current assets                                                   
Cash and cash equivalents                      $30,633  $27,091  $35,442
Short-term investments                        72,218   44,549   58,446
Accounts receivable:                                             
Trade                                        31,148   29,064   31,279
Other                                         4,685    5,413    4,654
Inventories                                   23,650   24,329   22,591
Advances to suppliers                          856      1,799    1,349
Deferred tax assets                            2,851    3,389    2,646
Other current assets                           3,266    2,253    2,689
                                                                
Total current assets                           169,307  137,887  159,096
                                                                
                                                                
Deposits                                       844      1,030    924
                                                                
Assets held for employees' severance payments  8,754    7,033    7,974
                                                                
Long-term investments                          27,407   39,656   30,188
                                                                
Non-current Inventory                          5,046    4,202    6,150
                                                                
Fixed assets, less accumulated depreciation    11,216   12,628   12,335
                                                                
Intangible assets, less accumulated            28,980   27,828   30,705
amortization
                                                                
Goodwill                                       26,942   24,089   26,942
                                                                
                                                                
                                                                
Total Assets                                   $278,496 $254,353 $274,314
                                                                
                                                                
Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Balance Sheets
In thousands except share data
(Unaudited)
                                                                
                                                                
                                              June 30  June 30    December 31
                                              2013     2012       2012
                                                                
Liabilities and equity                                           
                                                                
Current liabilities                                              
                                                                
Current installments of obligation under       $--     $62      $38
capital lease
Accounts payable:                                                
Trade                                         7,632    8,413    8,756
Other                                         22,472   25,841   27,091
Deferred income                                1,175    497      929
Total current liabilities                     31,279   34,813   36,814
                                                                
Long-term liabilities                                            
Obligation under capital lease, net           68       108      78
Liability in respect of employees' severance   9,503    7,795    8,761
payments
Contingent consideration in respect of         1,153    --       1,038
business combination
Deferred tax liabilities                       4,212    5,018    4,675
Total long-term liabilities                    14,936   12,921   14,552
Total liabilities                              46,215   47,734   51,366
                                                                
Equity                                                           
Ordinary Shares, NIS 0.05 par value each                         
(90,000,000
shares authorized; 31,567,103 and 31,080,876                    
shares
issued and fully paid as of June 30, 2013                       
and
December 31, 2012, respectively)              372      366      367
Additional paid-in capital                     223,666  214,742  219,103
Capital reserve                                1,591    1,591    1,591
Accumulated other comprehensive income (loss)  57       (595)      266
Retained earnings (accumulated deficit)        6,595    (9,485)    1,621
Total Equity                                   232,281  206,619  222,948
                                                                
                                                                
Total liabilities and equity                  $278,496 $254,353 $274,314


Given Imaging Ltd. and its Consolidated Subsidiaries
Interim Consolidated Statements of Income and Comprehensive Income
In thousands except share and per share data
(Unaudited)
                                                              
                                                              
                 Six-month period ended  Three-month period ended Year ended
                  June 30                 June 30                  December 31
                 2013        2012        2013         2012        2012
                                                              
                                                              
Revenues          $90,084     $86,351     49,464       $44,512     $180,501
                                                              
Cost of revenues  (20,427)    (20,372)    (11,117)     (10,179)    (42,971)
                                                              
Gross profit      69,657      65,979      38,347       34,333      137,530
                                                              
Operating                                                      
expenses
Research and
development,      (12,300)    (14,130)    (6,199)      (6,974)     (25,627)
gross
                                                              
Government grants 199         785         69           373         1,439
Research and      (12,101)    (13,345)    (6,130)      (6,601)     (24,188)
development, net
                                                              
Sales and         (40,416)    (37,492)    (20,785)     (18,729)    (76,272)
marketing
General and       (11,455)    (11,205)    (5,894)      (5,568)     (22,746)
administrative
Other, net        (186)       (170)       (138)        (69)        (455)
                                                              
Total operating   (64,158)    (62,212)    (32,947)     (30,967)    (123,661)
expenses
                                                              
Operating profit  5,499       3,767       5,400        3,366       13,869
Financing income  (39)        368         (31)         37          847
(expense), net
                                                              
Profit before                                                  
taxes
on income        5,460       4,135       5,369        3,403       14,716
Income tax        (486)       (984)       (174)        (360)       (459)
expense
                                                              
Net profit        4,974       3,151       5,195        3,043       14,257
                                                              
Net loss                                                       
attributable to
non-controlling  --          93          --           --          93
interest
                                                              
Net profit                                                     
attributable to
shareholders     $4,974      $3,244      $5,195       $3,043      $14,350
                                                              
Net change in                                                  
respect of
available for    (209)       290         (214)        (140)       1,151
sale securities
Total
comprehensive                                                  
profit
attributable to  4,765       3,534       4,981        2,903       $15,501
shareholders
                                                              
Total                                                          
comprehensive
loss                                                          
attributable to
non-controlling  --          (93)        --           --          (93)
interest
                                                              
Total
comprehensive     4,765       3,441       4,981        2,903       $15,408
profit
                                                              
Earningsper                                                   
share
                                                              
Basic Earnings                                                 
attributable to
shareholders per $0.16       $0.11       $0.17        $0.10       $0.47
Ordinary Share
                                                              
Diluted Earnings                                               
attributable to
shareholders per  $0.16       $0.10       $0.16        $0.10       $0.45
Ordinary Share
                                                              
Weighted average                                               
number
of Ordinary                                                   
Shares used to
compute basic                                                 
Earnings
per Ordinary     31,342,441  30,696,679 31,457,732   30,814,268  30,853,581
share
                                                              
Weighted average                                               
number
of Ordinary                                                   
Shares used to
compute dilute                                                
Earnings
per Ordinary     31,897,495 31,511,329  31,933,651  31,544,729 31,563,208
share


Given Imaging Ltd. and its Consolidated Subsidiaries
Consolidated Statements of Cash Flows
In thousands
(Unaudited)
                                                               
                    Six-month period ended Three-month period ended Year ended
                   June 30                June 30                  December
                                                                    31
                   2013        2012       2013         2012        2012
                                                               
                                                               
                                                               
Cash flows from
operating                                                       
activities:
                                                               
Net profit          $4,974      $3,151     $5,195       $3,043      $14,257
                                                               
Adjustments
required to                                                     
reconcile
net profit to net                                              
cash provided by
operating                                                      
activities:
                                                               
Depreciation and    4,375       4,211    2,177        2,215     8,597
amortization
Change in deferred  (668)       (2,195)    (352)        (1,188)     (1,795)
taxes
Stock based         2,889       2,986    1,493        1,557     6,158
compensation
Loss from disposal                                              
of fixed assets
and intangible     225         176      138          74        484
assets
Unrealized interest                                             
on contingent
consideration       115         --       40           --        --
Decrease (increase)                                             
in accounts
receivable – trade 131         3,192    (3,903)      372       977
Decrease (increase)                                             
in accounts
receivable – other (7)         469      179          (886)       1,252
Increase in other   (577)       (880)      (497)        (28)        (1,316)
current assets
Decrease (increase)                                             
in advances
to suppliers       493         (592)      284          (420)       (142)
Decrease (increase) 45          (684)      662          (212)       (299)
in inventories
Increase (decrease) (5,826)     (2,181)    3,134        2,414     (691)
in accounts payable
Increase (decrease) 246         (24)       196          (36)        408
in deferred income
Other               197         (46)       88           4         (62)
Net cash provided                                               
by operating
activities         6,612       7,583    8,834        6,909     27,828
                                                               
Cash flows from                                                 
investing
activities:                                                    
Purchase of fixed                                               
assets and
intangible assets  (1,794)     (3,317)    (782)        (1,837)     (7,005)
Other long term     9           (610)      8            (11)        (538)
assets
Acquisition of                                                  
business, net
of cash acquired   --          --       --           --        (6,000)
(1)
Changes in short    (2,351)     16,419   (9,851)      (4,198)     4,968
term deposits, net
Proceeds from sales                                             
and maturity
of marketable      246         4,050    --           2,050     13,343
securities
Investments in
marketable          (9,293)     (23,460)   --           (11,138)    (24,827)
securities
                                                               
Net cash used in
investing           (13,183)    (6,918)    (10,625)     (15,134)    (20,059)
activities


Given Imaging Ltd. and its Consolidated Subsidiaries
Consolidated Statements of Cash Flows
In thousands
(Unaudited)
                                                              
                                                              
                               Six-month period Three-month period Year ended
                              ended            ended              December 31
                               June 30          June 30
                              2013     2012    2013      2012     2012
                                                              
                                                              
                                                              
Cash flows from financing                                      
activities:
                                                              
Principal payments on capital  --       (83)    --        (42)     (129)
lease obligation
Proceeds from the issuance of  1,679    2,925   696       1,588    4,115
Ordinary Shares
Purchase of shares from a                                      
non-controlling
shareholder in a subsidiary   --       (658)   --        --       (658)
                                                              
Net cash provided by financing 1,679    2,184   696       1,546    3,328
activities
                                                              
Effect of exchange rate                                        
changes on
cash and cash equivalents     83       (43)    17        (89)     60
                                                              
Increase (decrease) in cash                                    
and cash
equivalents                   (4,809)  2,806   (1,078)   (6,768)  11,157
Cash and cash equivalents at                                   
beginning
of period                     35,442   24,285  31,711    33,859   24,285
                                                              
Cash and cash equivalents at   $30,633  $27,091 $30,633   $27,091  $35,442
end of period
                                                              
Supplementary cash flow                                        
information
Income taxes paid              $1,988   $1,157  $748      $1,035   $2,883

CONTACT: For further information contact:
         Fern Lazar/David Carey
         Lazar Partners Ltd.
         1-646-239-6231
         flazar@lazarpartners.com
         dcarey@lazarpartners.com
        
         Israel Investor Contact:
         Nava Ladin
         Gelbart Kahana Investor Relations
         +972-3-6074717
         nava@gk-biz.com
 
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