Givat Shmuel, Israel, – August 10, 2006– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling and manufacturing industries, today announced financial results for the second quarter and six months ended June 30, 2006.
Revenues for the second quarter of 2006 were $5.0 million, unchanged from the $5.0 million recorded in the second quarter of 2005. Net profit for the quarter was $18,000, or $0.00 per diluted share, a significant improvement compared to a net loss of $(1.3) million, or $(0.17) per diluted share recorded in the parallel quarter of 2005.
Revenues for the first half of 2006 were $10.4 million compared to $10.6 million in the first half of 2005. Net profit for the period was $238,000, or $0.03 per diluted share, compared to a net loss of $(2.3) million, or $(0.29) per diluted share, recorded in the first half of 2005.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "The second quarter was another period characterized by stable sales, controlled operating expenses and significant strategic progress across the board. Our heavy investments in the areas of sales and marketing are paying off, enabling us to build a larger and more diverse sales pipeline from new customers in all key regions. In parallel, we continue focusing our R&D efforts to extend our customer-oriented CAD/CAM solutions in directions that satisfy the unmet needs of the Tooling and Discrete Manufacturing industries."

About Cimatron

Cimatron is a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling and manufacturing industries. Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. More than 8,500 customers worldwide (directly and indirectly) in the automotive, consumer plastics, and electronics industries employ Cimatron's cutting-edge CAD/CAM solutions.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support.

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 the company'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 the future performance and involve risks and uncertainties, many of which are beyond the company'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 cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company 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.

Company contact
Ilan Erez, CFO
Cimatron Ltd.
[email protected]