OTI share doubles on $30m US electronic ID contracts

The company has already received an advance payment to support the initial stages of the project.

Contactless smart-card developer OTI - On Track Innovations Ltd. (Nasdaq: OTIV; DAX: OT5) today announced that it has signed contracts worth more than $30 million altogether for a US national electronic ID program. The company has already received an advance payment to support the initial stages of the project and expects to see $20 million revenue from the project in 2010.

OTI's share rose 99% to NIS 2.80 at the opening on Nasdaq today. The share rose 27.4% to €1.25 earlier today on the Frankfurt Burse.

The project follows OTI's successful completion of a pilot program and provides for the supply of new biometric-based electronic ID cards and other official documents (such as birth, death, and marriage certificates), as well as the equipment required for the setup of the document issuing stations nationwide.

OTI will supply an end-to-end turnkey solution, based on its proprietary electronic ID Magna platform. The company will supply stationary and mobile stations for data enrollment and issuing stations, and the creation of a central national registry database, as well as the provision of secure, contactless smart ID cards and a Biometric Automatic Fingerprint Identification System (AFIS) to detect and prevent double registration attempts by the same ID applicant.

OTI chairman and CEO Oded Bashan said, “We are proud to be part of this remarkable technological development and modernization effort. We are confident that the success, quality commitment and reliability OTI demonstrated in the pilot program has contributed to the continuation of the project."

Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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