Acorn Factor Announces That Paketeria GmbH Opens 60th Store.

- Adds Internet Pharmacy to Line of Service Solutions -

MAHWAH, N.J. -- Acorn Factor, Inc. (OTCBB:ACFN) (FWB:DL-01), a holding company, announced today that Paketeria GmbH, Germany's first multi-services superstore, has opened its 60th store in Neumuenster, Germany. With an active growth and expansion strategy, Paketeria is a franchise system and innovator of the German Super Service Market franchise. Acorn Factor owns a 33% equity stake in Paketeria and holds an option to acquire a majority position.

The Paketeria franchise system combines seven services (post and parcels, Internet pharmacy, e-bay dropshop, copies, printing, photo processing and printer cartridge refilling) in one store. Paketeria was founded by CEO Andy Roesch, a successful serial German entrepreneur, to take advantage of the privatization of the German post office and the subsequent substantial reductions in retails outlets. Paketeria's goal is to open more than 500 franchised shops in Germany in the next two years. Paketeria continues to evaluate opportunities in other countries that have announced the privatization of their postal services, including Switzerland, Austria, Italy and France.

Roesch stated, "In keeping with our goal to be an important service resource to our customers, we recently added Internet pharmacy to our line of service solutions. We find that a substantial number of customers who are comfortable surfing the Internet are hesitant to make electronic purchases. Our new Internet pharmacy service allows us to address that underserved market."

In December 2006, Acorn Factor completed a dual stock listing and the Company's shares are now also traded on the Frankfurt Exchange to allow it to capitalize on the interest of the European investment community generated by Acorn Factor's ownership stake in Paketeria. The increased visibility is also intended to provide the Company with additional opportunities as it continues to build on the Acorn Factor theme of investing with proven entrepreneurs in businesses with unusual growth potential, which are at or near breakeven, to accelerate their growth.

About Acorn Factor

Acorn Factor, Inc., formerly Data Systems & Software Inc., is a holding company which currently maintains an equity position in Comverge, Inc. - a leading provider of clean energy solutions that enhance grid reliability and enable electric utilities to increase available electric capacity. ACFN also owns an interest in Paketeria GmbH and a controlling position in dsIT. Additional information about Acorn Factor and its subsidiary and equity affiliates is available at www.acornfactor.com, www.dsit.co.il, www.comverge.com and www.paketeria.de

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties which may affect the accuracy of these statements and the Company's business generally is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.