Dutton Associates Announces Investment Opinion: On Track Innovations Growth Supports Reiterated Buy Rating by Dutton Associates.

EL DORADO HILLS, Calif. -- First graph, first sentence of release should read: Dutton Associates updates its coverage of On Track Innovations (Nasdaq:OTIV) maintaining a Buy rating and its price target of $18.00 (sted Dutton Associates updates its coverage of On Track Innovations (Nasdaq:OTIV) maintaining a Buy rating and its price target of $12.00).

The corrected release reads:

DUTTON ASSOCIATES ANNOUNCES INVESTMENT OPINION: ON TRACK INNOVATIONS GROWTH SUPPORTS REITERATED BUY RATING BY DUTTON ASSOCIATES

Dutton Associates updates its coverage of On Track Innovations (Nasdaq:OTIV) maintaining a Buy rating and its price target of $18.00. The 9-page report by Dutton Associates senior analyst Rafael Kapelinski is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals.

On Track Innovations Ltd. (OTI)'s 4Q 2004 revenue results were considerably better than our estimates, while the bottom line -- excluding all extraordinary charges -- was in line with our expectations. Management offered 2005 revenue guidance of around $27-28 million, which reflects our base scenario. On Track Innovations continues to trade at a premium to its competitors. We would like to argue that the premium is justified as OTI is in a truly unique position to take advantage of the accelerating switch to contactless microprocessor-based smart card solutions in the banking, merchant, medical and other industries. We are forecasting 2005 revenues and EPS of $28.76 million and $(0.51) respectively, increasing in 2006 to $31.99 million and $(0.57). The update report contains our 2005 and 2006 earnings model by quarter.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 90 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid before commencement of our research activities, consisting of 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $41,000 from the Company for 6 Research Reports with coverage commencing on 10/19/2004. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.