Lipman Announces SNMP Implementation; Simple Network Management Protocol Available Immediately in All NURIT Terminals Supporting TCP/IP Networking Standard.

ROSH HAAYIN, Israel -- Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced the immediate availability of Simple Network Management Protocol (SNMP) functionality in all of its NURIT Point of Sale (POS) terminals that support the TCP/IP networking standard.

SNMP is a standard TCP/IP network management protocol used to monitor and control network components and terminals. Implementation of SNMP in Lipman's NURIT terminals provides added value and lower total cost of ownership for acquirers, processors and merchants by allowing them to identify and correct network problems quickly and easily, increasing efficiency and reducing both down time and lost transaction business. This efficiency is becoming increasingly important, as acquirers and processors begin expanding their use of TCP/IP networks for payments.

Additionally, Lipman's implementation allows collection and monitoring of transaction-specific statistics and provides a mechanism for remote control of terminal operation and performance. This capability permits acquirers to use off-the-shelf network management systems to better manage and optimize POS operation.

Lazy Yanay, Executive V.P. Sales and Marketing of Lipman, said, "Lipman's SNMP implementation allows acquirers and merchants to use readily available network management tools to monitor significant POS transaction parameters, including transaction volume and authorization statistics, such as EMV offline transaction counts, as well as network performance measures. SNMP can help simplify the migration to standard TCP/IP networks. POS network administrators will be better able to anticipate potential problems and bottlenecks, and proactively improve merchant service levels in order to maximize revenues."

Mr. Yanay continued, "Throughout its history, Lipman has focused on providing customers with the most technologically advanced, feature-rich payment solutions in the industry. Our SNMP implementation leverages Lipman's proven expertise in TCP/IP network solutions to provide merchants and acquirers with an effective way to monitor and control their Ethernet, GPRS, CDMA and WiFi POS networks, further reducing the total cost of ownership of our NURIT terminals and bringing greater value to Lipman's customers and end users."

About Lipman

Lipman is a leading worldwide provider of electronic transaction systems and solutions. Lipman develops, manufactures and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated PIN and smart card ("Chip & PIN") solutions. In addition, Lipman develops technologically advanced software platforms that offer comprehensive and customized transaction processing solutions for its customers, as well as managed professional services such as on-site and call-center support with remote terminal management.

Lipman's corporate headquarters and R&D facilities are located in Israel. Lipman also maintains offices in the US, United Kingdom, Turkey, China, Spain, Finland, Russia, Italy, Canada, Brazil, Argentina, Mexico, Australia and India. For more information visit www.lipman.biz

Statements concerning Lipman's business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: our dependence on distributors and customers; the competitive market for our products; market acceptance of new products and continuing products; timely product and technology development/upgrades and the ability to manage changing market conditions; manufacturing in Israel; compliance with industry and government standards and regulations; dependence on key personnel; possible business disruption from acquisitions; and other factors detailed in Lipman's filings with the U.S. Securities and Exchange Commission. Lipman assumes no obligation to update the information in this release.