Lipman Receives Initial Orders Totaling $3 Million from Leading German Retailers; Dione Xpress Card Readers and Secura PIN Pads to begin Shipping to Lipman's First Customers in Germany in Q4 2005.

ROSH HAAYIN, Israel -- Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that it has received orders totaling $3 million from retailers in Germany. These orders, for Lipman's Dione Secura PIN Pads and Xpress card readers, are Lipman's first sales to customers in the German market. Product deliveries are expected to begin in the fourth quarter of 2005 and to continue through the first half of 2006.

The Secura(TM) PIN Entry Device is based on Lipman's SecuraCell(TM) Transaction Technology Platform, a unified technology platform certified as complying with the highest security standards, including ZKA and PCI PED among others. Comprised of five leading German banks and processors, ZKA sets the strict standards of security for PIN pads and terminals used in Germany. Designed for ease of use by both consumers and merchants, the Secura features both a magnetic card reader and an EMV chip card reader, a backlit keyboard and LCD display, and a physical privacy shield to ensure transaction security.

The Xpress(TM) is a patented card reading device featuring Lipman's Swipe & Park design, which is capable of reading both a magnetic stripe and EMV chip in a single movement. Designed to allow retailers to comply with EMV security standards with minimal impact on checkout times, the Xpress compares magnetic stripe data with chip data, preventing acceptance of 'skimmed' cards and reducing the risk of financial loss through fraud. The Xpress can act as an EMV Level 1 card interface device or perform full EMV Level 2 transactions. This significantly reduces transaction times and simplifies the authorization procedure.

Isaac Angel, President and CEO of Lipman said, "We are very pleased to receive these initial orders from several leading German retailers and believe that these orders validate our significant efforts directed toward penetration of the German market. We believe that opportunities in the German market will increase as the country's migration to EMV-compliant payment systems is expected to begin in the near future. With our recent receipt of ZKA security certification, we believe we are well positioned to capitalize on opportunities in Germany as they continue to emerge."

About Lipman

Lipman is a leading worldwide provider of electronic payment systems. 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.