Lipman Receives Key Security Certifications for Dione Xplorer(TM) and Secura(TM) Products.

ROSH HAAYIN, Israel -- Lipman Electronic Engineering Ltd. (Nasdaq, TASE: LPMA) today announced that its Dione Xplorer, Dione Secura and Dione Secura Integration Module have received several significant security certifications. All three products have received PCI PED (Payment Card Industry PIN Entry Device) approval, and the Xplorer and Secura received certification from the Australian Payments Clearing Association (APCA). In addition, the Xplorer terminal has received APACS Common Criteria certification from the UK payments association.

These approvals are in addition to previously issued Interpay and ZKA security approvals applying to the Netherlands and Germany, respectively, as well as Visa PED approvals.

The Xplorer is the first full-function payment terminal to receive such broad security approvals.

To receive these certifications, the systems were tested at both the hardware and software levels by a independent laboratories for fraud protection, including tamper resistance and tamper responsiveness as well as other stringent criteria, to ensure transaction security and protect customer PINs, or Personal Identification Numbers, and other sensitive data at the point of sale. In addition, APACS certification required evaluation of the security of the development and production environments.

PCI PED is the alignment of PIN entry device security requirements and approval processes jointly agreed by Visa International, MasterCard International and JCB. It is an evolution of the previous Visa PED program instituted in 2002 by Visa International, and addresses the need for unified requirements and increased levels of security to combat new methods and technologies for payment fraud.

Isaac Angel, President and CEO of Lipman said, "We are pleased to receive these new certifications for our Xplorer, which is already installed and in use by a number of customers in the United Kingdom, and our Secura, which is currently being used by customers in both the United Kingdom and Spain. That we were the first vendor in the world to have devices receive such broad certification, speaks to the quality of our technology and the success of our efforts to continuously lead the market with new solutions that meet the latest security requirements."

He continued, "APCA certification forms the basis for our continued introduction of next generation terminals into the Australian market, which is important to the growth of our business and continued expansion of the Dione product family. APACS certification provides us with another important advantage in the UK market, as well as a significant endorsement of the security of our products in other regions. PCI PED is an emerging global standard for PIN Entry Devices which we believe will be of increasing importance going forward as we work to penetrate new geographic and vertical markets."

Mr. Angel concluded, "With liability for fraud shifting from issuers to acquirers, and in some situations to individual merchants, it is imperative that terminals in the field meet the highest security standards possible. With the establishment of the PCI PED standards, a greater emphasis is being placed on security at the terminal level as the most effective way to combat credit and debit card fraud as the number of card-based transactions continues to grow throughout the world. With advanced technology solutions that effectively address the needs of the payment industry, we are confident in our ability to remain at the forefront of the markets we serve and further solidify Lipman's position as a leader in secure payment solutions."

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 United States, 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.