Magal Security Systems Ltd Receives a US$850,000 Order to Protect a Major Correctional Facility in Southeast Asia.

Business & Technology Editors

YAHUD, Israel--(BUSINESS WIRE)--July 31, 2002

Magal Security Systems, Ltd. (NASDAQ NM:MAGS, TASE:MAGS), today announced that it has received an order to install its Perimeter Intrusion Detection Systems to protect a major prison in Southeast Asia.

This US$850,000 order is expected to be completed in its majority during 2002, with revenues reflected in the financial results for the year.

Magal is acting as a sub-contractor for Megason Electronics and Tyco, who won the tender for the total protection of this facility. Magal's portion of this project includes providing Perimeter fencing, combined with Taut Wire Intrusion Detection Systems, CCTV Cameras and Video Motion Detection Systems.

Mr. Izhar Dekel, President of Magal, said: "Magal continues to demonstrate its strength as a provider of turnkey solutions in the security market. In fact, this contract follows a number of installations Magal has undertaken in this region, including electrical sub-stations, satellite communications sites and power plants."

About Magal Security Systems, Ltd.:

Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. Magal also supplies Video Monitoring Services through Smart Interactive Systems, Inc., a subsidiary established in the U.S. in June 2001. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Israeli-based Magal has subsidiaries in the U.S., Canada, the U.K., Germany, Mexico and an office in China.

Revenues for fiscal year 2001 were US$41 million, with net income of US$3.2 million.

Magal trades in the U.S. on the NASDAQ National Market since 1993 and in Israel on the Tel-Aviv Stock Exchange (TASE) since July 2001, in both under the symbol MAGS.

This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Report on Form 8-K filed with the Securities and Exchange Commission.