Magal Security Systems Wins Order to Protect a Sensitive Installation in China; Opens Office in China Due to Increased Security Protection Opportunities.

Business Editors

YAHUD, Israel--(BUSINESS WIRE)--July 11, 2001

Magal Security Systems Ltd. (Nasdaq: MAGS) today announced that it won an order to protect a sensitive installation in China.

The system that was chosen to protect this installation is the YAEL-15 Taut Wire Intrusion Detection System, which is the same system that was recently chosen to protect 22 km of the new Inchon International Airport in South Korea.

Mr. Jacob Even-Ezra, Chairman of Magal said that the new contract significantly increases Magal's presence in the Chinese market and is another indication of the potential new business opportunities in China. As a result, Magal has decided to open an office in China that will coordinate the marketing activities of the Magal Group.

Mr. Even-Ezra added: "The penetration to the large Chinese market was one of Magal's primary marketing objectives. Until today, Magal's activity in South East Asia was concentrated in approximately 10 countries, including South Korea, Thailand and Japan. With this initial order and the establishment of an office in China, Magal is now favorably positioned to generate meaningful additional business."

Magal Security Systems, Ltd. is engaged in the development, manufacture and marketing of computerized security systems that automatically detect, locate and identify the nature of intrusions. Magal's products currently are used in more than 70 countries to protect national borders and sensitive facilities from terrorism, theft and other threats.

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.