ScanVec announces third quarter 1996 results.

TEL AVIV, Israel--(BUSINESS WIRE)--Nov. 6, 1996--ScanVec Co. (1990) Ltd. (NASDAQ/NMS: SVECF) announced today its revenue and operating results for the third quarter of 1996.

Revenues for the third quarter were approximately US$2.9 million, about the same level of revenues for the corresponding period during 1995.

For the nine months ended Sept. 30, 1996, ScanVec's revenues increased 11 percent to US$8.5 million from US$7.6 million for the nine months ended Sept. 30, 1995. This increase was primarily due to an increase of about 37 percent in sales to the Asian market and an approximately 10 percent increase in sales to the European market, which was partially offset by a six percent decrease in sales to the American market.

The net loss for the third quarter of 1996 was US$35,631 or US$0.01 per share, compared with net income of US$501,336, or US$0.17 per share for the same period in 1995.

The adverse variance in operating performance reflected increased selling, marketing and general administrative expenses. In the third quarter of 1996, expenses increased 31 percent to US$2.9 million, compared to US$2.3 million in the same period in 1995. Expenses have remained essentially stable for each of the three quarters of 1996.

At the end of September 1996 the company released its AccuPrint software for the graphic arts market, at the Seybold show in San Francisco. Third quarter results include revenues of approximately US$100,000 from sales of AccuPrint.

In addition, during October, ScanVec released Optitex 6.0 software for the textile market and in November the company expects to release EnRoute 2.0 for the machinery market.

Initial responses to these product releases has been encouraging and the performance of these new products is expected to contribute to growth of sales in 1997. -0-

For further information, contact ScanVec President Dr. Ramon Harel on Nov. 7, 1996, between 8:00 a.m. - 10:00 a.m. (US time) at 508-694-9488.

To the extent that this press release discusses expectations about market conditions or about market acceptance and future sales of the company's products, or otherwise makes statements about the future, such statements are forward looking and are subject to a number of risks and uncertainties that could cause results to differ materially from the statements made. These factors include the rapidly changing technology and evolving standards in the industries in which the company operates, risks associated with the acceptance of new products by individual customers and by the marketplace and other factors discussed in the business description and management's discussion and analysis sections of the company's Annual Report on Form 20-F and Registration Statement on Form F-1.

ScanVec designs, manufactures, markets and supports a family of high-performance software products for the sign making & graphic arts industries, for the textile industry and for machining applications in wood and metal carving. ScanVec's products are PC-based open-architecture solutions. Their relatively low price points and unique performance make ScanVec's products very attractive for millions of small and large manufacturers and professionals all over the world. ScanVec products are sold in 50 countries and in 21 languages, by more than 140 distributors, dealers and OEMs all over the world. -0-

                    ScanVec Co. (1990) Ltd.
               Consolidated Statements of Income
                     (in U.S. dollars)

                 Nine Months period ended      Three Months period ended
                        Sept. 30,                      Sept. 30,
                    1996            1995        1996          1995

Sales              $8,464,969    $7,629,950  $2,869,487    $2,860,551
Cost of Sales      $2,087,054    $1,338,181  $  599,309    $  472,854
Gross profit       $6,377,915    $6,291,769  $2,270,178    $2,387,697
Research and
 Development,
 Gross             $2,528,878    $1,837,803  $  935,413    $  713,311
 Less royalty-
 bearing grants    $  937,833    $  539,526  $  368,833    $  179,526
 Less capitalization
 of computer software
 costs             $  570,000    $  247,991  $  190,000    $   67,334
R&D, Net           $1,021,046    $1,050,286  $  376,581    $  466,451
Selling expenses,
 net               $4,030,442    $2,602,632  $1,321,838    $  922,488
General &
 administrative
 expenses          $1,797,407    $1,063,582  $  650,734    $  391,367
Operating income   $ (470,979)   $1,575,269  $  (78,975)   $  607,391
Financial Income,
 net               $  206,033    $   61,501  $   58,164    $   21,496
Income before taxes
 on income         $ (264,946)   $1,636,770  $  (20,811)   $  628,887
Taxes on income    $  (40,180)   $  335,662  $   14,820    $  127,551
Net income         $ (224,766)   $1,301,108  $  (35,631)   $  501,336
Minority share in
 earnings of a
 consolidated
 subsidiary
Net income         $ (224,766)   $1,301,108  $  (35,631)   $  501,336
Earnings per share $    (0.05)   $     0.43  $    (0.01)   $     0.17
Average number of
 shares             4,428,000     3,000,000   4,428,000     3,000,000
-0-
                       ScanVec Co. (1990) Ltd.
                     Consolidated Balance Sheet
                         (in U.S. dollars)

                           Period Ended            Year Ended
                            Sept. 30,               Dec. 31,
                              1996                    1995
                                                    (audited)
     Assets
Current Assets
 Cash and cash equivalents  $7,989,772             $9,458,913
 Accounts receivables       $2,472,687             $2,412,377
 Other receivables          $2,542,061             $2,323,528
                           $13,004,520            $14,194,818
Fixed Assets                $1,724,149             $1,306,216
Other Assets                $  975,891             $  771,180
Deferred Income Taxes              ---             $    6,227
  Total Assets             $15,704,560            $16,278,441

 Liabilities and Shareholders' Equity
Current Liabilities
 Accounts Payables          $  231,987             $  735,027
 Other Current Liabilities  $1,067,903             $1,104,274
                            $1,299,890             $1,839,301
Long Term Liabilities, net  $  256,727             $  225,018
Deferred income taxes       $  132,711                    ---
Shareholders' Equity
 Share capital              $9,804,217             $9,778,341
 Retained Earnings          $4,211,015             $4,435,781
Total Shareholders' Equity $14,015,232            $14,214,122
Total Liabilities and
 Shareholders' Equity      $15,704,560            $16,278,441

CONTACT: ScanVec Co. Ltd., Tel Aviv

Ramon Harel, [phone]