FORT LEE, NJ – On Track Innovations Ltd. (OTI) (NASDAQ: OTIV) (Prime Standard (Frankfurt): OT5), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced that it has established together with a government entity, a joint venture for the manufacture and sale of OTI-based travel document inlays for such government.

The joint venture was approved for establishment by the Asian government authorities. It is estimated that the joint venture will commence commercial manufacturing within nine months.

Oded Bashan, President & CEO of OTI, noted: “The Asian country’s Travel Document project is one of the most advanced electronic Travel Document programs. We are excited to team with such respected government entity to form such joint venture, and proud to be selected to provide this government the most advanced solution for manufacturing travel document inlays.”

About OTI Established in 1990, OTI (NASDAQ: OTIV) (Prime Standard: OT5) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, micro payments, mass transit ticketing, parking, loyalty programs and secure campuses. OTI has a global network of regional offices to market and support its products. The company was awarded the Frost & Sullivan 2005 Company of the Year Award in the field of smart cards. For more information on OTI, visit www.otiglobal.com.