• Revenues were $35.2M  with Gross Margin of 49%
• Strong Balance Sheet with $30.8M in Cash, Cash Equivalents and Short Term Investments

ISELIN, NJ, – November 30,2011 – On Track Innovations Ltd. (“OTI”) (NASDAQ GM: OTIV), designs,develops and markets secure identification, payment and transaction processingtechnologies and solutions for use in secure ID, payment and loyaltyapplications based on its extensive patent and IP portfolio, today announced resultsfor the third quarter and first nine months ended September 30, 2011.

The following are variousfinancial figures that compare first nine months of 2011 to the same periodlast year.

First Nine Months 2011 Highlights:

• Total revenues of $35.2M decreased 19% vs. $43.6M last year.
• Revenues from Licensing and Transaction Fees increased by 42% to $4.0M vs. $2.8M last year.

• Gross margin was 49% for the first nine months of 2011.

• Non-GAAP operating expenses increased by 17% to $22.2M compared to $19.0M last year. GAAP operating expenses increased by 9% to $24.2M vs. $22.2M last year.

• Non-GAAP operating loss was $5.0M, compared to non-GAAP operating profit of $4.6M last year. GAAP operating loss was $7.0M, compared to GAAP operating profit of $1.4M last year.

• GAAP net loss attributable to shareholders was $7.4M, compared to $2.0M last year.

• Strong balance sheet with cash, cash equivalents and short-term investments of $30.8M at September 30, 2011.

Oded Bashan, Chairman and Chief Executive Officer of OTI, commented,“Our nine months revenues were lowerthan expected as a result of a weaker than expected third quarter. However, weare experiencing higher revenues in Q4 which right now looks to be ourstrongest quarter of the year. In addition, the shift in timing of certaincontracts although will reduce this year numbers will further increase ourvisibility for 2012.

Our second halfresults are being impacted by the flooding in Thailand which has affected ourability to deliver products to certain customers. The delays are due both tothe direct impact at the Thailand plant of our principal contractor for inlays,as well as disruptions in our supply chain. Additionally, we have experiencedsome customer delays which have impacted existing contracts and their executionand as a result our revenue recognition. In summary, approximately $6M to $8Mof previously anticipated 2011 revenues have now been shifted into 2012.”

Mr. Bashan, concluded, “As a result of these developments, we have reduced our full year 2011revenue guidance to $50M, from $55 to $60M. However, we reiterate this is ashift, which in our belief, will contribute to the visibility in 2012. Impliedin our revised guidance is a solid Q4 performance with gross margins returning toour long term target level of 50% on annual basis. Given the anticipated strongQ4 revenue and gross margin, we expect to be profitable in Q4 on a non-GAAPbasis.”

Repurchase Plan

We have now completed our $2 million sharerepurchase plan since the reactivation of the program, as previously reportedin our six months results.

Discontinued Operations

During Q4 2009, OTI agreed tosell the assets of its Millennium Card's Technology Ltd ("MCT")subsidiary, including the machinery and inlay production IP of OTI, to SMARTRACNV. Results for the discontinued operations have been separated and arepresented separately.

Use of Non-GAAPFinancial Information

In addition to reportingfinancial results in accordance with generally accepted accounting principles,or GAAP, OTI uses non-GAAP measures of operating expenses, operating income,net income and earnings per share, which are adjustments from results based onGAAP to exclude non-cash stock-based compensation expenses related to employeesand non employees in accordance with the requirements of Accounting StandardsCodification (“ASC”) Topic 718 (originally issued as SFAS No. 123(R)) and ASCSubtopic 505-50 - Equity-Based Payments to Non-Employees (formerly EITF 96-18);amortization of intangible assets; and results from discontinued operations.OTI management believes the non-GAAP financial information provided in thisrelease provides meaningful supplemental information regarding our performanceand enhances the understanding of the Company’s on-going economic performance.The presentation of this non-GAAP financial information is not intended to beconsidered in isolation or as a substitute for results prepared in accordancewith GAAP. Management uses both GAAP and non-GAAP information in evaluating andoperating the business and as such deemed it important to provide all thisinformation to investors. Reconciliations between GAAP measures and non-GAAPmeasures are provided later in this press release.

Conference Call and WebcastInformation

OTI will host a conference call and simultaneous Webcast todayat 9:00 AM ET to discuss its operating results and the company’s outlook.Details are as follows:

Dial in #:                                 Toll Free 1-866-652-8972(U.S.) or 1-800-227-297 (Israel)

Live Webcast/Replay:           http://www.otiglobal.com/Investors_Introduction

Telephone Reply:                  1-877-456-0009 (U.S. toll free)until midnight 12/7/11

About On Track Innovations Ltd.(www.otiglobal.com)

On Track Innovations Ltd. ("OTI")designs, develops and markets secure identification, payment and transactionprocessing technologies and solutions for use in secure ID, payment and loyaltyapplications based on its extensive patent and IP portfolio. OTI combinesstate-of-the-art, contactless microprocessor-based technologies and enablinghardware with proprietary software applications to deliver high performance,end-to-end solutions that are secure, robust and scalable. OTI solutions havebeen deployed around the world to address homeland security, national ID,medical ID, contactless payment and loyalty applications, petroleum payment,parking and mass transit ticketing. OTI markets and supports its solutionsthrough a global network of regional offices and alliances.

OTI Contacts:                                                                                   

GalitMendelson                  Jay M.Meier                                         

VP,Corporate Relations      SVP,Business Development & Investor Relations

732429 1900 ext. 111         OTIAmerica, Inc.                                 

galit@otiglobal.com             732 4291900 ext. 104                          

                                             jaym@otiglobal.com                             

Investor Relations:         

Norberto Aja/David Collins

Jaffoni & Collins

212-835-8500

otiv@jcir.com

Safe Harbor for Forward-LookingStatements: 

This press release containsforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995 and other Federal securities laws.  Whenever we use words such as “believe,”“expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions, weare making forward-looking statements. Because such statements deal with future events and are based on OTI’scurrent expectations, they are subject to various risks and uncertainties andactual results, performance or achievements of OTI could differ materially fromthose described in or implied by the statements in this press release.  Forward-looking statements include statementsregarding our goals, beliefs, future growth strategies, objectives, products,plans, and future results of operations or current expectations. Forward-looking statements could beimpacted by the effects of the protracted evaluation and validation periods inthe U.S. and other markets for contactless payment cards, market acceptance ofnew and existing products and our ability to execute production on orders, aswell as other risks and uncertainties, including those discussed in the “RiskFactors” section and elsewhere in our Annual Report on Form 20-F for the yearended December 31, 2010, and in subsequent filings with the Securities andExchange Commission.   Although webelieve that the expectations reflected in such forward-looking statements arebased on reasonable assumptions, we can give no assurance that our expectationswill be achieved.  Except as otherwise requiredby law, OTI disclaims any intention or obligation to update or revise anyforward-looking statements, which speak only as of the date hereof, whether asa result of new information, future events or circumstances or otherwise.

The content of websites orwebsite links mentioned or provided herein are not part of this press release.

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Tables are provided in the PDF file provided below.