OTI's Warsaw e-Ticketing Contract's Transaction Fee Revenues Expected to Increase to $25 Million as a Result of a Four-Year E...
13 September 2011 - 10:30PM
On Track Innovations Ltd. ("
OTI") (Nasdaq:OTIV),
today announced that its wholly owned subsidiary, ASEC S.A.
("ASEC") in Poland, was awarded an extension to its contract as an
e-ticketing operator of Warsaw City Card by the Urban Transport
Authority of the City of Warsaw. The original award from 2008 was
scheduled to end in 2013, and the new extension ensures a smooth
and continuous operation until the end of 2017. Total direct
revenues generated from transaction fees over the entire project's
life span are expected to reach approximately $25 million, with
approximately $20 million over the next 6 years.
As part of the project, ASEC is responsible for the build and
operate of the project including financing and installation of
infrastructure equipment.
ASEC already installed 100 automated vending machines and 300
terminals for loading of Warsaw City Card that are located at
subway and train stations, buses and tramway transfer hubs and at
areas frequently visited by tourists.
Last year ASEC has expanded the services provided to include
loading of GSM prepaid cellular phone cards at the ticket vending
machines for which ASEC receives a transaction fee from the loading
value. Additionally, riders can use their contactless credit cards
to reload funds on their Warsaw City Card.
Oded Bashan, Chairman and CEO of OTI, said, "We are pleased with
the City of Warsaw's decision to continue with us. We are working
very hard to provide best of class service, technology and
operation for the benefit of the commuters in the city of Warsaw.
The project is in line with our focus to secure projects with high
margin recurring revenues and transaction fees."
About OTI
Established in 1990, OTI (Nasdaq:OTIV) 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, payments, mass transit ticketing, parking and
loyalty programs. OTI has a global network of regional offices to
market and support its products. The Company was awarded the Frost
& Sullivan 2005 and 2006 Company of the Year Award in the field
of smart cards.
For more information on OTI, visit www.otiglobal.com, the
content of which is not part of this press release. The On Track
Innovations Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5736
Safe Harbor for Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and other Federal
securities laws. Whenever we use words such as "believe," "expect,"
"anticipate," "intend," "plan," "estimate" or similar expressions,
we are making forward-looking statements. Because such statements
deal with future events and are based on OTI's current
expectations, they are subject to various risks and uncertainties
and actual results, performance or achievements of OTI could differ
materially from those described in or implied by the statements in
this press release. For example, forward-looking statements include
statements regarding our goals, beliefs, future growth strategies,
objectives, plans or current expectations, such as those regarding
the expected income to be generated from the orders from the
Transport Department of the City of Warsaw and the expected timing
for generating such income. Forward-looking statements could be
impacted by market acceptance of new and existing products and our
ability to execute production on orders, as well as the other risk
factors discussed in OTI's Annual Report on Form 20-F for the year
ended December 31, 2010, which is on file with the Securities and
Exchange Commission. Although OTI believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its
expectations will be achieved. Except as otherwise required by law,
OTI disclaims any intention or obligation to update or revise any
forward-looking statements, which speak only as of the date hereof,
whether as a result of new information, future events or
circumstances or otherwise.
CONTACT: OTI Contact:
Galit Mendelson
Vice President of Corporate Relations
732 429 1900 ext. 111
galit@otiglobal.com
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
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