Givat Shmuel, Israel, – July 14, 2008– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced that its board of directors approved the exercise of Cimatron's previously disclosed second call option to acquire an additional 49% of the shares of Microsystem Srl, the company's Italian distributor, for an exercise price of approximately US$1,250,000, and accordingly, to increase Cimatron's holding in Microsystem from 51% to 100%. The exercise price was already included in Cimatron's current liabilities as of December 31, 2007. The acquisition is scheduled to close in the second half of July, 2008.

Commenting on the news, Danny Haran, President and Chief Executive Officer of Cimatron, said, "The increase in our holding in Microsystem to 100% is the final stage of our investment in Microsystem, that was meant to strengthen our leading position in Italy, one of our key markets in West Europe. We have worked closely with Microsystem's management and staff since we acquired 27.5% of its shares in 2005, and we already see the benefits for both companies' customers and employees. We have consolidated Microsystem's results in our financial statements since Q3 2007, when we increased our holding to 51%, hence the increase to 100% is not expected to change the way we are currently reporting this holding in our financial statements".

About Microsystem
Microsystem is Cimatron's Italian subsidiary and a well-established distributor of software solutions for the Italian manufacturing industry. Microsystem started distributing CAD/CAM systems in 1984, subsequently broadening its offering to cover all phases of the design and manufacturing cycle. With headquarters in Bologna and offices in Milan, Treviso and Ancona, Microsystem provides customers with best-in-class manufacturing solutions and superior technical support.

About Cimatron
With over 25 years of experience and more than 40,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time.
The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrodes design, 2.5 to 5 axes milling, wire EDM, turn, Mill-turn, rotary milling, multi-task machining, and tombstone machining. Cimatron's subsidiaries and extensive distribution network serve and support customers in the automotive, aerospace, medical, consumer plastics, electronics, and other industries in over 40 countries worldwide.
Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit the company web site at:

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