Givat Shmuel, Israel – January 17, 2012 – Cimatron Limited (NASDAQ and TASE: CIMT) today announced that its subsidiary, Cimatron China, has signed an agreement with China's leading integrated IT service provider, Digital China Holdings Ltd ("Digital China"). The agreement makes Digital Holdings the country's largest independent reseller of the Cimatron Group's product lines, CimatronE and GibbsCAM.

"Cimatron now has over 20 resellers throughout China, and recognition of our brands among the country's manufacturers has never been higher," said Ms Lang Yan, General Manager of Cimatron China.

"Our new strategic relationship with Digital China will further boost the reach of Cimatron's solutions, as well as increase the high service standard that we offer our customers."

Digital China is the largest integrated IT services provider in China. It offers eight major business segments, including IT planning, business process outsourcing, application development, system integration, hardware infrastructure services, maintenance, hardware installation, and distribution and retail. With regional headquarters in Beijing, Guangzhou and Shanghai, as well as nine offices nationally, the company will serve as a sales agent and provide customer support for the CimatronE and GibbsCAM software solutions offered by Cimatron Group.

"Through our relationship with Digital China, we expect to grow our sales of the GibbsCAM product line, offering a state-of-the-art CAM software solution for programming high-end multi-axis CNC machine tools," said Ms Yan.

"As Digital China is a general agent of Autodesk, it will now be able to leverage the fact that GibbsCAM is a certified Autodesk CAM partner, offering GibbsCAM as a way of supporting its customers' CAM needs.

"Additionally, through our relationship with Digital China, we expect to expand the sales of our CimatronE fully integrated CAD/CAM suite, which has dramatically optimized the engineering process of mold, tool and die makers, increasing their productivity and profitability."

About Digital China Holdings Ltd

Digital China Holdings Ltd (stock code 00861) is a leading integrated IT services provider in China. It was listed on the main board of the Stock Exchange of Hong Kong Ltd on 1 June 2001 following a spin off from the Legend Group. It focuses on providing customers with sophisticated and applicable IT solutions, driving technological innovations for work and life and enhancing the digitalization process in China. In order to achieve these goals, Digital China is striving to become the premier IT services provider with the most comprehensive services for a majority of Chinese users. Leveraging on its strategic partnership with over 100 leading IT vendors worldwide and a network of over 10,000 resellers and agents across the country, Digital China provides the best and most convenient IT services to users in China.

About Cimatron

With 30 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 and ultimately shorten product delivery time.

The Cimatron product line includes the CimatronE and GibbsCAM brands with solutions for mold design, die design, electrode design, 2.5 to 5 Axis 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's shares are publicly traded on the NASDAQ exchange under the symbol CIMT. For more information, please visit Cimatron's web site at:

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to Cimatron's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Cimatron's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycles, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties related to Cimatron's business, refer to Cimatron's filings with the Securities and Exchange Commission. Cimatron cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

For More Information Contact:

Idit Pass Lagziel
Marketing Manager
Cimatron Ltd.
Phone: +972 73 237 0298
Email: [email protected]

Ilan Erez
Chief Financial Officer
Cimatron Ltd.
Phone: +972 73 237 2114
Email: [email protected]