Thursday, Aug 11, 2005 5:00 AM

Givat Shmuel, Israel, – August 11, 2005– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry, today announced financial results for the second quarter ended June 30, 2005.
Revenues for the second quarter of 2005 were $5.03 million, compared to $6.10 million in the second quarter of 2004. Net loss for the second quarter of 2005 was $1.29 million, or $(0.17) per fully diluted share, compared to a net profit of $202 thousand, or $0.03 per fully diluted share in the second quarter of 2004.

Revenues for the first half of 2005 were $10.60 million, compared to $11.48 million in the first half of 2004. Net loss for the first half of 2005 was $2.27 million, or $(0.29) per fully diluted share, compared to a net profit of $212 thousands, or $0.03 per fully diluted share in the first half of 2004.

Commenting on the second quarter results, Danny Haran, President and Chief Executive Officer of Cimatron, said: "The main reason for the net loss in the second quarter of 2005 is the decrease in sales, attributed mainly to the challenging environment in the Euro Zone economy. We are taking measures to adjust our expense level to current market conditions. At the same time, we will continue to enhance our sales and marketing efforts worldwide."

About Cimatron
Cimatron is the leading provider of integrated, quoting-to-delivery CAD/CAM solutions for the tooling industry. Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Worldwide, more than 8,500 customers, with installations in the automotive, consumer plastics, and electronics industries, employ Cimatron's cutting-edge CAD/CAM solutions for manufacturing.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support.

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 the company's plans, objectives and expected financial and operating results. 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 cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings, with the Securities and Exchanges Commission. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Cimatron Limited
Consolidated Balance Sheets (US Dollars in thousands)

Jun 30, 2005 Dec 31,2004
ASSETS
(Unaudited) (Audited)
CURRENT ASSETS:
Total cash, cash equivalents
and short-terms investments $7,832 $8,092
Other current assets 6,552 6,902
Total current assets 14,384 14,994
Deposits with insurance
companies and severence
pay fund 2,496 2,946
Long-term investments 815
Net property and equipment 1,060 1,073
Total other assets 1,591 1,791
Total assets $20,346 $20,804

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Total current liabilities $6,903 $4,688
Accrued severance pay 2,834 3,268
Minority interest 32
Total shareholder's equity 10,577 12,848
Total liabilities and
shareholders equiry $20,346 $20,804

Cimatron Limited
Consolidated Statements of Income
(US Dollars in thousands, except for per share data)

Three months ended Six months ended
Jun 30, Jun 30,
2005 2004 2005 2004
(Unaudited) (Unaudited)
Total revenue 5,033 6,107 10,605 11,477
Total cost of reveneu 1,043 1,238 2,114 2,344
Gross Profit 3,990 4,869 8,491 9,133
Research and
development expenses 1,285 1,309 2,756 2,553
Selling, general and
administrative expenses 3,902 3,499 7,918 6,598
Operating income (loss) (1,197) 61 (2,183) (18)

Net income (loss) 1,293 202 2,274 212
Net income (loss) -per
share - basic and diluted 0.17 0.03 0.29 0.03

Weight average number of
shares outstanding- basic and
diluted EPS (in thousands) 7,835 7,835 7,835 7,835