Givat Shmuel, Israel, – November 15, 2006– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced financial results for the third quarter and nine months ended September 30, 2006.
Revenues for the third quarter of 2006 were $5.0 million, compared to $4.9 million recorded in the third quarter of 2005. Net loss for the quarter was $(281,000), or $(0.04) per diluted share, compared to a net loss of $(597,000), or $(0.08) per diluted share recorded in the parallel quarter of 2005.
Revenues for the first nine months of 2006 were $15.4 million, compared to $15.5 million in the first nine months of 2005. Net loss for the period was $(43,000), or $(0.01) per diluted share, compared to a net loss of $(2.9) million, or $(0.37) per diluted share, recorded in the first nine months of 2005.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said, "The third quarter was an important period for Cimatron. While maintaining stable revenues, we continue to make significant investments in sales and marketing and R&D to address emerging opportunities in target markets. In response to the growth of the toolmaker market in India, we have extended our direct sales and support capabilities to Delhi and Mumbai. In addition, we have acquired the remaining 70% of the shares of our Korean distributor, making it a wholly-owned subsidiary."

Mr. Haran concluded, "Taken as a whole, with cutting edge products, a larger sales force and growing markets, we are well positioned and working to achieve our goals."

About Cimatron
Cimatron is a leading provider of integrated, CAD/CAM solutions for toolmaking and manufacturing. 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. With more than 20,000 installations worldwide, Cimatron's customers employ its cutting-edge CAD/CAM solutions for manufacturing in the automotive, consumer plastics, electronics, and other industries.

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 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 the future performance and involve risks and uncertainties, many of which are beyond the company'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 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. The company 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.

Company contact
Ilan Erez, CFO
Cimatron Ltd.
[email protected]

Cimatron Limited
Consolidated statements of income

(in thousands, except per share data)
Three months ended
September 30,
Nine months ended
September 30,
2006 2005 2006 2005
Total revenue 5,014 4,896 15,432 15,501
Total cost of revenue 835 936 2,706 3,050
Gross profit 4,179 3,960 12,726 12,451
Research and development expenses,net 1,150 1,196 3,333 3,952
Selling, general and administrative expenses 3,432 3,326 9,710 11,244
Operating Income (loss) (403) (562) (317) (2,745)
Net Income (loss) $(281) $(597) $(43) $(2,871)
Net Income (loss) per share - basic and diluted $(0.04) $(0.08) $(0.01) $(0.37)
Weighted average number of shares outstanding
- basic and diluted EPS (in thousands)
7,835 7,835 7,835 7,835

Cimatron Limited
Consolidated Balance Sheets

(US Dollars in thousands)

September 30, 2006

December 31, 2005

Current Assets
Total cash,cash equivalents and short-terms investments $5,220 $4,875
Other current assets 5,570 5,377
Total current assets 10,790 10,252
Deposits with insurance companies and severance pay fund 2,512 2,219
Long-Term Investments
Marketable investments 1,253 1,309
Investments in affiliated companies 754 886
Total long-term investments 2,007 2,195
Net property and equipment 992 996
Total other assets 792 780
Total assets $17,093 $16,442
Current Liabilities
Total current liabilities $5,970 $5,924
Accrued severance pay 2,861 2,532
Minority interest (6) 4
Total shareholder's equity 8,268 7,982
Total liabilities and shareholder's equity $17,093 $16,442