Givat Shmuel, Israel, – May 17, 2006– 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 first quarter ended March 31, 2006.

Revenues for the first quarter of 2006 were $5.4 million, compared to $5.6 million in the first quarter of 2005. Net profit for the first quarter of 2006 was $220 thousand, or $0.03 per fully diluted share, representing the Company's first profitable quarter since the second quarter of 2004. In the first quarter of 2005, the Company recorded a net loss of $(981) thousand, or $(0.13) per fully diluted share.

Commenting on the results, Danny Haran, President and Chief Executive Officer of Cimatron, said: "We are pleased to report both operating and net profit for the first quarter of 2006, an important milestone in our strategy for building the Company to the next level. Our profits reflect the benefits of the re-organization plan that we implemented last year, according to which we have focused our resources on key products and market needs. Equally important, in contrast to our normal seasonal pattern, in which first quarter revenues are generally weaker than the fourth quarter, we are encouraged that our first quarter sales remained at the same level as they were in the previous quarter."

Mr. Haran continued, "We continue to invest heavily in sales and marketing activities to build our pipeline of sales from key markets. During the quarter, we achieved additional success in North America with our Quoting to Delivery strategy, and continued to build positive momentum in several Asia Pacific regions, particularly in China. Despite the general shift of manufacturing activities away from Western Europe, we saw positive signs in some countries of this developed region."

"We are pleased with market acceptance of Version 7 of our flagship CimatronE, together with encouraging early sales of our recently-introduced NC 5X Production offering. We believe these new products, together with the cutting-edge CAD/CAM solutions that we are developing for the Tooling and Discrete Manufacturing industries, will lead us to a higher level of sales in the future."

Mr. Haran concluded, "As always, the seasonality of our business makes it difficult to predict our future results. However, with industry-leading products, thousands of satisfied customers, a great team and a streamlined organization, we are optimistic regarding our long-term prospects."

About Cimatron

Cimatron is a 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 (directly and indirectly), 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 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]



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