New Order for Additional 100,000 Cards to Expand User Groups

ISELIN, N.J., March 16, 2010 (GLOBE NEWSWIRE) -- On Track Innovations
Ltd, (OTI) (Nasdaq:OTIV), a global leader in contactless
microprocessor-based smart card solutions for homeland security,
payments, petroleum payments and other applications, today announced
that Smart Applications International Ltd. (SMART), a Kenyan company
committed to delivering technology driven secure healthcare solutions,
has placed an order for an additional 100,000 MediSmart cards which are
to be issued by multiple medical scheme managers. In accordance with
OTI's recurring revenue strategy, revenues from this product are
obtained from both products and licensing fees per issued card. OTI's
wholly owned subsidiary, OTI Africa, is responsible for the development
and support of the MediSmart product.

Of the 200,000 cards supplied to date, approximately 150 000 are in
issue and SMART has established a network of more than 1000 points of
service at hospitals, pharmacies and general practitioner sites across
Kenya, with planned expansion to an additional 500 points of service,
enabling patient authentication, verification of benefits and claims
processing in a seamless electronic process. Among MediSmart users in
Kenya are leading brands such as Equity Bank, Barclays Bank, Standard
Chartered Bank, Unilever, Tetrapak, the Serena Group of Hotels, Nestle,
the National Social Security Fund (NSSF), the Teachers Service
Commission (TSC), AON Insurance Brokers, UAP Insurance Company and
more.

Oded Bashan, Chairman and CEO of OTI, said, "MediSmart is providing the
different stakeholders in the medical industry with a safer, more
accurate and cost effective way to provide medical services while
interfacing with existing systems in place. The MediSmart business
model is yet another example where OTI is focusing on high margin
projects with recurring revenues. These projects have a longer
initiation process but provide solid long term revenues for OTI."

MediSmart, developed by a team of healthcare industry experts at OTI
with system process design support by SMART, provides complete medical
history, biometric identification and co-payment options. As it is
estimated that 35% of claims in the health care sector in Kenya are
fraudulent, MediSmart serves to address fraud and in so doing ensures
that the valuable resources required for healthcare are in fact
directed to the provision of such care. Moreover, MediSmart enables the
introduction and effective management of joint state and private sector
funding and service delivery models.

With OTI's MediSmart, SMART is able to provide a complete healthcare
solution, including cards, readers and related software that are
seamlessly integrated with hospital management systems; up to 75% of
patients in Kenya receive their primary healthcare services at public
hospitals. The OTI MediSmart solution offers secure and fast front-end
patient authentication and benefit verification at the service provider
level. It allows for electronic clinical data capture and electronic
claim and/or report generation, taking into consideration benefit rules
in respect to services provided and benefit utilization. At the same
time, the information is recorded on each patient's personal MediSmart
card (or mobile data repository) and relevant data is transferred to
the corporate and insurer levels. With MediSmart, statements and
invoices are generated faster, administration time and cost are reduced
and, since claims are authenticated electronically, it further
guarantees payment and reduces payment cycles at the provider levels.

The OTI MediSmart solution offers the following benefits:


  --  Authentic member identification -- biometrically
  --  No over expenditure -- members use only the benefit balance on their
      cards
  --  Faster member scheme rules verification
  --  Remote communication with card for benefits renewal or update
  --  Remote member cancellation
  --  An improvement in clinical decision making by facilitating the
      communication of client-option/plan specific guidelines, protocols,
      rules and warnings amongst all role players in the health care sector
  --  Reduction of human error, medical risk, service errors or Rx
  --  Easy and rapid access to essential patient medical information in case
      of emergencies




In addition, the solution helps eliminate:


  --  Payments for fraudulent services not rendered
  --  Over expenditure in line with benefit balances
  --  Over servicing such as procedures that are carried out when they are not
      necessary
  --  Over prescribing, such as seen in excessive pharmacy prescriptions
  --  Ethical drug substitution and over pricing with generics bought in bulk
  --  Non-compliance with Price guidelines.




About OTI

Established in 1990, OTI (Nasdaq:OTIV) designs, develops and markets
secure contactless microprocessor-based smart card technology to
address the needs of a wide variety of markets. Applications developed
by OTI include product solutions for petroleum payment systems,
homeland security solutions, electronic passports and IDs, payments,
mass transit ticketing, parking and loyalty programs. OTI has a global
network of regional offices to market and support its products. The
company was awarded the Frost & Sullivan 2005 and 2006 Company of the
Year Award in the field of smart cards.

The On Track Innovations Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5736

For more information on OTI, visit www.otiglobal.com, the content of
which is not part of this press release.

About Smart Applications International Limited (SMART)

SMART is a privately owned limited liability company incorporated in
Kenya. The majority ownership is by Kenyan investors. We have licensed
the MediSmart solution from our partners and technology developers, OTI
Africa based in Cape Town, South Africa, and we are very privileged to
be the pioneers and drivers of this new world-class technology in Kenya
and the regional market at large. The company's strategic intent is to
make a Smart Card the card of choice in the entire Healthcare industry.
For more information on SMART, visit www.smart.co.ke

Safe Harbor for Forward-Looking Statements:

This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and other Federal securities laws.
Whenever we use words such as "believe," "expect," "anticipate,"
"intend," "plan," "estimate" or similar expressions, we are making
forward-looking statements. Because such statements deal with future
events and are based on OTI's current expectations, they are subject to
various risks and uncertainties and actual results, performance or
achievements of OTI could differ materially from those described in or
implied by the statements in this press release. For example,
forward-looking statements include statements regarding our goals,
beliefs, future growth strategies, objectives, plans or current
expectations, such as the statements related to the potential market
for OTI's MediSmart solution or the planned expansion of the MediSmart
Program in Kenya, the expected revenues to be generated from MediSmart
projects, OTI's strategy to focus on high margin projects with
recurring revenues, and the superiority of and the benefits offered by
the MediSmart solution. Forward-looking statements could be impacted by
failure of market acceptance of new and existing products and our
ability to execute production on orders, as well as the other risk
factors discussed in OTI's Annual Report on Form 20-F for the year
ended December 31, 2008, which is on file with the Securities and
Exchange Commission. Although OTI believes that the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
achieved. Except as otherwise required by law, OTI disclaims any
intention or obligation to update or revise any forward-looking
statements, which speak only as of the date hereof, whether as a result
of new information, future events or circumstances or otherwise.


CONTACT:  On Track Innovations Ltd.
          Galit Mendelson, Vice President of Corporate Relations 
          201 944 5200 ext. 111  
          galit@otiglobal.com

          MS-IR LLC 
          Investor Relations 
          Miri Segal 
          917-607-8654
          msegal@ms-ir.com